110th CONGRESS
1st Session
S. 98
To foster the development of minority-owned small businesses.
IN THE SENATE OF THE UNITED STATES
January 4, 2007
Mr. KERRY (for himself and Ms. LANDRIEU) introduced the following bill;
which was read twice and referred to the Committee on Small Business and
Entrepreneurship
A BILL
To foster the development of minority-owned small businesses.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Minority Entrepreneurship Development Act
of 2007'.
SEC. 2. FINDINGS.
(1) in 2005, the African American unemployment rate was 9.5 percent and
the Hispanic American unemployment rate was 6 percent, well above the
national average of 4.7 percent;
(2) Hispanics Americans represent 12.5 percent of the United States population
and approximately 6 percent of all United States businesses;
(3) African Americans account for 12.3 percent of the population and only
4 percent of all United States businesses;
(4) Native Americans account for approximately 1 percent of the population
and .9 percent of all United States businesses;
(5) entrepreneurship has proven to be an effective tool for economic growth
and viability of all communities;
(6) minority-owned businesses are a key ingredient for economic development
in the community, an effective tool for creating lasting and higher-paying
jobs, and a source of wealth in the minority community; and
(7) between 1987 and 1997, revenue from minority-owned firms rose by 22.5
percent, an increase equivalent to an annual growth rate of 10 percent,
and employment opportunities within minority-owned firms increased by
23 percent.
SEC. 3. DEFINITIONS.
(1) the terms `Administration' and `Administrator' mean the Small Business
Administration and the Administrator thereof, respectively;
(2) the term `eligible association or organization' means an association
or organization that--
(i) a national minority business association organized in accordance
with section 501(c)(6) of the Internal Revenue Code of 1986; or
(ii) a foundation of national minority business associations organized
in accordance with section 501(c)(3) of the Internal Revenue Code
of 1986;
(B) has a well established national network of local chapters, or a
proven national membership; and
(C) has been in existence for at least the 10-year period before the
date of awarding a grant under section 6;
(3) the term `eligible educational institution' means an institution that
is--
(A) a public or private institution of higher education (including any
land-grant college or university, any college or school of business,
engineering, commerce, or agriculture, or community college or junior
college) or any entity formed by 2 or more institutions of higher education;
and
(i) historically Black college;
(ii) Hispanic-serving institution; or
(4) the term `historically Black college' means a part B institution,
as that term is defined in section 322 of the Higher Education Act of
1965 (20 U.S.C. 1061);
(5) the term `Hispanic-serving institution' has the meaning given that
term in section 502 of the Higher Education Act of 1965 (20 U.S.C. 1101a);
(6) the term `institution of higher education' has the meaning given that
term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1101)
(7) the term `small business concern' has the meaning given that term
in section 3 of the Small Business Act (15 U.S.C. 532);
(8) the term `small business development center' has the meaning given
that term in section 21 of the Small Business Act (15 U.S.C. 648); and
(9) the term `tribal college' has the same meaning as the term `tribally
controlled college or university' under section 2(a)(4) of the Tribally
Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801(a)(4)).
SEC. 4. MINORITY SMALL BUSINESS DEVELOPMENT.
(a) In General- The Small Business Act (15 U.S.C. 631 et seq.) is amended--
(1) by redesignating section 37 as section 38; and
(2) by inserting after section 36 the following:
`SEC. 37. MINORITY SMALL BUSINESS DEVELOPMENT.
`(a) Office of Minority Small Business Development- There is established
in the Administration an Office of Minority Small Business Development,
which shall be administered by the Associate Administrator for Minority
Small Business Development appointed under section 4(b)(1) (in this section
referred to as the `Associate Administrator').
`(b) Associate Administrator for Minority Small Business Development- The
Associate Administrator shall--
`(A) an appointee in the Senior Executive Service who is a career appointee;
or
`(B) an employee in the competitive service;
`(2) be responsible for the formulation, execution, and promotion of policies
and programs of the Administration that provide assistance to small business
concerns owned and controlled by minorities;
`(3) act as an ombudsman for full consideration of minorities in all programs
of the Administration (including those under section 7(j) and 8(a));
`(4) work with the Associate Deputy Administrator for Capital Access of
the Administration to increase the proportion of loans and loan dollars,
and investments and investment dollars, going to minorities through the
finance programs under this Act and the Small Business Investment Act
of 1958 (including subsections (a), (b), and (m) of section 7 of this
Act and the programs under title V and parts A and B of title III of the
Small Business Investment Act of 1958);
`(5) work with the Associate Deputy Administrator for Entrepreneurial
Development of the Administration to increase the proportion of counseling
and training that goes to minorities through the entrepreneurial development
programs of the Administration;
`(6) work with the Associate Deputy Administrator for Government Contracting
and Minority Enterprise Development of the Administration to increase
the proportion of contracts, including through the Small Business Innovation
Research Program and the Small Business Technology Transfer Program, to
minorities;
`(7) work with the partners of the Administration, trade associations,
and business groups to identify and carry out policies and procedures
to more effectively market the resources of the Administration to minorities;
`(8) work with the Office of Field Operations of the Administration to
ensure that district offices and regional offices have adequate staff,
funding, and other resources to market the programs of the Administration
to meet the objectives described in paragraphs (4) through (7); and
`(9) report to and be responsible directly to the Administrator.
`(c) Authorization of Appropriations- There are authorized to be appropriated
to carry out this section--
`(1) $5,000,000 for fiscal year 2007;
`(2) $5,000,000 for fiscal year 2008; and
`(3) $5,000,000 for fiscal year 2009.'.
(b) Conforming Amendments- Section 4(b)(1) of the Small Business Act (15
U.S.C. 633(b)(1)) is amended in the sixth sentence, by striking `Minority
Small Business and Capital Ownership Development' and all that follows through
the end of the sentence and inserting `Minority Small Business Development.'.
SEC. 5. MINORITY ENTREPRENEURSHIP AND INNOVATION PILOT PROGRAM OF 2007.
(a) In General- The Administrator may make grants to eligible educational
institutions--
(1) to assist in establishing an entrepreneurship curriculum for undergraduate
or graduate studies; and
(2) for placement of a small business development center on the physical
campus of the institution.
(1) CURRICULUM REQUIREMENT-
(A) IN GENERAL- An eligible educational institution receiving a grant
under this section shall develop a curriculum that includes training
in various skill sets needed by successful entrepreneurs, including--
(i) business management and marketing, financial management and accounting,
market analysis and competitive analysis, and innovation and strategic
planning; and
(ii) additional entrepreneurial skill sets specific to the needs of
the student population and the surrounding community, as determined
by the institution.
(B) FOCUS- The focus of the curriculum developed under this paragraph
shall be to help students in non-business majors develop the tools necessary
to use their area of expertise as entrepreneurs.
(2) SMALL BUSINESS DEVELOPMENT CENTER REQUIREMENT- Each eligible educational
institution receiving a grant under this section shall open a small business
development center that--
(A) performs studies, research, and counseling concerning the managing,
financing, and operation of small business concerns;
(B) performs management training and provides technical assistance regarding
small business concern participation in international markets, export
promotion and technology transfer, and the delivery or distribution
of such services and information;
(C) offers referral services for entrepreneurs and small business concerns
to business development, financing, and legal experts; and
(D) promotes market-specific innovation, niche marketing, capacity building,
international trade, and strategic planning as keys to long term growth
for its small business concern and entrepreneur clients.
(1) IN GENERAL- The Administrator may not award a grant under this section
to a single eligible educational institution--
(A) in excess of $1,000,000 in any fiscal year; or
(B) for a term of more than 2 years.
(2) LIMITATION ON USE OF FUNDS- Funds made available under this section
may not be used for--
(A) any purpose other than those associated with the direct costs incurred
by the eligible educational institution to--
(i) develop and implement the curriculum described in subsection (b)(1);
or
(ii) organize and operate a small business development center, as
described in subsection (b)(2); or
(B) building expenses, administrative travel budgets, or other expenses
not directly related to the costs described in subparagraph (A).
