MINORITY BUSINESS DEVELOPMENT AGENCY, DEPARTMENT OF COMMERCE

AUTHORIZATION:

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

OBJECTIVES:

The resource development activity provides for the indirect business assistance programs conducted by MBDA. These programs encourage minority business development by identifying and developing private markets and capital sources; expanding business information and business services through trade associations; promoting and supporting the mobilization of resources of Federal agencies and State and local governments at the local level; and assisting minorities in entering new and growing markets.

TYPES OF ASSISTANCE:

Project Grants.

USES AND USE RESTRICTIONS:

Funds will be used in support of the MBDA policy statement on funding business development programs. MBDA is charged under Executive Order 11625 with fostering new minority business enterprises and maintaining and strengthening existing firms to increase their opportunities to participate and receive the benefits of our economic system. MBDA uses a portion of its program funds to award contracts, grants, and cooperative agreements to public and private sector entities which have the greatest potential for developing access to capital, market, and other opportunities on behalf of minority business. The performance of each funded recipient is evaluated on a scheduled basis. Renewals are based on Agency priorities and performance of recipients.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Applicants for this program are established businesses, professional organizations, individuals, trade associations and chambers of commerce.

Beneficiary Eligibility:   Beneficiaries of this program are minority business persons/firms.

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-122 for other recipients.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   A preapplication conference may be scheduled for resource development projects. 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 Department of Commerce must be used for this program. Recipients are subject to the administrative requirements contained in 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 pre-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. Successful and unsuccessful applicants shall be notified in writing at the same time.

Appeals:   All decisions are final. There are no administrative appeals.

Renewals:   Business development awards may be renewed after the successful completion of the initial competitive project award, at the discretion of the agency for two additional years without undergoing formal competition for participating in this program, subject to the availability of funds and the satisfactory performance of the recipient.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Projects may be required to provide the minimum 15 percent of cost-sharing in the form of in-kind contributions and cash.

Length and Time Phasing of Assistance:   For 1 to 3 years depending on the requirements of the projects.

POST ASSISTANCE REQUIREMENTS:

Reports:   Financial (quarterly and annually), narrative (quarterly and annually); statistical reports are required.

Audits:   In accordance with the provisions of OMB Circular No. A-133 (June 30, l997), Audits to 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 of grantees or subrecipients relating to the award are required to remain available to the Federal Government for 3 years from the date of submission of the final financial status report.

FINANCIAL INFORMATION:

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

Obligations:   (Cooperative Agreements/Contracts) FY 99 $1,856,600; FY 00 est $1,150,000; and FY 01 est $1,150,000.

Range and Average of Financial Assistance:   $5,000 to $550,000; $101,664.

PROGAM ACCOMPLISHMENTS:

In fiscal year 1999, MBDA began implementing a program that will allow the agency to deliver program services through line telecommunications. This vehicle will enable the agency to provide management and technical assistance to business owners who lack access to an MBDC. MBDA has a home page on the World Wide Web through which it will disseminate business information.

REGULATIONS, GUIDELINES, AND LITERATURE:

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

INFORMATION CONTACTS:

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

Headquarters Office:   Robert B. Hooks III, Chief, Office of Program Support Services, Room 5083, Minority Business Development Agency, Department of Commerce, 14th and Constitution Avenue, NW., Washington, DC 20230. Telephone: (202) 482-6046. Use the same number for FTS.

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

EXAMPLES OF FUNDED PROJECTS:

In FY 1999, MBDA uses a variety of delivery mechanisms to deliver services, including the Minority Business Opportunity Committees (MBOCs). MBOC is a program strategy, that is designed to partner MBDA resources with Federal, State, local and quasi governmental entities to create and stimulate business economic opportunities for minority entrepreneurs. As an example of this approach, the Los Angeles MBOC's strategic outreach efforts can account for $1.1 billion in minority contracting, over 21,000 new jobs and will pave the way for future competitive efforts to stimulate growth in a challenged economy.

CRITERIA FOR SELECTING PROPOSALS: