The Minority Business Development Agency: An Overview of Its History and Programs

Changes from November 22, 2021 to November 30, 2021

This page shows textual changes in the document between the two versions indicated in the dates above. Textual matter removed in the later version is indicated with ~~red strikethrough~~ and textual matter added in the later version is indicated with blue.

The Minority Business Development Agency:
November November 2230, 2021 , 2021
An Overview of Its History and Programs
Julie M. Lawhorn
The Department of Commerce’s Minority Business Development Agency (MBDA) is The Department of Commerce’s Minority Business Development Agency (MBDA) is
the lead Analyst in Economic Analyst in Economic
~~the lead~~ federal agency dedicated to assisting minority business enterprises (MBEs) in federal agency dedicated to assisting minority business enterprises (MBEs) in
overcoming social Development Policy Development Policy
~~overcoming social~~ and economic disadvantages that have limited their participation in and economic disadvantages that have limited their participation in

the nation’s free enterprise the nation’s free enterprise system. The MBDA’s mission is to support the growth and system. The MBDA’s mission is to support the growth and

global competitiveness of the minority business community. Through a network of local global competitiveness of the minority business community. Through a network of local
business development centers and business development centers and other initiatives, the MBDAother initiatives, the MBDA carries out this mission by providing technical and carries out this mission by providing technical and
business assistance, support, and resources, as business assistance, support, and resources, as ~~wel~~ well as advocacy and research on behalf of MBEs. as advocacy and research on behalf of MBEs.
The agency was The agency was ~~original y~~originally established as the Office of Minority Business Enterprise (OMBE) by Executive Order established as the Office of Minority Business Enterprise (OMBE) by Executive Order
11458 signed by President Richard Nixon in 1969. In 1979, the Carter Administration reorganized and renamed 11458 signed by President Richard Nixon in 1969. In 1979, the Carter Administration reorganized and renamed
the OMBE as the the OMBE as the Minority Business Development Agency (MBDA). Successive Administrations have changed Minority Business Development Agency (MBDA). Successive Administrations have changed
the agency’s focus and reorganized the delivery of its assistance and services. The agency was provided statutory the agency’s focus and reorganized the delivery of its assistance and services. The agency was provided statutory
authorization by the Minority Business Development Act of 2021 (Division K—Infrastructure Investment and authorization by the Minority Business Development Act of 2021 (Division K—Infrastructure Investment and
Jobs Act, IIJA, P.L. 117-58),Jobs Act, IIJA, P.L. 117-58), enacted on November 15, 2021.enacted on November 15, 2021.
 The Carter Administration renamed the agency and refocused its efforts on helping businesses of  The Carter Administration renamed the agency and refocused its efforts on helping businesses of
~~al sizes~~ all sizes develop into medium and large-scale businesses, particularly in growth industries. develop into medium and large-scale businesses, particularly in growth industries.
 In 1981, the Reagan Administration established the Minority Business Development Center  In 1981, the Reagan Administration established the Minority Business Development Center
program, program, which became the MBDA’s primary method for delivering technical and management which became the MBDA’s primary method for delivering technical and management
services to minority businesses.services to minority businesses.
 The George H.W. Bush Administration proposed eliminating the agency and transferring its  The George H.W. Bush Administration proposed eliminating the agency and transferring its
mission to the mission to the ~~Smal~~ Small Business Administration (SBA), but ultimately continued the agency as an Business Administration (SBA), but ultimately continued the agency as an
entity within the Department of Commerce.entity within the Department of Commerce.
 The Clinton Administration supported substantial increases in the agency’s budget to fund the  The Clinton Administration supported substantial increases in the agency’s budget to fund the
establishment of Rural Business Development Centers and support the activities of the Minority establishment of Rural Business Development Centers and support the activities of the Minority
Business Development Centers and Minority Business Opportunity Committees. Business Development Centers and Minority Business Opportunity Committees.
 The George W. Bush Administration continued efforts to coordinate the MBDA’s programs with  The George W. Bush Administration continued efforts to coordinate the MBDA’s programs with
the the SBA’s programs, pledged to focus MBDA’s resources on minority firms with at least SBA’s programs, pledged to focus MBDA’s resources on minority firms with at least
$500,000 or more in annual revenues, and to increase their presence in the global economy. The $500,000 or more in annual revenues, and to increase their presence in the global economy. The
Obama Administration placed increased emphasis on quantifying the impact of MBDA activities, Obama Administration placed increased emphasis on quantifying the impact of MBDA activities,
increasing the efficient delivery of its services to minority business communities, and increasing increasing the efficient delivery of its services to minority business communities, and increasing
coordination with other federal agencies. coordination with other federal agencies.
 The Trump Administration’s first budget request proposed to eliminate the agency, and later  The Trump Administration’s first budget request proposed to eliminate the agency, and later
budget ~~budget~~ requests proposed reductions to the agency’s budget by approximately 75%.requests proposed reductions to the agency’s budget by approximately 75%.
 The Biden Administration’s FY2022 Budget Request included $70  The Biden Administration’s FY2022 Budget Request included $70 ~~mil ion~~ million for the MBDA, an for the MBDA, an
amount that amount that would be $22 would be $22 ~~mil ion~~ million above the FY2021 enacted level, and a new $1 above the FY2021 enacted level, and a new $1 ~~bil ion~~ billion grant grant
program to assist MBEs access private capital. program to assist MBEs access private capital.
 The Minority Business Development Act of 2021 (P.L. 117-58)  The Minority Business Development Act of 2021 (P.L. 117-58) statutorily authorized the agency, statutorily authorized the agency,
codified codified select existing programs, and added new programs and roles. select existing programs, and added new programs and roles.
MBDA’s role and its services have shifted over time to address new and emerging MBDA’s role and its services have shifted over time to address new and emerging ~~chal enges~~challenges and opportunities. and opportunities.
Today, the agency’s activities are designed to expand access to capital, markets, and contracts through public and Today, the agency’s activities are designed to expand access to capital, markets, and contracts through public and
~~private~~p rivate sector programs, policy, and research. Technical assistance and other services are provided to MBEs sector programs, policy, and research. Technical assistance and other services are provided to MBEs
through specialty projects and a network of business centers. The MBDA also coordinates with other federal through specialty projects and a network of business centers. The MBDA also coordinates with other federal
agencies, nongovernmental organizations, agencies, nongovernmental organizations, ~~and~~ a nd private firms to expand capital access and contracting and export private firms to expand capital access and contracting and export
opportunities for MBEs. Current issues of congressional opportunities for MBEs. Current issues of congressional interest include the agency’s implementation of new interest include the agency’s implementation of new
~~Congressional Research Service~~

~~The Minority Business Development Agency: An Overview of Its History and Programs~~

programs to reach MBEs, individuals, and communities; the agency’s funding; the integration of existing programs to reach MBEs, individuals, and communities; the agency’s funding; the integration of existing
activities; and the nomination and confirmation of the person who activities; and the nomination and confirmation of the person who ~~wil~~ will lead the agency. Pending appropriations lead the agency. Pending appropriations
legislation, MBDAlegislation, MBDA may seek to hire additional staff or otherwise increase its capacity to remay seek to hire additional staff or otherwise increase its capacity to re -establish regional -establish regional
offices, administer existing and new programs, and activate additional roles, such as coordination among federal offices, administer existing and new programs, and activate additional roles, such as coordination among federal
agencies and new areas of technical assistance and research activities. agencies and new areas of technical assistance and research activities.
Congressional Research Service Congressional Research Service

The Minority Business Development Agency: An Overview of Its History and Programs

Congressional Research Service Congressional Research Service

The Minority Business Development Agency: An Overview of Its History and Programs

Introduction
The Department of Commerce’s Minority Business Development Agency (MBDA) is the lead The Department of Commerce’s Minority Business Development Agency (MBDA) is the lead
federal agency dedicated to supporting growth and global competitiveness of the minority federal agency dedicated to supporting growth and global competitiveness of the minority
business community.1 Numerous congressional hearings, undergirded by historical and current business community.1 Numerous congressional hearings, undergirded by historical and current
academic research, have tried to document the extent to which members of minority groups academic research, have tried to document the extent to which members of minority groups
confront disparities and disadvantages in creating new businesses, expanding markets, and confront disparities and disadvantages in creating new businesses, expanding markets, and
finding opportunities for their business enterprises.2 Barriers include difficulty in accessing finding opportunities for their business enterprises.2 Barriers include difficulty in accessing
capital, a lack of capacity or expertise, and exclusion from business networks. Given these capital, a lack of capacity or expertise, and exclusion from business networks. Given these
chal enges, Congress and many successive presidential administrations since the Nixon chal enges, Congress and many successive presidential administrations since the Nixon
Administration have supported national policies intended to address these disparities through the Administration have supported national policies intended to address these disparities through the
MBDA. MBDA.
The MBDA’s primary mission is to assist minority businesses in achieving entrepreneurial The MBDA’s primary mission is to assist minority businesses in achieving entrepreneurial
participation and parity in the nation’s free enterprise system and to overcome social and participation and parity in the nation’s free enterprise system and to overcome social and
economic disadvantages that have limited their participation. To these ends, the MBDA is charged economic disadvantages that have limited their participation. To these ends, the MBDA is charged
with formulating and coordinating federal policies and programs to support minority business with formulating and coordinating federal policies and programs to support minority business
enterprises (MBEs) by providing technical and managerial expertise and resources through a enterprises (MBEs) by providing technical and managerial expertise and resources through a
network of local business development centers. This report includes network of local business development centers. This report includes
 a discussion of the agency’s origins and authority;  a discussion of the agency’s origins and authority;
 a summary of the agency’s funding history, including Administration requests  a summary of the agency’s funding history, including Administration requests
and final appropriations; and final appropriations;
 a review of the agency’s recent programs, initiatives, performance, and  a review of the agency’s recent programs, initiatives, performance, and
accomplishments; and accomplishments; and
 a review of current issues and considerations.  a review of current issues and considerations.
For over 50 years, Congress approved legislation to fund the MBDA without providing the For over 50 years, Congress approved legislation to fund the MBDA without providing the
agency statutory authorization. For example, in FY2021, the MBDA received $48 mil ion in agency statutory authorization. For example, in FY2021, the MBDA received $48 mil ion in
annual appropriations and an additional $25 mil ion in supplemental appropriations to assist annual appropriations and an additional $25 mil ion in supplemental appropriations to assist
MBEs adversely affected by the Coronavirus Disease 2019 (COVID-19) pandemic.3 The MBEs adversely affected by the Coronavirus Disease 2019 (COVID-19) pandemic.3 The
Minority Business Development Act of 2021 (Division K—Infrastructure Investment and Jobs Minority Business Development Act of 2021 (Division K—Infrastructure Investment and Jobs
Act, P.L. 117-58) statutorily authorized the agency, codified selected existing programs, and Act, P.L. 117-58) statutorily authorized the agency, codified selected existing programs, and
added new programs and roles.4 added new programs and roles.4

