CHAPTER 120 —MINORITY BUSINESS DEVELOPMENT
SUBCHAPTER I—EXISTING INITIATIVES
Part A—Market Development, Research, and Information
Part B—Minority Business Development Agency Business Center Program
SUBCHAPTER II—NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR MINORITY BUSINESSES
SUBCHAPTER III—RURAL MINORITY BUSINESS CENTER PROGRAM
SUBCHAPTER IV—MINORITY BUSINESS DEVELOPMENT GRANTS
SUBCHAPTER V—MINORITY BUSINESS ENTERPRISES ADVISORY COUNCIL
SUBCHAPTER VI—FEDERAL COORDINATION OF MINORITY BUSINESS PROGRAMS
SUBCHAPTER VII—ADMINISTRATIVE POWERS OF THE AGENCY; MISCELLANEOUS PROVISIONS
§9501. Definitions
In this chapter:
(1) Agency
The term "Agency" means the Minority Business Development Agency of the Department of Commerce.
(2) Community-based organization
The term "community-based organization" has the meaning given the term in
(3) 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 Native entity; and
(B) includes an institution of higher education.
(4) Federal agency
The term "Federal agency" has the meaning given the term "agency" in
(5) Federally recognized area of economic distress
The term "federally recognized area of economic distress" means—
(A) a HUBZone, as that term is defined in
(B) an area that—
(i) has been designated as—
(I) an empowerment zone under
(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 Department of Housing and Urban Development;
(C) a qualified opportunity zone, as that term is defined in
(D) any other political subdivision or unincorporated area of a State determined by the Under Secretary to be an area of economic distress.
(6) Institution of higher education
The term "institution of higher education" has the meaning given the term in
(7) MBDA Business Center
The term "MBDA Business Center" means a 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 chapter.
(8) 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.
(9) Minority business enterprise
(A) In general
The term "minority business enterprise" means a business enterprise—
(i) that is not less than 51 percent-owned by 1 or more socially or economically disadvantaged individuals; and
(ii) the management and daily business operations of which are controlled by 1 or more socially or economically disadvantaged individuals.
(B) Rule of construction
Nothing in subparagraph (A) may be construed to exclude a business enterprise from qualifying as a "minority business enterprise" under that subparagraph because of—
(i) the status of the business enterprise as a for-profit or not-for-profit enterprise; or
(ii) the annual revenue of the business enterprise.
(10) Native entity
The term "Native entity" means—
(A) a Tribal Government;
(B) an Alaska Native village or Regional or Village Corporation, as defined in or established pursuant to the Alaska Native Claims Settlement Act (
(C) a Native Hawaiian organization, as that term is defined in
(D) the Department of Hawaiian Home Lands; and
(E) the Office of Hawaiian Affairs.
(11) 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.
(12) 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;
(D) an agency of a political subdivision of a State; or
(E) a Native entity.
(13) Secretary
The term "Secretary" means the Secretary of Commerce.
(14) Socially or economically disadvantaged business concern
The term "socially or economically disadvantaged business concern" means a for-profit business enterprise—
(A)(i) that is not less than 51 percent owned by 1 or more socially or economically disadvantaged individuals; or
(ii) that is socially or economically disadvantaged; or
(B) the management and daily business operations of which are controlled by 1 or more socially or economically disadvantaged individuals.
(15) Socially or economically disadvantaged individual
(A) In general
The term "socially or economically disadvantaged individual" means an individual who has been subjected to racial or ethnic prejudice or cultural bias (or the ability of whom to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities, as compared to others in the same line of business and competitive market area) 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 chapter, the Under Secretary shall presume that the term "socially or 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 Tribal Government.
(18) Tribal Government
The term "Tribal Government" means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of November 15, 2021, pursuant to
(19) Under Secretary
The term "Under Secretary" means the Under Secretary of Commerce for Minority Business Development, who is appointed as described in section ______3(b) 1 to administer this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original "this division", meaning div. K of
The Alaska Native Claims Settlement Act, referred to in par. (10)(B), is
Section ______3(b), referred to in par. (19), probably means subsec. (b) of section 100003 of
Statutory Notes and Related Subsidiaries
Short Title
1 So in original. See References in Text note below.
§9502. Minority Business Development Agency
(a) In general
There is within the Department of Commerce the Minority Business Development Agency.
(b) Under Secretary
(1) Appointment and duties
The Agency shall be headed by the Under Secretary of Commerce for Minority Business Development, who shall—
(A) be appointed by the President, by and with the advice and consent of the Senate;
(B) except as otherwise expressly provided, be responsible for the administration of this chapter; and
(C) report directly to the Secretary.
