FEDERAL AGENCY:
SMALL BUSINESS ADMINISTRATION
AUTHORIZATION:
Small Business Act of 1953, as amended, Section 7(j),
Public Law 85-536, as amended.
The purpose of the program is to provide Business
Development Assistance for Socially and Economically Disadvantaged Businesses.
SBA performs this mission by entering into grants, cooperative agreements and
contracts with qualified service providers who have the capability to provide
business development assistance to eligible businesses and individuals under
Sections 7(i), 7(j) and 8(a) of the Small Business Act.
TYPES OF ASSISTANCE:
Project Grants.
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USES AND USE RESTRICTIONS:
Financial assistance under this Section may be given for projects that respond
to requirements as outlined in each respective program solicitation
announcement, or for an unsolicited proposal that could provide valuable
business development assistance for 8(a) and other socially and economically
disadvantaged small businesses and individuals. Types of business development
assistance may include: Accounting and marketing services, proposal/bid
preparation workshops, feasibility studies, marketing/presentation analyses
and advertising expertise, loan packaging, industry specific technical
assistance and other specialized management training and technical services.
The program funds can also be used to establish and strengthen business
service agencies, including trade associations and cooperatives. The 7(j)
program funds are not available to finance or purchase a business nor are they
available to use as expansion capital for an existing business.
ELIGIBILITY REQUIREMENTS:
Applicant Eligibility: Educational institutions,
public or private organizations and businesses, individuals, State and local
governments, Indian tribes and lending and financial institutions and sureties
that have the capability to provide the required business development
assistance.
Beneficiary Eligibility: 8(a) program certified
firms, small disadvantaged businesses, businesses operating in areas of
low-income or high-unemployment, and firms owned by low-income individuals.
Credentials/Documentation: As specified in the
individual "Request for Application Proposals." Costs will be
determined in accordance with OMB Circular No. A-87 for State and local
governments and OMB circular No. A-21 for educational institutions.
APPLICATION AND AWARD PROCESS:
Pre-application Coordination: This program is
excluded from coverage under E.O. 12372.
Application Procedure: Application proposal
forwarded to District Office Director for appropriate geographic area. (See
Appendix IV under Small Business Administration for a listing of field
Offices.) The standard application forms as furnished by the Federal agency
and required by OMB Circular No. A-102 must be used for this program by State
and local governments. This program is subject to the provisions of OMB
Circular No. A-110.
Award Procedure: Decisions on acceptance are made
by the Office of Procurement and Grants Management based upon recommendations
of the Assistant Administrator for Management and Technical Assistance, Office
of Business Development. The Grants Management Officer notifies successful
applicants by Notice of Award.
Deadlines: As announced within individual
"Request for Application Proposals."
Range of Approval/Disapproval Time: Variable.
Appeals: Not applicable.
Renewals: Contact the Federal agency.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: None.
Length and Time Phasing of Assistance: Awards are
made for a maximum of 1 year with options as stated in the individual
announcements. Disbursements are made within a few days of receipt of all
required documents along with the request for disbursement. Disbursements are
made in partial payments based on work successfully performed.
POST ASSISTANCE REQUIREMENTS:
Reports: Program and fiscal reports, as described in
each award. A final report is also due within 30 days after completion of
agreement.
Audits: Pre-award accounting system survey. Final
audit by a certified or licensed public accountant. Other audits are required
by SBA. 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 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 that year, except as noted in Circular No. A-133.
Records: Appropriate records as needed for above
requirements.
FINANCIAL INFORMATION:
Account Identification: 73-0100-0-1-376.
Obligations: (Grants) FY 01 $3,599,955; FY 02 est
$3,600,000; and FY 03 est $10,000,000.
Range and Average of Financial Assistance: Amount
subject to negotiation commensurate with management and technical assistance
to be provided.
PROGRAM ACCOMPLISHMENTS:
In fiscal year 2001, 14 cooperative agreements and 3 contracts were awarded
thereby providing management and technical assistance to approximately 3,000
7(j) eligible clients.
REGULATIONS, GUIDELINES, AND LITERATURE:
Fact sheet upon request.
INFORMATION CONTACTS:
Regional or Local Office: SBA District Offices
listed in Appendix IV of the Catalog.
Headquarters Office: Assistant Administrator for
Management and Technical Assistance, Office of Business Development, 409 3rd
Street, SW., Washington, DC 20416. Telephone: (202) 205-7343.
Web Site Address: http://www.sba.gov.
EXAMPLES OF FUNDED PROJECTS:
Not applicable.
CRITERIA FOR SELECTING PROPOSALS:
As described in each announcement.
