[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2689 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2689
To require the Minority Business Development Agency of the Department
of Commerce to promote and administer programs in the public and
private sectors to assist the development of minority business
enterprises, to ensure that such Agency has the necessary supporting
resources, particularly during economic downturns, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2021
Mr. Green of Texas (for himself, Mr. Cleaver, Mrs. Beatty, Mr.
Perlmutter, Mr. Himes, Mr. Mfume, Mr. Kilmer, Ms. Chu, and Mr. Sherman)
introduced the following bill; which was referred to the Committee on
Financial Services, 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 require the Minority Business Development Agency of the Department
of Commerce to promote and administer programs in the public and
private sectors to assist the development of minority business
enterprises, to ensure that such Agency has the necessary supporting
resources, particularly during economic downturns, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Minority Business
Resiliency Act of 2021''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Minority Business Development Agency.
TITLE I--EXISTING INITIATIVES
Subtitle A--Market Development, Research, and Information
Sec. 101. Private sector development.
Sec. 102. Public sector development.
Sec. 103. Research and information.
Subtitle B--Minority Business Development Agency Business Center
Program
Sec. 110. Definition.
Sec. 111. Purpose.
Sec. 112. Establishment.
Sec. 113. Grants and cooperative agreements.
Sec. 114. Minimizing disruptions to existing MBDA Business Center
program.
Sec. 115. Publicity.
Sec. 116. Funding.
TITLE II--NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR MINORITY
BUSINESSES
Sec. 201. Annual diverse business forum on capital formation.
Sec. 202. Agency study on alternative financing solutions.
Sec. 203. Educational development relating to management and
entrepreneurship.
TITLE III--RURAL MINORITY BUSINESS CENTER PROGRAM
Sec. 301. Definitions.
Sec. 302. Business centers.
Sec. 303. Report to Congress.
Sec. 304. Study and report.
TITLE IV--MINORITY BUSINESS DEVELOPMENT GRANTS
Sec. 401. Grants to nonprofit organizations that support minority
business enterprises.
Sec. 402. Minority business grants.
TITLE V--ADMINISTRATIVE AND OTHER POWERS OF THE AGENCY; MISCELLANEOUS
PROVISIONS
Sec. 501. Administrative powers.
Sec. 502. Federal assistance.
Sec. 503. Audits.
Sec. 504. Review and report by Comptroller General.
Sec. 505. Annual reports; recommendations.
Sec. 506. Separability.
Sec. 507. Executive Order 11625.
Sec. 508. Amendment to the Federal Acquisition Streamlining Act of
1994.
Sec. 509. Authorization of appropriations.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) During times of economic downturn or recession,
communities of color, and businesses within those communities,
are generally more adversely affected, which requires an
expansion of the ability of the Federal Government to infuse
resources into those communities.
(2) Despite the growth in the number of minority business
enterprises, gaps remain with respect to key metrics for those
enterprises, such as access to capital, revenue, number of
employees, and survival rate. Specifically--
(A) according to the Department of Commerce,
minority business enterprises are 2 to 3 times more
likely to be denied loans than non-minority business
enterprises;
(B) according to the Bureau of the Census, the
average non-minority business enterprise reports
receipts that are more than 3 times higher than
receipts reported by the average minority business
enterprise; and
(C) according to the Kauffman Foundation--
(i) minority business enterprises are \1/2\
as likely to employ individuals, as compared
with non-minority business enterprises; and
(ii) if minorities started and owned
businesses at the same rate as non-minorities,
the United States economy would have more than
1,000,000 additional employer businesses and
more than 9,500,000 additional jobs.
(3) Because of the conditions described in paragraph (2),
it is in the interest of the United States and the economy of
the United States to expeditiously ameliorate the disparities
that minority business enterprises experience.
(4) Many individuals who own minority business enterprises
are socially disadvantaged because those individuals identify
as members of certain groups that have suffered the effects of
discriminatory practices or similar circumstances over which
those individuals have no control, including individuals who
are--
(A) Black or African American;
(B) Hispanic or Latino;
(C) American Indian or Alaska Native;
(D) Asian; and
(E) Native Hawaiian or other Pacific Islander.
(5) Discriminatory practices and similar circumstances
described in paragraph (4) are a significant determinant of
overall economic disadvantage in the United States, which is
evident in the persistent racial wealth gap in the United
States.
(6) While other Federal agencies focus only on small
businesses and businesses that represent a broader demographic
than solely minority business enterprises, the Agency focuses
exclusively on--
(A) the unique needs of minority business
enterprises; and
(B) enhancing the capacity of minority business
enterprises.
(b) Purposes.--The purposes of this Act are to--
(1) require the Agency to promote and administer programs
in the public and private sectors to assist the development of
minority business enterprises; and
(2) achieve the development described in paragraph (1) by
authorizing the Assistant Secretary to carry out programs that
will result in increased access to capital, management, and
technology for minority business enterprises.
SEC. 3. DEFINITIONS.
In this Act:
(1) Agency.--The term ``Agency'' means the Minority
Business Development Agency of the Department of Commerce.
(2) Assistant secretary.--The term ``Assistant Secretary''
means the Assistant Secretary of Commerce for Minority Business
Development, who is appointed as described in section 4(b) to
administer this Act.
(3) Community-based organization.--The term ``community-
based organization'' has the meaning given the term in section
8101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7801).
(4) Eligible entity.--Except as otherwise expressly
provided, the term ``eligible entity''--
(A) means--
(i) a private sector entity;
(ii) a public sector entity; or
(iii) a Tribal government; and
(B) includes an institution of higher education.
(5) Federal agency.--The term ``Federal agency'' has the
meaning given the term ``agency'' in section 551 of title 5,
United States Code.
(6) Federally recognized area of economic distress.--The
term ``federally recognized area of economic distress'' means--
(A) a HUBZone, as that term is defined in section
31(b) of the Small Business Act (15 U.S.C. 657a(b));
(B) an area that--
(i) has been designated as--
(I) an empowerment zone under
section 1391 of the Internal Revenue
Code of 1986; or
(II) a Promise Zone by the
Secretary of Housing and Urban
Development; or
(ii) is a low or moderate income area, as
determined by the Bureau of the Census;
(C) a qualified opportunity zone, as that term is
defined in section 1400Z-1 of the Internal Revenue Code
of 1986; or
(D) any other political subdivision or
unincorporated area of a State determined by the
Assistant Secretary to be an area of economic distress.
(7) Indian tribe.--The term ``Indian Tribe''--
(A) has the meaning given the term in section 4 of
the Indian Self-Determination and Education Assistance
Act (25 U.S.C. 5304); and
(B) includes a Native Hawaiian organization.
(8) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(9) MBDA business center.--The term ``MBDA Business
Center'' means any business center that--
(A) is established by the Agency; and
(B) provides technical business assistance to
minority business enterprises consistent with the
requirements of this Act.
(10) MBDA business center agreement.--The term ``MBDA
Business Center agreement'' means a legal instrument--
(A) reflecting a relationship between the Agency
and the recipient of a Federal assistance award that is
the subject of the instrument; and
(B) that establishes the terms by which the
recipient described in subparagraph (A) shall operate
an MBDA Business Center.
(11) Minority business enterprise.--The term ``minority
business enterprise'' means a business enterprise (without
regard to whether the business enterprise is a for-profit or
not-for-profit enterprise)--
(A) that is not less than 51 percent-owned by 1 or
more socially and economically disadvantaged
individuals; and
(B) the management and daily business operations of
which are controlled by 1 or more socially and
economically disadvantaged individuals.
(12) Private sector entity.--The term ``private sector
entity''--
(A) means an entity that is not a public sector
entity; and
(B) does not include--
(i) the Federal Government;
(ii) any Federal agency; or
(iii) any instrumentality of the Federal
Government.
(13) Public sector entity.--The term ``public sector
entity'' means--
(A) a State;
(B) an agency of a State;
(C) a political subdivision of a State; or
(D) an agency of a political subdivision of a
State.
(14) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(15) Socially and economically disadvantaged individual.--
(A) In general.--The term ``socially and
economically disadvantaged individual'' means an
individual who has been subjected to racial or ethnic
prejudice, or to cultural bias, because of the identity
of the individual as a member of a group, without
regard to any individual quality of the individual that
is unrelated to that identity.
(B) Presumption.--In carrying out this Act, the
Assistant Secretary shall presume that the term
``socially and economically disadvantaged individual''
includes any individual who is--
(i) Black or African American;
(ii) Hispanic or Latino;
(iii) American Indian or Alaska Native;
(iv) Asian;
(v) Native Hawaiian or other Pacific
Islander; or
(vi) a member of a group that the Agency
determines under part 1400 of title 15, Code of
Federal Regulations, as in effect on November
23, 1984, is a socially disadvantaged group
eligible to receive assistance.
(16) Specialty center.--The term ``specialty center'' means
an MBDA Business Center that provides specialty services
focusing on specific business needs, including assistance
relating to--
(A) capital access;
(B) Federal procurement;
(C) entrepreneurship;
(D) technology transfer; or
(E) any other area determined necessary or
appropriate based on the priorities of the Agency.
(17) State.--The term ``State'' means--
(A) each of the States of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) the United States Virgin Islands;
(E) Guam;
(F) American Samoa;
(G) the Commonwealth of the Northern Mariana
Islands; and
(H) each Indian Tribe.
SEC. 4. MINORITY BUSINESS DEVELOPMENT AGENCY.
(a) In General.--There is within the Department of Commerce the
Minority Business Development Agency.
(b) Assistant Secretary.--
(1) Appointment and duties.--The Agency shall be headed by
an Assistant Secretary of Commerce for Minority Business
Development, who shall be--
(A) appointed by the President, by and with the
advice and consent of the Senate; and
(B) except as otherwise expressly provided,
responsible for the administration of this Act.
(2) Compensation.--
(A) In general.--The Assistant Secretary shall be
compensated at an annual rate of basic pay prescribed
for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
(B) Technical and conforming amendment.--Section
5315 of title 5, United States Code, is amended, in the
item relating to Assistant Secretaries of Commerce, by
striking ``(11)'' and inserting ``(12)''.
(c) Report to Congress.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall submit to Congress a report
that describes--
(1) the organizational structure of the Agency;
(2) the organizational position of the Agency within the
Department of Commerce; and
(3) a description of how the Agency shall function in
relation to the operations carried out by each other component
of the Department of Commerce.
(d) Office of Business Centers.--
(1) Establishment.--There is established within the Agency
an Office of Business Centers.
(2) Director.--The Office of Business Centers shall be
administered by a Director, who shall be appointed by the
Assistant Secretary.
(e) Offices of the Agency.--
(1) In general.--In addition to the regional offices that
the Assistant Secretary is required to establish under
paragraph (2), the Assistant Secretary shall establish such
other offices within the Agency as are necessary to carry out
this Act.
(2) Regional offices.--
(A) In general.--In order to carry out this Act,
the Assistant Secretary shall establish a regional
office of the Agency for each of the regions of the
United States, as determined by the Assistant
Secretary.
(B) Duties.--Each regional office established under
subparagraph (A) shall expand the reach of the Agency
and enable the Federal Government to better serve the
needs of minority business enterprises in the region
served by the office, including by--
(i) understanding and participating in the
business environment of that region;
(ii) working with--
(I) MBDA Business Centers that are
located in that region;
(II) resource and lending partners
of the Small Business Administration
and the Department of Agriculture that
are located in that region; and
(III) Federal, State, and local
procurement offices that are located in
that region;
(iii) being aware of business retention or
expansion programs that are specific to that
region;
(iv) seeking out opportunities to
collaborate with regional public and private
programs that focus on minority business
enterprises; and
(v) promoting business continuity and
preparedness.
TITLE I--EXISTING INITIATIVES
Subtitle A--Market Development, Research, and Information
SEC. 101. PRIVATE SECTOR DEVELOPMENT.
