--- kind: "section" citation: "25 U.S.C. § 5803" title: "25" title_heading: "Indians" number: "5803" heading: "Establishment of program" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/25/5803" units: - "Chapter 50 — Native American Business Incubators Program" --- # §5803. Establishment of program - (a) **In general—** The [Secretary](/usc/25/5802.md?p=10) shall establish a [program](/usc/25/5802.md?p=8) in the Office of [Indian](/usc/25/5802.md?p=5) Energy and Economic Development under which the [Secretary](/usc/25/5802.md?p=10) shall provide financial assistance in the form of competitive grants to [eligible applicants](/usc/25/5802.md?p=2) for the establishment and operation of [business incubators](/usc/25/5802.md?p=1) that serve [reservation](/usc/25/5802.md?p=9) communities by providing business incubation and other business services to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7). - (b) **Eligible applicants—** - (1) **In general—** To be eligible to receive a grant under the [program](/usc/25/5802.md?p=8), an applicant shall— - (A) be— - (i) an [Indian tribe](/usc/25/5802.md?p=3); - (ii) a [tribal college or university](/usc/25/5802.md?p=11); - (iii) an [institution of higher education](/usc/25/5802.md?p=4); or - (iv) a private nonprofit organization or tribal nonprofit organization that— - (I) provides business and financial technical assistance; and - (II) will commit to serving 1 or more [reservation](/usc/25/5802.md?p=9) communities; - (B) be able to provide the physical workspace, equipment, and connectivity necessary for [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) to collaborate and conduct business on a local, regional, national, and international level; and - (C) in the case of an entity described in clauses [(ii)](#b-1-A-ii) through [(iv)](#b-1-A-iv) of subparagraph (A), have been operational for not less than 1 year before receiving a grant under the [program](/usc/25/5802.md?p=8). - (2) **Joint project—** - (A) **In general—** Two or more 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](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) under the [program](/usc/25/5802.md?p=8). - (B) **Contents—** A joint application submitted under [subparagraph (A)](#b-2-A) shall— - (i) contain a certification that each participant of the joint project is one of the eligible entities described in [paragraph (1)(A)](#b-1-A); and - (ii) demonstrate that together the participants meet the requirements of subparagraphs [(B)](#b-1-B) and [(C)](#b-1-C) of paragraph (1). - (c) **Application and selection process—** - (1) **Application requirements—** Each [eligible applicant](/usc/25/5802.md?p=2) desiring a grant under the [program](/usc/25/5802.md?p=8) shall submit to the [Secretary](/usc/25/5802.md?p=10) an application at such time, in such manner, and containing such information as the [Secretary](/usc/25/5802.md?p=10) may require, including— - (A) a certification that the applicant— - (i) is an [eligible applicant](/usc/25/5802.md?p=2); - (ii) will designate an executive director or [program](/usc/25/5802.md?p=8) manager, if such director or manager has not been designated, to manage the [business incubator](/usc/25/5802.md?p=1); and - (iii) agrees— - (I) to a site evaluation by the [Secretary](/usc/25/5802.md?p=10) as part of the final selection process; - (II) to 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 under [subclause (I)](#c-1-A-iii-I) or an examination under [subclause (II)](#c-1-A-iii-II); - (B) a description of the 1 or more [reservation](/usc/25/5802.md?p=9) communities to be served by the [business incubator](/usc/25/5802.md?p=1); - (C) a 3-year plan that describes— - (i) the number of [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) to be participating in the [business incubator](/usc/25/5802.md?p=1); - (ii) whether the [business incubator](/usc/25/5802.md?p=1) will focus on a particular type of business or industry; - (iii) a detailed breakdown of the services to be offered to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) participating in the [business incubator](/usc/25/5802.md?p=1); and - (iv) a detailed breakdown of the services, if any, to be offered to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) not participating in the [business incubator](/usc/25/5802.md?p=1); - (D) information demonstrating the effectiveness and experience of the [eligible applicant](/usc/25/5802.md?p=2) in— - (i) conducting financial, management, and marketing assistance [programs](/usc/25/5802.md?p=8) designed to educate or improve the business skills of current or prospective businesses; - (ii) working in and providing services to [Native American](/usc/25/5802.md?p=5) communities; - (iii) providing assistance to entities conducting business in [reservation](/usc/25/5802.md?p=9) communities; - (iv) providing technical assistance under Federal business and entrepreneurial development [programs](/usc/25/5802.md?p=8) for which [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) are eligible; and - (v) managing finances and staff