(2) Compensation
(A) In general
The Under Secretary shall be compensated at an annual rate of basic pay prescribed for level III of the Executive Schedule under
(B) Omitted
(3) References
Any reference in a law, map, regulation, document, paper, or other record of the United States to the Director of the Agency shall be deemed to be a reference to the Under Secretary.
(c) Report to Congress
Not later than 120 days after November 15, 2021, 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 the Office of Business Centers.
(2) Director
The Office of Business Centers shall be administered by a Director, who shall be appointed by the Under Secretary.
(e) Offices of the Agency
(1) In general
In addition to the regional offices that the Under Secretary is required to establish under paragraph (2), the Under Secretary shall establish such other offices within the Agency as are necessary to carry out this chapter.
(2) Regional offices
(A) In general
In order to carry out this chapter, the Under Secretary shall establish a regional office of the Agency for each of the regions of the United States, as determined by the Under 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 other appropriate Federal agencies 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.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (b)(1)(B) and (e)(1), (2)(A), was in the original "this division", meaning div. K of
Codification
Section is comprised of section 100003 of
SUBCHAPTER I—EXISTING INITIATIVES
Part A—Market Development, Research, and Information
§9511. Private sector development
The Under Secretary shall, whenever the Under 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.
(
§9512. Public sector development
The Under Secretary shall, whenever the Under 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.
(
§9513. Research and information
(a) In general
In order to achieve the purposes of this chapter, the Under Secretary—
(1) shall—
(A) collect and analyze data, including data relating to the causes of the success or failure of minority business enterprises;
(B) 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
(C) provide outreach, educational services, and technical assistance in, at a minimum, the 5 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 perform an evaluation of programs carried out by the Under Secretary that are designed to assist the development of minority business enterprises.
(b) Information clearinghouse
The Under 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 Under 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
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this division", meaning div. K of
Part B—Minority Business Development Agency Business Center Program
§9521. Definition
In this part, the term "MBDA Business Center Program" means the program established under section ______113. 1
(
Editorial Notes
References in Text
Section ______113, referred to in text, probably means section 100113 of
1 So in original. See References in Text note below.
§9522. 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 in—
(A) accessing capital, contracts, and grants; and
(B) creating and maintaining jobs;
(2) provide counseling and mentoring to minority business enterprises; and
(3) facilitate the growth of minority business enterprises by promoting trade.
(
§9523. 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 Under Secretary under section ______101; 1 and
(3) under which the Under Secretary shall make Federal assistance awards to eligible entities to operate MBDA Business Centers, which shall, in accordance with section ______114, 1 provide technical assistance and business development services, or specialty services, to minority business enterprises.
(b) Coverage
The Under Secretary shall take all necessary actions to ensure that the MBDA Business Center Program, in accordance with section ______114, 1 offers the services described in subsection (a)(3) in all regions of the United States.
(
Editorial Notes
References in Text
Section ______101, referred to in subsec. (a)(2), probably means section 100101 of
Section ______114, referred to in subsecs. (a)(3) and (b), probably means section 100114 of
1 So in original. See References in Text note below.
§9524. Grants and cooperative agreements
(a) Requirements
An MBDA Business Center (referred to in this part 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 Under Secretary, which may include—
(i) referral services to meet the needs of minority business enterprises; and
(ii) programs and services to accomplish the goals described in section ______101(1); 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 Under 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 Under 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) by 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 Under Secretary shall—
(1) establish criteria that—
(A) the Under 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 or 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 Under 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 Under Secretary an application that includes—
(1) a statement of—
(A) how the eligible entity will carry out subsection (a); and
(B) any experience or plans of the eligible entity with respect to—
(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 Under Secretary grants an application of an eligible entity submitted under subsection (e), the Under 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 November 15, 2021, and biennially thereafter, the Under Secretary shall conduct a programmatic financial examination of each Center.
(2) Accreditation
The Under 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 Under 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 Under Secretary extends the term of an MBDA Business Center agreement under paragraph (1), the Under 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 Under 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 Under 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, as appropriate; and
(B) other institutions or entities that use Federal resources, such as—
(i) small business development centers, as that term is defined in
(ii) women's business centers described in
(iii) eligible entities, as that term is defined in section 2411 2 of title 10, that provide services under the program carried out under
(iv) entities participating in the Hollings Manufacturing Extension Partnership Program established under
(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 Under 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.
(
Editorial Notes
References in Text
Section ______101(1), referred to in subsec. (a)(1)(A)(ii), probably means par. (1) of section 100101 of
1 So in original. See References in Text note below.
2 See References in Text note below.
§9525. Minimizing disruptions to existing MBDA Business Center program
The Under 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 November 15, 2021, is carried out in a manner that, to the greatest extent practicable, prevents disruption of any activity carried out under that award.
