Sec. 40401. Minority Business Development Agency
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In addition to amounts otherwise available, there is appropriated to the Minority Business Development Agency for fiscal year 2022, out of amounts in the Treasury not otherwise appropriated— $200,000,000, to remain available until September 30, 2026, for carrying out subsection (b)(1); $1,200,000,000, to remain available until September 30, 2029, for carrying out subparagraphs (A), (B), (C), (D), (E), (F), and
(H)of subsection (b)(2); $50,000,000, to remain available until September 30, 2026, for carrying out subparagraph
(G)of subsection (b)(2); $1,500,000,000, to remain available until September 30, 2026, for carrying out subsection (b)(3); and $150,000,000, to remain available until September 30, 2029, for administrative costs associated with carrying out subsection (b)(3). The Director of the Minority Business Development Agency may enter into agreements with one or more rural Business Centers of the Agency that are operated by a minority-serving institution of higher education or by a consortium of institutions of higher education that is led by a minority-serving institution of higher education. Under such an agreement, a rural Business Center shall provide assistance primarily to eligible business enterprises located within a rural area, as defined by the Director. The Director of the Minority Business Development Agency shall— pay salaries and related costs for employees; pay for administrative and other costs to support initiatives that assist the formation, growth, and expansion of eligible business enterprises; establish and provide assistance to Business Centers and specialty Business Centers, prioritizing for such establishment in States or regions that lack a Business Center and have a significant population of members of an underrepresented community; establish not fewer than 5 regional offices, in locations determined by the Director; conduct an annual forum between the Federal Government and businesses to review existing programs and current challenges relating to capital formation by eligible business enterprises; establish a program to assist small, underserved manufacturers in accessing private capital by accelerating technology adoption and providing training and support in supply chain integration; provide grants to minority-serving institutions of higher education to develop and implement entrepreneurship curricula; and collect data and develop research and policies regarding the needs and development of eligible business enterprises. The Director of the Minority Business Development Agency may provide grants to— a eligible business enterprise; and an eligible nonprofit organization that will make subgrants to eligible business enterprises located in areas with significant populations of members of underrepresented communities. In making grants and subgrants to eligible business enterprises and eligible nonprofit organizations under this section, the Director shall establish an application process and selection criteria, which shall include— assurances that the eligible business enterprise and eligible nonprofit organization will use such grants and subgrants to address gaps in access to capital, assist with startup costs, or support business expansion; criteria for determining the size of grant or subgrant award for the eligible business enterprise and eligible nonprofit organization; and other criteria as determined by the Director. An eligible nonprofit organization that receives a grant under this section shall, when making a subgrant to an eligible business enterprise described under subparagraph (A)(ii), also use such grant to provide support to the eligible business enterprise in one or more of the following ways: Providing resources, which may include physical workspace and facilities, to startups and established eligible business enterprises. Providing supports to accelerate the growth and success of eligible business enterprises through a variety of services, including— access to capital, business education, and counseling; networking opportunities; mentorship opportunities; advising on market analysis, company strategy, revenue, growth, commercialization, and securing funding; and other services intended to aid in developing eligible business enterprises. In accepting applications for grants to eligible business enterprises or subgrants to eligible business enterprises under this subsection, the Director shall allow each grantee or subgrantee to use existing business identifiers of the subgrantee instead of other forms of registration or identification. In this paragraph, the term eligible nonprofit organization means an organization that is described in paragraph
(3)or
(6)of section 501(c) of the Internal Revenue Code of 1986 and that is exempt from taxation under section 501(a) of such Code for which a primary activity of the organization is to provide services or financial support to eligible business enterprises located in areas with significant populations of members of underrepresented communities. If an entity that receives a grant or assistance under this subsection fails to use all the funds or permanently ceases operations on or before September 30, 2031, the entity shall return the funds to the Minority Business Development Agency. The Minority Business Development Agency shall return all such funds to the Treasury if not expended by September 30, 2031. At the discretion of the Director and in addition to any other civil or criminal consequences, the Director shall withhold payments to an eligible applicant or order the eligible applicant to return any assistance provided under this section for failure to abide by the terms and conditions of such assistance. In this section: The term Business Center means any business center that— is established by the Minority Business Development Agency; and provides technical business assistance to minority business enterprises. The term eligible business enterprise means a business owned or controlled by one or more members of an underrepresented community. The term member of an underrepresented community means an individual who is— a resident of— a low-income community, as defined in section 45D(e) of the Internal Revenue Code of 1986; a low-income rural community; or a HUBZone, as defined in section 31(b) of the Small Business Act ( 15 U.S.C. 657a ); a member of an Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the most recent list published pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ); an individual with a disability, as defined in section 3 of the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12102 ); a veteran, as defined in section 101 of title 38, United States Code; an individual who completed a term of imprisonment; an Afghan refugee, including an individual who has received a Special Immigrant Visa, a P–2 classification, or special parole status; or an individual otherwise identified by the Director. The term minority-serving institution of higher education means— an institution described in section 371(a) of the Higher Education Act of 1965 ( 20 U.S.C. 1067q(a) ); or a junior or community college, as defined in section 312 of the Higher Education Act of 1965 ( 20 U.S.C. 1058 ). The term specialty Business Center means a Business Center that provides specialty services focusing on specific business needs, including assistance relating to— capital access; Federal procurement; entrepreneurship; technology transfer; or any other area determined necessary or appropriate based on the priorities of the Director of the Minority Business Development Agency.
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Sec. 40401
Minority Business Development Agency
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