ESTABLISHMENT OF THE MICROENTERPRISE GRANTS PROGRAM.

SEC. 407. ESTABLISHMENT OF THE MICROENTERPRISE GRANTS PROGRAM. Title IV of the Act (29 U.S.C. 1671 et seq.), as amended by section 406, is further amended by adding at the end the following new part: “Part I— Microenterprise Grants Program “SEC. 499. MICROENTERPRISE GRANTS. “(a) Program Authority.— From the amount appropriated to carry out this section for fiscal years 1993 through 1997, the Secretary of Labor shall make grants of not more than $500,000 per year to not more than 10 States per year to implement and enhance community-based microenterprise activities. Such grants shall be an amount adequate to ensure that the activities will be of sufficient size and scope to produce substantial benefits. Such activities shall be for the benefit of economically disadvantaged persons. “(b) Use of Funds.— Such funds shall be used, notwithstanding section 141(q)— “(1) to train program staff in such entrepreneurial activities as business plan development, business management, resource inventory design, and marketing approaches, and other activities necessary to provide effective entry level training to persons developing a microenterprise; “(2) to provide to owners or potential owners of a microenterprise such technical assistance (including technical assistance with respect to business planning, securing funding, marketing, and production of marketing materials) and other assistance as may be necessary to develop microenterprise activities; and “(3) to provide microenterprise support (such as peer support programs and counseling). “(c) Application and Selection.— The Secretary shall award grants competitively under this section on the basis of— “(1) the State commitment, as evidenced by existing or proposed related programs and support; “(2) evidence of ability to conduct and monitor the microenterprise activities; “(3) evidence of linkage to private, community-based credit and technical assistance providers; and “(4) size of the non-Federal match. “(d) Timing.— Not later than April 1 of any fiscal year, a State may submit to the Secretary an application. Not later than the following June 1, the Secretary shall approve not more than 10 of the applications. Not later than the following July 1, the Secretary shall authorize the applicant to begin the programs. The Secretary may consider making multiyear grants. “(e) Matching Requirement.— “(1) In general.— No State shall receive a grant under this section unless the State agrees to provide, to carry out the microenterprise programs, non-Federal contributions in an amount equal to 100 percent of Federal funds provided under such grant. “(2) Determination.— The non-Federal contribution may be in cash or in-kind, fairly evaluated, including plant, equipment, or services. 106 STAT. 1094 “(f) Reports.— Each State receiving a grant under this section shall, for each fiscal year for which funds are received, submit to the Secretary a report that describes— “(1) the programs that have been established and developed with such funds, including a description of the persons participating and the microenterprises developed; “(2) the quantitative and qualitative benefits of such programs; and “(3) the contributions of such programs to economic self-sufficiency and economic development. “(g) Definitions.— As used in this section: “(1) Microenterprise.— The term ‘microenterprise’ means a commercial enterprise if— “(A) the enterprise has 5 or fewer employees, 1 or more of whom owns the enterprise; and “(B) each of the owners of the enterprise is economically disadvantaged. “(2) State.— The term ‘State’ includes— “(A) in the case of a community conducting a project in an Indian reservation or Alaska Native village, the grantee designated under subsection (c) or (d) of section 401, or a consortium of such grantees and the State; and “(B) in the case of a community conducting a project in a migrant or seasonal farmworker community, the grantee designated under section 402(c), or a consortium of such grantees and the State.”.