1. Short title This Act may be cited as the Invest in Rural Small Business Act of 2017 . 2. Flexibility for residency in HUBZones Section 3(p)(5)(A)(i)(I) of the Small Business Act ( 15 U.S.C. 632(p)(5)(A)(i)(I) ) is amended by striking 35 percent each place that term appears and inserting 33 percent . 3. Enabling local communities to maximize economic potential The Small Business Act ( 15 U.S.C. 631 et seq.) is amended— (1) in section 3(p)(1) ( 15 U.S.C. 632(p)(1) )— (A) in subparagraph (E), by striking or at the end; (B) by redesignating subparagraph (F) as subparagraph (G); and (C) by inserting after subparagraph (E) the following: (F) another qualified area designated by the Administrator under section 31(d); or ; and (2) in section 31 ( 15 U.S.C. 657a )— (A) by redesignating subsection (d) as subsection (e); and (B) by inserting after subsection (c) the following: (d) Other qualified areas (1) Definitions In this subsection— (A) the term covered area means an area in a State— (i) that is located outside of an urbanized area, as determined by the Bureau of the Census; and (ii) with a population of not more than 50,000; (B) the term governor means the chief executive of a State; and (C) the term State means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa. (2) Designation A governor may petition the Administrator to designate one or more covered areas as a HUBZone if the average unemployment rate of each covered area is not less than 120 percent of the average unemployment rate of the United States or of the State in which the covered area is located, whichever is less, based on the most recent data available from the American Community Survey conducted by the Bureau of the Census. (3) Criteria In reviewing a petition submitted by a governor under paragraph (2), the Administrator may consider— (A) the potential for job creation and investment