Congress just launched
the Next Generation Entrepreneur Corps Act
“The Next Generation Entrepreneurship Corps program will aid in the small business recovery of distressed regions. Similar to BUILD’s impact on our future generation, Entrepreneurship will ignite the potential in these areas and give people hope and support to rebuild,” said Ayele Shakur, BUILD.org CEO.
The Act will spur new business creation in underserved communities with fellowship for entrepreneurs. With a five-year investment of $368 million, talented entrepreneurs will be invited to a national competition and as a result, 320 new businesses will be created each year! BUILD has been partnering with corporations and entrepreneurs for 20 years with the goal of building self-agency and social capital for the youth that we serve. This Bill provides additional pathways for marginalized communities and we applaud our public officials for their commitment and addressing!
The Next Generation Entrepreneur Corps Act will:.
- Create a competitive fellowship program. A selection committee of 12 industry experts will review applications and select 320 entrepreneur fellows annually, from diverse backgrounds, to start both traditional and high growth-potential businesses in distressed, low-income census tract areas. The program will also set forth a framework to expand the number of fellows selected annually for greater impact.
- Provide healthcare, living expenses, and student loan support. Fellows will receive a $120,000 two-year stipend for living and basic startup expenses, health care, and interest-free federal student loan deferral for two years.
- Provide mentorship and networking opportunities. Fellows will receiveimmersive training, be matched with a local business mentor, and access support from an advisory board of CEOs and venture capitalists.
- Partner with the Small Business Administration (SBA) 8(a) Small Business Development program. This SBA program currently helps socially and economically disadvantaged entrepreneurs gain access to government contracting. Through this program, fellows will be provided a fast track to apply for 8(a) certification, and fellows with 8(a) eligible businesses will be matched with mentors via the 8(a) Mentor Protégé program.
- Provide access to capital. Fellows will connect with investors and SBA-backed lenders and receive fast-track access to credit. A $30 million fund will encourage equity investment in corps members’ businesses.
- Be available to transitioning business owners, new entrepreneurs, and previous business owners who have lost their business due to the public health crisis, but currently lack the resources or capital to start another venture.
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This legislation is supported by the Center for American Entrepreneurship, the Greater Philadelphia Chamber, the SCORE Foundation, Prosperity Now, Young Invincibles, the Network for Teaching Entrepreneurship, Small Business for America’s Future, the Small Business Majority, BUILD.org, NextGen Chamber of Commerce, Engine, and the Economic Innovation Group.
