[Federal Register Volume 68, Number 183 (Monday, September 22, 2003)]
[Notices]
[Pages 55032-55033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24083]


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DEPARTMENT OF COMMERCE

Minority Business Development Agency

[Docket No. 030910229-3229-01]


Minority Business Financing

AGENCY: Minority Business Development Agency.

ACTION: Notice.

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SUMMARY: The Minority Business Development Agency (MBDA) is soliciting 
comments on the direction of minority business financing. MBDA would 
like to ensure that it has obtained broad-based feedback on this issue. 
Once this information has been obtained and there has been a 
preliminary discussion of this issue at MBDA's 2003 MED Week 
conference, MBDA will finalize and print a report with any appropriate 
revisions, and will disseminate it widely to the policy-making and 
financial communities. In order to be considered, comments must be 
received by the deadline contained in the Dates section of this Notice.

DATES: All comments must be received or postmarked by October 7, 2003.

ADDRESSES: Completed comments may be mailed to the following address: 
Ms. Anita Cooke Wells, Chief, Office of Business Development, HCHB, 
Room 5063, Minority Business Development Agency, U.S. Department of 
Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 
20230; or e-mailed to: [email protected].

FOR FURTHER INFORMATION CONTACT: For further information, contact Ms. 
Anita Cooke Wells, Chief, Office of Business Development, at (202) 482-
1940.

SUPPLEMENTARY INFORMATION: In May, 2002, MBDA began to examine the 
challenges facing minority firms in obtaining financing and develop 
proposals to improve financing options. MBDA sought input from persons 
having expertise in these issues, to assist it in information gathering 
and review of possible options. Some of the areas identified for 
discussion were the current disparities in financing minority 
businesses, the lack of available data, and the importance of 
management and technical assistance.
    The Agency has developed preliminary proposals as a result of this 
process. These proposals address issues universal to all minority 
firms, as well as specifically focusing on issues relevant to high 
growth businesses, emerging companies and microenterprises. These 
proposals are designed to support the development of minority 
businesses and result in job creation and other economic outcomes. Much 
of the Agency's work focuses on suggestions that would affect existing 
businesses, whether middle-market or larger businesses and those firms 
with the largest potential for growth. These businesses are most likely 
to generate employment and revenues, yet often are overlooked by small 
business financing programs, venture capitalists, and institutional 
investors.
    The lack of information on minority firms reiterates the need for 
the Federal Government to develop and provide this data to the private 
sector. In general, the issues focus on the following four categories:

1. Development of Current and Extensive Governmental Data To Support 
Investment Decision-Making and To Identify Market Opportunities in the 
MBE Community

    [sbull] Implement an Annual Survey of Minority Businesses to 
provide up-to-date and accurate information on the minority business 
community.
    [sbull] Organize and fund a national minority financing network and 
data repository, which would compile information on the loan 
performance of this sector of the business community.
    [sbull] Partner with the National Association of Investment 
Companies to collect data on portfolio performance of minority-focused 
venture funds and develop institutional investor strategies.

[[Page 55033]]

2. Improvement of Capital Availability and Accessibility Through 
Existing and New Programs

    [sbull] Continue ongoing federal financing programs, such as the 
Small Business Administration 7(a), 504 and Community Express programs 
and the Department of the Treasury's Community Development Financial 
Institutions Fund that have increased capital accessibility for 
minority businesses and other under-served communities.
    [sbull] Implement a National Capital Access program, which allows 
banks and other financial institutions to make loans to higher-risk 
borrowers.
    [sbull] Develop a national mezzanine-financing program.

3. Provision of Expanded Access to Management and Technical Assistance

    [sbull] Tie existing and new financing vehicles to technical and 
management assistance appropriate for the type of firm receiving the 
financing.
    [sbull] Focus provision of services to businesses with $100,000 or 
more in annual revenues, as businesses of this size are responsible for 
approximately 95 percent of all employees retained by minority firms 
and nearly 92 percent of minority business revenues.
    [sbull] Develop tiering mechanisms for provision of management and 
technical assistance services promoting increased efficiency and 
innovation within the minority business community.
    [sbull] Create best practices and performance measurements for 
service providers.

4. Integration of the Investment Community, Minority Entrepreneurs, and 
the Federal Government

    [sbull] Coordinate federal programs supporting minority business 
financing and increase minority business utilization of these programs.
    [sbull] Support existing mechanisms for integrating entrepreneurs 
with financial institutions, especially with respect to venture 
capital.
    [sbull] Promote increased collaborations between institutions with 
experience and expertise investing and lending to the minority business 
community and mainstream institutions.
    For additional background on MBDA's proposals, please go to MBDA's 
Web site at http://www.mbda.gov. In particular, the Agency would like 
to receive any suggestions on additional approaches or options that may 
be included in a final report. If respondents believe that the 
identified issues are impractical or present serious difficulties in 
implementation, please note this in the comments.
    The comments received will be reviewed for applicability to the 
issues addressed. MBDA will consider only those comments that address 
(1) existing successful models that could be enhanced and replicated, 
and (2) where there is sufficient interest within MBDA to adopt the 
comments, or there exists the likelihood of creating such interest. If 
any comments received meet the criteria, they will be included within 
the final report.

    Dated: September 16, 2003.
Ronald N. Langston,
National Director, Minority Business Development Agency.
[FR Doc. 03-24083 Filed 9-18-03; 12:01 pm]
BILLING CODE 3510-21-P