MINORITY BUSINESS DEVELOPMENT AGENCY, DEPARTMENT OF COMMERCE

AUTHORIZATION:

Department of Commerce Appropriation Act, Executive Order 11625, Public Law 105-277.

OBJECTIVES:

To provide minority business owners with enhanced access to the marketplace by identifying marketing and sales opportunities, financing resources, potential joint venture partners, timely market leads and other current business information; promote relationship building and sharing of business information between organizations in a geographic service area conducting substantial purchasing activity; assist in the identification of sources of equity capital such as capital funds and institutional investors; conduct media outreach, disseminates economic data, sponsors workshops, conferences and seminars within service area; maintain inventories of various service providers such as banks, bonding companies, chambers of commerce and trade associations.

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, funding availability, and performance of recipients.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   Applicants for this program are State or local government entities, American Indian Tribes, colleges, universities, and nonprofit organizations.

Beneficiary Eligibility:   Beneficiaries of this program are minority business persons/firms. 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 Nos. A-87 for awards to State, local and Federally Recognized Indian Tribal Governments; A-21, Cost Principles For Educational Institutions; and 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 OR 15 CFR Part 24.

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 may also appear in the Commerce Business Daily.

Range of Approval/Disapproval Time:   From approximately 4 to 6 months after closing date for submission of applications. Successful and unsuccessful applicants shall be notified in writing at the same time.

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

Renewals:   Minority Business Opportunity Committee (MBOC) awards may be made for a period of 3 years with funding provided on an annual basis at the sole 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 MBOC will receive continued funding after the initial competitive year at the discretion of MBDA based upon the availability of funds, the MBOC's performance, and agency priorities.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Projects may be required to provide the 15 percent minimum amount 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 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 of grantees or subrecipients relating to the MBOC program are required to remain available to the Federal Government for 3 years from the date of submission of the final financial status report in accordance with the applicable administrative requirements.

FINANCIAL INFORMATION:

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

Obligations:   (Cooperative Agreements/Contracts) FY 99 $1,632,095; FY 00 est $1,632,095; and FY 01 est $1,632,095.

Range and Average of Financial Assistance:   $133,262 to $400,000; $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 a MBOC. 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) for this program.

INFORMATION CONTACTS:

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

Headquarters Office:   Stephen Boykin, Business Development Specialist, 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 fiscal year 1999, 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: