[Congressional Record Volume 153, Number 1 (Thursday, January 4, 2007)]
[Senate]
[Pages S105-S108]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself and Ms. Landrieu):
  S. 98. A bill to foster the development of minority-owned small 
businesses; to the Committee on Small Business and Entrepreneurship.
  Mr. KERRY. Mr. President, I ask unanimous consent that this statement 
be printed in the record. Mr. President, I rise today to introduce the 
Minority

[[Page S106]]

Entrepreneurship Development Act of 2007. At the beginning of a new 
Congress it is important to set priorities for the nation because every 
new Congress brings with it the hope for a brighter future. One of the 
ways that this new Senate will lead is by creating opportunities for 
more Americans to pursue the American dream. As incoming Chair of the 
Small Business and Entrepreneurship Committee, I hope to help in that 
effort by fostering the development of entrepreneurship in minority 
communities. It's vital that current and future entrepreneurs from 
minority communities are given the opportunity to build their own piece 
of the American dream. I believe that this legislation the Minority 
Entrepreneurship Development Act of 2007 will help in that effort.
  I want to take a moment and tell you why it's so important to expand 
the numbers of entrepreneurs in the minority community. As a member of 
the Senate Committee on Small Business and Entrepreneurship, I have 
received firsthand testimony and countless reports documenting the 
positive economic impact that occurs when we foster entrepreneurship in 
under-served communities. There are signs of significant economic 
returns when minority businesses are created and are able to grow in 
size and capacity. 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. Employment opportunities within minority owned 
firms increased by 23 percent during that same period. There is a clear 
correlation between the growth of minority owned firms and the economic 
viability of the minority community.
  Although these economic numbers tell a significant part of the story 
they don't tell the whole story of what these firms mean to the 
minority communities they serve and represent. Many of these business 
leaders are first generation immigrants; many are first generation 
business owners and many represent, for those in their communities, 
what hard work, determination and patience can do.
  We must encourage those kinds of values in our minority communities 
and, quite frankly, in our nation as a whole. For generations, millions 
have come to our shores in search of a better life. Millions of others 
were brought here by force and for years were not given a voice in how 
their lives would turn out. But, how ever we got here, we all have 
become branches of this great tree we call America. This tree is still 
nourished by roots planted by our forefathers more than 200 years ago. 
Those men and women planted the roots of hard work, innovation, faith 
and risk taking.
  When you think about it, those words are the perfect description of 
an entrepreneur. It is the spirit of entrepreneurship that has made our 
nation great. And that is why it is absolutely imperative that we 
continue to support and develop that spirit in our minority 
communities. To that end, this legislation provides several tools to 
help minority entrepreneurs as they develop and grow their businesses.
  First, this legislation will create an Office of Minority Small 
Business Development at the Small Business Administration. One of its 
primary functions will be to increase the number of small business 
loans that minority businesses receive. Latinos, African-Americans, 
Asian-Americans and women have been receiving far fewer small business 
loans than they reasonably should.
  To ensure that this trend is reversed and minorities begin to get a 
greater share of loan dollars, venture capital investments, counseling, 
and contracting opportunities, this bill will give the new office the 
authority to monitor the outcomes for SBA's Capital Access, 
Entrepreneurial Development, and Government Contracting programs. It 
also requires the head of the Office to work with SBA's partners, trade 
associations and business groups to identify more effective ways to 
market to minority business owners, and to work with the head of SBA's 
Field Operations to ensure that district offices have staff and 
resources to market to minorities.
  Second, this legislation will create the Minority Entrepreneurship 
and Innovation Pilot Program. This program will offer a competitive 
grant to Historically Black Colleges and Universities, Tribal Colleges, 
and Hispanic-Serving Institutions to create an entrepreneurship 
curriculum at these institutions and to open Small Business Development 
Centers on those campus' to serve local businesses.
  The goal of this program is to target students in highly skilled 
fields such as engineering, manufacturing, science and technology, and 
guide them towards entrepreneurship as a career option. Traditionally, 
minority-owned businesses are disproportionately represented in the 
service sectors. Promoting entrepreneurial education to undergraduate 
students will help expand business ownership beyond the service sectors 
to higher yielding technical and financial sectors.
  Third, this legislation will create the Minority Access to 
Information Distance Learning Pilot Program. This program will offer 
competitive grants to well established national minority non-profit and 
business organizations to create distance learning programs for small 
business owners who are interested in doing business with the federal 
government.
  The goal of this program is to provide low cost training to the many 
small business owners who cannot afford to pay a consultant thousands 
of dollars for advice or training on how to prepare themselves to 
contract with the Federal Government. There are thousands of small 
businesses in this country that are excellent and efficient. They are 
primed to provide the goods and services that this nation needs to stay 
competitive. This program will help prepare them to do just that.
  Finally, this legislation will extend the Socially and Economically 
Disadvantaged Business Program which expired in 2003. This program 
provides a price evaluation adjustment for socially and economically 
disadvantaged businesses as a way of increasing their competitiveness 
when bidding against larger firms. This is one more tool to increase 
opportunities for our minority small business owners.
  I have outlined several ways that we can create a more positive 
environment for our minority small business community. These are 
reasonable steps that we ought to take without delay. Moreover, these 
are important steps that will help bolster a movement that is already 
underway. According to U.S. Census data, Hispanics are opening 
businesses 3 times faster than the national average. Also, business 
development and entrepreneurship have played a significant role in the 
expansion of the black middle class in this country for over a century. 
These business owners are embodying the entrepreneurial spirit that our 
forefathers carried with them as they established this nation.
  With this legislation and in my role as incoming Chair of the 
Committee on Small Business and Entrepreneurship, I hope to play a part 
in helping to extend that spirit to the next generation of 
entrepreneurs. Not only is this vital for our minority communities, but 
it is vital for America. I urge my colleagues to join with me in 
support of the Minority Entrepreneurship Development Act of 2007.
  I ask unanimous consent that the text of the legislation be printed 
in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 098

       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.

       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) 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

[[Page S107]]

     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.

       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)).

     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--
       ``(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 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.
       (b) Use of Funds.--
       (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.
       (c) Grant Awards.--
       (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.
       (e) Report.--
       (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.

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       (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.
       (c) Grant Awards.--
       (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.
       (e) Report.--
       (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.
                                 ______