(
§9526. Publicity
In carrying out the MBDA Business Center Program, the Under 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.
(
SUBCHAPTER II—NEW INITIATIVES TO PROMOTE ECONOMIC RESILIENCY FOR MINORITY BUSINESSES
§9541. Annual diverse business forum on capital formation
(a) Responsibility of Agency
Not later than 18 months after November 15, 2021, and annually thereafter, the Under Secretary 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 Under 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 Under Secretary may request that any head of a Federal agency, department, 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 agency, department, or organization who receives a request under paragraph (1) shall, to the greatest extent practicable, cooperate with the Under Secretary to fulfill that request.
(d) Transmittal of proceedings and findings
The Under 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.
(
§9542. 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 November 15, 2021, the Under 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).
(
§9543. Educational development relating to management and entrepreneurship
(a) Duties
The Under Secretary shall, whenever the Under Secretary determines such action is necessary or appropriate—
(1) promote the education and training of socially or economically disadvantaged individuals in subjects directly relating to business administration and management;
(2) encourage institutions of higher education, leaders in business and industry, and other public sector entities 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 or economically disadvantaged individuals; and
(B) sponsor seminars, conferences, and similar activities relating to business for the benefit of socially or 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
(2) Grants
The Under 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 and succession planning;
(vii) marketing;
(viii) general management;
(ix) technology and technology adoption;
(x) leadership; and
(xi) human resources; and
(B) implement the curriculum developed under subparagraph (A) at the eligible institution.
(4) Implementation timeline
The Under 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 Under Secretary shall submit to all applicable committees of Congress, and as part of the annual budget submission of the President under
(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.
(
SUBCHAPTER III—RURAL MINORITY BUSINESS CENTER PROGRAM
§9551. Definitions
In this subchapter:
(1) Appropriate congressional committees
The term "appropriate congressional committees" means—
(A) the Committee on Commerce, Science, and Transportation of the Senate; and
(B) the Committee on Financial Services 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
(6) Rural area
The term "rural area" has the meaning given the term in
(7) Rural minority business enterprise
The term "rural minority business enterprise" means a minority business enterprise located in a rural area.
(
§9552. Business Centers
(a) In general
The Under Secretary may establish MBDA Rural Business Centers.
(b) Partnership
(1) In general
With respect to an MBDA Rural Business Center established by the Under Secretary, the Under 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 Under Secretary, the Under 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 Under 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 Under 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 Under 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 Under Secretary under subparagraph (A)(ii); or
(ii) if the Under 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 Under 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 not less than 3 years.
(4) Extension
The Under 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 November 15, 2021, the Under 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 Under 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 that—
(i) is located in a State or region that has a significant population of socially or economically disadvantaged individuals;
(ii) has a history of serving socially or economically disadvantaged individuals; or
(iii) in the determination of the Under Secretary, has not received an equitable allocation of land and financial resources under—
(I) the Act of July 2, 1862 (commonly known as the "First Morrill Act") (
(II) the Act of August 30, 1890 (commonly known as the "Second Morrill Act") (
(3) Considerations
In determining whether to enter into an MBDA Rural Business Center agreement with an eligible entity under this section, the Under Secretary shall consider the needs of the eligible entity.
(
Editorial Notes
References in Text
The Act of July 2, 1862, referred to in subsec. (d)(2)(B)(iii)(I), is act July 2, 1862, ch. 130,
The Act of August 30, 1890, referred to in subsec. (d)(2)(B)(iii)(II), is act Aug. 30, 1890, ch. 841,
§9553. Report to Congress
Not later than 1 year after November 15, 2021, the Under Secretary shall submit to the appropriate congressional committees a report that includes—
(1) a summary of the efforts of the Under Secretary to provide services to minority business enterprises located in States that lack an MBDA Business Center, as of November 15, 2021, and especially in those States that have significant minority populations; and
(2) recommendations for extending the outreach of the Agency to underserved areas.
(
§9554. Study and report
(a) In general
The Under 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 November 15, 2021, the Under 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.
(
SUBCHAPTER IV—MINORITY BUSINESS DEVELOPMENT GRANTS
§9561. 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
(2) can demonstrate that a primary activity 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) Designation of office
(1) In general
Not later than 180 days after November 15, 2021, the Under Secretary shall designate an office to make and administer grants under this section.
(2) Considerations
In designating an office under paragraph (1), the Under Secretary shall ensure that the office designated has adequate staffing to carry out the responsibilities of the office under this section.
