119-s1499

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1499 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1499

 To establish a program awarding competitive grants to organizations 
 administering entrepreneurial development programming to currently 
incarcerated and formerly incarcerated individuals, and other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 April 28, 2025

Mr. Markey (for himself and Mr. Booker) introduced the following bill; 
 which was read twice and referred to the Committee on Small Business 
 and Entrepreneurship

_______________________________________________________________________

 A BILL

 To establish a program awarding competitive grants to organizations 
 administering entrepreneurial development programming to currently 
incarcerated and formerly incarcerated individuals, and other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``New Start Act of 2025''.

SEC. 2. FINDINGS.

 Congress finds that--

    (1) according to the Department of Justice, every year, 
 around 600,000 individuals are released from prison and return 
 home to their communities, and almost 77 percent of those 
 individuals will reoffend within 5 years;

    (2) according to the Brookings Institution, an estimated 
 48.5 percent of formerly incarcerated individuals will remain 
 unemployed or earn a negligible income for a period of 1 year 
 post-incarceration, increasing the risk for recidivism;

    (3) according to the Florida State University Institute for 
 Justice Research and Development, formerly incarcerated 
 individuals see a reduction in earnings of 25 percent since 
 criminal records make it difficult to find stable employment;

    (4) self-employment can provide economic stability for 
 those who are otherwise locked out of the labor market; and

    (5) according to a paper entitled ``Entrepreneurship as a 
 Response to Labor Market Discrimination for Formerly 
 Incarcerated People''--
        (A) the average individual without a criminal 
 record has a 7.09 percent likelihood of becoming an 
 entrepreneur, but justice-impacted individuals were 
 found to be more than 50 percent likely to choose 
 entrepreneurship with a 12.49 percent likelihood of 
 becoming an entrepreneur;
        (B) entrepreneurship reduces the likelihood of 
 recidivism by 5.3 percent, which was a 32.5 percent 
 decrease from average recidivism rates for regular 
 employees who have been previously incarcerated; and
            (C) formerly incarcerated individuals who choose 
 entrepreneurship make $2,700 more annually than 
 formerly incarcerated employees and that the income gap 
 between formerly incarcerated entrepreneurs and 
 entrepreneurs with no criminal record was 38 percent 
 lower than the income gap between formerly incarcerated 
 employees and employees with no criminal record.

SEC. 3. ENTREPRENEURSHIP COUNSELING AND TRAINING FOR JUSTICE-IMPACTED 
 INDIVIDUALS.

 The Small Business Act (15 U.S.C. 631 et seq.) is amended--

    (1) by redesignating 

section 49 (15 U.S.C. 631 note) as 
 

section 50; and

    (2) by inserting after 

section 48 (15 U.S.C. 657u) the 
 following:

``

SEC. 49. NEW START PROGRAM.

 ``

    (a) 

=== Definitions. ===
-In this section:
 ``

    (1) Appropriate committees of congress.--The term 
 `appropriate committees of Congress' means--
 ``
        (A) the Committee on Small Business and 
 Entrepreneurship of the Senate; and
 ``
        (B) the Committee on Small Business of the House 
 of Representatives.
 ``

    (2) Community advantage small business lending company.--
 The term `Community Advantage Small Business Lending Company' 
 has the meaning given the term in 

section 120.10 of title 13, 
 Code of Federal Regulations, or any successor regulation.
 ``

    (3) Currently incarcerated individual.--The term 
 `currently incarcerated individual' means an individual who--
 ``
        (A) is incarcerated in a Federal prison 
 designated as a minimum, low, or medium security prison 
 by the Director of the Bureau of Prisons or is under 
 the jurisdiction of the Bureau of Prisons and is housed 
 in a Residential Reentry Center operated under a 
 contract with the Bureau of Prisons; and
 ``
        (B) meets the offense eligibility requirements 
 set forth in any applicable policy notice or other 
 guidance issued by the Administration for the program 
 established under 

section 7
            (m) .
 ``

    (4) Entrepreneurial development program.--The term 
 `entrepreneurial development program' includes programming that 
 provides--
 ``
        (A) assistance and in-depth training on how to 
 start or expand a small business concern, including--
 ``
            (i) a self-study course manual focused on 
 the basic skills of entrepreneurship, financial 
 literacy, the language of business, and the 
 considerations and life skills relevant to 
 self-employment and ownership of a small 
 business concern;
 ``
            (ii) in-depth classroom instruction 
 introducing the foundations of self-employment 
 and ownership of small business concerns; or
 ``
            (iii) one-on-one training, including 
 individual support in the development of a 
 business plan, entrepreneurial skills, and 
 strategies for starting a small business 
 concern;
 ``
        (B) the tools, skills, and knowledge necessary to 
 identify a business opportunity, including how to--
 ``
            (i) draft a resume, business plan, or 
 succession plan;
 ``
            (ii) identify sources of capital and 
 contracting opportunities; or
 ``
            (iii) connect with local resources for 
 small business concerns;
 ``
            (C) a mentorship program for over a predetermined 
 or open-ended period; or
 ``
            (D) seed investment in exchange for a small 
 amount of equity, as well as startup capital, or the 
 opportunity to raise capital from outside investors.
 ``

    (5) Formerly incarcerated individual.--The term `formerly 
 incarcerated individual' means an individual who--
 ``
        (A) completed a term of imprisonment in Federal, 
 State, or local jail or prison; and
 ``
        (B) meets the offense eligibility requirements 
 set forth in any applicable policy notice or other 
 guidance issued by the Administration for the program 
 established under 

section 7
            (m) .
 ``

    (6) Microloan intermediary.--The term `microloan 
 intermediary' means an intermediary (as defined in 

section 7
            (m) (11) ) that is eligible to participate in the program 
 established under 

section 7
            (m) .
 ``

    (7) Program.--The term `Program' means the New Start 
 Program established under subsection

    (b) .
 ``

    (8) SCORE.--The term `SCORE' means the Service Corps of 
 Retired Executives described in 

section 8

    (b)

    (1)
        (B) .
 ``

    (9) Women's business center.--The term `women's business 
 center' means a women's business center described in 

section 29.
 ``

    (b) Establishment.--
 ``

    (1) In general.--Not later than 180 days after the date 
 of enactment of the New Start Act of 2025, the Administrator 
 shall establish the New Start Program to award grants to 
 organizations over a 5-year period to create or support 
 existing entrepreneurial development programs for formerly 
 incarcerated individuals or currently incarcerated individuals.
 ``

    (2) Requirements.--In carrying out the Program, the 
 Administrator shall--
 ``
        (A) coordinate with the Director of the Bureau of 
 Prisons to allow organizations, including small 
 business development centers, women's business centers, 
 and SCORE chapters, that receive a grant under this 
 section to provide entrepreneurial development 
 assistance to currently incarcerated individuals;
 ``
        (B) develop a plan, which shall be updated 
 annually and made in consultation with associations 
 that represent small business development centers, 
 women's business centers, and SCORE chapters, to match 
 organizations with formerly incarcerated individuals 
 and currently incarcerated individuals; and
 ``
            (C) to the extent possible, ensure an equitable 
 share of grants between organizations that provide 
 entrepreneurial development programs targeted to 
 formerly incarcerated individuals and organizations 
 that provide entrepreneurial development programs to 
 currently incarcerated individuals.
 ``
            (c) Grant Requirements.--
 ``

    (1) In general.--The Administrator shall--
 ``
        (A) award grants under the Program to 
 organizations, or partnerships of organizations, 
 including small business development centers, women's 
 business centers, and SCORE chapters, which shall each 
 receive a grant in an amount greater than $100,000 and 
 less than $500,000 annually over the 5-year period in 
 which the Program is in existence; and
 ``
        (B) allocate grants under the Program to ensure 
 that the recipients are geographically varied 
 throughout the United States.
 ``

    (2) Cap on women's business center grants.--The amount of 
 an award granted to a women's business center under the Program 
 shall not count toward the maximum grant award amount allowable 
 under 

section 29.
 ``
            (d) Partnerships.--An applicant for a grant under the Program may 
form partnerships with other organizations for the purposes of the 
application submitted under subsection

    (e) and for conducting 
entrepreneurial development programs.
 ``

    (e) Application.--
 ``

    (1) In general.--An organization or partnership of 
 organizations desiring a grant under the Program shall submit 
 an application to the Administrator in such form, in such 
 manner, and containing such information as the Administrator 
 may reasonably require.
 ``

    (2) Contents.--An application submitted under paragraph

    (1) shall--
 ``
        (A) for the purposes of entrepreneurial 
 development programming targeted at formerly 
 incarcerated individuals, demonstrate that the 
 applicant is a microloan intermediary or a Community 
 Advantage Small Business Lending Company, or has a 
 partnership with such a microloan intermediary, 
 Community Advantage Small Business Lending Company, or 
 other lender that may provide capital to qualified 
 formerly incarcerated individuals;
 ``
        (B) demonstrate strong community ties, including 
 those with the justice-impacted community, local 
 businesses, and political leaders;
 ``
            (C) demonstrate an ability to provide a full 
 range of entrepreneurial development programming on an 
 ongoing basis;
 ``
            (D) include a plan for reaching formerly 
 incarcerated individuals or currently incarcerated 
 individuals, including by identifying particular target 
 populations within the community;
 ``
        (E) clearly define entrepreneurial development 
 capabilities, including coordination with existing 
 local resource partners of the Administration for 
 additional training as necessary;
 ``
        (F) present an entrepreneurial development 
 curriculum, which may be a nationally recognized model 
 or based upon such a model;
 ``
        (G) include a list of each partner organization; 
 and
 ``
        (H) include a comprehensive plan for the use of 
 grant funds, including estimates for administrative and 
 outreach costs of running and evaluating the 
 entrepreneurial development program.
 ``

    (f) Priority.--In determining whether to award a grant under the 
Program, the Administrator may give priority to applicants based on--
 ``

    (1) whether the application includes a commitment from an 
 existing or new non-Federal funding source;
 ``

    (2) whether the application takes into account local 
 economies and markets as a part of the educational component of 
 the entrepreneurial development program;
 ``

    (3) the ability or plan of the applicant to provide 
 entrepreneurial development services concurrent with employment 
 or job training services;
 ``

    (4) whether the applicant has a history of effectively 
 providing entrepreneurial development training or access to 
 capital to formerly incarcerated individuals or currently 
 incarcerated individuals; and
 ``

    (5) whether the applicant will be providing 
 entrepreneurial development training to currently incarcerated 
 individuals who will be released from Federal custody not later 
 than 18 months after the date on which those currently 
 incarcerated individuals begin to receive those services.
 ``

    (g) Responsibilities.--A recipient of a grant under the Program 
shall, to the maximum extent possible, connect formerly incarcerated 
individuals to a range of Federal resources, including--
 ``

    (1) the program established under 

section 7
            (m) ;
 ``

    (2) Community Advantage Small Business Lending Companies;
 ``

    (3) small business development centers;
 ``

    (4) women's business centers;
 ``

    (5) SCORE chapters;
 ``

    (6) Veteran Business Outreach Centers described in 
 

section 32 of the Small Business Act (15 U.S.C. 657b); and
 ``

    (7) business centers established by the Minority Business 
 Development Agency of the Department of Commerce.
 ``

    (h) Reports.--
 ``

    (1) In general.--Not later than 1 year after the date on 
 which the Administrator establishes the Program, and every year 
 thereafter until the Program terminates, the Administrator 
 shall submit to the appropriate committees of Congress a report 
 on the activities of the Program, including--
 ``
        (A) a list of each grantee organization and each 
 partner organization;
 ``
        (B) the characteristics of formerly incarcerated 
 individuals and currently incarcerated individuals 
 assisted under the entrepreneurial development 
 programs, including race and ethnicity, gender, age, 
 marital status, parental status, employment status, 
 income, and prior business experience;
 ``
            (C) the participation and attendance rates for 
 all components of the entrepreneurial development 
 programs;
 ``
            (D) the entrepreneurial development program 
 retention rate;
 ``
        (E) to the greatest extent practicable, the most 
 common reasons why participants do not complete an 
 entrepreneurial development program;
 ``
        (F) the percentage of formerly incarcerated 
 individuals who remain non-justice involved during the 
 calendar year of an entrepreneurial development 
 program;
 ``
        (G) the experiences and perceptions of 
 entrepreneurial development program participants;
 ``
        (H) the number and dollar amount of loans made to 
 formerly incarcerated individuals;
 ``
            (I) the number and dollar amount of loans made or 
 guaranteed by the Administration to formerly 
 incarcerated individuals; and
 ``
        (J) such additional information as the 
 Administrator may require.
 ``

    (2) GAO report.--Not later than 1 year after the date on 
 which the Program terminates, the Comptroller General of the 
 United States shall submit to the appropriate committees of 
 Congress a report that evaluates--
 ``
        (A) the services that grant recipients provided 
 to formerly incarcerated individuals and currently 
 incarcerated individuals assisted under entrepreneurial 
 development programs;
 ``
        (B) oversight of the Program by the 
 Administrator, including policies and procedures for 
 monitoring the compliance by grant recipients with 
 Program requirements and an assessment of the 
 effectiveness of the Program; and
 ``
            (C) the overall performance of the Program and 
 the impacts of the Program on grant recipients.
 ``
            (i) Rule of Construction.--Nothing in this section may be 
construed to affect the program established under 

section 7
            (m) , 
including--
 ``

    (1) the requirements of that program;
 ``

    (2) the manner in which that program is carried out; or
 ``

    (3) the use or availability of any amounts that have been 
 made available to carry out that program.
 ``

    (j) Authorization of Appropriations.--There are authorized to be 
appropriated to the Administrator such sums as are necessary to carry 
out the Program.''.
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