effectively; and - (E) a site description of the location at which the [eligible applicant](/usc/25/5802.md?p=2) will provide physical workspace, including a description of the technologies, equipment, and other resources that will be available to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) participating in the [business incubator](/usc/25/5802.md?p=1). - (2) **Evaluation considerations—** - (A) **In general—** In evaluating each application, the [Secretary](/usc/25/5802.md?p=10) shall consider— - (i) the ability of the [eligible applicant](/usc/25/5802.md?p=2)— - (I) to operate a [business incubator](/usc/25/5802.md?p=1) that effectively imparts entrepreneurship and business skills to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7), as demonstrated by the experience and qualifications of the [eligible applicant](/usc/25/5802.md?p=2); - (II) to commence providing services within a minimum period of time, to be determined by the [Secretary](/usc/25/5802.md?p=10); and - (III) to provide quality incubation services to a significant number of [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7); - (ii) the experience of the [eligible applicant](/usc/25/5802.md?p=2) in providing services in [Native American](/usc/25/5802.md?p=5) communities, including in the 1 or more [reservation](/usc/25/5802.md?p=9) communities described in the application; and - (iii) the proposed location of the [business incubator](/usc/25/5802.md?p=1). - (B) **Priority—** - (i) **In general—** In evaluating the proposed location of the [business incubator](/usc/25/5802.md?p=1) under [subparagraph (A)(iii)](#c-2-A-iii), the [Secretary](/usc/25/5802.md?p=10) shall— - (I) consider the [program](/usc/25/5802.md?p=8) goal of achieving broad geographic distribution of [business incubators](/usc/25/5802.md?p=1); and - (II) except as provided in [clause (ii)](#c-2-B-ii), give priority to [eligible applicants](/usc/25/5802.md?p=2) that will provide business incubation services on or near the [reservation](/usc/25/5802.md?p=9) of the 1 or more communities that were described in the application. - (ii) **Exception—** The [Secretary](/usc/25/5802.md?p=10) may give priority to an [eligible applicant](/usc/25/5802.md?p=2) that is not located on or near the [reservation](/usc/25/5802.md?p=9) of the 1 or more communities that were described in the application if the [Secretary](/usc/25/5802.md?p=10) determines that— - (I) the location of the [business incubator](/usc/25/5802.md?p=1) will not prevent the [eligible applicant](/usc/25/5802.md?p=2) from providing quality business incubation services to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) from the 1 or more [reservation](/usc/25/5802.md?p=9) communities to be served; and - (II) siting the [business incubator](/usc/25/5802.md?p=1) in the identified location will serve the interests of the 1 or more [reservation](/usc/25/5802.md?p=9) communities to be served. - (3) **Site evaluation—** - (A) **In general—** Before making a grant to an [eligible applicant](/usc/25/5802.md?p=2), the [Secretary](/usc/25/5802.md?p=10) shall conduct a site visit, evaluate a video submission, or evaluate a written site proposal (if the applicant is not yet in possession of the site) of the proposed site to ensure the proposed site will permit the [eligible applicant](/usc/25/5802.md?p=2) to meet the requirements of the [program](/usc/25/5802.md?p=8). - (B) **Written site proposal—** A written site proposal shall meet the requirements described in [paragraph (1)(E)](#c-1-E) and contain— - (i) sufficient detail for the [Secretary](/usc/25/5802.md?p=10) to ensure in the absence of a site visit or video submission that the proposed site will permit the [eligible applicant](/usc/25/5802.md?p=2) to meet the requirements of the [program](/usc/25/5802.md?p=8); and - (ii) a timeline describing when the [eligible applicant](/usc/25/5802.md?p=2) will be— - (I) in possession of the proposed site; and - (II) operating the [business incubator](/usc/25/5802.md?p=1) at the proposed site. - (C) **Followup—** Not later than 1 year after awarding a grant to an [eligible applicant](/usc/25/5802.md?p=2) that submits an application with a written site proposal, the [Secretary](/usc/25/5802.md?p=10) shall conduct a site visit or evaluate a video submission of the site to ensure the site is consistent with the written site proposal. - (d) **Administration—** - (1) **Duration—** Each grant awarded under the [program](/usc/25/5802.md?p=8) shall be for a term of 3 years. - (2) **Payment—** - (A) **In general—** Except as provided in [subparagraph (B)](#d-2-B), the [Secretary](/usc/25/5802.md?p=10) shall disburse grant funds awarded to an [eligible applicant](/usc/25/5802.md?p=2) in annual installments. - (B) **More frequent disbursements—** On request by the applicant, the [Secretary](/usc/25/5802.md?p=10) may make disbursements of grant funds more frequently than annually, on the condition that disbursements shall be made not more frequently than quarterly. - (3) **Non-Federal contributions for initial assistance—** - (A) **In