(d) Application
A covered entity desiring a grant under this section shall submit to the Under Secretary an application at such time, in such manner, and containing such information as the Under Secretary may require.
(e) Priority
The Under Secretary shall, in carrying out this section, prioritize granting an application submitted by a covered entity 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, growth, or retention of minority business enterprises.
(g) Procedures
The Under Secretary shall establish procedures to—
(1) discourage and prevent waste, fraud, and abuse by applicants for, and recipients of, grants made under this section; and
(2) ensure that grants are made under this section to a diverse array of covered entities, which may include—
(A) covered entities with a national presence;
(B) community-based covered entities;
(C) covered entities with annual budgets below $1,000,000; or
(D) covered entities that principally serve low-income and rural communities.
(h) Inspector General audit
Not later than 180 days after the date on which the Under 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 Under Secretary makes the designation required under subsection (c), and once every 30 days thereafter, the Under 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;
(B) if applicable, demographic information with respect to the minority business enterprises served by the covered entities to which the grants were made; and
(C) information regarding the industries of the minority business enterprises served by the covered entities to which the grants were made.
(
SUBCHAPTER V—MINORITY BUSINESS ENTERPRISES ADVISORY COUNCIL
§9571. Purpose
The Under Secretary shall establish the Minority Business Enterprises Advisory Council (referred to in this subchapter as the "Council") to advise and assist the Agency.
(
§9572. Composition and term
(a) Composition
The Council shall be composed of 9 members of the private sector and 1 representative from each of not fewer than 10 Federal agencies that support or otherwise have duties that relate to business formation, including duties relating to labor development, monetary policy, national security, energy, agriculture, transportation, and housing.
(b) Chair
The Under Secretary shall designate 1 of the private sector members of the Council as the Chair of the Council for a 1-year term.
(c) Term
The Council shall meet at the request of the Under Secretary and members shall serve for a term of 2 years. Members of the Council may be reappointed.
(
§9573. Duties
(a) In general
The Council shall provide advice to the Under Secretary by—
(1) serving as a source of knowledge and information on developments in areas of the economic and social life of the United States that affect socially or economically disadvantaged business concerns;
(2) providing the Under Secretary with information regarding plans, programs, and activities in the public and private sectors that relate to socially or economically disadvantaged business concerns; and
(3) advising the Under Secretary regarding—
(A) any measures to better achieve the objectives of this chapter; and
(B) problems and matters the Under Secretary refers to the Council.
(b) Capacity
Members of the Council shall not be compensated for service on the Council but may be allowed travel expenses, including per diem in lieu of subsistence, in accordance with subchapter I of
(c) Termination
Notwithstanding section 14 of the Federal Advisory Committee Act (5 U.S.C. App.),1 the Council shall terminate on the date that is 5 years after November 15, 2021.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a)(3)(A), was in the original "this division", meaning div. K of
Section 14 of the Federal Advisory Committee Act, referred to in subsec. (c), is section 14 of
1 See References in Text note below.
SUBCHAPTER VI—FEDERAL COORDINATION OF MINORITY BUSINESS PROGRAMS
§9581. General duties
The Under Secretary may coordinate, as consistent with law, the plans, programs, and operations of the Federal Government that affect, or may contribute to, the establishment, preservation, and strengthening of socially or economically disadvantaged business concerns.
(
§9582. Participation of Federal departments and agencies
The Under Secretary shall—
(1) consult with other Federal agencies and departments as appropriate to—
(A) develop policies, comprehensive plans, and specific program goals for the programs carried out under part B of subchapter I and subchapter III;
(B) establish regular performance monitoring and reporting systems to ensure that goals established by the Under Secretary with respect to the implementation of this chapter are being achieved; and
(C) evaluate the impact of Federal support of socially or economically disadvantaged business concerns in achieving the objectives of this chapter;
(2) conduct a coordinated review of all proposed Federal training and technical assistance activities in direct support of the programs carried out under part B of subchapter I and subchapter III to ensure consistency with program goals and to avoid duplication; and
(3) convene, for purposes of coordination, meetings of the heads of such Federal agencies and departments, or their designees, the programs and activities of which may affect or contribute to the carrying out of this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in pars. (1)(B), (C), and (3), was in the original "this division", meaning div. K of
SUBCHAPTER VII—ADMINISTRATIVE POWERS OF THE AGENCY; MISCELLANEOUS PROVISIONS
§9591. Administrative powers
(a) In general
In carrying out this chapter, the Under 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 Under Secretary may determine to be necessary or appropriate to carry out this chapter;
(3) acquire, in any lawful manner, any property that the Under Secretary determines to be necessary or appropriate to carry out this chapter;
(4) 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;
(5) coordinate with the heads of the Offices of Small and Disadvantaged Business Utilization of Federal agencies;
(6) develop procedures under which the Under Secretary may evaluate the compliance of a recipient of assistance under this chapter with the requirements of this chapter;
(7) deobligate assistance provided under this chapter to a recipient that has demonstrated an insufficient level of performance with respect to the assistance, or has engaged in wasteful or fraudulent spending; and
(8) provide that a recipient of assistance under this chapter that has demonstrated an insufficient level of performance with respect to the assistance, or has engaged in wasteful or fraudulent spending, shall be ineligible to receive assistance under this chapter for a period determined by the Under Secretary, consistent with the considerations under section 180.865 of title 2, Code of Federal Regulations (or any successor regulation), beginning on the date on which the Under Secretary makes the applicable finding.
