MINORITY BUSINESS DEVELOPMENT AGENCY, DEPARTMENT OF COMMERCE

AUTHORIZATION:

Executive Order 11625, October 13, 1971; Department of Commerce Appropriation Act, Public Law 105-277.

OBJECTIVES:

To provide electronic business development services for a nominal fee to minority firms and individuals interested in entering, expanding or improving their efforts in the marketplace. Minority business development center operators provide a wide range of services to clients, from initial consultations to the identification and resolution of specific business problems.

TYPES OF ASSISTANCE:

Project Grants.

USES AND USE RESTRICTIONS:

The Minority Business Development Agency (MBDA) competitively solicits and will fund in Fiscal Year 2001 approximately 35 MBDCs to provide electronic management and technical assistance to minority clients located in designated Metropolitan Areas (MA) throughout the country. Recipients of MBDC financial assistance awards provide clients with advice and counseling in such areas as preparing financial packages, business planning and counseling, business information and management assistance, accounting, marketing, business/industrial site analysis, production, engineering, construction assistance, procurement, and identification of potential business opportunities, all in an electronic format. The Agency does not have the authority to nor does it make loans to minority businesses. The MBDC Program makes optimum use of online and internet-based business development software in order to enhance its ability to deliver these services. Program funds in this category are restricted to providing management and technical assistance.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   There are no eligibility restrictions for this program. Eligible applicants may include individuals, nonprofit organizations, for-profit firms, local and State governments, American Indian Tribes, and educational institutions.

Beneficiary Eligibility:   Recipients are to provide electronic business assistance to minority-owned businesses or minority individuals interested in starting, expanding or maintaining a business. Eligible beneficiaries of this program have been designated as African American, Native American, Aleut, Asian Indian, Asian Pacific American, Eskimo, Hasidic Jew, Puerto Rican, and Spanish-Speaking Americans.

Credentials/Documentation:   Costs will be determined in accordance with OMB Circular No. A-87 for awards to State, local and Federally Recognized Indian Tribal Governments; OMB Circular No. A-21 for educational institutions; OMB Circular No. A-122 for other recipients; and 15 CFR, Part 24 contains administrative requirements for States, local and Federally Recognized Indian Tribal Governments. All other recipients are subject to the administrative requirements contained in OMB Circular No. A-110.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   Pre-award and post award conferences will be scheduled for most MBDA projects. These conferences will be announced in the Federal Register. This program is excluded from coverage under E.O. 12372.

Application Procedure:   The standard application forms as furnished by the Federal agency and required by 15 CFR Part 24 must be used for this program. This program is subject to the provisions of 15 CFR Part 14.

Award Procedure:   The application package will advise the applicant where to submit the application. Each application will be reviewed and evaluated by MBDA. Name checks, verification of academic credentials and post-award audits may be required from applicants.

Deadlines:   Deadlines for formal competitive awards are outlined in the Federal Register and/or the Commerce Business Daily.

Range of Approval/Disapproval Time:   From 4 to 6 months. Unsuccessful applicants shall be notified in writing at the same time that notification is sent to the successful applicant.

Appeals:   All decisions are final. There is no administrative appeal process.

Renewals:   MBDC awards are made for a period of three years with funding provided on an annual basis at the discretion of MBDA and the Department of Commerce. Performance evaluations will be conducted, and funding levels will be established for each of the three budget periods. The MBDC will receive continued funding after the initial competitive year at the discretion of MBDA based upon the availability of funds, the MBDC's performance, and agency priorities.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   This program has no statutory formula. In most program areas, MBDA has established minimum requirements for matching or cost sharing by the recipient. New awards are generally required to provide a minimum 15 percent cost sharing through in-kind contributions and cash, including client service fees. MBDA reserves the right to decide on a case-by-case basis whether a nonfederal contribution is required in other program areas so as to successfully implement the program.

Length and Time Phasing of Assistance:   For 1 to 3 years.

POST ASSISTANCE REQUIREMENTS:

Reports:   Financial (quarterly and annually); narrative (semi annually and annually); statistical reports on each client are required.

Audits:   In accordance with the provisions of OMB Circular No. A-133 (June 30, l997), Audits of States, Local Governments, and Non-Profit Organizations shall be subject to the audit requirements contained in the Single Audit Act Amendments of l996 (31 U.S.C. 7501-7507). Commercial organizations shall be subject to the audit requirements as stipulated in the award document.

Records:   Documents, papers, and financial records relating to the MBDC are required to remain available to the Federal Government for 3 years from the date of submission of the final financial status report. All financial and programmatic records, supporting documents, statistical reports, and other records of grantees or subgrantees are required to be maintained by the terms of the agreement. The grantee must retain records for three years after completion of the project or submission of the final financial report, whichever is later, and be readily available for inspection and audit.

FINANCIAL INFORMATION:

Account Identification:   13-0201-0-1-376.

Obligations:   (Cooperative Agreements) FY 99 $8,498,715; FY 00 est $7,129,370; and FY 01 est $7,559,370.

Range and Average of Financial Assistance:   $155,000 to $400,375.

PROGAM ACCOMPLISHMENTS:

In fiscal year 1999, MBDA funded business development centers in approximately 50 locations that provided management and technical assistance to minority business enterprise clients. Of the 11,000 clients who received assistance in fiscal year 1999, 7,819 represented actual operating business enterprise clients. Clients were assisted to obtain $706 million in financial packages and $548 million in procurement contracts from financial institutions and procurement sources, respectively.

REGULATIONS, GUIDELINES, AND LITERATURE:

There are no applicable regulations in the Code of Federal Regulations (CFR).

INFORMATION CONTACTS:

Regional or Local Office:   Contact nearest Minority Business Development Agency Regional Office listed in Appendix IV of the Catalog.

Headquarters Office:   Juanita E. Berry, Chief, Field Coordination Division, Room 5079, Minority Business Development Agency, Department of Commerce, 14th and Constitution Avenue, NW., Washington, DC 20230. Telephone: (202) 482-6022. Use the same number for FTS.

Web Site Address:   http://www.mbda.gov.

EXAMPLES OF FUNDED PROJECTS:

In FY 1999, a local community based organization won the competition to operate the MBDC in Philadelphia and is leveraging public/private resources to provide management and technical assistance to eligible minority clients to foster the development and operation of businesses.

CRITERIA FOR SELECTING PROPOSALS: