---
kind: "section"
citation: "15 U.S.C. § 9561"
title: "15"
title_heading: "Commerce and Trade"
number: "9561"
heading: "Grants to nonprofit organizations that support minority business enterprises"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/9561"
units:
  - "Chapter 120 — Minority Business Development"
  - "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 [section 501(c) of title 26](/usc/26/501.md?p=c) and exempt from tax under [section 501(a)](/usc/15/501.md) of such title; and
  - (2) can demonstrate that a primary activity of the organization is to provide services to [minority business enterprises](/usc/15/9501.md?p=9-A), 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](/usc/15/9501.md?p=9-A).
- (c) **Designation of office—**
  - (1) **In general—** Not later than 180 days after November 15, 2021, the [Under Secretary](/usc/15/9501.md?p=19) shall designate an office to make and administer grants under this section.
  - (2) **Considerations—** In designating an office under [paragraph (1)](#c-1), the [Under Secretary](/usc/15/9501.md?p=19) 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](/usc/15/9501.md?p=19) an application at such time, in such manner, and containing such information as the [Under Secretary](/usc/15/9501.md?p=19) may require.
- (e) **Priority—** The [Under Secretary](/usc/15/9501.md?p=19) 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](/usc/15/9501.md?p=5).
- (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](/usc/15/9501.md?p=9-A).
- (g) **Procedures—** The [Under Secretary](/usc/15/9501.md?p=19) shall establish procedures to—
  - (1) discourage and prevent waste, fraud, and abuse by [applicants](/usc/15/7a.md?p=3) 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](/usc/15/9501.md?p=19) 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)](#h-1).
- (i) **Updates to Congress—** Not later than 90 days after the date on which the [Under Secretary](/usc/15/9501.md?p=19) makes the designation required under [subsection (c)](#c), and once every 30 days thereafter, the [Under Secretary](/usc/15/9501.md?p=19) 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)](#i-1)—
    - (A) the geographic distribution of those grants by [State](/usc/15/9501.md?p=17) and county;
    - (B) if applicable, demographic information with respect to the [minority business enterprises](/usc/15/9501.md?p=9-A) served by the covered entities to which the grants were made; and
    - (C) information regarding the industries of the [minority business enterprises](/usc/15/9501.md?p=9-A) served by the covered entities to which the grants were made.

## Source credit

(Pub. L. 117–58, div. K, title IV, § 100401, Nov. 15, 2021, 135 Stat. 1461.)