FEDERAL AGENCY:

MINORITY BUSINESS DEVELOPMENT AGENCY, DEPARTMENT OF COMMERCE

AUTHORIZATION:

Executive Order 11625, October 13, 1971; Department of Commerce and Related Agencies Appropriations Act, Public Law 105-277.

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.