Sec. 712. Findings and purposes

412 words·~2 min read·/bill/116/s/4818/is/section-712

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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 ½ 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. The purposes of this subtitle 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.