[Federal Register Volume 86, Number 69 (Tuesday, April 13, 2021)]
[Proposed Rules]
[Pages 19162-19169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07175]
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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
25 CFR Part 1187
[212A2100DD/AAKC001030/A0A501010.999900]
RIN 1076-AF63
Indian Business Incubators Program
AGENCY: Office of the Assistant Secretary, Indian Affairs, Interior.
ACTION: Proposed rule.
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SUMMARY: The Office of Indian Energy and Economic Development (IEED)
proposes a new regulation to implement the recently enacted Native
American Business Incubators Program Act. The Indian Business
Incubators Program (IBIP), also known as the Native American Business
Incubators Program, is a program in which IEED provides competitive
grants to eligible applicants to establish and operate business
incubators that serve Tribal reservation communities. These regulations
establish who is eligible for the program, how to apply, how IEED will
evaluate applications and make awards, and how IEED will administer the
program.
DATES: Please submit your comments by June 14, 2021. Tribal
consultation sessions to discuss this rule will be held on May 12 and
13, 2021, at 1 p.m. ET.
[[Page 19163]]
Please register in advance using the links provided in the
SUPPLEMENTARY INFORMATION section of this document.
ADDRESSES: You may submit comments, identified by the number 1076-AF63,
by any of the following methods:
Federal rulemaking portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Email: [email protected]. Include the number 1076-AF63
in the subject line of the message.
Mail or courier: Elizabeth Appel, Office of Regulatory
Affairs & Collaborative Action, Office of the Assistant Secretary--
Indian Affairs, U.S. Department of the Interior, 1849 C Street NW, Mail
Stop 4660, Washington, DC 20240.
We cannot ensure that comments received after the close of the
comment period (see DATES) will be included in the docket for this
rulemaking and considered. Comments sent to an address other than those
listed above will not be included in the docket for this rulemaking.
All comments received will be posted without change to http://www.regulations.gov, including any personal information provided.
Comments on the Paperwork Reduction Act information collections
contained in this rule are separate from comments on the substance of
the rule. Send your comments and suggestions on the information
collection requirements to the Desk Officer for the Department of the
Interior at OMB-OIRA at (202) 395-5806 (fax) or
[email protected] (email). Please provide a copy of your
comments to [email protected].
FOR FURTHER INFORMATION CONTACT: Elizabeth Appel, Office of Regulatory
Affairs & Collaborative Action, telephone (202) 273-4680,
[email protected].
SUPPLEMENTARY INFORMATION:
I. Statutory Authority
II. Need for This Proposed Rulemaking
III. Overview of Proposed Rule
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 13563, and 13771)
B. Regulatory Flexibility Act
C. Small Business Regulatory Enforcement and Fairness Act
D. Unfunded Mandates Reform Act of 1995
E. Takings (E.O. 12630)
F. Federalism (E.O. 13132)
G. Civil Justice Reform (E.O. 12988)
H. Paperwork Reduction Act
I. National Environmental Policy Act (NEPA)
J. Consultation With Indian Tribes (E.O. 13175)
K. Energy Effects (E.O. 13211)
L. Clarity of This Regulation
M. Public Availability of Comments
I. Statutory Authority
IEED is proposing this rule under the authority of the Native
American Business Incubators Program Act, Public Law 116-174.
II. Need for This Proposed Rulemaking
On October 20, 2020, Congress enacted the Native American Business
Incubators Program Act, Public Law 116-174, which will be codified at
25 U.S.C. 5801 et seq. In the Act, Congress establishes the Native
American Business Incubators Program. Congress found that, in addition
to the challenges all entrepreneurs face when transforming ideas into
profitable business enterprises, entrepreneurs face an additional set
of challenges that requires special knowledge when they want to provide
products and services in Tribal reservation communities. Congress
further found that the business incubator model is suited to
accelerating entrepreneurship in Tribal reservation communities,
promoting collaboration to address challenges and providing
individually tailored services to overcome the obstacles that are
unique to each participating business, ultimately stimulating economic
development in reservation communities. Business incubators accelerate
the creation and development of businesses by offering a range of
services to business owners such as: mentorships, networking, technical
assistance, and access to investors. In accordance with the Act's
requirement for promulgation of regulations within 180 days of the
Act's enactment (i.e., by April 18, 2021), IEED is publishing today's
proposed rule for notice and comment.