The Assistant Secretary shall, whenever the Assistant Secretary
determines such action is necessary or appropriate--
(1) provide Federal assistance to minority business
enterprises operating in domestic and foreign markets by making
available to those business enterprises, either directly or in
cooperation with private sector entities, including community-
based organizations and national nonprofit organizations--
(A) resources relating to management;
(B) technological and technical assistance;
(C) financial, legal, and marketing services; and
(D) services relating to workforce development;
(2) encourage minority business enterprises to establish
joint ventures and projects--
(A) with other minority business enterprises; or
(B) in cooperation with public sector entities or
private sector entities, including community-based
organizations and national nonprofit organizations, to
increase the share of any market activity being
performed by minority business enterprises; and
(3) facilitate the efforts of private sector entities and
Federal agencies to advance the growth of minority business
enterprises.
SEC. 102. PUBLIC SECTOR DEVELOPMENT.
The Assistant Secretary shall, whenever the Assistant Secretary
determines such action is necessary or appropriate--
(1) consult and cooperate with public sector entities for
the purpose of leveraging resources available in the
jurisdictions of those public sector entities to promote the
position of minority business enterprises in the local
economies of those public sector entities, including by
assisting public sector entities to establish or enhance--
(A) programs to procure goods and services through
minority business enterprises and goals for that
procurement;
(B) programs offering assistance relating to--
(i) management;
(ii) technology;
(iii) law;
(iv) financing, including accounting;
(v) marketing; and
(vi) workforce development; and
(C) informational programs designed to inform
minority business enterprises located in the
jurisdictions of those public sector entities about the
availability of programs described in this section;
(2) meet with leaders and officials of public sector
entities for the purpose of recommending and promoting local
administrative and legislative initiatives needed to advance
the position of minority business enterprises in the local
economies of those public sector entities; and
(3) facilitate the efforts of public sector entities and
Federal agencies to advance the growth of minority business
enterprises.
SEC. 103. RESEARCH AND INFORMATION.
(a) In General.--In order to achieve the purposes of this Act, the
Assistant Secretary--
(1) shall--
(A) collect and analyze data, including data
relating to the causes of the success or failure of
minority business enterprises;
(B) perform evaluations of programs carried out by
Federal agencies with an emphasis on increasing
coordination between Federal agencies with respect to
the development of minority business enterprises;
(C) conduct research, studies, and surveys of--
(i) economic conditions generally in the
United States; and
(ii) how the conditions described in clause
(i) particularly affect the development of
minority business enterprises; and
(D) provide outreach, educational services, and
technical assistance in the 10 most commonly spoken
languages in the United States to ensure that limited-
English proficient individuals receive culturally and
linguistically appropriate access to the services and
information provided by the Agency; and
(2) may, at the request of a public sector entity or a
private sector entity, perform an evaluation of programs
carried out by the entity that are designed to assist the
development of minority business enterprises.
(b) Information Clearinghouse.--The Assistant Secretary shall--
(1) establish and maintain an information clearinghouse for
the collection and dissemination to relevant parties (including
business owners and researchers) of demographic, economic,
financial, managerial, and technical data relating to minority
business enterprises; and
(2) take such steps as the Assistant Secretary may
determine to be necessary and desirable to--
(A) search for, collect, classify, coordinate,
integrate, record, and catalog the data described in
paragraph (1); and
(B) in a manner that is consistent with section
552a of title 5, United States Code, protect the
privacy of the minority business enterprises to which
the data described in paragraph (1) relates.
Subtitle B--Minority Business Development Agency Business Center
Program
SEC. 110. DEFINITION.
In this subtitle, the term ``MBDA Business Center Program'' means
the program established under section 112.
SEC. 111. PURPOSE.
The purpose of the MBDA Business Center Program shall be to create
a national network of public-private partnerships that--
(1) assist minority business enterprises to--
(A) access capital, contracts, and grants; and
(B) create and maintain jobs;
(2) provide counseling and mentoring to minority business
enterprises; and
(3) facilitate the growth of minority business enterprises
by promoting trade.
SEC. 112. ESTABLISHMENT.
(a) In General.--There is established in the Agency a program--
(1) that shall be known as the MBDA Business Center
Program;
(2) that shall be separate and distinct from the efforts of
the Assistant Secretary under section 101; and
(3) under which the Assistant Secretary shall make Federal
assistance awards to eligible entities to operate MBDA Business
Centers, which shall, in accordance with section 113, provide
technical assistance and business development services, or
specialty services, to minority business enterprises.
(b) Coverage.--The Assistant Secretary shall take all necessary
actions to ensure that the MBDA Business Center Program, in accordance
with section 113, offers the services described in subsection (a)(3) in
all regions of the United States.
SEC. 113. GRANTS AND COOPERATIVE AGREEMENTS.
(a) Requirements.--An MBDA Business Center (referred to in this
subtitle as a ``Center''), with respect to the Federal financial
assistance award made to operate the Center under the MBDA Business
Center Program--
(1) shall--
(A) provide to minority business enterprises
programs and services determined to be appropriate by
the Assistant Secretary, which--
(i) shall include referral services to meet
the needs of minority business enterprises; and
(ii) may include programs and services to
accomplish the goals described in section
101(1);
(B) develop, cultivate, and maintain a network of
strategic partnerships with organizations that foster
access by minority business enterprises to economic
markets, capital, or contracts;
(C) continue to upgrade and modify the services
provided by the Center, as necessary, in order to meet
the changing and evolving needs of the business
community;
(D) establish or continue a referral relationship
with not less than 1 community-based organization; and
(E) collaborate with other Centers; and
(2) in providing programs and services under the applicable
MBDA Business Center agreement, may--
(A) operate on a fee-for-service basis; or
(B) generate income through the collection of--
(i) client fees;
(ii) membership fees; and
(iii) any other appropriate fees proposed
by the Center in the application submitted by
the Center under subsection (e).
(b) Term.--Subject to subsection (g)(3), the term of an MBDA
Business Center agreement shall be not less than 3 years.
(c) Financial Assistance.--
(1) In general.--The amount of financial assistance
provided by the Assistant Secretary under an MBDA Business
Center agreement shall be not less than $250,000 for the term
of the agreement.
(2) Matching requirement.--
(A) In general.--A Center shall match not less than
\1/3\ of the amount of the financial assistance awarded
to the Center under the terms of the applicable MBDA
Business Center agreement, unless the Assistant
Secretary determines that a waiver of that requirement
is necessary after a demonstration by the Center of a
substantial need for that waiver.
(B) Form of funds.--A Center may meet the matching
requirement under subparagraph (A) using--
(i) cash or in-kind contributions, without
regard to whether the contribution is made by a
third party; or
(ii) Federal funds received from other
Federal programs.
(3) Use of financial assistance and program income.--A
Center shall use--
(A) all financial assistance awarded to the Center
under the applicable MBDA Business Center agreement to
carry out subsection (a); and
(B) all income that the Center generates in
carrying out subsection (a)--
(i) to meet the matching requirement under
paragraph (2) of this subsection; and
(ii) if the Center meets the matching
requirement under paragraph (2) of this
subsection, to carry out subsection (a).
(d) Criteria for Selection.--The Assistant Secretary shall--
(1) establish criteria that--
(A) the Assistant Secretary shall use in
determining whether to enter into an MBDA Business
Center agreement with an eligible entity; and
(B) may include criteria relating to whether an
eligible entity is located in--
(i) an area, the population of which is
composed of not less than 51 percent socially
and economically disadvantaged individuals, as
determined in accordance with data collected by
the Bureau of the Census;
(ii) a federally recognized area of
economic distress; or
(iii) a State that is underserved with
respect to the MBDA Business Center Program, as
defined by the Assistant Secretary; and
(2) make the criteria and standards established under
paragraph (1) publicly available, including--
(A) on the website of the Agency; and
(B) in each Notice of Funding Opportunity
soliciting MBDA Business Center agreements.
(e) Applications.--An eligible entity desiring to enter into an
MBDA Business Center agreement shall submit to the Assistant Secretary
an application that includes--
(1) a statement of--
(A) how the eligible entity will carry out
subsection (a); and
(B) any experience of the eligible entity in--
(i) assisting minority business enterprises
to--
(I) obtain--
(aa) large-scale contracts,
grants, or procurements;
(bb) financing; or
(cc) legal assistance;
(II) access established supply
chains; and
(III) engage in--
(aa) joint ventures,
teaming arrangements, and
mergers and acquisitions; or
(bb) large-scale
transactions in global markets;
(ii) supporting minority business
enterprises in increasing the size of the
workforces of those enterprises, including,
with respect to a minority business enterprise
that does not have employees, aiding the
minority business enterprise in becoming an
enterprise that has employees; and
(iii) advocating for minority business
enterprises; and
(2) the budget and corresponding budget narrative that the
eligible entity will use in carrying out subsection (a) during
the term of the applicable MBDA Business Center agreement.
(f) Notification.--If the Assistant Secretary grants an application
of an eligible entity submitted under subsection (e), the Assistant
Secretary shall notify the eligible entity that the application has
been granted not later than 150 days after the last day on which an
application may be submitted under that subsection.
(g) Program Examination; Accreditation; Extensions.--
(1) Examination.--Not later than 180 days after the date of
enactment of this Act, and biennially thereafter, the Assistant
Secretary shall conduct a programmatic financial examination of
each Center.
(2) Accreditation.--The Assistant Secretary may provide
financial support, by contract or otherwise, to an association,
not less than 51 percent of the members of which are Centers,
to--
(A) pursue matters of common concern with respect
to Centers; and
(B) develop an accreditation program with respect
to Centers.
(3) Extensions.--
(A) In general.--The Assistant Secretary may extend
the term under subsection (b) of an MBDA Business
Center agreement to which a Center is a party, if the
Center consents to the extension.
(B) Financial assistance.--If the Assistant
Secretary extends the term of an MBDA Business Center
agreement under paragraph (1), the Assistant Secretary
shall, in the same manner and amount in which financial
assistance was provided during the initial term of the
agreement, provide financial assistance under the
agreement during the extended term of the agreement.
(h) MBDA Involvement.--The Assistant Secretary may take actions to
ensure that the Agency is substantially involved in the activities of
Centers in carrying out subsection (a), including by--
(1) providing to each Center training relating to the MBDA
Business Center Program;
(2) requiring that the operator and staff of each Center--
(A) attend--
(i) a conference with the Agency to
establish the services and programs that the
Center will provide in carrying out the
requirements before the date on which the
Center begins providing those services and
programs; and
(ii) training provided under paragraph (1);
(B) receive necessary guidance relating to carrying
out the requirements under subsection (a); and
(C) work in coordination and collaboration with the
Assistant Secretary to carry out the MBDA Business
Center Program and other programs of the Agency;
(3) facilitating connections between Centers and--
(A) Federal agencies other than the Agency,
including the Small Business Administration, the
Department of Agriculture, the Federal Trade
Commission, the United States Patent and Trademark
Office, and the Economic Development Administration of
the Department of Commerce; and
(B) other institutions or entities that use Federal
resources, including--
(i) small business development centers, as
that term is defined in section 3(t) of the
Small Business Act (15 U.S.C. 632(t));
(ii) women's business centers described in
section 29 of the Small Business Act (15 U.S.C.
656);
(iii) eligible entities, as that term is
defined in section 2411 of title 10, United
States Code, that provide services under the
program carried out under chapter 142 of that
title; and
(iv) entities participating in the Hollings
Manufacturing Extension Partnership Program
established under section 25 of the National
Institute of Standards and Technology Act (15
U.S.C. 278k);
(4) monitoring projects carried out by each Center; and
(5) establishing and enforcing administrative and reporting
requirements for each Center to carry out subsection (a).
(i) Regulations.--The Assistant Secretary shall issue and publish
regulations that establish minimum standards regarding verification of
minority business enterprise status for clients of entities operating
under the MBDA Business Center Program.
SEC. 114. MINIMIZING DISRUPTIONS TO EXISTING MBDA BUSINESS CENTER
PROGRAM.
The Assistant Secretary shall ensure that each Federal assistance
award made under the Business Centers program of the Agency, as is in
effect on the day before the date of enactment of this Act, is carried
out in a manner that, to the greatest extent practicable, prevents
disruption of any activity carried out under that award.
SEC. 115. PUBLICITY.
In carrying out the MBDA Business Center Program, the Assistant
Secretary shall widely publicize the MBDA Business Center Program,
including--
(1) on the website of the Agency;
(2) via social media outlets; and
(3) by sharing information relating to the MBDA Business
Center Program with community-based organizations, including
interpretation groups where necessary, to communicate in the
most common languages spoken by the groups served by those
organizations.
SEC. 116. FUNDING.
The Assistant Secretary shall use not less than 50 percent of the
amount made available to carry out this Act in each of fiscal years
2021 through 2024 to carry out the MBDA Business Center Program,
including the component of the program relating to specialty centers.
TITLE II--NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR MINORITY
BUSINESSES
SEC. 201. ANNUAL DIVERSE BUSINESS FORUM ON CAPITAL FORMATION.
(a) Responsibility of Agency.--Not later than 18 months after the
date of enactment of this Act, and annually thereafter, the Agency
shall conduct a Government-business forum to review the current status
of problems and programs relating to capital formation by minority
business enterprises.
(b) Participation in Forum Planning.--The Assistant Secretary shall
invite the heads of other Federal agencies, such as the Chairman of the
Securities and Exchange Commission, the Secretary of the Treasury, and
the Chairman of the Board of Governors of the Federal Reserve System,
organizations representing State securities commissioners,
representatives of leading minority chambers of commerce, not less than
1 certified owner of a minority business enterprise, business
organizations, and professional organizations concerned with capital
formation to participate in the planning of each forum conducted under
subsection (a).
(c) Preparation of Statements and Reports.--
(1) Requests.--The Assistant Secretary may request that any
head of a Federal department, agency, or organization,
including those described in subsection (b), or any other group
or individual, prepare a statement or report to be delivered at
any forum conducted under subsection (a).
(2) Cooperation.--Any head of a Federal department, agency,
or organization who receives a request under paragraph (1)
shall, to the greatest extent practicable, cooperate with the
Assistant Secretary to fulfill that request.
(d) Transmittal of Proceedings and Findings.--The Assistant
Secretary shall--
(1) prepare a summary of the proceedings of each forum
conducted under subsection (a), which shall include the
findings and recommendations of the forum; and
(2) transmit the summary described in paragraph (1) with
respect to each forum conducted under subsection (a) to--
(A) the participants in the forum;
(B) Congress; and
(C) the public, through a publicly available
website.
(e) Review of Findings and Recommendations; Public Statements.--
(1) In general.--A Federal agency to which a finding or
recommendation described in subsection (d)(1) relates shall--
(A) review that finding or recommendation; and
(B) promptly after the finding or recommendation is
transmitted under subsection (d)(2)(C), issue a public
statement--
(i) assessing the finding or
recommendation; and
(ii) disclosing the action, if any, the
Federal agency intends to take with respect to
the finding or recommendation.
(2) Joint statement permitted.--If a finding or
recommendation described in subsection (d)(1) relates to more
than 1 Federal agency, the applicable Federal agencies may, for
the purposes of the public statement required under paragraph
(1)(B), issue a joint statement.
SEC. 202. AGENCY STUDY ON ALTERNATIVE FINANCING SOLUTIONS.
(a) Purpose.--The purpose of this section is to provide information
relating to alternative financing solutions to minority business
enterprises, as those business enterprises are more likely to struggle
in accessing, particularly at affordable rates, traditional sources of
capital.
(b) Study and Report.--Not later than 1 year after the date of
enactment of this Act, the Assistant Secretary shall--
(1) conduct a study on opportunities for providing
alternative financing solutions to minority business
enterprises; and
(2) submit to Congress, and publish on the website of the
Agency, a report describing the findings of the study carried
out under paragraph (1).
SEC. 203. EDUCATIONAL DEVELOPMENT RELATING TO MANAGEMENT AND
ENTREPRENEURSHIP.
(a) Duties.--The Assistant Secretary shall, whenever the Assistant
Secretary determines such action is necessary or appropriate--
(1) promote and provide assistance for the education and
training of socially and economically disadvantaged individuals
in subjects directly relating to business administration and
management;
(2) join with, and encourage, institutions of higher
education, leaders in business and industry, and other public
sector and private sector entities, particularly minority
business enterprises, to--
(A) develop programs to offer scholarships and
fellowships, apprenticeships, and internships relating
to business to socially and economically disadvantaged
individuals; and
(B) sponsor seminars, conferences, and similar
activities relating to business for the benefit of
socially and economically disadvantaged individuals;
(3) stimulate and accelerate curriculum design and
improvement in support of development of minority business
enterprises; and
(4) encourage and assist private institutions and
organizations and public sector entities to undertake
activities similar to the activities described in paragraphs
(1), (2), and (3).
(b) Parren J. Mitchell Entrepreneurship Education Grants.--
(1) Definition.--In this subsection, the term ``eligible
institution'' means an institution of higher education
described in any of paragraphs (1) through (7) of section
371(a) of the Higher Education Act of 1965 (20 U.S.C.
1067q(a)).
(2) Grants.--The Assistant Secretary shall award grants to
eligible institutions to develop and implement entrepreneurship
curricula.
(3) Requirements.--An eligible institution to which a grant
is awarded under this subsection shall use the grant funds to--
(A) develop a curriculum that includes training in
various skill sets needed by contemporary successful
entrepreneurs, including--
(i) business management and marketing;
(ii) financial management and accounting;
(iii) market analysis;
(iv) competitive analysis;
(v) innovation;
(vi) strategic planning; and
(vii) any other skill set that the eligible
institution determines is necessary for the
students served by the eligible institution and
the community in which the eligible institution
is located; and
(B) implement the curriculum developed under
subparagraph (A) at the eligible institution.
(4) Implementation timeline.--The Assistant Secretary shall
establish and publish a timeline under which an eligible
institution to which a grant is awarded under this section
shall carry out the requirements under paragraph (3).
(5) Reports.--Each year, the Assistant Secretary shall
submit to the Committee on Commerce, Science, and
Transportation of the Senate, the Committee on Small Business
and Entrepreneurship of the Senate, the Committee on Financial
Services of the House of Representatives, and the Committee on
Small Business of the House of Representatives, as part of the
annual budget submission of the President under section 1105(a)
of title 31, United States Code, a report evaluating the
awarding and use of grants under this subsection during the
fiscal year immediately preceding the date on which the report
is submitted, which shall include, with respect to that fiscal
year--
(A) a description of each curriculum developed and
implemented under each grant awarded under this
section;
(B) the date on which each grant awarded under this
section was awarded; and
(C) the number of eligible entities that were
recipients of grants awarded under this section.
TITLE III--RURAL MINORITY BUSINESS CENTER PROGRAM
SEC. 301. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Commerce, Science, and
Transportation of the Senate;
(B) the Committee on Small Business and
Entrepreneurship of the Senate;
(C) the Committee on Financial Services of the
House of Representatives; and
(D) the Committee on Small Business of the House of
Representatives.
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a minority-serving institution; or
(B) a consortium of institutions of higher
education that is led by a minority-serving
institution.
(3) MBDA rural business center.--The term ``MBDA Rural
Business Center'' means an MBDA Business Center that provides
technical business assistance to minority business enterprises
located in rural areas.
(4) MBDA rural business center agreement.--The term ``MBDA
Rural Business Center agreement'' means an MBDA Business Center
agreement that establishes the terms by which the recipient of
the Federal assistance award that is the subject of the
agreement shall operate an MBDA Rural Business Center.
(5) Minority-serving institution.--The term ``minority-
serving institution'' means an institution described in any of
paragraphs (1) through (7) of section 371(a) of the Higher
Education Act of 1965 (20 U.S.C. 1067q(a)).
(6) Rural area.--
(A) In general.--Subject to subparagraph (B), the
term ``rural area'' has the meaning given the term in
section 343(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)).
(B) 100,000 inhabitants.--For the purpose of this
title, the reference to ``50,000 inhabitants'' in
section 343(a)(13)(A)(i) of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1991(a)(13)(A)(i))
shall be deemed to refer to 100,000 inhabitants.
(7) Rural minority business enterprise.--The term ``rural
minority business enterprise'' means a minority business
enterprise located in a rural area.
SEC. 302. BUSINESS CENTERS.
(a) In General.--The Assistant Secretary may establish MBDA Rural
Business Centers.
(b) Partnership.--
(1) In general.--With respect to an MBDA Rural Business
Center established by the Assistant Secretary, the Assistant
Secretary shall establish the MBDA Rural Business Center in
partnership with an eligible entity in accordance with
paragraph (2).
(2) MBDA agreement.--
(A) In general.--With respect to each MBDA Rural
Business Center established by the Assistant Secretary,
the Assistant Secretary shall enter into a cooperative
agreement with an eligible entity that provides that--
(i) the eligible entity shall provide
space, facilities, and staffing for the MBDA
Rural Business Center;
(ii) the Assistant Secretary shall provide
funding for, and oversight with respect to, the
MBDA Rural Business Center; and
(iii) subject to subparagraph (B), the
eligible entity shall match 20 percent of the
amount of the funding provided by the Assistant
Secretary under clause (ii), which may be
calculated to include the costs of providing
the space, facilities, and staffing under
clause (i).
(B) Lower match requirement.--Based on the
available resources of an eligible entity, the
Assistant Secretary may enter into a cooperative
agreement with the eligible entity that provides that--
(i) the eligible entity shall match less
than 20 percent of the amount of the funding
provided by the Assistant Secretary under
subparagraph (A)(ii); or
(ii) if the Assistant Secretary makes a
determination, upon a demonstration by the
eligible entity of substantial need, the
eligible entity shall not be required to
provide any match with respect to the funding
provided by the Assistant Secretary under
subparagraph (A)(ii).
(C) Eligible funds.--An eligible entity may provide
matching funds required under an MBDA Rural Business
Center agreement with Federal funds received from other
Federal programs.
(3) Term.--The initial term of an MBDA Rural Business
Center agreement shall be 3 years.
(4) Extension.--The Assistant Secretary and an eligible
entity may agree to extend the term of an MBDA Rural Business
Center agreement with respect to an MBDA Rural Business Center.
(c) Functions.--An MBDA Rural Business Center shall--
(1) primarily serve clients that are--
(A) rural minority business enterprises; or
(B) minority business enterprises that are located
more than 50 miles from an MBDA Business Center (other
than that MBDA Rural Business Center);
(2) focus on--
(A) issues relating to--
(i) the adoption of broadband internet
access service (as defined in section 8.1(b) of
title 47, Code of Federal Regulations, or any
successor regulation), digital literacy skills,
and e-commerce by rural minority business
enterprises;
(ii) advanced manufacturing;
(iii) the promotion of manufacturing in the
United States;
(iv) ways in which rural minority business
enterprises can meet gaps in the supply chain
of critical supplies and essential goods and
services for the United States;
(v) improving the connectivity of rural
minority business enterprises through
transportation and logistics;
(vi) promoting trade and export
opportunities by rural minority business
enterprises;
(vii) securing financial capital;
(viii) facilitating entrepreneurship in
rural areas; and
(ix) creating jobs in rural areas; and
(B) any other issue relating to the unique
challenges faced by rural minority business
enterprises; and
(3) provide education, training, and legal, financial, and
technical assistance to minority business enterprises.
(d) Applications.--
(1) In general.--Not later than 90 days after the date of
enactment of this Act, the Assistant Secretary shall issue a
Notice of Funding Opportunity requesting applications from
eligible entities that desire to enter into MBDA Rural Business
Center agreements.
