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Title II — Existing Initiatives

S. 4208 · 116th Congress · Jul 2, 2020 · Lineage

II Existing Initiatives

A Market development, research, and information

Sec. 201 Private sector development

The Assistant Secretary shall, whenever the Assistant Secretary determines such action is necessary or appropriate—
(1)
assist minority business enterprises to penetrate 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 assistance;
(C)
financial 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. 202 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)
financing;
(iv)
marketing; and
(v)
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. 203 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; and
(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
(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 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 search for, collect, classify, coordinate, integrate, record, and catalog the data described in paragraph (1).

B Minority Business Development Center Program

Sec. 210 Purpose

The purpose of the MBDC Program shall be to create a national network of public-private partnerships that—
(1)
assist minority business enterprises to—
(A)
access capital and contracts; 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. 211 Definitions

In this title:
(1)
Center— The term Center means an eligible entity that enters into an MBDC agreement with the Assistant Secretary.
(2)
Eligible entity— Except as otherwise expressly provided, the term eligible entity—
(A)
means—
(i)
a private sector entity; or
(ii)
a public sector entity; and
(B)
includes an institution of higher education.
(3)
MBDC agreement— The term MBDC agreement means a collaborative agreement entered into between the Assistant Secretary and a Center under the MBDC Program.
(4)
MBDC Program— The term MBDC Program means the program established under section 212.

Sec. 212 Establishment

(a)
In general— Subject to subsection (b), there is established in the Agency a program—
(1)
that shall be known as the Minority Business Development Centers Program;
(2)
that shall be separate and distinct from the efforts of the Assistant Secretary under section 201; and
(3)
under which the Assistant Secretary shall enter into cooperative agreements with eligible entities under which, in accordance with section 213—
(A)
the eligible entities shall provide technical assistance and business development services to minority business enterprises; and
(B)
the Assistant Secretary shall provide financial assistance to the eligible entities to carry out the activities described in subparagraph (A).
(b)
Coverage— The Assistant Secretary shall take all necessary actions to ensure that the MBDC Program, in accordance with section 213, offers the services described in subsection (a)(3)(A) in all regions of the United States.
(c)
Scope of authority— The authority of the Assistant Secretary to enter into MBDC agreements shall be effective each fiscal year only to the extent that amounts are made available to the Assistant Secretary under applicable appropriations Acts.

