Sec. 401. Grants to nonprofit organizations that support minority business enterprises
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/bill/117/hr/2689/ih/section-401·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section, the term covered entity means a private nonprofit organization that— is described in paragraph (3), (4), (5), or
(6)of section 501(c) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code; and can demonstrate that the primary mission of the organization is to provide services to minority business enterprises, whether through education, making grants or loans, or other similar activities. The purpose of this section is to make grants to covered entities to help those covered entities continue the necessary work of supporting minority business enterprises. Not later than 180 days after the date of enactment of this Act, the Assistant Secretary shall establish within the Agency a grant program under which the Assistant Secretary shall make grants to covered entities in accordance with the requirements of this section. A covered entity desiring a grant under this section shall submit to the Assistant Secretary an application at such time, in such manner, and containing such information as the Assistant Secretary may require. The Assistant Secretary shall, in carrying out this section, prioritize granting an application submitted by a covered entity— the primary mission of which is serving socially and economically disadvantaged individuals; or that is located in a federally recognized area of economic distress. A covered entity to which a grant is made under this section may use the grant funds to support the development and growth of minority business enterprises. The Assistant Secretary shall establish procedures to discourage and prevent waste, fraud, and abuse by applicants for, and recipients of, grants made under this section. Not later than 180 days after the date on which the Assistant Secretary begins making grants under this section, the Inspector General of the Department of Commerce shall— conduct an audit of grants made under this section, which shall seek to identify any discrepancies or irregularities with respect to those grants; and submit to Congress a report regarding the audit conducted under paragraph (1). Not later than 90 days after the date on which the Assistant Secretary establishes the grant program under subsection (c), and once every 30 days thereafter, the Assistant Secretary shall submit to Congress a report that contains— the number of grants made under this section during the period covered by the report; and with respect to the grants described in paragraph (1), the geographic distribution of those grants by State and county.