II 109th CONGRESS 2d Session S. 2586 IN THE SENATE OF THE UNITED STATES April 6, 2006 Mr. Kerry introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To establish a 2-year pilot program to develop a curriculum at historically Black colleges and universities, Tribal Colleges, and Hispanic serving institutions to foster entrepreneurship and business development in underserved minority communities.

1.

Short title

This Act may be cited as the Minority Entrepreneurship and Innovation Pilot Program of 2006.

2.

Findings

Congress finds— (1)the 2005 State of Black America Report issued by the National Urban League finds a significant level of equality gaps between African Americans and Whites, with the median net worth of an African-American family is $6,100, compared with $67,000 for a white family; (2)in 2005, the African American unemployment rate was 9.5 percent and the Hispanic unemployment rate was 6 percent, well above the national average of 4.7 percent; (3)African Americans account for 12.3 percent of the United States population and only 4 percent of all United States businesses, Hispanic Americans represent 12.5 percent of the United States population and approximately 6 percent of all United States businesses, Native Americans account for approximately 1 percent of the United States population and .9 percent of all United States businesses; (4)entrepreneurship has proven to be an effective tool for economic growth and viability of all communities; (5)fostering minority owned businesses is a key ingredient for economic development in the minority community, an effective tool for creating lasting and higher-paying jobs, and a source of creating wealth in the minority community; and (6)between 1987 and 1997, revenue from minority owned businesses 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.

3.

Definitions

In this Act— (1)the term Administrator means the Administrator of the Small Business Administration; (2)the term Hispanic serving institution has the meaning given the term in section 502 of the Higher Education Act of 1965 (20 U.S.C. 1101a); (3)the term historically Black college and university has the meaning given the term part B institution in section 322 of the Higher Education Act of 1965 (20 U.S.C. 1061); (4)the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632); (5)the term small business development center has the same meaning as in section 21 of the Small Business Act (15 U.S.C. 648); and (6)the term Tribal College has the meaning given the term tribally controlled college or university in section 2 of the Tribally Controlled College or University Assistance Act of 1978 (25 U.S.C. 1801).

4.

Minority entrepreneurship and innovation grants

(a)

In General

The Administrator shall make grants to historically Black colleges and universities, Tribal Colleges, and Hispanic serving institutions, or to any entity formed by a combination of such institutions— (1)to assist in establishing an entrepreneurship curriculum for undergraduate or graduate studies; and (2)for placement of small business development centers on the physical campus of the institution. (b)

Curriculum Requirement

An institution of higher education receiving a grant under this section shall develop a curriculum that includes training in various skill sets needed by successful entrepreneurs, including— (1)business management and marketing, financial management and accounting, market analysis and competitive analysis, innovation and strategic planning; and (2)additional entrepreneurial skill sets specific to the needs of the student population and the surrounding community, as determined by the institution. (c)

Small business development center requirement

Each institution receiving a grant under this section shall open a small business development center that— (1)performs studies, research, and counseling concerning the management, financing, and operation of small business concerns; (2)performs management training and technical assistance regarding the participation of small business concerns in international markets, export promotion and technology transfer, and the delivery or distribution of such services and information; (3)offers referral services for entrepreneurs and small business concerns to business development, financing, and legal experts; and (4)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. (d)

Grant limitations

A grant under this subsection— (1)may not exceed $1,000,000 per fiscal year for any 1 institution of higher education; (2)may not be used for any purpose other than those associated with the direct costs incurred to develop and implement a curriculum that fosters entrepreneurship and the costs incurred to organize and run a small business development center on the grounds of the institution; and (3)may not be used for building expenses, administrative travel budgets, or other expenses not directly related to the implementation of the curriculum or activities authorized by this Act. (e)

Exception from Small Business Act requirement

Subparagraphs (A) and (B) of section 21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) do not apply to assistance made available under this section. (f)

Authorization of Appropriations

There is authorized to be appropriated to carry out this section $24,000,000, to remain available until expended, for each of fiscal years 2007 and 2008. (g)

Report

Not later than November 1 of each year, the Associate Administrator of Entrepreneurial Development of the Small Business 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 award and use of grants under this section during the preceding fiscal year, which shall include— (1)a description of each entrepreneurship program developed with grant funds, the date of the award of such grant, and the number of participants in each such program; (2)the number of small business concerns assisted by each small business development center established with a grant under this section; and (3)data regarding the economic impact of the small business development center counseling provided under a grant under this section. (h)

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.