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Federal Register / Vol. 86, No. 171 / Wednesday, September 8, 2021 / Rules and Regulations
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organizations providing business and financial technical assistance.
Response: The applicant will need to demonstrate in its application that it meets the eligibility criteria in one of the four categories defined in the statute and regulation. At that time, the applicant can articulate why a particular entity, such as Native CDFIs or Tribally chartered non-profits, meets those qualifications.
One Tribe recommended that a preference or priority be granted to Tribes, Tribal colleges and universities, and Tribal non-profit organizations.
Similarly, several other commenters stated that Native-led entities should be awarded IBIP grants over non-Native entities.
Response: The statute defines the categories of eligible entities to include institutions of higher education and private nonprofit organizations, which may or may not be Native led. See 25
U.S.C. 5803b.
One commenter recommended that, if the final rule includes non-Native entities as eligible, then additional criteria should be added to application evaluations to ensure the funding benefits Native communities.
Response: Congress established the eligibility requirements and evaluation criteria, and adding the requested requirements goes beyond our statutory authority; however, the evaluation criteria directs the Department to review whether the awardee will benefit Native American businesses and entrepreneurs.
B. Comments on Subpart B Applying for a Grant A Tribe asked for clarification on whether in-kind support such as existing personnel or free use of existing office space to run the incubator counts toward the non-Federal contribution requirement. Another commenter requested examples of whether certain types of in-kind contributions and inkind services would count toward the non-Federal contribution requirement, requesting at a minimum that the value of in-kind donation of incubator space and donated services to support the incubator or incubated businesses be included.
Response: The regulation requires applicants to describe in their applications their non-Federal contributions in an amount equal to not less than 25 percent of the grant amount requested. See 1187.11e. Non-Federal contributions may include donated space as measured by the value of rent, so that the applicant can use IBIP
funding they receive for other purposes.
Payroll for personnel working on the incubator who are not funded by IBIP

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funding may be allowable non-Federal contributions. The Notice of Funding Opportunity NOFO will provide more examples of allowable non-Federal contributions.
One commenter asked whether the non-Federal contribution has to be in hand as of the date of the application.
Response: The applicant must provide a commitment for the non-Federal contribution in the application, but does not have to have the contribution in hand on the date of the application. The applicant could rely on projected earnings, for example.
C. Comments on Subpart C Evaluation of Grant Applications 1. Evaluation Criteria One Tribe commented that a Tribes experience should be considered but additional points should not be given to Tribes that currently operate a business incubator because Tribes, both large and small, should not be at a disadvantage when competing for funding against currently operational applicants.
Response: The Department shares the goal of ensuring that both large and small Tribes benefit from the incubator program. Experience may help an applicant because applicants are required to commence providing services within three months under 1187.20, but the NOFO will further clarify how applications will be ranked.
Two commenters stated that, when evaluating applications, OIED should consider metrics beyond financial impacts, such as services that enhance community well-being, to measure success. Another commenter stated that criteria should be based on success with clients, customer references, and completion of a viable product.
Response: Applicants will be requested to provide the milestones and outcomes of their project demonstrating to the Secretary the successful outcomes of the grant.
A Tribal organization commenter stated that IBIP funds should be awarded in a manner that equitably distributes funds to be regionally representative of Indian Country, and ensure that regionally focused programs are not precluded.
Response: OIED will be considering regional representation across Indian Country as part of the selection process.
Details will be provided in the NOFO.
A Tribal organization commenter stated that OIED should consider socioeconomic factors, such as the size and location of eligible applicants, in awarding IBIP funds to ensure that Tribal nations with a small population or small land base have an opportunity
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to participate and benefit from the program.
Response: Each applicant will have to demonstrate that they are serving a diverse population and include justifications around socioeconomic factors and considerations related to size and location. For example, the evaluation criteria include a criterion for the ability of the eligible applicant to provide services at geographically remote locations where quality business guidance and counseling is difficult to obtain. See 1187.20a3.
One commenter asked what significant means in the context of the criterion at 1187.20a3 for the ability of the eligible applicant to provide quality incubation services to a significant number of Native businesses or Native entrepreneurs or provide such services at geographically remote locations where quality business guidance and counseling is difficult to obtain.
Response: The significance of the number of Native businesses or Native entrepreneurs will be driven by the applicants proposal and justification of how many Native businesses and Native entrepreneurs they intend to serve with the amount of funding requested.
2. Physical Location of Incubator A Tribal organization commenter stated that Tribal nations should be able to decide whether to incubate only those businesses within their jurisdictional boundaries or incubate Native entrepreneurs located away from their Tribal homelands.
Response: Applicants have flexibility in demonstrating who they will serve as long as they serve one or more reservation communities regardless of whether those communities are near their own Tribes homelands and demonstrate that they have a competitive process for selecting Native businesses and Native entrepreneurs to participate in the business incubator.
See 1187.3b4 and 1187.44a2.
A Tribe urged OIED to recognize that transportation issues in Indian Country are significant and that, unless incubation services are within reservation boundaries or walking distance of a reservation, many Native businesses will have difficulty accessing the services. This Tribe recommended adding the word significant to the requirement to give priority to eligible applicants that will provide business incubation services on or near reservation communities.
Response: OIED is aware of the substantial transportation challenges in Indian Country and expects that proposals will provide options to
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