Minority Business Resiliency Act of 2021
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.
Sec. 2 Findings and purposes
Findings— Congress finds the following:
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.
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—
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;
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
according to the Kauffman Foundation—
minority business enterprises are 1/2 as likely to employ individuals, as compared with non-minority business enterprises; and
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.
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.
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—
Black or African American;
Hispanic or Latino;
American Indian or Alaska Native;
Asian; and
Native Hawaiian or other Pacific Islander.
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.
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—
the unique needs of minority business enterprises; and
enhancing the capacity of minority business enterprises.
Purposes— The purposes of this Act are to—
require the Agency to promote and administer programs in the public and private sectors to assist the development of minority business enterprises; and
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:
Agency— The term Agency means the Minority Business Development Agency of the Department of Commerce.
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.
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).
Eligible entity— Except as otherwise expressly provided, the term eligible entity—
means—
a private sector entity;
a public sector entity; or
a Tribal government; and
includes an institution of higher education.
Federal agency— The term Federal agency has the meaning given the term agency in section 551 of title 5, United States Code.
Federally recognized area of economic distress— The term federally recognized area of economic distress means—
a HUBZone, as that term is defined in section 31(b) of the Small Business Act (15 U.S.C. 657a(b));
an area that—
has been designated as—
an empowerment zone under section 1391 of the Internal Revenue Code of 1986; or
a Promise Zone by the Secretary of Housing and Urban Development; or
is a low or moderate income area, as determined by the Bureau of the Census;
a qualified opportunity zone, as that term is defined in section 1400Z–1 of the Internal Revenue Code of 1986; or
any other political subdivision or unincorporated area of a State determined by the Assistant Secretary to be an area of economic distress.
Indian Tribe— The term Indian Tribe—
has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304); and
includes a Native Hawaiian organization.
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).
MBDA Business Center— The term MBDA Business Center means any business center that—
is established by the Agency; and
provides technical business assistance to minority business enterprises consistent with the requirements of this Act.
MBDA Business Center agreement— The term MBDA Business Center agreement means a legal instrument—
reflecting a relationship between the Agency and the recipient of a Federal assistance award that is the subject of the instrument; and
that establishes the terms by which the recipient described in subparagraph (A) shall operate an MBDA Business Center.
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)—
that is not less than 51 percent-owned by 1 or more socially and economically disadvantaged individuals; and
the management and daily business operations of which are controlled by 1 or more socially and economically disadvantaged individuals.
Private sector entity— The term private sector entity—
means an entity that is not a public sector entity; and
does not include—
the Federal Government;
any Federal agency; or
any instrumentality of the Federal Government.
Public sector entity— The term public sector entity means—
a State;
an agency of a State;
a political subdivision of a State; or
an agency of a political subdivision of a State.
Secretary— The term Secretary means the Secretary of Commerce.
Socially and economically disadvantaged individual—
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.
Presumption— In carrying out this Act, the Assistant Secretary shall presume that the term socially and economically disadvantaged individual includes any individual who is—
Black or African American;
Hispanic or Latino;
American Indian or Alaska Native;
Asian;
Native Hawaiian or other Pacific Islander; or
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.
Specialty center— The term specialty center means an MBDA Business Center that provides specialty services focusing on specific business needs, including assistance relating to—
capital access;
Federal procurement;
entrepreneurship;
technology transfer; or
any other area determined necessary or appropriate based on the priorities of the Agency.
State— The term State means—
each of the States of the United States;
the District of Columbia;
the Commonwealth of Puerto Rico;
the United States Virgin Islands;
Guam;
American Samoa;
the Commonwealth of the Northern Mariana Islands; and
each Indian Tribe.
Sec. 4 Minority Business Development Agency
In general— There is within the Department of Commerce the Minority Business Development Agency.
Assistant Secretary—
Appointment and duties— The Agency shall be headed by an Assistant Secretary of Commerce for Minority Business Development, who shall be—
appointed by the President, by and with the advice and consent of the Senate; and
except as otherwise expressly provided, responsible for the administration of this Act.
Compensation—
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.
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)”.
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—
the organizational structure of the Agency;
the organizational position of the Agency within the Department of Commerce; and
a description of how the Agency shall function in relation to the operations carried out by each other component of the Department of Commerce.
Office of Business Centers—
Establishment— There is established within the Agency an Office of Business Centers.
Director— The Office of Business Centers shall be administered by a Director, who shall be appointed by the Assistant Secretary.
Offices of the Agency—
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.
Regional offices—
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.
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—
understanding and participating in the business environment of that region;
working with—
MBDA Business Centers that are located in that region;
resource and lending partners of the Small Business Administration and the Department of Agriculture that are located in that region; and
Federal, State, and local procurement offices that are located in that region;
being aware of business retention or expansion programs that are specific to that region;
seeking out opportunities to collaborate with regional public and private programs that focus on minority business enterprises; and
promoting business continuity and preparedness.