III. Overview of Proposed Rule
This proposed rule would establish the IBIP, in accordance with the
Native American Business Incubators Program Act. Through the IBIP, IEED
will provide competitive grants to eligible applicants to establish and
operate business incubators that serve entrepreneurs (start-up and
early stage businesses) who will provide products or services to Tribal
reservation communities. A business incubator is an organization that
assists entrepreneurs in becoming viable businesses by providing advice
and services to entrepreneurs to navigate obstacles in transforming
their innovative ideas into operational businesses. Examples of
services that a business incubator may provide are workspace and
facilities, advice on how to access capital, business education,
counseling, and networking and mentorship opportunities. Indian Affairs
does not currently have any regulations in place that provide for a
grant program for Indian business incubators. These regulations are
intended to provide the framework for operation of the grant program so
that there is certainty as to who is eligible for a grant, how eligible
applicants can apply for a grant, how IEED will evaluate, award, and
administer the grants, and what terms and conditions will apply to the
grants. The ultimate goal of providing this regulatory framework is to
enable IEED to provide grants under these regulations that will
stimulate economic development in reservation communities. IEED
welcomes input on any proposed regulatory provision that may undermine
this goal.
The proposed rule consists of six subparts, each of which is
described below.
Subpart A--General Provisions and Eligibility: Defines
terms defined in the statute consistent with the statutory definitions,
replacing citations with restatements of the provisions cited where
appropriate, and adds a new term for ``IBIP'' in lieu of ``Native
American Business Incubator Program (NABIP)'' to avoid confusion
because the acronym ``NABIP'' is similar to other grant programs. This
subpart also describes who is eligible to receive an IBIP grant, to
include the following entities that meet certain additional
requirements set out in Sec. 1187.3:
[cir] Tribes;
[cir] Tribal colleges and universities;
[cir] Institutions of higher education; and
[cir] Tribal or private nonprofit organizations that provide
business and financial technical assistance.
Subpart B--Applying for a Grant: Describes how an eligible
applicant applies for a grant, adding the specificity that applications
must be submitted through www.grants.gov. This subpart also includes
the statutory requirements for what must be included in an application
and written site proposal, and how to submit a joint application. The
regulations add that joint applications must identify which of the
entities submitting the joint application will be the lead contact for
the purposes of grant management.
Subpart C--Evaluation of Grant Applications: Describes the
criteria IEED will use to evaluate each IBIP grant application, adding
the specific time period of three months to the statutory requirement
that the applicant must commence services within a minimum period of
time to be determined by the Secretary. This subpart also adds a new
criterion to the
[[Page 19164]]
statutory criteria for evaluation: The extent to which a grant award
will enable an entity that is already providing business incubation
services to appreciably enhance those services. IEED added this
criterion in order to ensure that the grant is funding new incubation
services, such that there is a return for the investment made in the
incubator, rather than merely paying existing incubators for services
they would have otherwise provided.
Subpart D--Grant Awards: Describes how IEED will disburse
grant funds to awardees according to the statute. This subpart also
includes the statutory prohibition on awarding an IBIP grant that
duplicates other Federal funding, but adds a clarification that
duplicative funding means any funding from other Federal grants that
would overlap with the IBIP grant for the same activities described in
the applicant's IBIP proposal.
Subpart E--Grant Term and Conditions: Establishes an
initial grant term of three years, with the opportunity to renew for
one additional three-year term if certain conditions are met, in
accordance with the statute. This subpart also lists the purposes for
which awardees may use the grant funds, requires awardees to provide
non-Federal contributions in an amount at least 25 percent of the grant
unless the conditions for waiver of that requirement are met, lists the
minimum requirements awardees must meet in providing incubation
services, and requires the awardee to submit a report at the end of the
grant year that provides, among other things, a detailed breakdown of
the Native businesses and Native entrepreneurs the incubator helped
establish or serve. These items are all statutory but are included in
the regulation to assist readers in finding all relevant IBIP grant
information in one location.
Subpart F--IEED Grant Administration: Provides that IEED
will conduct an annual evaluation of each IBIP awardee's success,
facilitate relationships between awardees and educational institutions
serving Native American communities, and collaborate with other Federal
agencies that administer business and entrepreneurial programs. These
items are also all statutory but are included in the regulation to
assist readers in finding all relevant IBIP grant information in one
location.
IEED seeks comment, particularly from Tribes and potentially
eligible IBIP applicants, on any changes to the regulation within the
bounds of the statute that could be incorporated to help ensure the
success of this newly established program.
