Creates a competitive grant program in the department to assist small business incubators and entrepreneurial support programs as defined in RCW 43.176.020. To the extent funds are made available, the competitive grants shall be allocated equally across the state to a designated nonprofit organization under section 501(c)(3) or (c)(6) of the internal revenue code or a governmental organization, including a port district, to provide business-related training and services as well as technical assistance to start-up or emerging businesses. In administering the competitive grant program, the department shall endeavor to equitably distribute the funds across the state.

Provides that ninety percent of the funds granted must be used by the grantees to provide the kind of direct service or training to businesses as described in RCW 43.176.020. Only up to ten percent of the grant funds may be used by the grantees for organizational administrative costs and overhead.

Provides that, to the extent funds are made available, grants shall be awarded over a two-year period.

Provides that previous grantees are not prohibited from reapplying.

Requires the department to submit on a biennial basis, beginning December 1, 2007, a report to the appropriate committees of the legislature. The report shall include, at a minimum: (1) The number of businesses served by industry;

(2) The types of services provided;

(3) The number of jobs retained as a result of the grant program;

(4) The number of jobs created as a result of the grant program; and

(5) The names of the grantees and the amounts of the grants.