Short title

This Act may be cited as the

Minority Business Development Improvements Act of 2009

Minority Business Development Program

The Director of the Minority Business Development Agency shall establish the Minority Business Development Program (hereinafter in this Act referred to as the Program) to assist qualified minority businesses. The Program shall provide to such businesses the following: (1)Technical assistance. (2)Loan guarantees. (3)Contract procurement assistance.

Qualified minority business

(a)

Certification

For purposes of the Program, the Director may certify as a qualified minority business any entity that satisfies each of the following: (1)Not less than 51 percent of the entity is directly and unconditionally owned or controlled by historically disadvantaged individuals. (2)Each officer or other individual who exercises control over the regular operations of the entity is a historically disadvantaged individual. (3)The net worth of each principal of the entity is not greater than $2,000,000. (The equity of a disadvantaged owner in a primary personal residence shall be considered in this calculation.) (4)The principal place of business of the entity is in the United States. (5)Each principal of the entity maintains good character in the determination of the Director. (6)The entity engages in competitive and bona fide commercial business operations in not less than one sector of industry that has a North American Industry Classification System code. (7)The entity submits reports to the Director at such time, in such form, and containing such information as the Director may require. (8)Any additional requirements that the Director determines appropriate. (b)

Term of certification

A certification under this section shall be for a term of 5 years and may not be renewed.

Technical assistance

(a)

In general

In carrying out the Program, the Director may provide to qualified minority businesses technical assistance with regard to the following: (1)Writing business plans. (2)Marketing. (3)Management. (4)Securing sufficient financing for business operations. (b)

Contract authority

The Director may enter into agreements with persons to provide technical assistance under this section. (c)

Authorization of appropriations

There are authorized to be appropriated $200,000,000 to the Director to carry out this section. Such sums shall remain available until expended.

Loan guarantees

(a)

In general

Subject to subsection (b), the Director may guarantee up to 90 percent of the amount of a loan made to a qualified minority business to be used for business purposes, including the following: (1)Purchasing essential equipment. (2)Payroll expenses. (3)Purchasing facilities. (4)Renovating facilities. (b)

Terms and conditions

(1)

In general

The Director may make guarantees under this section for projects on such terms and conditions as the Director determines appropriate, after consultation with the Secretary of the Treasury, in accordance with this section. (2)

Repayment

No guarantee shall be made under this section unless the Director determines that there is reasonable prospect of repayment of the principal and interest on the obligation by the borrower. (3)

Defaults

(A)

Payment by Director

(i)

In general

If a borrower defaults on the obligation (as defined in regulations promulgated by the Director and specified in the guarantee contract), the holder of the guarantee shall have the right to demand payment of the unpaid amount from the Director. (ii)

Payment required

Within such period as may be specified in the guarantee or related agreements, the Director shall pay to the holder of the guarantee the unpaid interest on, and unpaid principal of the obligation as to which the borrower has defaulted, unless the Director finds that there was no default by the borrower in the payment of interest or principal or that the default has been remedied. (iii)

Forbearance

Nothing in this paragraph precludes any forbearance by the holder of the obligation for the benefit of the borrower which may be agreed upon by the parties to the obligation and approved by the Director. (B)

Subrogation

(i)

In general

If the Director makes a payment under subparagraph (A), the Director shall be subrogated to the rights of the recipient of the payment as specified in the guarantee or related agreements including, where appropriate, the authority (notwithstanding any other provision of law) to— (I)complete, maintain, operate, lease, or otherwise dispose of any property acquired pursuant to such guarantee or related agreements; or (II)permit the borrower, pursuant to an agreement with the Director, to continue to pursue the purposes of the project if the Director determines this to be in the public interest. (ii)

Superiority of rights

The rights of the Director, with respect to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with respect to the property. (iii)

Terms and conditions

A guarantee agreement shall include such detailed terms and conditions as the Director determines appropriate to— (I)protect the interests of the United States in the case of default; and (II)have available all the patents and technology necessary for any person selected, including the Director, to complete and operate the project. (C)