IV. Procedural Requirements
A. Regulatory Planning and Review (E.O. 12866, 13563)
Executive Order (E.O.) 12866 provides that the Office of
Information and Regulatory Affairs (OIRA) at the Office of Management
and Budget (OMB) will review all significant rules. OIRA has determined
that this rule is not significant.
E.O. 13563 reaffirms the principles of E.O. 12866 while calling for
improvements in the Nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
The E.O. directs agencies to consider regulatory approaches that reduce
burdens and maintain flexibility and freedom of choice for the public
where these approaches are relevant, feasible, and consistent with
regulatory objectives. E.O. 13563 emphasizes further that regulations
must be based on the best available science and that the rulemaking
process must allow for public participation and an open exchange of
ideas. We have developed this rule in a manner consistent with these
requirements.
B. The Regulatory Flexibility Act
The Department of the Interior certifies that this proposed rule
will not have a significant economic effect on a substantial number of
small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et
seq.). This rule establishes a program to provide grants for business
incubators, some of which may be small entities, but the $5 million in
total annual appropriations is not expected to reach the threshold of
having a significant economic effect on a substantial number of small
entities.
C. Small Business Regulatory Enforcement Fairness Act of 1996
This proposed rule is not a major rule under 5 U.S.C. 804(2), the
Small Business Regulatory Enforcement Fairness Act. Because this
proposed rule establishes a program supported by $5 million in annual
appropriations this rule:
(a) Does not have an annual effect on the economy of $100 million
or more.
(b) Will not cause a major increase in costs or prices for
consumers, individual industries, Federal, State, or local government
agencies, or geographic regions.
(c) Does not have significant adverse effects on competition,
employment, investment, productivity, innovation, or the ability of
U.S.-based enterprises to compete with foreign-based enterprises.
D. Unfunded Mandates Reform Act of 1995
This proposed rule does not impose an unfunded mandate on State,
local, or Tribal governments or the private sector of more than $100
million per year. The proposed rule does not have a monetarily
significant or unique effect on State, local, or Tribal governments or
the private sector. This proposed rule would establish a program to
provide grants to certain business incubators that will serve Tribal
communities. A statement containing the information required by the
Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.
E. Takings (E.O. 12630)
This proposed rule does not affect a taking of private property or
otherwise have taking implications under Executive Order 12630 because
this proposed rule does not affect individual property rights protected
by the Fifth Amendment or involve a compensable ``taking.'' A takings
implication assessment is not required.
F. Federalism (E.O. 13132)
Under the criteria in section 1 of Executive Order 13132, this
proposed rule does not have sufficient federalism implications to
warrant the preparation of a federalism summary impact statement. A
federalism summary impact statement is not required.
G. Civil Justice Reform (E.O. 12988)
This proposed rule complies with the requirements of Executive
Order 12988. Specifically, this rule: (a) Meets the criteria of section
3(a) requiring that all regulations be reviewed to eliminate errors and
ambiguity and be written to minimize litigation; and (b) Meets the
criteria of section 3(b)(2) requiring that all regulations be written
in clear language and contain clear legal standards.
H. Consultation With Indian Tribes (E.O. 13175)
The Department of the Interior strives to strengthen its
government-to-government relationship with Indian Tribes through a
commitment to consultation with Indian Tribes and recognition of their
right to self-governance and Tribal sovereignty. We have evaluated this
rule under the Department's consultation policy and under the criteria
in Executive Order 13175 and have determined that it has substantial
direct effects on federally
[[Page 19165]]
recognized Indian Tribes because the rule requires early tribal
involvement in the design of a process that will have significant
impact on one or more recognized tribes.
Given the statutory deadline of April 2021 for promulgating a
regulation, IEED did not have sufficient time to formally consult on
the development of this proposed rule, but has scheduled the following
Tribal consultation sessions by webinar to discuss this proposed rule:
May 12, 2021, 1 p.m.-3 p.m. ET--please register for this
session at: https://doilearn2.webex.com/doilearn2/onstage/g.php?MTID=e77ad54c5178e4fcff380d118dcc83c2f.
May 13, 2021, 1 p.m.-3 p.m. ET--please register for this
session at: https://doilearn2.webex.com/doilearn2/onstage/g.php?MTID=e1e488228146 c27c782cd83cb83b9478b.
I. Paperwork Reduction Act
This proposed rule contains new information collections. All
information collections require approval under the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.). We may not conduct or sponsor and
you are not required to respond to a collection of information unless
it displays a currently valid Office of Management and Budget (OMB)
control number. The Department is seeking approval of a new information
collection, as follows.
