[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2981 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 2981
To establish a pilot program at the Small Business Administration that
grants awards to historically Black colleges and universities
establishing an entrepreneurship curriculum and placement of a Small
Business Development Center on the physical campus of the institution,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2019
Mr. Cummings introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committee on
Small Business, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a pilot program at the Small Business Administration that
grants awards to historically Black colleges and universities
establishing an entrepreneurship curriculum and placement of a Small
Business Development Center on the physical campus of the institution,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Parren Mitchell Minority Business
Education and Empowerment Act of 2019''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) As many colleges and universities across the country
kept their doors closed to African-American applicants,
historically Black colleges and universities (referred to in
this section as ``HBCUs'') played a central role in ensuring
that African Americans could attain an excellent education.
(2) In 1970, Congressman Parren Mitchell became the first
African American from Maryland to be elected to the House of
Representatives. During his time in Congress, Congressman
Mitchell served as the Chairman of the Small Business
Committee, was a founding member of the Congressional Black
Caucus, and served as a senior member of the then-House
Banking, Finance, and Urban Affairs Committee. In these roles,
Congressman Mitchell vigorously supported economic empowerment
for minority businesses and education as a vehicle for social
mobility.
(3) The Bureau of the Census in 2017 indicated that African
Americans have a median household income that is 63 percent of
the median household income of Whites.
(4) In the first quarter of 2019, the African-American
unemployment rate was 7.1 percent, well above the national
average of 4.1 percent.
(5) According to the Minority Business Development Agency--
(A) minority firms are more likely to be denied
loans at a rate of nearly three times higher than
nonminority firms;
(B) minority firms are likely to pay higher
interest rates, on average 7.8 percent, while
nonminority firms pay on average 6.4 percent;
(C) minority firms are less likely to receive loans
and, when approved, receive lower loan amounts;
(D) minority firms secure a lower number and dollar
amount of contracts in proportion to the number of
available minority firms in the relevant market; and
(E) minority business enterprises represent 29
percent of all firms but only 11 percent have paid
employees.
(6) If minority business enterprises were to obtain
entrepreneurial parity, the United States economy would realize
13 million more jobs.
(7) Minority-owned businesses are nearly twice as likely to
export their products and services as nonminority owned
businesses. Minority-owned businesses are three times more
likely to generate 100 percent of their revenues from exporting
than nonminority owned firms.
(8) Minority-owned businesses expand and diversify the tax
base, creating sustainable communities with a steady rate of
economic growth.
(9) A 2019 GAO report found that only 18 out of 101 HBCUs
are in the Small Business Development Center (SBDC) network,
and only 2 serve as ``lead'' (host organization) SBDCs.
(10) Currently, to be a SBDC host organization, an HBCU
must provide matching funds, which has led to only 2 such sites
in the history of the program.
(11) The 2019 GAO report stated that, while the Small
Business Administration (SBA) is required by Executive order to
submit an agency plan on an annual basis to the White House
Initiative on HBCUs, GAO was only able to obtain the 2018
agency plan from the 2008-2018 time period and was unable to
determine if the SBA had met its goals related to supporting
HBCUs.
(12) The 2018 SBA agency plan stated that the SBA would
encourage the formation of strategic alliance memorandums
between SBA district offices and HBCUs to promote
entrepreneurship in underserved markets.
(13) The 2019 GAO report found that, according to SBA
officials, strategic alliance memorandums with HBCUs are
largely symbolic in nature.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``Administrator'' means the Administrator of
the Small Business Administration;
(2) the term ``historically Black colleges and
universities'' means the institutions that are within the
definition given the term ``part B institution'' in section 322
of the Higher Education Act of 1965 (20 U.S.C. 1061);
(3) the term ``small business concern'' has the same
meaning as in section 3 of the Small Business Act (15 U.S.C.
632); and
(4) the term ``small business development center'' has the
same meaning as in section 21 of the Small Business Act (15
U.S.C. 648).
SEC. 4. MINORITY ENTREPRENEURSHIP AND INNOVATION GRANTS.
(a) In General.--The Administrator shall make grants to
historically Black colleges and universities--
(1) to assist in establishing an entrepreneurship
curriculum for undergraduate or graduate studies; and
(2) for placement of a small business development center on
the physical campus of the institution.
(b) Curriculum Requirement.--An institution of higher education
receiving a grant under this section shall develop a curriculum that
includes training in various skill sets needed by successful
entrepreneurs, including--
(1) business management and marketing, financial management
and accounting, market analysis and competitive analysis,
innovation, and strategic planning; and
(2) additional entrepreneurial skill sets specific to the
needs of the student population and the surrounding community,
as determined by the institution.
(c) Small Business Development Center Requirement.--Each
institution receiving a grant under this section shall open a small
business development center that--
(1) performs studies, research, and counseling concerning
the management, financing, and operation of small business
concerns;
(2) performs management training and technical assistance
regarding the participation of small business concerns in
international markets, export promotion and technology
transfer, and the delivery or distribution of such services and
information;
(3) offers referral services for entrepreneurs and small
business concerns to business development, financing, and legal
experts;
(4) promotes market-specific innovation, niche marketing,
capacity building, international trade, and strategic planning
as keys to long-term growth for its small business concern and
entrepreneur clients; and
(5) provides free counseling concerning the management,
financing, and operation of small business concerns, with an
emphasis on providing assistance to student entrepreneurs.
(d) Grant Limitations.--A grant under this section--
(1) may not exceed $1,000,000 per fiscal year for any 1
historically Black college or university;
(2) may not be used for any purpose other than those
associated with the direct costs incurred to develop and
implement a curriculum that fosters entrepreneurship and the
costs incurred to organize and run a small business development
center on the grounds of the institution; and
(3) may not be used for building expenses, administrative
travel budgets, or other expenses not directly related to the
implementation of the curriculum or activities authorized by
this Act.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $8,000,000, to remain available
until expended, for each of fiscal years 2020, 2021, and 2022.
(f) Report.--Not later than November 1 of each year, the Associate
Administrator of Entrepreneurial Development of the Small Business
Administration shall submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of
the House of Representatives, a report evaluating the award and use of
grants under this section during the preceding fiscal year, which shall
include--
(1) a description of each entrepreneurship program
developed with grant funds, the date of the award of such
grant, and the number of participants, specifically students,
in each such program;
(2) a description of the curriculum developed and how it
has been implemented;
(3) data regarding the economic impact of the small
business development center counseling provided under a grant
under this section; and
(4) the number of small business concerns assisted by each
small business development center established with a grant
under this section.
(g) Sunset.--The Administrator may not make any grants under this
section after the end of fiscal year 2022.
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