(b) Use of property
(1) In general
Subject to paragraph (2), in carrying out this chapter, the Under Secretary may, without cost (except for costs of care and handling), allow any public sector entity, or any recipient nonprofit organization, for the purpose of the development of minority business enterprises, to use any real or tangible personal property acquired by the Agency in carrying out this chapter.
(2) Terms, conditions, reservations, and restrictions
The Under Secretary may impose reasonable terms, conditions, reservations, and restrictions upon the use of any property under paragraph (1).
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b)(1), was in the original "this division" or "this Act", meaning div. K of
§9592. Federal assistance
(a) In general
(1) Provision of Federal assistance
To carry out sections ______101, ______102, and ______103(a),1 the Under 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 Under 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 Under Secretary to make allocations under subparagraph (C).
(3) Consultation
The Under 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 Under Secretary shall broadly publicize all opportunities for Federal assistance available under this section, including through the means required under section ______116. 1
(
Editorial Notes
References in Text
Sections ______101, ______102, and ______103(a), referred to in subsec. (a)(1), probably mean sections 100101, 100102, and 100103(a) of
Section ______116, referred to in subsec. (b), probably means section 100116 of
1 So in original. See References in Text note below.
§9593. Recordkeeping
(a) In general
Each recipient of assistance under this chapter shall keep such records as the Under Secretary shall prescribe, including records that fully disclose, with respect to the assistance received by the recipient under this chapter—
(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;
(5) the return on investment, as defined by the Under Secretary; and
(6) any other record that will facilitate an effective audit with respect to the assistance.
(b) Access by government officials
The Under 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 the Agency or an MBDA Business Center.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this division", meaning div. K of
§9594. Review and report by Comptroller General
Not later than 4 years after November 5, 2021, the Comptroller General of the United States shall—
(1) conduct a thorough review of the programs carried out under this chapter; 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 chapter;
(B) a description of any failure by any recipient of assistance under this chapter to comply with the requirements under this chapter; and
(C) recommendations for any legislative or administrative action that should be taken to improve the achievement of the purposes of this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in pars. (1) and (2), was in the original "this division", meaning div. K of
§9595. Biannual reports; recommendations
(a) Biannual report
Not later than 1 year after November 15, 2021, and 90 days after the last day of each odd-numbered year thereafter, the Under 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 chapter during the period covered by the report.
(b) Recommendations
The Under Secretary shall periodically submit to Congress and the President recommendations for legislation or other actions that the Under Secretary determines to be necessary or appropriate to promote the purposes of this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original "this division", meaning div. K of
§9596. Separability
If a provision of this chapter, or the application of a provision of this chapter 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 chapter; or
(B) the application of this chapter to any other person or circumstance; and
(2) shall be confined in its operation to—
(A) the provision of this chapter with respect to which the judgment is rendered; or
(B) the application of the provision of this chapter to each person or circumstance directly involved in the controversy in which the judgment is rendered.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original "this division", meaning div. K of
§9597. Executive Order 11625
The powers and duties of the Agency shall be determined—
(1) in accordance with this chapter and the requirements of this chapter; 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).
(
Editorial Notes
References in Text
Executive Order 11625, referred to in section catchline and par. (2), is Ex. Ord. No. 11625, Oct. 13, 1971, 36 F.R. 19967, which is set out as a note under
This chapter, referred to in par. (1), was in the original "this division", meaning div. K of
§9598. Authorization of appropriations
There are authorized to be appropriated to the Under Secretary $110,000,000 for each of fiscal years 2021 through 2025 to carry out this chapter, of which—
(1) a majority shall be used in each such fiscal year to carry out the MBDA Business Center Program under part B of subchapter I, including the component of that program relating to specialty centers; and
(2) $20,000,000 shall be used in each such fiscal year to carry out subchapter III.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original "this division", meaning div. K of