Brief Description of Collection: This information collection
includes items that an applicant must include in an application for an
Indian Business Incubator Program (IBIP) grant and that IBIP awardees
must include in the annual report. Applicant contents include such
items as a description of the reservation communities the incubator
will serve, a three-year plan regarding the services to be offered to
participating entrepreneurs, among other items, information regarding
applicant's experience in conducting assistance programs, and a site
description of the location at which the applicant will provide work
space to participants, among other items. The annual report includes a
detailed breakdown of the entrepreneurs the incubator has served for
the year covered by the report.
Title: Indian Business Incubator Program (IBIP).
OMB Control Number: 1076-NEW.
Form Number: None.
Type of Review: New collection.
Respondents/Affected Public: Individuals, Private Sector,
Government.
Total Estimated Number of Annual Respondents: 50.
Total Estimated Number of Annual Responses: 100.
Estimated Completion Time per Response: Ranges from 5 to 35 hours.
Total Estimated Number of Annual Burden Hours: 2,000 hours.
Respondents' Obligation: Required to obtain a benefit.
Frequency of Response: Occasionally.
Total Estimated Annual Non-Hour Burden Cost: $0.
As part of our continuing effort to reduce paperwork and respondent
burdens, we invite the public and other Federal agencies to comment on
any aspect of this information collection, including:
(1) Whether or not the collection of information is necessary for
the proper performance of the functions of the agency, including
whether or not the information will have practical utility;
(2) The accuracy of our estimate of the burden for this collection
of information, including the validity of the methodology and
assumptions used;
(3) Ways to enhance the quality, utility, and clarity of the
information to be collected; and
(4) Ways to minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., permitting
electronic submission of response.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to www.reginfo.gov/public/do/PRAMain. Find this particular information
collection by selecting ``Currently under 30-day Review--Open for
Public Comments'' or by using the search function. Please provide a
copy of your comments to [email protected]. Please reference OMB
Control Number 1076-NEW in the subject line of your comments.
J. National Environmental Policy Act
This proposed rule does not constitute a major Federal action
significantly affecting the quality of the human environment. A
detailed statement under the National Environmental Policy Act of 1969
(NEPA) is not required because this is an administrative and procedural
regulation. (For further information see 43 CFR 46.210(i)). We have
also determined that this proposed rule does not involve any of the
extraordinary circumstances listed in 43 CFR 46.215 that would require
further analysis under NEPA.
K. Effects on the Energy Supply (E.O. 13211)
This proposed rule is not a significant energy action under the
definition in Executive Order 13211. A Statement of Energy Effects is
not required.
L. Clarity of This Regulation
We are required by Executive Orders 12866 (section 1(b)(12)), and
12988 (section 3(b)(1)(B)), and 13563 (section 1(a)), and by the
Presidential Memorandum of June 1, 1998, to write all rules in plain
language. This means that each proposed rule we publish must:
(a) Be logically organized;
(b) Use the active voice to address readers directly;
(c) Use clear language rather than jargon;
(d) Be divided into short sections and sentences; and,
(e) Use lists and tables wherever possible.
If you feel that we have not met these requirements, send us
comments by one of the methods listed in the ADDRESSES section. To
better help us revise the rule, your comments should be as specific as
possible. For example, you should tell us the numbers of the sections
or paragraphs that are unclearly written, which sections or sentences
are too long, the sections where you believe lists or tables would be
useful, etc.
M. Public Availability of Comments
Before including your address, phone number, email address, or
other personal identifying information in your comment, you should be
aware that your entire comment--including your personal identifying
information--may be made publicly available at any time. While you can
ask us in your comment to withhold your personal identifying
information from public review, we cannot guarantee that we will be
able to do so.
List of Subjects in 25 CFR Part 1187
Indians--business and finance, Loan programs--business, Loan
programs--Indians, Reporting and recordkeeping requirements.
For the reasons given in the preamble, the Department of the
Interior proposes to amend Chapter VI of Title 25 of the Code of
Federal Regulations by adding part 1187 to read as follows:
PART 1187--INDIAN BUSINESS INCUBATORS PROGRAM
Subpart A--General Provisions and Eligibility
Sec.
1187.1 What is the Indian Business Incubators Program (IBIP)?
[[Page 19166]]
1187.2 What terms do I need to know?
1187.3 Who is eligible to receive a grant under the IBIP?
Subpart B--Applying for a Grant
1187.10 How does an eligible applicant apply for a grant under the
IBIP?
