1.This Act may be cited as
the Minority Entrepreneurship
Development Act of 2006
.
2.Congress finds that—
(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)Hispanic
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.
3.In this Act—
(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—
(A)is—
(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
(B)a—
(i)historically
Black college;
(ii)Hispanic-serving
institution; or
(iii)tribal
college;
(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)).
4.Minority small
business development
(a)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:
37.Minority small
business development
(a)Office of
minority small business developmentThere 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 developmentThe Associate Administrator shall—
(1)be—
(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 appropriationsThere 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)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.
.
5.Minority
Entrepreneurship and Innovation Pilot Program of 2006
(a)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.
(b)
(1)
(A)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)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 requirementEach 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.
(c)
(1)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 fundsFunds 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)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.
(e)
(1)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)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 appropriationThere 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 fundsThe Administrator shall carry out this section
only with amounts appropriated in advance specifically to carry out this
section.
6.Minority Access
to Information Distance Learning Pilot Program of 2006
(a)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)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.
(c)
(1)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 fundsFunds 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)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.
(e)
(1)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)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 appropriationsThere 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 fundsThe Administrator shall carry out this section
only with amounts appropriated in advance specifically to carry out this
section.
7.Extension of
socially and economically disadvantaged business program
(a)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)The amendment made by this section shall take effect 30 days
after the date of enactment of this Act.