HR3585-119

1. Short title This Act may be cited as the Capacity Building for Business Districts Pilot Program Act of 2025.

2. Findings Congress finds the following: Vibrant and prosperous business districts are vital components of thriving communities, providing critical commercial goods and services to community residents. Business districts contribute to the vitality, character, and identity of urban neighborhoods, small towns, and rural and Native communities. Business districts drive entrepreneurship, local business ownership, economic growth, and job creation. Business districts are an essential part of the economic development ecosystem for towns, cities and rural communities, helping to attract consumers, visitors, new residents and new businesses to those communities and neighborhoods. Locally based business district organizations are well positioned to provide technical assistance and support to small and underserved businesses, while also helping to attract customers for those businesses by shaping and nurturing the physical environment of the business districts. Locally based business district organizations need technical assistance and flexible capital to support their ongoing operations, and cannot readily access these funds from existing programs at the Economic Development Administration due to the relatively small scale and highly local scope of their operations. There exists a substantial number of intermediary organizations that are well positioned to receive and responsibly deploy funding from the Economic Development Administration to currently unserved or underserved business district organizations for capacity building grants, technical assistance, training, and dissemination of best practices.

3. Capacity building for business districts pilot program Section 207 of the Public Works and Economic Development Act of 1965 (42 U.S.C. 3147) is amended— in subsection (a)(2)— by redesignating subparagraph (I) as subparagraph (J); and in subparagraph (H) by striking the and at the end and inserting the following: carrying out the pilot program established under subsection (c); and by adding at the end the following: Within the program authorized under subsection (a), the Secretary shall establish a pilot program, to be known as the Capacity Building for Business Districts Pilot Program. The Secretary may award to specified recipients Capacity Building for Business Districts Pilot Program grants, on a competitive basis, to carry out place-based initiatives that provide specialized technical assistance, capacity building, and related services to eligible subrecipients that support business district revitalization in low-income, rural, minority and Native communities. In providing assistance under this subsection, the Secretary shall make multiple awards to multiple organizations. The Secretary may not carry out this subsection through a regional office. The Secretary shall ensure a broad geographic distribution of award activities, and give priority to an applicant— that would serve a distressed community in an area described under section 301(a), including rural communities and Indian Tribes; and that has the demonstrated capacity to serve multiple States or multiple geographies within a State. Specified recipients shall submit to the Secretary (at such time and in such manner as the Secretary may prescribe, but no more frequently than annually) a report specifying— the names and addresses of eligible subrecipients receiving services and support from the specified recipient; the use of funds by the specified recipient, including direct technical assistance and pass-through grant funds; the use of funds by the eligible subrecipients, including internal operations, direct services to businesses, and district revitalization activities; the specific geographic areas served by the eligible subrecipients; the name, address, and industry as determined by the North American Industry Classification System, of each entity receiving assistance from eligible subrecipients; the total number of jobs created and retained during the reporting period; and any other information as the Secretary considers appropriate consistent with the findings under section 2 of the Capacity Building for Business Districts Pilot Program Act of 2025. The term of an initial grant shall be for a period that the Secretary determines appropriate for the proposed activities but not less than 2 years. In this subsection: The term business district means a geographic area, which may have been designated as a business district by a State, county, regional or local unit of government, that is characterized by dense development, efficient land use, and a concentration of small businesses, economic activity, and employment opportunities or an area that could contain such concentration, including a rural main street or neighborhood commercial corridor. The term business district organization means a public or nonprofit entity located in a business district and established to provide services to the business district to promote the district, attract private investment and create jobs, and enhance the physical environment through property development and planning activities. The term capacity building means training, education, support, advice, and the provision of operating grants to enhance the technical and administrative capabilities of business district organizations. The term eligible subrecipient means a business district organization that— is an organization that— is described in paragraph (3), (4), (5), or (6) of section 501(c) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code; or is a public entity; and provides services to a business district located in an area described under section 301(a) to support economic development, including providing business support services and physical space enhancements to such district. The term specified recipient means an organization that— is described in paragraph (3), (4), (5), or (6) of section 501(c) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code; operates, including through affiliates, membership networks or partnerships with third party entities, in multiple geographic areas served by multiple regional offices of the Economic Development Administration; and has experience and expertise in providing technical assistance and executing capacity building programs in support of business district organizations and similar community-based organizations that focus on revitalizing business districts and commercial corridors, including through support of underserved small businesses. (I)carrying out the pilot program established under subsection (c); and; and (c)Capacity building for business districts pilot program (1)In generalWithin the program authorized under subsection (a), the Secretary shall establish a pilot program, to be known as the Capacity Building for Business Districts Pilot Program. (2)GrantsThe Secretary may award to specified recipients Capacity Building for Business Districts Pilot Program grants, on a competitive basis, to carry out place-based initiatives that provide specialized technical assistance, capacity building, and related services to eligible subrecipients that support business district revitalization in low-income, rural, minority and Native communities. (3)Multiple awardsIn providing assistance under this subsection, the Secretary shall make multiple awards to multiple organizations. (4)AdministrationThe Secretary may not carry out this subsection through a regional office. (5)PrioritizationThe Secretary shall ensure a broad geographic distribution of award activities, and give priority to an applicant— (A)that would serve a distressed community in an area described under section 301(a), including rural communities and Indian Tribes; and (B)that has the demonstrated capacity to serve multiple States or multiple geographies within a State. (6)ReportingSpecified recipients shall submit to the Secretary (at such time and in such manner as the Secretary may prescribe, but no more frequently than annually) a report specifying— (A)the names and addresses of eligible subrecipients receiving services and support from the specified recipient; (B)the use of funds by the specified recipient, including direct technical assistance and pass-through grant funds; (C)the use of funds by the eligible subrecipients, including internal operations, direct services to businesses, and district revitalization activities; (D)the specific geographic areas served by the eligible subrecipients; (E)the name, address, and industry as determined by the North American Industry Classification System, of each entity receiving assistance from eligible subrecipients; (F)the total number of jobs created and retained during the reporting period; and (G)any other information as the Secretary considers appropriate consistent with the findings under section 2 of the Capacity Building for Business Districts Pilot Program Act of 2025. (7)TermThe term of an initial grant shall be for a period that the Secretary determines appropriate for the proposed activities but not less than 2 years. (8)DefinitionsIn this subsection: (A)Business districtThe term business district means a geographic area, which may have been designated as a business district by a State, county, regional or local unit of government, that is characterized by dense development, efficient land use, and a concentration of small businesses, economic activity, and employment opportunities or an area that could contain such concentration, including a rural main street or neighborhood commercial corridor. (B)Business district organizationThe term business district organization means a public or nonprofit entity located in a business district and established to provide services to the business district to promote the district, attract private investment and create jobs, and enhance the physical environment through property development and planning activities. (C)Capacity buildingThe term capacity building means training, education, support, advice, and the provision of operating grants to enhance the technical and administrative capabilities of business district organizations. (D)Eligible subrecipientThe term eligible subrecipient means a business district organization that— (i)is an organization that— (I)is described in paragraph (3), (4), (5), or (6) of section 501(c) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code; or (II)is a public entity; and (ii)provides services to a business district located in an area described under section 301(a) to support economic development, including providing business support services and physical space enhancements to such district. (E)Specified recipientThe term specified recipient means an organization that— (i)is described in paragraph (3), (4), (5), or (6) of section 501(c) of the Internal Revenue Code of 1986 and is exempt from taxation under section 501(a) of such Code; (ii)operates, including through affiliates, membership networks or partnerships with third party entities, in multiple geographic areas served by multiple regional offices of the Economic Development Administration; and (iii)has experience and expertise in providing technical assistance and executing capacity building programs in support of business district organizations and similar community-based organizations that focus on revitalizing business districts and commercial corridors, including through support of underserved small businesses..