Sec. 213 Cooperative agreements

(a)
Requirements— A Center shall, using financial assistance awarded to the Center under an MBDC agreement—
(1)
provide to minority business enterprises programs and services determined to be appropriate by the Assistant Secretary, which—
(A)
shall include referral services to meet the needs of minority business enterprises; and
(B)
may include programs and services to accomplish the goals described in section 201(1);
(2)
develop, cultivate, and maintain a network of strategic partnerships with organizations that foster access by minority business enterprises to economic markets or contracts;
(3)
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;
(4)
collaborate with other Centers; and
(5)
in providing programs and services under the MBDC agreement—
(A)
operate on a fee-for-service basis; and
(B)
generate income through the collection of—
(i)
client fees;
(ii)
membership fees;
(iii)
success fees; and
(iv)
any other appropriate fees proposed by the Center in the application submitted by the Center for the MBDC agreement.
(b)
Term— Subject to subsection (g), the term of an MBDC agreement shall be 3 years.
(c)
Financial assistance—
(1)
Minimum amount— Subject to paragraph (2), the amount of financial assistance provided by the Assistant Secretary under an MBDC agreement shall be not less than $250,000 for the term of the MBDC agreement.
(2)
Additional amounts— In determining whether to award financial assistance under an MBDC agreement to a Center in an amount greater than $250,000, the Assistant Secretary shall take into consideration the cost of living and the size of the population in the area in which the Center is located.
(3)
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 an MBDC agreement.
(B)
Form of funds— A Center may meet the matching requirement under subparagraph (A) using cash or in-kind contributions, without regard to whether the contribution is made by a third party.
(4)
Use of financial assistance and program income— A Center shall use—
(A)
all financial assistance awarded to the Center under an MBDC agreement to carry out the requirements under subsection (a); and
(B)
all income that the Center generates in carrying out the requirements under subsection (a)—
(i)
to meet the matching requirement under paragraph (3) of this subsection; and
(ii)
if the Center meets the matching requirement under paragraph (3) of this subsection, to carry out the requirements under subsection (a).
(d)
Criteria for selection— The Assistant Secretary shall—
(1)
establish—
(A)
criteria that—
(i)
the Assistant Secretary shall use in determining whether to enter into an MBDC agreement with an eligible entity; and
(ii)
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 disadvantaged individuals;
(II)
a federally recognized area of economic distress; or
(III)
a State that is underserved with respect to the MBDC program, as defined by the Assistant Secretary; and
(B)
standards relating to the consideration given to the criteria established under subparagraph (A); 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 solicitation for applications for MBDC agreements.
(e)
Applications— An eligible entity desiring to enter into an MBDC agreement shall submit to the Assistant Secretary an application that includes—
(1)
a statement of—
(A)
how the eligible entity will meet the requirements under subsection (a); and
(B)
any experience of the eligible entity in—
(i)
assisting minority business enterprises to—
(I)
obtain—
(aa)
large-scale contracts or procurements; or
(bb)
financing;
(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; and
(ii)
advocating for minority business enterprises; and
(2)
the budget and corresponding budget narrative that the eligible entity will use in carrying out the requirements under subsection (a) during the term of the MBDC 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 MBDC agreement to which a Center is a party to a term of 5 years, if the Center consents to the extension.
(B)
Financial assistance— If the Assistant Secretary extends the term of an MBDC 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 MBDC agreement, provide financial assistance under the MBDC agreement during the extended term of the MBDC agreement.
(h)
Priority— In entering into MBDC agreements under the MBDC Program and extending MBDC agreements under subsection (g)(3), the Assistant Secretary shall give priority to extending MBDC agreements under subsection (g)(3).
(i)
Suspension, termination, and refusal To extend—
(1)
In general—
(A)
In general— The Assistant Secretary may suspend, terminate, or refuse to extend the term of an MBDC agreement on the basis of the poor performance by a Center in meeting the performance goals established by the Secretary under subparagraph (B).
(B)
Performance goals— The Assistant Secretary shall establish performance goals by which to evaluate the performance of a Center in meeting the requirements under subsection (a).
(2)
Notice— Before suspending, terminating, or refusing to extend the term of an MBDC agreement under paragraph (1), the Assistant Secretary shall provide to the relevant Center—
(A)
a written notice of the reasons for the suspension, termination, or refusal; and
(B)
an opportunity for a hearing, appeal, or other administrative proceeding to contest the suspension, termination, or refusal.
(j)
MBDA involvement— The Assistant Secretary shall ensure that the Agency is substantially involved in the activities of Centers in carrying out the requirements under subsection (a), including by—
(1)
providing to each Center training relating to the MBDC 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 advising relating to carrying out the requirements under subsection (a); and
(C)
work in coordination and collaboration with the Assistant Secretary to carry out the MBDC 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 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 the requirements under subsection (a).
(k)
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 MBDC Program.

Sec. 214 Minimizing disruptions to existing Business Centers program

The Assistant Secretary shall ensure that each cooperative agreement entered into under the Business Centers program of the Agency that 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 the cooperative agreement.

Sec. 215 Publicity

In carrying out the MBDC Program, the Assistant Secretary shall widely publicize the MBDC Program, including—
(1)
on the website of the Agency; and
(2)
via social media outlets.

Sec. 216 Authorization of appropriations

There are authorized to be appropriated to the Assistant Secretary $30,000,000 for each of fiscal years 2021 through 2024 to carry out the MBDC Program, including the component of the program relating to Specialty Centers.