Payment of principal and interest by Director

With respect to any obligation guaranteed under this section, the Director may enter into a contract to pay, and pay, holders of the obligation, for and on behalf of the borrower, from funds appropriated for that purpose, the principal and interest payments which become due and payable on the unpaid balance of the obligation if the Director finds that— (i)(I)the borrower is unable to meet the payments and is not in default; (II)it is in the public interest to permit the borrower to continue to pursue the purposes of the project; and (III)the probable net benefit to the Federal Government in paying the principal and interest will be greater than that which would result in the event of a default; (ii)the amount of the payment that the Director is authorized to pay shall be no greater than the amount of principal and interest that the borrower is obligated to pay under the agreement being guaranteed; and (iii)the borrower agrees to reimburse the Director for the payment (including interest) on terms and conditions that are satisfactory to the Director. (D)

Action by Attorney General

(i)

Notification

If the borrower defaults on an obligation, the Director shall notify the Attorney General of the default. (ii)

Recovery

On notification, the Attorney General shall take such action as is appropriate to recover the unpaid principal and interest due from— (I)such assets of the defaulting borrower as are associated with the obligation; or (II)any other security pledged to secure the obligation. (4)

Fees

(A)

In general

The Director shall charge and collect fees for guarantees in amounts the Director determines are sufficient to cover applicable administrative expenses, not to exceed 1 percent of the amount guaranteed. (B)

Availability

Fees collected under this paragraph shall— (i)be deposited by the Director into the Treasury; and (ii)remain available until expended, subject to such other conditions as are contained in annual appropriations Acts. (c)

Credit requirements

To receive a loan guaranteed under this section a qualified minority business shall— (1)be in good standing with regard to the credit of that business in the determination of the Director; (2)have received technical assistance under section 4; and (3)submit reports, at such time, in such form, and containing such information as the Director may require regarding the credit of the business. (d)

Limits on guarantee amounts

(1)

Maximum amount of guarantee

The Director may guarantee not more than $450,000 of any loan under this section. (2)

Maximum gross loan amount

A loan guaranteed under this section may not be for a gross loan amount in excess of $500,000. (e)

Authorization of appropriations

There are authorized to be appropriated to the Director not more than $500,000,000 to carry out this section during fiscal years 2011 through 2016.

Set-aside contracting opportunities

(a)

In general

The Director may enter into agreements with the United States Government and any department, agency, or officer thereof having procurement powers for purposes of providing for the fulfillment of procurement contracts and providing opportunities for qualified minority businesses with regard to such contracts. (b)

Qualifications on participation

The Director shall by rule establish requirements for participation under this section by a qualified minority business in a contract. (c)

Annual limit on number of contracts per qualified minority business

A qualified minority business may not participate under this section in contracts in an amount that exceeds $10,000,000 for goods and services each fiscal year. (d)

Limits on contract amounts

(1)

Goods and services

Except as provided in paragraph (2), a contract for goods and services under this section may not exceed $6,000,000. (2)

Manufacturing and construction

A contract for manufacturing and construction services under this section may not exceed $10,000,000.

Termination from the Program

The Director may terminate a qualified minority business from the Program for any violation of a requirement of sections 3 through 6 of this Act by that qualified minority business, including the following: (1)Conduct by a principal of the qualified minority business that indicates a lack of business integrity. (2)Willful failure to comply with applicable labor standards and obligations. (3)Consistent failure to tender adequate performance with regard to contracts under the Program. (4)Failure to obtain and maintain relevant certifications. (5)Failure to pay outstanding obligations owed to the Federal Government.

Reports

(a)

Report of the Director

Not later than October 1, 2011, and annually thereafter, the Director shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing the activities of the Director during the preceding year with respect to the Program. (b)

Report of the Secretary of Commerce

Not later than October 1, 2011, and annually thereafter, the Secretary of Commerce shall submit to the Committee on Energy and Commerce of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report describing the activities the Secretary engaged in during the preceding year to build wealth among historically disadvantaged individuals.

Definitions

In this Act: (1)The term historically disadvantaged individual means any individual who is a member of a group that is designated as eligible to receive assistance under section 1400.1 of title 15 of the Code of Federal Regulations, as in effect on January 1, 2009. (2)The term principal means any person that the Director determines to exercise significant control over the regular operations of a business entity.