1187.11 What must an application include?
1187.12 What must an applicant include in a written site proposal?
1187.13 May applicants submit a joint application?
1187.14 What additional items must a joint application include?
Subpart C--Evaluation of Grant Applications
1187.20 How will IEED evaluate each application?
1187.21 How will IEED evaluate the proposed location of the business
incubator?
1187.22 How will IEED conduct the site evaluation?
Subpart D--Grant Awards
1187.30 How will IEED disburse the grant funds to awardees?
1187.31 May IEED award a grant that is duplicative of Federal
funding from another source?
Subpart E--Grant Term and Conditions
1187.40 How long is the grant term?
1187.41 May IEED renew a grant award?
1187.42 What may awardees use grant funds for?
1187.43 May IEED waive the requirement for the non-Federal
contribution?
1187.44 What minimum requirements must awardees meet?
1187.45 What reports must the awardee submit?
Subpart F--IEED Grant Administration
1187.50 How will IEED evaluate awardees' performance?
1187.51 Will IEED facilitate relationships between awardees and
educational institutions serving Native American communities?
1187.52 How will IEED coordinate with other Federal agencies?
Authority: 25 U.S.C. 2, 9; Pub. L. 116-174.
Subpart A--General Provisions and Eligibility
Sec. 1187.1 What is the Indian Business Incubators Program (IBIP)?
The Indian Business Incubators Program (IBIP) is a program under
the Native American Business Incubators Program Act in which IEED
provides competitive grants to eligible applicants to establish and
operate business incubators that serve Tribal reservation communities.
With these grants, business incubators will:
(a) Provide individually tailored business incubation and other
business services to Native businesses and Native entrepreneurs to
overcome the unique obstacles they confront; and
(b) Provide Native businesses and Native entrepreneurs with the
tools necessary to start and grow businesses that offer products and
services to reservation communities.
Sec. 1187.2 What terms do I need to know?
Awardee means an eligible applicant receiving a grant under the
IBIP.
Business incubator means an organization that:
(1) Provides physical workspace and facilities resources to
startups and established businesses; and
(2) Is designed to accelerate the growth and success of businesses
through a variety of business support resources and services,
including--
(i) Business education, counseling, and advice regarding access to
capital;
(ii) Networking opportunities;
(iii) Mentorship opportunities; and
(iv) Other services intended to aid in developing a business.
Eligible applicant means an applicant eligible to apply for a grant
under Sec. 1187.3.
IBIP means the Indian Business Incubator Program (IBIP) under the
Native American Business Incubator Program Act.
IEED means the Office of Indian Energy and Economic Development in
the Office of the Assistant Secretary--Indian Affairs.
Indian Tribe has the meaning given the term in section 4 of the
Indian Self-Determination and Education Assistance Act (25 U.S.C.
5304).
Institution of higher education means an educational institution in
any State that--
(1) Admits as regular students only persons having a certificate of
graduation from a school providing secondary education, or the
recognized equivalent of such a certificate, or persons who meet the
requirements of 20 U.S.C. 1091(d);
(2) Is legally authorized within such State to provide a program of
education beyond secondary education;
(3) Provides an educational program for which the institution
awards a bachelor's degree or provides not less than a two-year program
that is acceptable for full credit toward such a degree, or awards a
degree that is acceptable for admission to a graduate or professional
degree program, subject to review and approval by the Secretary;
(4) Is a public or other nonprofit institution; and
(5) Is accredited by a nationally recognized accrediting agency or
association, or if not so accredited, is an institution that has been
granted pre-accreditation status by such an agency or association that
has been recognized by the Secretary for the granting of pre-
accreditation status, and the Secretary has determined that there is
satisfactory assurance that the institution will meet the accreditation
standards of such an agency or association within a reasonable time.
Native American: Native means a person who is a member of an Indian
Tribe, as defined in section 4(d) of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 5304(d)).
Native business means a business concern that is at least 51-
percent owned and controlled by 1 or more Native Americans.
Native entrepreneur means an entrepreneur who is a Native American.
Reservation means Indian reservations, public domain Indian
allotments, former Indian reservations in Oklahoma, and land held by
incorporated Native groups, regional corporations, and village
corporations under the provisions of the Alaska Native Claims
Settlement Act [43 U.S.C. 1601 et seq.].
Secretary means the Secretary of the Interior.
Tribal college or university means an institution that--
(1) Qualifies for funding under the Tribally Controlled Colleges
and Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) or the
Navajo Community College Act (25 U.S.C. 640a note); or
(2) Is cited in section 532 of the Equity in Educational Land-Grant
Status Act of 1994 (7 U.S.C. 301 note).