general—** Except as provided in [subparagraph (B)](#d-3-B), an [eligible applicant](/usc/25/5802.md?p=2) that receives a grant under the [program](/usc/25/5802.md?p=8) shall provide non-Federal contributions in an amount equal to not less than 25 percent of the grant amount disbursed each year. - (B) **Waiver—** The [Secretary](/usc/25/5802.md?p=10) may waive, in whole or in part, the requirements of [subparagraph (A)](#d-3-A) with respect to an [eligible applicant](/usc/25/5802.md?p=2) if, after considering the ability of the [eligible applicant](/usc/25/5802.md?p=2) to provide non-Federal contributions, the [Secretary](/usc/25/5802.md?p=10) determines that— - (i) the proposed [business incubator](/usc/25/5802.md?p=1) will provide quality business incubation services; and - (ii) the 1 or more [reservation](/usc/25/5802.md?p=9) communities to be served are unlikely to receive similar services because of remoteness or other reasons that inhibit the provision of business and entrepreneurial development services. - (4) **Renewals—** - (A) **In general—** The [Secretary](/usc/25/5802.md?p=10) may renew a grant award under the [program](/usc/25/5802.md?p=8) for a term not to exceed 3 years. - (B) **Considerations—** In determining whether to renew a grant award, the [Secretary](/usc/25/5802.md?p=10) shall consider with respect to the [eligible applicant](/usc/25/5802.md?p=2)— - (i) the results of the annual evaluations of the [eligible applicant](/usc/25/5802.md?p=2) under [subsection (f)(1)](#f-1); - (ii) the performance of the [business incubator](/usc/25/5802.md?p=1) of the [eligible applicant](/usc/25/5802.md?p=2), as compared to the performance of other [business incubators](/usc/25/5802.md?p=1) receiving assistance under the [program](/usc/25/5802.md?p=8); - (iii) whether the [eligible applicant](/usc/25/5802.md?p=2) continues to be eligible for the [program](/usc/25/5802.md?p=8); and - (iv) the evaluation considerations for initial awards under [subsection (c)(2)](#c-2). - (C) **Non-Federal contributions for renewals—** An [eligible applicant](/usc/25/5802.md?p=2) that receives a grant renewal under [subparagraph (A)](#d-4-A) shall provide non-Federal contributions in an amount equal to not less than 33 percent of the total amount of the grant. - (5) **No duplicative grants—** An [eligible applicant](/usc/25/5802.md?p=2) shall not be awarded a grant under the [program](/usc/25/5802.md?p=8) that is duplicative of existing Federal funding from another source. - (e) **Program requirements—** - (1) **Use of funds—** An [eligible applicant](/usc/25/5802.md?p=2) receiving a grant under the [program](/usc/25/5802.md?p=8) may use grant amounts— - (A) to provide physical workspace and facilities for [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) participating in the [business incubator](/usc/25/5802.md?p=1); - (B) to establish partnerships with other institutions and entities to provide comprehensive business incubation services to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) participating in the [business incubator](/usc/25/5802.md?p=1); and - (C) for any other uses typically associated with [business incubators](/usc/25/5802.md?p=1) that the [Secretary](/usc/25/5802.md?p=10) determines to be appropriate and consistent with the purposes of the [program](/usc/25/5802.md?p=8). - (2) **Minimum requirements—** Each [eligible applicant](/usc/25/5802.md?p=2) receiving a grant under the [program](/usc/25/5802.md?p=8) shall— - (A) offer culturally tailored incubation services to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7); - (B) use a competitive process for selecting [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) to participate in the [business incubator](/usc/25/5802.md?p=1); - (C) provide physical workspace that permits [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) to conduct business and collaborate with other [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7); - (D) provide entrepreneurship and business skills training and education to [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) including— - (i) financial education, including training and counseling in— - (I) applying for and securing business credit and investment capital; - (II) preparing and presenting financial statements; and - (III) 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— - (I) identifying and segmenting domestic and international market opportunities; - (II) preparing and executing marketing plans; - (III) locating contract opportunities; - (IV) negotiating contracts; and - (V) using varying public relations and advertising techniques; - (E) provide direct mentorship or assistance finding mentors in the industry in which the [Native business](/usc/25/5802.md?p=6) or [Native entrepreneur](/usc/25/5802.md?p=7) operates or intends to operate; and - (F) provide access to networks of potential investors, professionals in the same or similar fields, and other business owners with similar businesses. - (3) **Technology—** Each [eligible applicant](/usc/25/5802.md?p=2) shall