(2) Criteria and priority.--In selecting an eligible entity
with which to enter into an MBDA Rural Business Center
agreement, the Assistant Secretary shall--
(A) select an eligible entity that demonstrates--
(i) the ability to collaborate with
governmental and private sector entities to
leverage capabilities of minority business
enterprises through public-private
partnerships;
(ii) the research and extension capacity to
support minority business enterprises;
(iii) knowledge of the community that the
eligible entity serves and the ability to
conduct effective outreach to that community to
advance the goals of an MBDA Rural Business
Center;
(iv) the ability to provide innovative
business solutions, including access to
contracting opportunities, markets, and
capital;
(v) the ability to provide services that
advance the development of science, technology,
engineering, and math jobs within minority
business enterprises;
(vi) the ability to leverage resources from
within the eligible entity to advance an MBDA
Rural Business Center;
(vii) that the mission of the eligible
entity aligns with the mission of the Agency;
(viii) the ability to leverage
relationships with rural minority business
enterprises; and
(ix) a referral relationship with not less
than 1 community-based organization; and
(B) give priority to an eligible entity located in
a State or region that lacks an MBDA Business Center,
as of the date of enactment of this Act.
SEC. 303. REPORT TO CONGRESS.
Not later than 1 year after the date of enactment of this Act, the
Assistant Secretary shall submit to the appropriate congressional
committees a report that includes--
(1) a summary of the efforts of the Assistant Secretary to
provide services to minority business enterprises located in
States that lack an MBDA Business Center, as of the date of
enactment of this Act, and especially in those States that have
significant minority populations; and
(2) recommendations for extending the outreach of the
Agency to underserved areas.
SEC. 304. STUDY AND REPORT.
(a) In General.--The Assistant Secretary, in coordination with
relevant leadership of the Agency and relevant individuals outside of
the Department of Commerce, shall conduct a study that addresses the
ways in which minority business enterprises can meet gaps in the supply
chain of the United States, with a particular focus on the supply chain
of advanced manufacturing and essential goods and services.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Assistant Secretary shall submit to the appropriate
congressional committees a report that includes the results of the
study conducted under subsection (a), which shall include
recommendations regarding the ways in which minority business
enterprises can meet gaps in the supply chain of the United States.
TITLE IV--MINORITY BUSINESS DEVELOPMENT GRANTS
SEC. 401. GRANTS TO NONPROFIT ORGANIZATIONS THAT SUPPORT MINORITY
BUSINESS ENTERPRISES.
(a) Definition.--In this section, the term ``covered entity'' means
a private nonprofit organization that--
(1) is described in paragraph (3), (4), (5), or (6) of
section 501(c) of the Internal Revenue Code of 1986 and exempt
from tax under section 501(a) of such Code; and
(2) can demonstrate that the primary mission of the
organization is to provide services to minority business
enterprises, whether through education, making grants or loans,
or other similar activities.
(b) Purpose.--The purpose of this section is to make grants to
covered entities to help those covered entities continue the necessary
work of supporting minority business enterprises.
(c) Establishment.--Not later than 180 days after the date of
enactment of this Act, the Assistant Secretary shall establish within
the Agency a grant program under which the Assistant Secretary shall
make grants to covered entities in accordance with the requirements of
this section.
(d) Application.--A covered entity desiring a grant under this
section shall submit to the Assistant Secretary an application at such
time, in such manner, and containing such information as the Assistant
Secretary may require.
(e) Priority.--The Assistant Secretary shall, in carrying out this
section, prioritize granting an application submitted by a covered
entity--
(1) the primary mission of which is serving socially and
economically disadvantaged individuals; or
(2) that is located in a federally recognized area of
economic distress.
(f) Use of Funds.--A covered entity to which a grant is made under
this section may use the grant funds to support the development and
growth of minority business enterprises.
(g) Procedures.--The Assistant Secretary shall establish procedures
to discourage and prevent waste, fraud, and abuse by applicants for,
and recipients of, grants made under this section.
(h) Inspector General Audit.--Not later than 180 days after the
date on which the Assistant Secretary begins making grants under this
section, the Inspector General of the Department of Commerce shall--
(1) conduct an audit of grants made under this section,
which shall seek to identify any discrepancies or
irregularities with respect to those grants; and
(2) submit to Congress a report regarding the audit
conducted under paragraph (1).
(i) Updates to Congress.--Not later than 90 days after the date on
which the Assistant Secretary establishes the grant program under
subsection (c), and once every 30 days thereafter, the Assistant
Secretary shall submit to Congress a report that contains--
(1) the number of grants made under this section during the
period covered by the report; and
(2) with respect to the grants described in paragraph (1),
the geographic distribution of those grants by State and
county.
SEC. 402. MINORITY BUSINESS GRANTS.
(a) In General.--The Assistant Secretary may award grants to
minority business enterprises for the purpose of--
(1) growing a minority business enterprise; or
(2) helping a minority business enterprise to remain in
business.
(b) Establishment of Office.--The Assistant Secretary shall
establish an office within the Agency that has adequate staffing to
award and administer grants under subsection (a).
(c) Updates to Congress.--Not later than 120 days after the date of
enactment of this Act, and once every 30 days thereafter, the Assistant
Secretary shall submit to Congress a report that contains--
(1) the number of grants made under this section during the
period covered by the report; and
(2) with respect to the grants described in paragraph (1)--
(A) the geographic distribution of those grants by
State and county; and
(B) with respect to each minority business
enterprise to which such a grant is awarded--
(i) demographic information with respect to
the minority business enterprise; and
(ii) information regarding the industry in
which the minority business enterprise
operates.
TITLE V--ADMINISTRATIVE AND OTHER POWERS OF THE AGENCY; MISCELLANEOUS
PROVISIONS
SEC. 501. ADMINISTRATIVE POWERS.
(a) In General.--In carrying out this Act, the Assistant Secretary
may--
(1) adopt and use a seal for the Agency, which shall be
judicially noticed;
(2) hold hearings, sit and act, and take testimony as the
Assistant Secretary may determine to be necessary or
appropriate to carry out this Act;
(3) acquire, in any lawful manner, any property that the
Assistant Secretary determines to be necessary or appropriate
to carry out this Act;
(4) make advance payments under grants, contracts, and
cooperative agreements awarded under this Act;
(5) with the consent of another Federal agency, enter into
an agreement with that Federal agency to utilize, with or
without reimbursement, any service, equipment, personnel, or
facility of that Federal agency;
(6) coordinate with the heads of the Offices of Small and
Disadvantaged Business Utilization of Federal agencies;
(7) require a coordinated review of all training and
technical assistance activities that are proposed to be carried
out by Federal agencies in direct support of the development of
minority business enterprises to--
(A) ensure consistency with the purposes of this
Act; and
(B) avoid duplication of existing efforts; and
(8) prescribe such rules, regulations, and procedures as
the Assistant Secretary determines to be necessary or
appropriate to carry out this Act.
