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Code · BILL · 116th Congress · S. 4818 (Introduced in Senate) — To provide assistance to small businesses affected by COVID–19, and for other purposes. · Sec. 734

Sec. 734. Cooperative agreements

1,261 words·~6 min read·/bill/116/s/4818/is/section-734·

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A Center shall, using financial assistance awarded to the Center under an MBDC agreement— provide to minority business enterprises programs and services determined to be appropriate by the Assistant Secretary, which— shall include referral services to meet the needs of minority business enterprises; and may include programs and services to accomplish the goals described in section 721(1); develop, cultivate, and maintain a network of strategic partnerships with organizations that foster access by minority business enterprises to economic markets or contracts; continue to upgrade and modify the services provided by the Center, as necessary, in order to meet the changing and evolving needs of the business community; collaborate with other Centers; and in providing programs and services under the MBDC agreement— operate on a fee-for-service basis; and generate income through the collection of— client fees; membership fees; success fees; and any other appropriate fees proposed by the Center in the application submitted by the Center for the MBDC agreement.
Subject to subsection (g), the term of an MBDC agreement shall be 3 years. Subject to paragraph (2), the amount of financial assistance provided by the Assistant Secretary under an MBDC agreement shall be not less than $250,000 for the term of the MBDC agreement. In determining whether to award financial assistance under an MBDC agreement to a Center in an amount greater than $250,000, the Assistant Secretary shall take into consideration the cost of living and the size of the population in the area in which the Center is located.
A Center shall match not less than 1/3 of the amount of the financial assistance awarded to the Center under an MBDC agreement. A Center may meet the matching requirement under subparagraph
(A)using cash or in-kind contributions, without regard to whether the contribution is made by a third party. A Center shall use— all financial assistance awarded to the Center under an MBDC agreement to carry out the requirements under subsection (a); and all income that the Center generates in carrying out the requirements under subsection (a)— to meet the matching requirement under paragraph
(3)of this subsection; and if the Center meets the matching requirement under paragraph
(3)of this subsection, to carry out the requirements under subsection (a). The Assistant Secretary shall— establish— criteria that— the Assistant Secretary shall use in determining whether to enter into an MBDC agreement with an eligible entity; and may include criteria relating to whether an eligible entity is located in— an area, the population of which is composed of not less than 51 percent socially disadvantaged individuals; a federally recognized area of economic distress; or a State that is underserved with respect to the MBDC program, as defined by the Assistant Secretary; and standards relating to the consideration given to the criteria established under subparagraph (A); and make the criteria and standards established under paragraph
(1)publicly available, including— on the website of the Agency; and in each solicitation for applications for MBDC agreements. An eligible entity desiring to enter into an MBDC agreement shall submit to the Assistant Secretary an application that includes— a statement of— how the eligible entity will meet the requirements under subsection (a); and any experience of the eligible entity in— assisting minority business enterprises to— obtain— large-scale contracts or procurements; or financing; access established supply chains; and engage in— joint ventures, teaming arrangements, and mergers and acquisitions; or large-scale transactions in global markets; and advocating for minority business enterprises; and the budget and corresponding budget narrative that the eligible entity will use in carrying out the requirements under subsection
(a)during the term of the MBDC agreement. If the Assistant Secretary grants an application of an eligible entity submitted under subsection (e), the Assistant Secretary shall notify the eligible entity that the application has been granted not later than 150 days after the last day on which an application may be submitted under that subsection. Not later than 180 days after the date of enactment of this Act, and biennially thereafter, the Assistant Secretary shall conduct a programmatic financial examination of each Center. The Assistant Secretary may provide financial support, by contract or otherwise, to an association, not less than 51 percent of the members of which are Centers, to— pursue matters of common concern with respect to Centers; and develop an accreditation program with respect to Centers. The Assistant Secretary may extend the term under subsection
(b)of an MBDC agreement to which a Center is a party to a term of 5 years, if the Center consents to the extension. If the Assistant Secretary extends the term of an MBDC agreement under paragraph (1), the Assistant Secretary shall, in the same manner and amount in which financial assistance was provided during the initial term of the MBDC agreement, provide financial assistance under the MBDC agreement during the extended term of the MBDC agreement. In entering into MBDC agreements under the MBDC Program and extending MBDC agreements under subsection (g)(3), the Assistant Secretary shall give priority to extending MBDC agreements under subsection (g)(3). The Assistant Secretary may suspend, terminate, or refuse to extend the term of an MBDC agreement on the basis of the poor performance by a Center in meeting the performance goals established by the Secretary under subparagraph (B). The Assistant Secretary shall establish performance goals by which to evaluate the performance of a Center in meeting the requirements under subsection (a). Before suspending, terminating, or refusing to extend the term of an MBDC agreement under paragraph (1), the Assistant Secretary shall provide to the relevant Center— a written notice of the reasons for the suspension, termination, or refusal; and an opportunity for a hearing, appeal, or other administrative proceeding to contest the suspension, termination, or refusal. The Assistant Secretary shall ensure that the Agency is substantially involved in the activities of Centers in carrying out the requirements under subsection (a), including by— providing to each Center training relating to the MBDC Program; requiring that the operator and staff of each Center— attend— a conference with the Agency to establish the services and programs that the Center will provide in carrying out the requirements before the date on which the Center begins providing those services and programs; and training provided under paragraph (1); receive necessary advising relating to carrying out the requirements under subsection (a); and work in coordination and collaboration with the Assistant Secretary to carry out the MBDC Program and other programs of the Agency; facilitating connections between Centers and— Federal agencies other than the Agency, including the Small Business Administration and the Economic Development Administration of the Department of Commerce; and other institutions or entities that use Federal resources, including— small business development centers, as that term is defined in section 3(t) of the Small Business Act ( 15 U.S.C. 632(t) ); women’s business centers described in section 29 of the Small Business Act ( 15 U.S.C. 656 ); eligible entities, as that term is defined in section 2411 of title 10, United States Code, that provide services under the program carried out under chapter 142 of that title; and entities participating in the Hollings Manufacturing Extension Partnership Program established under section 25 of the National Institute of Standards and Technology Act ( 15 U.S.C. 278k ); monitoring projects carried out by each Center; and establishing and enforcing administrative and reporting requirements for each Center to carry out the requirements under subsection (a). The Assistant Secretary shall issue and publish regulations that establish minimum standards regarding verification of minority business enterprise status for clients of entities operating under the MBDC Program.
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Sec. 734
Cooperative agreements
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