Sec. 1187.3 Who is eligible to receive a grant under the IBIP?
To be eligible to receive a grant under the IBIP, an applicant
must:
(a) Be able to provide the physical workspace, equipment, and
connectivity necessary for Native businesses and Native entrepreneurs
to collaborate and conduct business on a local, regional, national, and
international level; and
(b) Be one of the following entities:
(1) An Indian Tribe;
(2) A Tribal college or university that will have been operational
for not less than one year before receiving a grant under the IBIP;
(3) An institution of higher education that will have been
operational for not less than one year before receiving a grant under
the IBIP; or
(4) A Tribal or private nonprofit organization that provides
business and financial technical assistance and:
(i) Will have been operational for not less than one year before
receiving a grant under the IBIP; and
(ii) Commits to serving one or more reservation communities.
[[Page 19167]]
Subpart B--Applying for a Grant
Sec. 1187.10 How does an eligible applicant apply for a grant under
the IBIP?
Each eligible applicant desiring a grant under the IBIP must submit
to the Secretary an application as described in the solicitation posted
on www.grants.gov.
Sec. 1187.11 What must an application include?
An application for a grant under the IBIP must include:
(a) A certification that the applicant:
(1) Is an eligible applicant;
(2) Has or will designate an executive director or program manager
to manage the business incubator; and
(3) Agrees to:
(i) A site evaluation by the Secretary as part of the final
selection process;
(ii) An annual programmatic and financial examination for the
duration of the grant; and
(iii) To the maximum extent practicable, to remedy any problems
identified pursuant to the site evaluation and examination.
(b) A description of the one or more reservation communities to be
served by the business incubator;
(c) A three-year plan that describes:
(1) The number of Native businesses and Native entrepreneurs to be
participating in the business incubator;
(2) Whether the business incubator will focus on a particular type
of business or industry;
(3) A detailed breakdown of the services to be offered to Native
businesses and Native entrepreneurs participating in the business
incubator; and
(4) A detailed breakdown of the services, if any, to be offered to
Native businesses and Native entrepreneurs not participating in the
business incubator;
(d) Information demonstrating the effectiveness and experience of
the eligible applicant in:
(1) Conducting financial, management, and marketing assistance
programs designed to educate or improve the business skills of current
or prospective businesses;
(2) Working in and providing services to Native American
communities;
(3) Providing assistance to entities conducting business in
reservation communities;
(4) Providing technical assistance under Federal business and
entrepreneurial development programs for which Native businesses and
Native entrepreneurs are eligible; and
(5) Managing finances and staff effectively;
(e) A description of the applicant's non-Federal contributions, in
an amount equal to not less than 25 percent of the grant amount
requested; and
(f) A site description of the location at which the eligible
applicant will provide physical workspace, including a description of
the technologies, equipment, and other resources that will be available
to Native businesses and Native entrepreneurs participating in the
business incubator, if the applicant is in possession of the site, or a
written site proposal containing the information in Sec. 1187.12, if
the applicant is not yet in possession of the site.
Sec. 1187.12 What must an applicant include in a written site
proposal?
If the applicant is not yet in possession of the site, the
applicant must submit a written site proposal with their application
that contains:
(a) Sufficient detail for the Secretary to ensure, in the absence
of a site visit or video submission, that the proposed site will permit
the eligible applicant to meet the requirements of the IBIP; and
(b) A timeline describing when the eligible applicant will be:
(1) In possession of the proposed site; and
(2) Operating the business incubator at the proposed site.
Sec. 1187.13 May applicants submit a joint application?
Two or more eligible entities may submit a joint application for a
project that combines the resources and expertise of those entities at
a physical location dedicated to assisting Native businesses and Native
entrepreneurs under the IBIP.
Sec. 1187.14 What additional items must a joint application include?
A joint application must:
(a) Contain a certification that each participant of the joint
project is an eligible entity under Sec. 1187.3;
(b) Demonstrate that together the participants meet the
requirements of Sec. 1187.13; and
(c) Identify which of the entities submitting the joint application
will be the lead contact for the purposes of grant management.
Subpart C--Evaluation and Award of Grant Applications
Sec. 1187.20 How will IEED evaluate each application?
In evaluating each application, IEED will consider:
(a) The ability of the eligible applicant to:
(1) Operate a business incubator that effectively imparts
entrepreneurship and business skills to Native businesses and Native
entrepreneurs, as demonstrated by the experience and qualifications of
the eligible applicant;
(2) Commence providing services within three months; and
(3) Provide quality incubation services to a significant number of
Native businesses and Native entrepreneurs or provide such services at
geographically remote locations where quality business guidance and
counseling is difficult to obtain;
(b) The experience of the eligible applicant in providing services
in Native American communities, including in the one or more
reservation communities described in the application;
(c) The proposed location of the business incubator; and
(d) The extent to which a grant award will enable an entity that is
already providing business incubation services to appreciably enhance
those services.
Sec. 1187.21 How will IEED evaluate the proposed location of the
business incubator?
In evaluating the proposed location of the business incubator, IEED
will:
(a) Consider the program goal of achieving broad geographic
distribution of business incubators; and
(b) Give priority to eligible applicants that will provide business
incubation services on or near the reservation of the one or more
communities that were described in the application, except that IEED
may give priority to an eligible applicant that is not located on or
near the reservation of the one or more communities that were described
in the application if IEED determines that:
(1) The location of the business incubator will not prevent the
eligible applicant from providing quality business incubation services
to Native businesses and Native entrepreneurs from the one or more
reservation communities to be served; and
(2) Siting the business incubator in the identified location will
serve the interests of the one or more reservation communities to be
served.
Sec. 1187.22 How will IEED conduct the site evaluation?
(a) Before awarding a grant to an eligible applicant, IEED will
conduct an evaluation of the proposed site to verify that the applicant
has (or will have) the physical workspace, equipment, and connectivity
necessary for Native businesses and Native entrepreneurs to collaborate
and conduct business on a local, regional, national, and/or
international level.
(b) To determine whether the site meets the requirements of
paragraph (a) of this section:
[[Page 19168]]
(1) If the applicant is in possession of the proposed site, IEED
will conduct an on-site visit or review a video submission before
awarding the grant.
(2) If the applicant is not yet in possession of the proposed site
and has submitted a written site proposal, IEED will review the written
site proposal before awarding the grant and will conduct an on-site
visit or review a video submission to ensure the site is consistent
with the written site proposal no later than one year after awarding
the grant. If IEED determines the site is not consistent with the
written site proposal, IEED will use that information in determining
the ongoing eligibility of the applicant under Sec. 1187.50.
Subpart D--Grant Awards
Sec. 1187.30 How will IEED disburse the grant funds to awardees?
IEED will disburse grant funds awarded to eligible applicants in
annual installments except that, IEED may make disbursements more
frequently, on request by the applicant, as long as disbursements are
not made more frequently than quarterly.
Sec. 1187.31 May IEED award a grant that is duplicative of Federal
funding from another source?
IEED may not award a grant under the IBIP that is duplicative of
existing Federal funding from another source. Duplicative funding means
any funding from other Federal grants that would overlap with the IBIP
grant for the same activities described in the applicant's IBIP
proposal.
Subpart E--Grant Term and Conditions
Sec. 1187.40 How long is the grant term?
Each grant awarded under the IBIP is for a term of three years.
Sec. 1187.41 May IEED renew a grant award?
(a) IEED may renew a grant award under the IBIP for one additional
three-year term. In determining whether to renew a grant award, IEED
will consider for the awardee:
(1) The results of the annual evaluation of the awardee conducted
under Sec. 1187.50;
(2) The performance of the awardee's business incubator, as
compared to the performance of other business incubators receiving
grants under the IBIP;
(3) Whether the awardee continues to be eligible for the IBIP; and
(4) The evaluation consideration for initial awards under Sec.
1187.20.
(b) Awardees that receive a grant renewal must provide non-Federal
contributions in an amount not less than 33 percent of the total amount
of the grant. Failure to provide the non-Federal contribution will
result in noncompliance and IEED withholding of funds, unless IEED
waives the requirement under Sec. 1187.43.
Sec. 1187.42 What may awardees use grant funds for?
An awardee may use grant amounts for any or all of the following
purposes:
(a) To provide physical workspace and facilities for Native
businesses and Native entrepreneurs participating in the business
incubator;
(b) To establish partnerships with other institutions and entities
to provide comprehensive business incubation services to Native
businesses and Native entrepreneurs participating in the business
incubator; and
(c) For any other uses typically associated with business
incubators that IEED determines to be appropriate and consistent with
the purposes of the IBIP.
Sec. 1187.43 May IEED waive the requirement for the non-Federal
contribution?
IEED may waive the requirement for the non-Federal contribution, in
whole or in part, for one or more years of the initial IBIP grant award
if IEED determines that the waiver is appropriate based on:
(a) The awardee's ability to provide non-Federal contributions;
(b) The quality of business incubation services; and
(c) The likelihood that one or more reservation communities served
by the awardee will not receive similar services elsewhere because of
the remoteness or other reasons that inhibit the provision of business
and entrepreneurial development services.
Sec. 1187.44 What minimum requirements must awardees meet?
(a) Each awardee must:
(1) Offer culturally tailored incubation services to Native
businesses and Native entrepreneurs;
(2) Use a competitive process for selecting Native businesses and
Native entrepreneurs to participate in the business incubator; however,
awardees may still offer technical assistance and advice to Native
businesses and Native entrepreneurs on a walk-in basis;
(3) Provide physical workspace that permits Native businesses and
Native entrepreneurs to conduct business and collaborate with other
Native businesses and Native entrepreneurs;
(4) Provide entrepreneurship and business skills training and
education to Native businesses and Native entrepreneurs including:
(i) Financial education, including training and counseling in:
(A) Applying for and securing business credit and investment
capital;
(B) Preparing and presenting financial statements; and
(C) Managing cash flow and other financial operations of a
business;
(ii) Management education, including training and counseling in
planning, organization, staffing, directing, and controlling each major
activity or function of a business or startup; and
(iii) Marketing education, including training and counseling in:
(A) Identifying and segmenting domestic and international market
opportunities;
(B) Preparing and executing marketing plans;
(C) Locating contract opportunities;
(D) Negotiating contracts; and
(E) Using varying public relations and advertising techniques.
(5) Provide direct mentorship or assistance finding mentors in the
industry in which the Native business or Native entrepreneur operates
or intends to operate; and
(6) Provide access to networks of potential investors,
professionals in the same or similar fields, and other business owners
with similar businesses.
(b) Each awardee must leverage technology to the maximum extent
practicable to provide Native businesses and Native entrepreneurs with
access to the connectivity tools needed to compete and thrive in 21st-
century markets.
Sec. 1187.45 What reports must the awardee submit?
(a) Not later than one year after the date IEED awards the grant,
and then annually for the duration of the grant, the awardee must
submit to IEED a report describing the services the awardee provided
under the IBIP during the preceding year, including:
(1) A detailed breakdown of the Native businesses and Native
entrepreneurs receiving services from the business incubator,
including, for the year covered by the report:
(i) The number of Native businesses and Native entrepreneurs
participating in or receiving services from the business incubator and
the types of services provided to those Native businesses and Native
entrepreneurs;
(ii) The number of Native businesses and Native entrepreneurs
established and jobs created or maintained; and
(iii) The performance of Native businesses and Native entrepreneurs
while participating in the business incubator and after graduation or
departure from the business incubator; and
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(2) Any other information the Secretary may require to evaluate the
performance of a business incubator to ensure appropriate
implementation of the IBIP.
(b) To the maximum extent practicable, IEED will not require an
awardee to report the information listed in paragraph (a) of this
section that the awardee provides to IEED under another program.
(c) IEED will coordinate with the heads of other Federal agencies
to ensure that, to the maximum extent practicable, the report content
and form under paragraph (a) of this section are consistent with other
reporting requirements for Federal programs that provide business and
entrepreneurial assistance.
Subpart F--IEED Grant Administration
Sec. 1187.50 How will IEED evaluate awardees' performance?
Not later than one year after the date on which IEED awards a grant
to an eligible applicant under the IBIP, and annually thereafter for
the duration of the grant, IEED will conduct an evaluation of, and
prepare a report on, the awardee, which will:
(a) Describe the performance of the eligible applicant; and
(b) Be used in determining the ongoing eligibility of the eligible
applicant.
Sec. 1187.51 Will IEED facilitate relationships between awardees and
educational institutions serving Native American communities?
IEED will facilitate the relationships between awardees and
educational institutions serving Native American communities, including
Tribal colleges and universities.
Sec. 1187.52 How will IEED coordinate with other Federal agencies?
IEED will coordinate with the Secretaries of Agriculture, Commerce,
and Treasury, and the Administrator of the Small Business
Administration to ensure, to the maximum extent practicable, that
awardees have the information and materials they need to provide Native
businesses and Native entrepreneurs with the information and assistance
necessary to apply for business and entrepreneurial development
programs administered by those agencies.
Bryan Newland,
Principal Deputy Assistant Secretary--Indian Affairs.
[FR Doc. 2021-07175 Filed 4-12-21; 8:45 am]
BILLING CODE 4337-15-P