(b) Employment of Certain Experts and Consultants.--
(1) In general.--In carrying out this Act, the Assistant
Secretary may employ experts and consultants or organizations
that are composed of experts or consultants, as authorized
under section 3109 of title 5, United States Code.
(2) Renewal of contracts.--The Assistant Secretary may
annually renew a contract for employment of an individual
employed under paragraph (1).
(c) Donation of Property.--
(1) In general.--Subject to paragraph (2), in carrying out
this Act, the Assistant Secretary may, without cost (except for
costs of care and handling), donate for use by any public
sector entity, or by any recipient nonprofit organization, for
the purpose of the development of minority business
enterprises, any real or tangible personal property acquired by
the Agency in carrying out this Act.
(2) Terms, conditions, reservations, and restrictions.--The
Assistant Secretary may impose reasonable terms, conditions,
reservations, and restrictions upon the use of any property
donated under paragraph (1).
SEC. 502. FEDERAL ASSISTANCE.
(a) In General.--
(1) Provision of federal assistance.--To carry out sections
101, 102, and 103(a), the Assistant Secretary may provide
Federal assistance to public sector entities and private sector
entities in the form of grants or cooperative agreements.
(2) Notice.--Not later than 120 days after the date on
which amounts are appropriated to carry out this section, the
Assistant Secretary shall, in accordance with subsection (b),
broadly publish a statement regarding Federal assistance that
will, or may, be provided under paragraph (1) during the fiscal
year for which those amounts are appropriated, including--
(A) the actual, or anticipated, amount of Federal
assistance that will, or may, be made available;
(B) the types of Federal assistance that will, or
may, be made available;
(C) the manner in which Federal assistance will be
allocated among public sector entities and private
sector entities, as applicable; and
(D) the methodology used by the Assistant Secretary
to make allocations under subparagraph (C).
(3) Consultation.--The Assistant Secretary shall consult
with public sector entities and private sector entities, as
applicable, in deciding the amounts and types of Federal
assistance to make available under paragraph (1).
(b) Publicity.--In carrying out this section, the Assistant
Secretary shall broadly publicize all opportunities for Federal
assistance available under this section, including through the means
required under section 115.
SEC. 503. AUDITS.
(a) Recordkeeping Requirement.--Each recipient of assistance under
this Act shall keep such records as the Assistant Secretary shall
prescribe, including records that fully disclose, with respect to the
assistance received by the recipient under this Act--
(1) the amount and nature of that assistance;
(2) the disposition by the recipient of the proceeds of
that assistance;
(3) the total cost of the undertaking for which the
assistance is given or used;
(4) the amount and nature of the portion of the cost of the
undertaking described in paragraph (3) that is supplied by a
source other than the Agency; and
(5) any other record that will facilitate an effective
audit with respect to the assistance.
(b) Access by Government Officials.--The Assistant Secretary, the
Inspector General of the Department of Commerce, and the Comptroller
General of the United States, or any duly authorized representative of
any such individual, shall have access, for the purpose of audit,
investigation, and examination, to any book, document, paper, record,
or other material of a recipient of assistance under this Act that
pertains to the assistance received by the recipient under this Act.
SEC. 504. REVIEW AND REPORT BY COMPTROLLER GENERAL.
Not later than 4 years after the date of enactment of this Act, the
Comptroller General of the United States shall--
(1) conduct a thorough review of the programs carried out
under this Act; and
(2) submit to Congress a detailed report of the findings of
the Comptroller General of the United States under the review
carried out under paragraph (1), which shall include--
(A) an evaluation of the effectiveness of the
programs in achieving the purposes of this Act;
(B) a description of any failure by any recipient
of assistance under this Act to comply with the
requirements under this Act; and
(C) recommendations for any legislative or
administrative action that should be taken to improve
the achievement of the purposes of this Act.
SEC. 505. ANNUAL REPORTS; RECOMMENDATIONS.
(a) Annual Report.--Not later than 90 days after the last day of
each fiscal year, the Assistant Secretary shall submit to Congress, and
publish on the website of the Agency, a report of each activity of the
Agency carried out under this Act during the fiscal year preceding the
date on which the report is submitted.
(b) Recommendations.--The Assistant Secretary shall periodically
submit to Congress and the President recommendations for legislation or
other actions that the Assistant Secretary determines to be necessary
or appropriate to promote the purposes of this Act.
SEC. 506. SEPARABILITY.
If a provision of this Act, or the application of a provision of
this Act to any person or circumstance, is held by a court of competent
jurisdiction to be invalid, that judgment--
(1) shall not affect, impair, or invalidate--
(A) any other provision of this Act; or
(B) the application of this Act to any other person
or circumstance; and
(2) shall be confined in its operation to--
(A) the provision of this Act with respect to which
the judgment is rendered; or
(B) the application of the provision of this Act to
each person or circumstance directly involved in the
controversy in which the judgment is rendered.
SEC. 507. EXECUTIVE ORDER 11625.
The powers and duties of the Agency shall be determined--
(1) in accordance with this Act and the requirements of
this Act; and
(2) without regard to Executive Order 11625 (36 Fed. Reg.
19967; relating to prescribing additional arrangements for
developing and coordinating a national program for minority
business enterprise).
SEC. 508. AMENDMENT TO THE FEDERAL ACQUISITION STREAMLINING ACT OF
1994.
Section 7104(c) of the Federal Acquisition Streamlining Act of 1994
(15 U.S.C. 644a(c)) is amended by striking paragraph (2) and inserting
the following:
``(2) The Assistant Secretary of Commerce for Minority
Business Development.''.
SEC. 509. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Assistant Secretary
not less than $100,000,000 for fiscal year 2021, and each fiscal year
thereafter, to carry out this Act.
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