leverage technology to the maximum extent practicable to provide [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) with access to the connectivity tools needed to compete and thrive in 21st-century markets. - (f) **Oversight—** - (1) **Annual evaluations—** Not later than 1 year after the date on which the [Secretary](/usc/25/5802.md?p=10) awards a grant to an [eligible applicant](/usc/25/5802.md?p=2) under the [program](/usc/25/5802.md?p=8), and annually thereafter for the duration of the grant, the [Secretary](/usc/25/5802.md?p=10) shall conduct an evaluation of, and prepare a report on, the [eligible applicant](/usc/25/5802.md?p=2), which shall— - (A) describe the performance of the [eligible applicant](/usc/25/5802.md?p=2); and - (B) be used in determining the ongoing eligibility of the [eligible applicant](/usc/25/5802.md?p=2). - (2) **Annual report—** - (A) **In general—** Not later than 1 year after the date on which the [Secretary](/usc/25/5802.md?p=10) awards a grant to an [eligible applicant](/usc/25/5802.md?p=2) under the [program](/usc/25/5802.md?p=8), and annually thereafter for the duration of the grant, each [eligible applicant](/usc/25/5802.md?p=2) receiving an award under the [program](/usc/25/5802.md?p=8) shall submit to the [Secretary](/usc/25/5802.md?p=10) a report describing the services the [eligible applicant](/usc/25/5802.md?p=2) provided under the [program](/usc/25/5802.md?p=8) during the preceding year. - (B) **Report content—** The report described in [subparagraph (A)](#f-2-A) shall include— - (i) a detailed breakdown of the [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) receiving services from the [business incubator](/usc/25/5802.md?p=1), including, for the year covered by the report— - (I) the number of [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) participating in or receiving services from the [business incubator](/usc/25/5802.md?p=1) and the types of services provided to those [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7); - (II) the number of [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) established and jobs created or maintained; and - (III) the performance of [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) while participating in the [business incubator](/usc/25/5802.md?p=1) and after graduation or departure from the [business incubator](/usc/25/5802.md?p=1); and - (ii) any other information the [Secretary](/usc/25/5802.md?p=10) may require to evaluate the performance of a [business incubator](/usc/25/5802.md?p=1) to ensure appropriate implementation of the [program](/usc/25/5802.md?p=8). - (C) **Limitations—** To the maximum extent practicable, the [Secretary](/usc/25/5802.md?p=10) shall not require an [eligible applicant](/usc/25/5802.md?p=2) to report under [subparagraph (A)](#f-2-A) information provided to the [Secretary](/usc/25/5802.md?p=10) by the [eligible applicant](/usc/25/5802.md?p=2) under other [programs](/usc/25/5802.md?p=8). - (D) **Coordination—** The [Secretary](/usc/25/5802.md?p=10) shall coordinate with the heads of other Federal agencies to ensure that, to the maximum extent practicable, the report content and form under subparagraphs [(A)](#f-2-A) and [(B)](#f-2-B) are consistent with other reporting requirements for Federal [programs](/usc/25/5802.md?p=8) that provide business and entrepreneurial assistance. - (3) **Report to Congress—** - (A) **In general—** Not later than 2 years after the date on which the [Secretary](/usc/25/5802.md?p=10) first awards funding under the [program](/usc/25/5802.md?p=8), and biennially thereafter, the [Secretary](/usc/25/5802.md?p=10) shall submit to the Committee on [Indian](/usc/25/5802.md?p=5) Affairs of the Senate and the Committee on Natural Resources of the House of Representatives a report on the performance and effectiveness of the [program](/usc/25/5802.md?p=8). - (B) **Contents—** Each report submitted under [subparagraph (A)](#f-3-A) shall— - (i) account for each [program](/usc/25/5802.md?p=8) year; and - (ii) include with respect to each [business incubator](/usc/25/5802.md?p=1) receiving grant funds under the [program](/usc/25/5802.md?p=8)— - (I) the number of [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) that received business incubation or other services; - (II) the number of businesses established with the assistance of the [business incubator](/usc/25/5802.md?p=1); - (III) the number of jobs established or maintained by [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) receiving business incubation services, including a description of where the jobs are located with respect to [reservation](/usc/25/5802.md?p=9) communities; - (IV) to the maximum extent practicable, the amount of capital investment and loan financing accessed by [Native businesses](/usc/25/5802.md?p=6) and [Native entrepreneurs](/usc/25/5802.md?p=7) receiving business incubation services; and - (V) an evaluation of the overall performance of the [business incubator](/usc/25/5802.md?p=1). ## Source credit (Pub. L. 116–174, § 4, Oct. 20, 2020, 134 Stat. 840.)