To
provide electronic and one-on-one business development services
for a nominal fee to minority firms and individuals interested in
entering, expanding or improving their efforts in the marketplace.
MBDA's funded Minority Business Development Center operators provide
a wide range of services to clients, from initial consultations
to the identification and resolution of specific business problems.
TYPES
OF ASSISTANCE:
Project Grants. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
The
Minority Business Development Agency (MBDA) competitively solicits
and will fund in Fiscal Year 2003 approximately 27 MBDCs to provide
electronic and one-on-one management and technical assistance to
minority clients located in designated Metropolitan Areas (MA) throughout
the country. Recipients of MBDA's MBDC financial assistance awards
provide clients with advice and counseling in such areas as preparing
financial packages, business planning and counseling, business information
and management assistance, accounting, marketing, business/industrial
site analysis, production, engineering, construction assistance,
procurement, and identification of potential business opportunities.
The Agency does not have the authority to nor does it make loans
to minority businesses. The MBDC Program makes optimum use of online
and internet-based business development software in order to enhance
its ability to deliver these services. Program funds in this category
are restricted to providing management and technical assistance.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: There are no eligibility restrictions
for this program. Applicants eligible to operate the Centers may
include individuals, nonprofit organizations, for-profit firms,
local and State governments, American Indian Tribes, and educational
institutions.
Beneficiary
Eligibility: Recipient operators are to provide
electronic and one-on-one business assistance to minority-owned
businesses or minority individuals interested in starting, expanding
or maintaining a business. Eligible beneficiaries of this program
have been designated as African American, Native American, Aleut,
Asian Indian, Asian Pacific American, Eskimo, Hasidic Jew, Puerto
Rican, and Spanish-Speaking Americans.
Credentials/Documentation:
Costs will be determined in accordance with OMB Circular No. A-87
for awards to State, local and Federally Recognized Indian Tribal
Governments; OMB Circular No. A-21 for educational institutions;
OMB Circular No. A-122 for other recipients; and 15 CFR, Part
24 contains administrative requirements for States, local and
Federally Recognized Indian Tribal Governments. All other recipients
are subject to the administrative requirements contained in OMB
Circular No. A-110.
Pre-application
Coordination: Pre-award and post award conferences
will be scheduled for most MBDA projects. These conferences will
be announced in the Federal Register. This program is excluded from
coverage under E.O. 12372.
Application
Procedure: The standard application forms
as furnished by the Federal agency and required by 15 CFR Part
24 must be used for this program. This program is subject to the
provisions of 15 CFR Part 14.
Award
Procedure: The Federal Register notice will
advise the applicant where to submit the application. Each application
will be reviewed and evaluated by MBDA. Name checks, verification
of academic credentials and post-award audits may be required
from applicants.
Deadlines:
Deadlines for formal competitive awards are outlined in the Federal
Register.
Range
of Approval/Disapproval Time: From 4 to 6
months. Unsuccessful applicants shall be notified in writing within
10 days of notification to the successful applicant.
Appeals:
All decisions are final. There is no administrative appeal process.
Renewals:
MBDC awards are made for a period of three years with funding
provided on an annual basis at the discretion of MBDA and the
Department of Commerce. Performance evaluations will be conducted,
and funding levels will be established for each of the three budget
periods. The MBDC will receive continued funding after the initial
competitive year at the discretion of MBDA based upon the availability
of funds, the MBDC's performance, and agency priorities.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: This program has
no statutory formula. In most program areas, MBDA has established
minimum requirements for matching or cost sharing by the recipient.
New awards are generally required to provide a minimum 15 percent
cost sharing through in-kind contributions and cash, including client
service fees. MBDA reserves the right to decide on a case-by-case
basis whether a nonfederal contribution is required in other program
areas so as to successfully implement the program.
Length
and Time Phasing of Assistance: For 1 to 3
years.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Financial (quarterly and annually); narrative (semi annually and
annually); statistical reports on each client are required.
Audits:
In accordance with the provisions of OMB Circular No. A-133 (June
30, l997), Audits of States, Local Governments, and Non-Profit
Organizations shall be subject to the audit requirements contained
in the Single Audit Act Amendments of l996 (31 U.S.C. 7501-7507).
Commercial organizations shall be subject to the audit requirements
as stipulated in the award document. In accordance with the provisions
of OMB Circular No. A-133, (Revised, June 24, 1997), "Audits of
States, Local Governments, and Non-Profit Organizations," nonfederal
entities that expend financial assistance of $300,000 or more
in Federal Awards will have a single or a program-specific audit
conducted for that year. Nonfederal entities that expend less
than $300,000 a year in Federal awards are exempt from Federal
audit requirements for the year, except as noted in Circular No.
A-133.
Records:
Documents, papers, and financial records relating to the MBDC
are required to remain available to the Federal Government for
3 years from the date of submission of the final financial status
report. All financial and programmatic records, supporting documents,
statistical reports, and other records of grantees or subgrantees
are required to be maintained by the terms of the agreement. The
grantee must retain records for 3 years after completion of the
project or submission of the final financial report, whichever
is later, and be readily available for inspection and audit.
FINANCIAL
INFORMATION:
Account
Identification: 13-0201-0-1-376.
Obligations:
(Cooperative Agreements) FY 02 $7,129,370; FY 03 est $7,129,370;
and FY 04 est $10,129,370.
Range
and Average of Financial Assistance: $155,000 to $385,750.
In fiscal year 2002, MBDA funded business development centers in
approximately 27 locations that provided management and technical
assistance to minority business enterprise clients. 6,392 clients
were actual operating business enterprise clients who received assistance
in fiscal year 2002. Clients were assisted to obtain $328,525,272
in financial packages from financial institutions and $376,980,210
in procurement sources.
REGULATIONS,
GUIDELINES, AND LITERATURE:
There are no applicable regulations in the Code of Federal Regulations
(CFR).
INFORMATION
CONTACTS:
Regional
or Local Office: Contact the nearest Minority
Business Development Agency Regional Office listed in Appendix IV
of the Catalog.
Headquarters
Office: Barbara Curry, Room 5071, Minority
Business Development Agency, Department of Commerce, 14th and
Constitution Avenue, NW., Washington, DC 20230. Telephone: (202)
482-1940. Use the same number for FTS.
Web
Site Address: http://www.mbda.gov
EXAMPLES
OF FUNDED PROJECTS:
In FY 2001, a local organization won a $400,375 award to operate
the Houston, Texas MBDC to provide one-to- one management and technical
assistance to eligible minority clients to develop business plans
and promote the development and operation of businesses.
CRITERIA
FOR SELECTING PROPOSALS:
Competitive awards for the MBDC program are made based on a panel
evaluation of the applicant's demonstrated ability to provide business
assistance as described in the application. This evaluation includes
other factors such as capability and experience of staff assigned
to the project, techniques, methodology, resources and costs.