(d) Matching Not Required- Subparagraphs (A) and (B) of section 21(a)(4)
of the Small Business Act (15 U.S.C. 648(a)(4)) shall not apply to a grant
made under this section.
(1) IN GENERAL- Not later than November 1 of each year in which funds
are made available for grants under this section, the Associate Administrator
of Entrepreneurial Development of the Administration shall submit to the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives, a report
evaluating the success of the program under this section during the preceding
fiscal year.
(2) CONTENTS- Each report under paragraph (1) shall include--
(A) a description of each entrepreneurship program developed with grant
funds, the date of the award, and the number of participants in each
such program;
(B) the number of small business assisted through the small business
development center with grant funds; and
(C) data regarding the economic impact of the small business development
center counseling provided with grant funds.
(f) Authorization of Appropriation- There are authorized to be appropriated
to carry out this section $24,000,000 for each of fiscal years 2007 through
2009, to remain available until expended.
(g) Limitation on Use of Other Funds- The Administrator shall carry out
this section only with amounts appropriated in advance specifically to carry
out this section.
SEC. 6. MINORITY ACCESS TO INFORMATION DISTANCE LEARNING PILOT PROGRAM
OF 2007.
(a) In General- The Administrator may make grants to eligible associations
and organizations to--
(1) assist in establishing the technical capacity to provide online or
distance learning for businesses seeking to contract with the Federal
Government;
(2) develop curriculum for seminars that will provide businesses with
the technical expertise to contract with the Federal government; and
(3) provide training and technical expertise through distance learning
at low cost, or no cost, to participant business owners and other interested
parties.
(b) Use of Funds- An eligible association or organization receiving a grant
under this section shall develop a curriculum that includes training in
various areas needed by the owners of small business concerns to successfully
contract with the Federal Government, which may include training in accounting,
marketing to the Federal Government, applying for Federal certifications,
use of offices of small and disadvantaged businesses, procurement conferences,
the scope of Federal procurement contracts, and General Services Administration
schedules.
(1) IN GENERAL- The Administrator may not award a grant under this section
to a single eligible association or organization--
(A) in excess of $250,000 in any fiscal year; or
(B) for a term of more than 2 years.
(2) LIMITATION ON USE OF FUNDS- Funds made available under this section
may not be used--
(A) for any purpose other than those associated with the direct costs
incurred by the eligible association or organization to develop the
curriculum described in subsection (b); or
(B) for building expenses, administrative travel budgets, or other expenses
not directly related to the costs described in subparagraph (A).
(d) Matching Not Required- Subparagraphs (A) and (B) of section 21(a)(4)
of the Small Business Act (15 U.S.C. 648(a)(4)) shall not apply to a grant
made under this section.
(1) IN GENERAL- Not later than November 1 of each year, the Associate
Administrator of Entrepreneurial Development of the Administration shall
submit to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of Representatives,
a report evaluating the success of the program under this section during
the preceding fiscal year.
(2) CONTENTS- Each report under paragraph (1) shall include--
(A) a description of each distance learning program developed with grant
funds under this section, the date of the award, and the number of participants
in each program; and
(B) data regarding the economic impact of the distance learning technical
assistance provided with such grant funds.
(f) Authorization of Appropriations- There are authorized to be appropriated
to carry out this section $4,000,000 for each of fiscal years 2007 through
2009, to remain available until expended.
(g) Limitation on Use of Other Funds- The Administrator shall carry out
this section only with amounts appropriated in advance specifically to carry
out this section.
SEC. 7. EXTENSION OF SOCIALLY AND ECONOMICALLY DISADVANTAGED BUSINESS
PROGRAM.
(a) In General- Section 7102(c) of the Federal Acquisition Streamlining
Act of 1994 (15 U.S.C. 644 note) is amended by striking `September 30, 2003'
and inserting `September 30, 2009'.
(b) Effective Date- The amendment made by this section shall take effect
30 days after the date of enactment of this Act.
END