1 15 C.F.R. §1400.2 “Determination of Group Eligibility for MBDA Assistance, Definitions” defines Minority 1 15 C.F.R. §1400.2 “Determination of Group Eligibility for MBDA Assistance, Definitions” defines Minority
Business Enterprise as a business that is owned or controlled by one or more socially or economically disadvantaged Business Enterprise as a business that is owned or controlled by one or more socially or economically disadvantaged
persons. Socially disadvantaged persons means those persons who have been subjected to cultural, racial, or ethnic persons. Socially disadvantaged persons means those persons who have been subjected to cultural, racial, or ethnic
prejudice because of their identity as members of a group without regard to their individual qualities. Economically prejudice because of their identity as members of a group without regard to their individual qualities. Economically
disadvantaged persons means those persons whose ability to compete in the free enterprise system has been impaired disadvantaged persons means those persons whose ability to compete in the free enterprise system has been impaired
due to diminished capital and credit opportunities because of their identity as members of a group without regard to due to diminished capital and credit opportunities because of their identity as members of a group without regard to
their individual qualities, as compared to others in the same line of business and competitive market area. Person means their individual qualities, as compared to others in the same line of business and competitive market area. Person means
a citizen of the United States or an alien lawfully admitted for permanent residence. a citizen of the United States or an alien lawfully admitted for permanent residence.
2 U.S. Congress, House Committee on Small Business, Subcommittee on General Oversight and Minority Enterprise, 2 U.S. Congress, House Committee on Small Business, Subcommittee on General Oversight and Minority Enterprise,
Establishm ent of a Minority Business Developm ent Adm inistration in the Departm ent of Com m erce, 96th Congress, 2nd , 96th Congress, 2nd
sess., June 9, 1980, and June 16, 1980 (Washington, DC: GPO, 1980); MBDA, “ Demographic T rends Publications,” sess., June 9, 1980, and June 16, 1980 (Washington, DC: GPO, 1980); MBDA, “ Demographic T rends Publications,”
https://www.mbda.gov/page/demographic-trends-publications; and Robert W. Fairlie and Alicia M. Robb, https://www.mbda.gov/page/demographic-trends-publications; and Robert W. Fairlie and Alicia M. Robb, Race and
Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States (Cambridge, MA: T he MIT (Cambridge, MA: T he MIT
Press, 2010). Press, 2010).
3 P.L. 116-260. The MBDA also received $10 million in supplemental appropriations in FY2020. See P.L. 116-136. 3 P.L. 116-260. The MBDA also received $10 million in supplemental appropriations in FY2020. See P.L. 116-136.
4 P.L. 117-58, 135 Stat. 429, November 15, 2021. 4 P.L. 117-58, 135 Stat. 429, November 15, 2021.
Congressional Research Service Congressional Research Service

1 1

The Minority Business Development Agency: An Overview of Its History and Programs

MBDA Origins and Authority
The MBDA was original y established as the Office of Minority Business Enterprise (OMBE) by The MBDA was original y established as the Office of Minority Business Enterprise (OMBE) by
President Richard Nixon with the signing of Executive Order (E.O.) 11458 on Marc h 5, 1969.5 President Richard Nixon with the signing of Executive Order (E.O.) 11458 on Marc h 5, 1969.5
During the 1968 presidential campaign, then-Republican candidate Nixon embraced the idea of During the 1968 presidential campaign, then-Republican candidate Nixon embraced the idea of
“Black Capitalism,” which promoted increasing minority participation as owners and managers in “Black Capitalism,” which promoted increasing minority participation as owners and managers in
the U.S. economy as a means of not only promoting economic advancement and parity, but the U.S. economy as a means of not only promoting economic advancement and parity, but
political power as wel .6 Eager to demonstrate his commitment to these goals and pressed by civil political power as wel .6 Eager to demonstrate his commitment to these goals and pressed by civil
rights advocates to fulfil his campaign promise, President Nixon chose to bypass Congress and rights advocates to fulfil his campaign promise, President Nixon chose to bypass Congress and
the legislative process, opting to establish a Cabinet-level committee on minority enterprise.7 the legislative process, opting to establish a Cabinet-level committee on minority enterprise.7
Within the first 100 days of his administration, President Nixon had established the OMBE as a Within the first 100 days of his administration, President Nixon had established the OMBE as a
policy prescription for issues of racial inequality and social injustice. policy prescription for issues of racial inequality and social injustice.
The OMBE’s mission, as outlined in E.O. 11458, was threefold: The OMBE’s mission, as outlined in E.O. 11458, was threefold:
 encourage the coordination of the plans, operations, and programs of the federal  encourage the coordination of the plans, operations, and programs of the federal
government in ways that strengthen participation of minority businesses in the government in ways that strengthen participation of minority businesses in the
activities of federal agencies; activities of federal agencies;
 promote the deployment of the resources of state and local governments,  promote the deployment of the resources of state and local governments,
businesses, trade associations, and other nongovernmental entities in support of businesses, trade associations, and other nongovernmental entities in support of
minority businesses; and minority businesses; and
 establish a clearinghouse to identify and disseminate information to support the  establish a clearinghouse to identify and disseminate information to support the
successful operation of MBEs. successful operation of MBEs.
E.O. 11458 also established an Advisory Council on Minority Enterprise (ACME), charging it E.O. 11458 also established an Advisory Council on Minority Enterprise (ACME), charging it
with advising and supporting the Secretary of Commerce on matters affecting the success of with advising and supporting the Secretary of Commerce on matters affecting the success of
minority businesses, including recommendations for further actions. During its first two years, the minority businesses, including recommendations for further actions. During its first two years, the
ACME played a significant role in shaping the OMBE’s agenda. The ACME also helped develop ACME played a significant role in shaping the OMBE’s agenda. The ACME also helped develop
efforts to increase minority participation in franchises.8 efforts to increase minority participation in franchises.8
Stymied by organizational difficulties, including a lack of cooperation from other Cabinet-level Stymied by organizational difficulties, including a lack of cooperation from other Cabinet-level
departments, an inexperienced staff, and the absence of a dedicated budget, the OMBE struggled departments, an inexperienced staff, and the absence of a dedicated budget, the OMBE struggled

5 Executive Order 11458, “Prescribing Arrangements for Developing and Coordinating a National Program for 5 Executive Order 11458, “Prescribing Arrangements for Developing and Coordinating a National Program for
Minority Business Enterprise,” 34Minority Business Enterprise,” 34 Federal Register 4937, March 5, 1969. 4937, March 5, 1969.
6 Dean Kotlowski, “Black Power-Nixon Style: T he Nixon Administration and Minority Business Enterprise,” 6 Dean Kotlowski, “Black Power-Nixon Style: T he Nixon Administration and Minority Business Enterprise,” The
Business History Review, vol. 72, no. 3 (Autumn 1998), p. 411. , vol. 72, no. 3 (Autumn 1998), p. 411.
7 Members of the committee included Secretary of Commerce Maurice Stans, Secretary of Health, Education, and 7 Members of the committee included Secretary of Commerce Maurice Stans, Secretary of Health, Education, and
Welfare Robert H. Finch, Secretary of Housing and Urban Development George Romney , Secretary of Agriculture Welfare Robert H. Finch, Secretary of Housing and Urban Development George Romney , Secretary of Agriculture
Clifford Hardin, and Secretary of T ransportation John Volpe. See Dean Kotlowski, “ Black Power-Nixon Style: T he Clifford Hardin, and Secretary of T ransportation John Volpe. See Dean Kotlowski, “ Black Power-Nixon Style: T he
Nixon Administration and Minority Business Enterprise,” Nixon Administration and Minority Business Enterprise,” The Business History Review, vol. 72, no. 3 (Autumn 1998), , vol. 72, no. 3 (Autumn 1998),
p. 420. p. 420.
8 In 1969, eager to demonstrate results, the OMBE co-sponsored with the Small Business Administration (SBA) what 8 In 1969, eager to demonstrate results, the OMBE co-sponsored with the Small Business Administration (SBA) what
was dubbed the 25 x 25 x 2 program, which was one of two federal programs focused on increasing minority was dubbed the 25 x 25 x 2 program, which was one of two federal programs focused on increasing minority
participation in the franchise industry. T he plan involved the OMBE, during eight separate rounds, recruiting 25 participation in the franchise industry. T he plan involved the OMBE, during eight separate rounds, recruiting 25
national franchisors who each would commit to awarding 25 franchises to minority owners each year for a two -year national franchisors who each would commit to awarding 25 franchises to minority owners each year for a two -year
period. See U.S. Congress, Senate Select Committee on Small Business, period. See U.S. Congress, Senate Select Committee on Small Business, The Econom ic Effects of Franchising, ,
committee print, prepared for the Small Business Administration by Urban B. Ozanne, D.B.A. and Shelby D. Hunt. Ph. committee print, prepared for the Small Business Administration by Urban B. Ozanne, D.B.A. and Shelby D. Hunt. Ph.
D, Graduate School of Business, the University of Wisconsin, 92 nd Cong., 1st sess., September 8, 1971, committee print D, Graduate School of Business, the University of Wisconsin, 92 nd Cong., 1st sess., September 8, 1971, committee print
(Washington, DC: GPO, 1971), pp. 51-55 and pp. 187-198. T wo years later, the franchising initiatives and SBA’s (Washington, DC: GPO, 1971), pp. 51-55 and pp. 187-198. T wo years later, the franchising initiatives and SBA’s
commitment to minority business development were criticized in a 1971 committee print released by the Senate Select commitment to minority business development were criticized in a 1971 committee print released by the Senate Select
Committee on Small Business. In addition, the OMBE initiated efforts to increase capital assets in minority -controlled Committee on Small Business. In addition, the OMBE initiated efforts to increase capital assets in minority -controlled
banking institutions to be made available to minority businesses. banking institutions to be made available to minority businesses.
Congressional Research Service Congressional Research Service

2 2

The Minority Business Development Agency: An Overview of Its History and Programs

during its first years of operation. It was also said to be handicapped in pursuing its mission by during its first years of operation. It was also said to be handicapped in pursuing its mission by
the Commerce Secretary’s decision “not to become involved in individual cases or with programs the Commerce Secretary’s decision “not to become involved in individual cases or with programs
at the operational level and not to seek to encroach upon existing programs functions of other at the operational level and not to seek to encroach upon existing programs functions of other
federal agencies.” federal agencies.”
E.O. 11625—Expanding Agency Role
To address concerns raised during the OMBE’s initial two years of operations, President Nixon, To address concerns raised during the OMBE’s initial two years of operations, President Nixon,
on October 13, 1971, signed E.O. 11625, Prescribing Additional Arrangements for Developing on October 13, 1971, signed E.O. 11625, Prescribing Additional Arrangements for Developing
and Coordinating a National Program for Minority Business Enterprise.9 The new E.O. was and Coordinating a National Program for Minority Business Enterprise.9 The new E.O. was
intended to clarify and strengthen OMBE’s role. In remarks made at the time the new E.O. was intended to clarify and strengthen OMBE’s role. In remarks made at the time the new E.O. was
issued, President Nixon noted the following: issued, President Nixon noted the following:
This order gives the Secretary a clear mandate to establish and carry out Federal policy This order gives the Secretary a clear mandate to establish and carry out Federal policy
concerning minority enterprise and to coordinate the related efforts of all Federal concerning minority enterprise and to coordinate the related efforts of all Federal
departments and agencies. It also directs the departments and agencies to develop departments and agencies. It also directs the departments and agencies to develop
systematic data collection processes concerning their minority enterprise programs and to systematic data collection processes concerning their minority enterprise programs and to
cooperate in expanding the overall Federal effort.10 cooperate in expanding the overall Federal effort.10
In addition to reinforcing the original E.O.’s objectives, the new E.O. cal ed for the OMBE to In addition to reinforcing the original E.O.’s objectives, the new E.O. cal ed for the OMBE to
create a network of minority business centers. These centers would be charged with providing create a network of minority business centers. These centers would be charged with providing
managerial and technical assistance to minority businesses and conducting special projects, managerial and technical assistance to minority businesses and conducting special projects,
including the provision of direct financial assistance to minority businesses. This development including the provision of direct financial assistance to minority businesses. This development
marked an evolution in the agency’s role from an advisory one undertaken principal y through the marked an evolution in the agency’s role from an advisory one undertaken principal y through the
ACME to an active one, supporting the development of minority business enterprises using ACME to an active one, supporting the development of minority business enterprises using
public-private partnerships. public-private partnerships.
Agency Reorganization
During the Carter Administration, Congress considered, but did not pass, enabling legislation During the Carter Administration, Congress considered, but did not pass, enabling legislation
authorizing the agency and its mission.11 In 1979, the Carter Administration reorganized and authorizing the agency and its mission.11 In 1979, the Carter Administration reorganized and
renamed the OMBE as the Minority Business Development Agency (MBDA). The reorganization renamed the OMBE as the Minority Business Development Agency (MBDA). The reorganization
was, in part, a response to reports that characterized the agency’s efforts to support MBEs as was, in part, a response to reports that characterized the agency’s efforts to support MBEs as
fragmented, heavily focused on smal businesses, and favoring the number of firms assisted rather fragmented, heavily focused on smal businesses, and favoring the number of firms assisted rather
than the quality of assistance provided. The Carter Administration’s efforts were intended to than the quality of assistance provided. The Carter Administration’s efforts were intended to
refocus the agency on assisting “minority businesses develop into medium- and large-size firms refocus the agency on assisting “minority businesses develop into medium- and large-size firms
in growth industries that produced jobs, stabilized communities, and improved the overal in growth industries that produced jobs, stabilized communities, and improved the overal
economy.”12 economy.”12

9 Executive Order 11625, “Prescribing Additional Arrangements for Developing and Coor dinating a National Program 9 Executive Order 11625, “Prescribing Additional Arrangements for Developing and Coor dinating a National Program
for Minority Business Enterprise,” 36 for Minority Business Enterprise,” 36 Federal Register 19967-19970, October 13, 1971. 19967-19970, October 13, 1971.
10 U.S. President (Nixon), “Special Message to the Congress Urging Expansion of the Minority Business Enterprise 10 U.S. President (Nixon), “Special Message to the Congress Urging Expansion of the Minority Business Enterprise
Program,” Program,” Public Papers of the Presidents of the United States: Richard Nixon 1971 , vol. 332 (Washington, DC: GPO, , vol. 332 (Washington, DC: GPO,
1972), pp. 1041-1046. 1972), pp. 1041-1046.
11 For a summary of legislative activities related to the establishment of a Minority Business Development 11 For a summary of legislative activities related to the establishment of a Minority Business Development
Administration in the 96th Congress, 2nd sess., see H.Rept. 96-1542, pp. 129-138. Administration in the 96th Congress, 2nd sess., see H.Rept. 96-1542, pp. 129-138.
12 U.S. Congress, House Committee on Small Business, Subcommittee on General Oversight and Minority Enterprise, 12 U.S. Congress, House Committee on Small Business, Subcommittee on General Oversight and Minority Enterprise,
Establishm ent of a Minority Business Developm ent Adm inistration in the Departm ent of Com m erce, 96th Congress, 2nd , 96th Congress, 2nd
sess., June 9, 1980, and June 16, 1980 (Washington, DC: GPO, 1980), pp. 2 -3. sess., June 9, 1980, and June 16, 1980 (Washington, DC: GPO, 1980), pp. 2 -3.
Congressional Research Service Congressional Research Service

3 3

link to page link to page 2827 link to page link to page 3837 link to page link to page 3837 The Minority Business Development Agency: An Overview of Its History and Programs

See “Additional Agency History See “Additional Agency History”” in Appendix A for information about the MBDA’s history since for information about the MBDA’s history since
the Carter Administration. See “Legislativethe Carter Administration. See “Legislative Proposals, 96th Congress-117th Congress” in Proposals, 96th Congress-117th Congress” in
Appendix C forfor a summary of bil s related to the MBDA and its activities. a summary of bil s related to the MBDA and its activities.
Agency Establishment
Congress considered proposals to codify the MBDA for decades (se Congress considered proposals to codify the MBDA for decades (see Appendix C) prior to the ) prior to the
enactment of the Minority Business Development Act of 2021. The MBDA’s powers and duties enactment of the Minority Business Development Act of 2021. The MBDA’s powers and duties
are now to be set in accordance with the statute “and without regard to Executive Order 11625 are now to be set in accordance with the statute “and without regard to Executive Order 11625
(36 Fed. Reg. 19967; relating to prescribing additional arrangements for developing and (36 Fed. Reg. 19967; relating to prescribing additional arrangements for developing and
coordinating a national program for minority business enterprise).”13 coordinating a national program for minority business enterprise).”13
The Minority Business Development Act of 2021 also established within the agency an Office of The Minority Business Development Act of 2021 also established within the agency an Office of
Business Centers, an Office on Minority Business Development Grants, and regional MBDA Business Centers, an Office on Minority Business Development Grants, and regional MBDA
offices.14 The act directs the agency to submit a report to Congress by March 15, 2022, that offices.14 The act directs the agency to submit a report to Congress by March 15, 2022, that
describes: describes:
 the agency’s organizational structure;  the agency’s organizational structure;
 the agency’s organizational position within the Department of Commerce (DOC);  the agency’s organizational position within the Department of Commerce (DOC);
and and
 how the agency wil function in relation to the operations carried out by other  how the agency wil function in relation to the operations carried out by other
DOC components.15 DOC components.15
The MBDA is also required to submit two reports to Congress by November 15, 2022. The first The MBDA is also required to submit two reports to Congress by November 15, 2022. The first
report must include a summary of its efforts to serve MBEs in states without a Business Center, report must include a summary of its efforts to serve MBEs in states without a Business Center,
and recommendations for extending outreach to underserved areas. The second report must and recommendations for extending outreach to underserved areas. The second report must
address the ways that MBEs can address gaps in the supply chain.16 The act directs the MBDA address the ways that MBEs can address gaps in the supply chain.16 The act directs the MBDA
and the DOC Office of Inspector General to submit reports on the MBDA’s grants to nonprofit and the DOC Office of Inspector General to submit reports on the MBDA’s grants to nonprofit
organizations.17 In addition to biennial reports, the act further directs the MBDA to submit reports organizations.17 In addition to biennial reports, the act further directs the MBDA to submit reports
on its entrepreneurship education activities and the study on alternative financing solutions.18 The on its entrepreneurship education activities and the study on alternative financing solutions.18 The
Comptroller General of the United States is required to report to Congress on the agency’s Comptroller General of the United States is required to report to Congress on the agency’s
programs by no later than November 15, 2025.19 programs by no later than November 15, 2025.19
The Minority Business Development Act of 2021 authorized to be appropriated $110 mil ion for The Minority Business Development Act of 2021 authorized to be appropriated $110 mil ion for
the MBDA for each of FY2021 through FY2025. The act directed the MBDA to al ocate the the MBDA for each of FY2021 through FY2025. The act directed the MBDA to al ocate the
majority of annual appropriations, if approved, to the Business Center program and to reserve $20 majority of annual appropriations, if approved, to the Business Center program and to reserve $20
mil ion each fiscal year for the Rural Business Center program.20 As mentioned, the MBDA mil ion each fiscal year for the Rural Business Center program.20 As mentioned, the MBDA
received $73 mil ion in appropriations for FY2021 and is currently operating, as al federal received $73 mil ion in appropriations for FY2021 and is currently operating, as al federal
agencies are, under continuing appropriations for FY2022. agencies are, under continuing appropriations for FY2022.

13 P.L. 117-58, Division K, T itle VII, Sec. 100707. 13 P.L. 117-58, Division K, T itle VII, Sec. 100707.
14 P.L. 117-58, Sec. 100003, Sec. 100001, and Sec. 100401. 14 P.L. 117-58, Sec. 100003, Sec. 100001, and Sec. 100401.
15 P.L. 117-58, Sec. 100003. 15 P.L. 117-58, Sec. 100003.
16 P.L. 117-58, Sec. 100303 and Sec. 100304. 16 P.L. 117-58, Sec. 100303 and Sec. 100304.
17 P.L. 117-58, Sec. 100401. 17 P.L. 117-58, Sec. 100401.
18 P.L. 117-58, Sec. 100705, Sec. 100203, and Sec. 100202. 18 P.L. 117-58, Sec. 100705, Sec. 100203, and Sec. 100202.
19 P.L. 117-58, Sec. 100704. 19 P.L. 117-58, Sec. 100704.
20 P.L. 117-58, Sec. 100708. 20 P.L. 117-58, Sec. 100708.
Congressional Research Service Congressional Research Service

4 4

The Minority Business Development Agency: An Overview of Its History and Programs

New Programs, Activities and Expanded Roles, Partnerships
The Minority Business Development Act of 2021 established new MBDA programs and The Minority Business Development Act of 2021 established new MBDA programs and
activities, including: activities, including:
 Initiatives to promote economic resiliency for minority businesses (Title II),  Initiatives to promote economic resiliency for minority businesses (Title II),
including: including:
 An annual diverse business capital formation forum (Sec. 100201),  An annual diverse business capital formation forum (Sec. 100201),
 A study on alternative financing (Sec. 100202), and  A study on alternative financing (Sec. 100202), and
 Grants to historical y black colleges and universities (HBCUs) and minority- Grants to historical y black colleges and universities (HBCUs) and minority-
serving institutions (MSIs) for entrepreneurship curriculum development and serving institutions (MSIs) for entrepreneurship curriculum development and
new partnerships and activities to increase entrepreneurial education and new partnerships and activities to increase entrepreneurial education and
training (Sec. 100203); training (Sec. 100203);
 Rural Business Centers to be operated by MSIs (Title III);  Rural Business Centers to be operated by MSIs (Title III);
 Grants to nonprofit organizations to support the development, growth, or  Grants to nonprofit organizations to support the development, growth, or
retention of MBEs (Title IV); retention of MBEs (Title IV);
 An MBE Advisory Council (Title V); and  An MBE Advisory Council (Title V); and
 Coordination and convening activities among federal agencies regarding social y  Coordination and convening activities among federal agencies regarding social y
~~and~~or economical y disadvantaged businesses (Title VI). economical y disadvantaged businesses (Title VI).
The act established support for—and in some instances expanded the scope of—existing The act established support for—and in some instances expanded the scope of—existing
programs and activities, including the MBDA Business Center and Specialty Center programs programs and activities, including the MBDA Business Center and Specialty Center programs
and the MBDA’s research, evaluation, outreach, and informational activities.21 For instance, the and the MBDA’s research, evaluation, outreach, and informational activities.21 For instance, the
act directed the Under Secretary to ensure center coverage so that the Business Center Program act directed the Under Secretary to ensure center coverage so that the Business Center Program
offers services in “al regions of the United States.”22 The act also recommended increased offers services in “al regions of the United States.”22 The act also recommended increased
funding for the Business Center program, with the majority of MBDA funding, as appropriated, funding for the Business Center program, with the majority of MBDA funding, as appropriated,
spent on the Business Center program (including the Specialty Centers). The Rural Business spent on the Business Center program (including the Specialty Centers). The Rural Business
Center program—although a new program—may be viewed as an expansion of the existing Center program—although a new program—may be viewed as an expansion of the existing
MBDA Business Center program to serve MBEs in rural areas.23 MBDA Business Center program to serve MBEs in rural areas.23
In terms of research, evaluation, and informational activities, Executive Order 11625 previously In terms of research, evaluation, and informational activities, Executive Order 11625 previously
directed the agency to establish a center for the “development, collection, summarization, and directed the agency to establish a center for the “development, collection, summarization, and
dissemination of information” to promote the establishment and growth of MBEs, among other dissemination of information” to promote the establishment and growth of MBEs, among other
monitoring, reporting, and evaluation roles. The Minority Business Development Act of 2021 monitoring, reporting, and evaluation roles. The Minority Business Development Act of 2021
codified the agency’s research, evaluation, and outreach activities, and directed the agency to codified the agency’s research, evaluation, and outreach activities, and directed the agency to
undertake certain studies and outreach roles.24 For instance, Section 100103 noted that the agency undertake certain studies and outreach roles.24 For instance, Section 100103 noted that the agency
shal conduct research, studies, and surveys, and shal “provide outreach, educational services, shal conduct research, studies, and surveys, and shal “provide outreach, educational services,
and technical assistance in, at a minimum, the five most commonly spoken languages in the and technical assistance in, at a minimum, the five most commonly spoken languages in the

21 P.L. 117-58, Division K, T itle I. 21 P.L. 117-58, Division K, T itle I.
22 P.L. 117-58, Sec. 100111. Additionally, the Under Secretary will develop selection criteria for the MBDA Business 22 P.L. 117-58, Sec. 100111. Additionally, the Under Secretary will develop selection criteria for the MBDA Business
Center program. T he Minority Business Development Act of 2 021 provides three options for consideration for the Center program. T he Minority Business Development Act of 2 021 provides three options for consideration for the
Under Secretary in developing the criteria, including “(i) an area, the population of which is composed of not less than Under Secretary in developing the criteria, including “(i) an area, the population of which is composed of not less than
51 percent socially or economically disadvantaged individuals, as determined in accordance with data collected by the 51 percent socially or economically disadvantaged individuals, as determined in accordance with data collected by the
Bureau of the Census; (ii) a federally recognized area of economic distress; or (iii) a State that is underserved with Bureau of the Census; (ii) a federally recognized area of economic distress; or (iii) a State that is underserved with
respect to the MBDA Business Center Program, as defined by the Under Secretary.” See P.L. 117-58, Sec. 100114. respect to the MBDA Business Center Program, as defined by the Under Secretary.” See P.L. 117-58, Sec. 100114.
23 P.L. 117-58, Division K, T itle III. 23 P.L. 117-58, Division K, T itle III.
24 P.L. 117-58, Sec. 100103. 24 P.L. 117-58, Sec. 100103.
Congressional Research Service Congressional Research Service

5 5

link to page link to page 2827 The Minority Business Development Agency: An Overview of Its History and Programs

United States to ensure that limited English proficient individuals receive cultural y and United States to ensure that limited English proficient individuals receive cultural y and
linguistical y appropriate access to the services and information provided by the Agency.”25 linguistical y appropriate access to the services and information provided by the Agency.”25
The Minority Business Development Act of 2021 also authorizes the MBDA to implement The Minority Business Development Act of 2021 also authorizes the MBDA to implement
services through partnerships with both private and public sector entities, and directed the agency services through partnerships with both private and public sector entities, and directed the agency
to engage with specific partners (e.g., HBCUs, MSIs, community-based organizations, national to engage with specific partners (e.g., HBCUs, MSIs, community-based organizations, national
nonprofit organizations, and community-based organizations) on new and existing programs. For nonprofit organizations, and community-based organizations) on new and existing programs. For
example, the act established new roles and activities to expand entrepreneurial education example, the act established new roles and activities to expand entrepreneurial education
activities specifical y with HBCUs and MSIs, among other partners. The entrepreneurial activities specifical y with HBCUs and MSIs, among other partners. The entrepreneurial
education activities include a grant program to develop and implement entrepreneurship curricula education activities include a grant program to develop and implement entrepreneurship curricula
and other education and training opportunities for social y and other education and training opportunities for social y ~~and~~or economical y disadvantaged economical y disadvantaged
individuals in the fields of business, management, and entrepreneurship.26 individuals in the fields of business, management, and entrepreneurship.26
The Minority Business Development Act of 2021 directs the MBDA to make grants to nonprofit The Minority Business Development Act of 2021 directs the MBDA to make grants to nonprofit
organizations in order to support the growth, development, and retention of MBEs. The act organizations in order to support the growth, development, and retention of MBEs. The act
specified that the MBDA may consider nonprofit organizations located in a federal y recognized specified that the MBDA may consider nonprofit organizations located in a federal y recognized
area of economic distress and may award grants with consideration for a diverse array of grantees area of economic distress and may award grants with consideration for a diverse array of grantees
(e.g., community-based organizations, organizations with annual budgets under $1 mil ion, and (e.g., community-based organizations, organizations with annual budgets under $1 mil ion, and
organizations that serve low-income and rural communities).27 Also, once established, the organizations that serve low-income and rural communities).27 Also, once established, the
Minority Business Enterprises Advisory Council—composed of both public and private sector Minority Business Enterprises Advisory Council—composed of both public and private sector
members—wil advise the MBDA on plans, programs, and activities that relate to social y or members—wil advise the MBDA on plans, programs, and activities that relate to social y or
economical y disadvantaged business concerns.28 economical y disadvantaged business concerns.28
As noted previously, the act expanded the agency’s roles and programs, which may increase As noted previously, the act expanded the agency’s roles and programs, which may increase
awareness of its services and increase access to services by new and previously underserved awareness of its services and increase access to services by new and previously underserved
communities and MBEs.29 For instance, once established, the new Rural Business Centers wil communities and MBEs.29 For instance, once established, the new Rural Business Centers wil
serve lower-density regions that may not have large concentrations of minority populations or serve lower-density regions that may not have large concentrations of minority populations or
MBEs compared to more populous regions or metropolitan areas.30 The re-establishment of MBEs compared to more populous regions or metropolitan areas.30 The re-establishment of
regional MBDA offices may further extend the services of the MBDA through their engagement regional MBDA offices may further extend the services of the MBDA through their engagement
with the local and regional business development partners, lending partners, and federal, state, with the local and regional business development partners, lending partners, and federal, state,
and local procurement offices.31 Additional y, the agency’s authorizing statute involves the Under and local procurement offices.31 Additional y, the agency’s authorizing statute involves the Under
Secretary in partnerships, outreach, and other activities with public sector entities in order to Secretary in partnerships, outreach, and other activities with public sector entities in order to
leverage resources and promote the position of MBEs in local economies.32 leverage resources and promote the position of MBEs in local economies.32
Funding History
During the agency’s first 52 years, the MBDA continued to receive annual appropriations while During the agency’s first 52 years, the MBDA continued to receive annual appropriations while
various Administrations considered reorganizing it, authorizing it, defunding its activities, or various Administrations considered reorganizing it, authorizing it, defunding its activities, or
merging it into the Smal Business Administration (SBA) (se merging it into the Smal Business Administration (SBA) (see Appendix A).

25 Additionally, the bill encouraged the MBDA to use the common languages spoken by the groups served in their 25 Additionally, the bill encouraged the MBDA to use the common languages spoken by the groups served in their
outreach and communication efforts regarding the MBDA Business Centers. See P.L. 117-58, Sec. 100116. outreach and communication efforts regarding the MBDA Business Centers. See P.L. 117-58, Sec. 100116.
26 P.L. 117-58, Sec. 100203. 26 P.L. 117-58, Sec. 100203.
27 P.L. 117-58, Division K, T itle IV. 27 P.L. 117-58, Division K, T itle IV.
28 P.L. 117-58, Division K, T itle V. 28 P.L. 117-58, Division K, T itle V.
29 P.L. 117-58, Division K, T itle I. 29 P.L. 117-58, Division K, T itle I.
30 P.L. 117-58, Division K, T itle III directs the Rural Business Center program to primarily serve clients that are 30 P.L. 117-58, Division K, T itle III directs the Rural Business Center program to primarily serve clients that are
located 50 miles from an MBDA Business Center. located 50 miles from an MBDA Business Center.
31 P.L. 117-58, Sec. 100003. 31 P.L. 117-58, Sec. 100003.
32 P.L. 117-58, Sec. 100102. 32 P.L. 117-58, Sec. 100102.
Congressional Research Service Congressional Research Service

6 6

link to page link to page 1211 link to page link to page 3231

The Minority Business Development Agency: An Overview of Its History and Programs

Figure 1 provides a visual representation of OMBE/MBDA appropriations from FY1970 to provides a visual representation of OMBE/MBDA appropriations from FY1970 to
FYFY2021. Table A-1 provides a history of Administrations’ annual budget requests and enacted provides a history of Administrations’ annual budget requests and enacted
appropriations for the agency since FY1970. appropriations for the agency since FY1970.
Figure 1. OMBE/MBDA Appropriations History: FY1970 to FY2021
(in mil ions of dol ars) (in mil ions of dol ars)

Source: Budget Appendices of the United States. Budget Appendices of the United States.
Notes: Includes supplemental appropriations. Includes supplemental appropriations.
FY2020 and FY2021 Appropriations
The Consolidated Appropriations Act, 2020 (P.L. 116-93) funded MBDA at $42 mil ion. In the The Consolidated Appropriations Act, 2020 (P.L. 116-93) funded MBDA at $42 mil ion. In the
explanatory statement accompanying the FY2020 agency appropriations report, Congress explanatory statement accompanying the FY2020 agency appropriations report, Congress
directed the MBDA to al ocate no less than $18 mil ion to the business center and specialty directed the MBDA to al ocate no less than $18 mil ion to the business center and specialty
project center program and $7 mil ion for the Broad Agency Announcements (BAAs).33 In project center program and $7 mil ion for the Broad Agency Announcements (BAAs).33 In
FY2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) FY2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136)
provided the MBDA an additional $10 mil ion in supplemental funding to assist MBEs with provided the MBDA an additional $10 mil ion in supplemental funding to assist MBEs with
preventing, preparing for, and responding to the COVID-19 pandemic through education, preventing, preparing for, and responding to the COVID-19 pandemic through education,
training, and advising grants to minority business centers and minority chambers of commerce.34 training, and advising grants to minority business centers and minority chambers of commerce.34

33 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on 33 Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on
Appropriations Regarding H.R. 1158, Consolidated Appropriations Act, 2020,” Appropriations Regarding H.R. 1158, Consolidated Appropriations Act, 2020,” Congressional Record, vol. 165, No. , vol. 165, No.
204-Book II (December 17, 2019), p. H10961. 204-Book II (December 17, 2019), p. H10961.
MBDA may use Broad Agency Agreements (BAAs) to solicit responses to specific challenges or opportunities. MBDA may use Broad Agency Agreements (BAAs) to solicit responses to specific challenges or opportunities.
According to MBDA, a BAA “ is a competitive mechanism to encourage new programs, education, outreach, According to MBDA, a BAA “ is a competitive mechanism to encourage new programs, education, outreach,
innovative projects or sponsorships that are not addressed through the MBDA business center program. ” See MBDA, innovative projects or sponsorships that are not addressed through the MBDA business center program. ” See MBDA,
“Frequently Asked Questions—2018 MBDA Broad Agency Announcement,” https://www.mbda.gov/sites/default/files/“Frequently Asked Questions—2018 MBDA Broad Agency Announcement,” https://www.mbda.gov/sites/default/files/
2018baafrequentlyaskedquestions070918.pdf, and Department of Commerce, 2018baafrequentlyaskedquestions070918.pdf, and Department of Commerce, FY2021 MBDA Congressional Budget
Justification, p. 17, https://www.commerce.gov/sites/default/files/2020-02/, p. 17, https://www.commerce.gov/sites/default/files/2020-02/
fy2021_mbda_congressional_budget_justification.pdf. fy2021_mbda_congressional_budget_justification.pdf.
34 P.L. 116-136. Recipients of MBDA’s CARES Act funding are listed online at https://www.mbda.gov/mbda-and-34 P.L. 116-136. Recipients of MBDA’s CARES Act funding are listed online at https://www.mbda.gov/mbda-and-
cares-act-funding. According to the MBDA’s cares-act-funding. According to the MBDA’s FY2020 Annual Perform ance Sum mary, CARES Act grants supported , CARES Act grants supported
“education, training, and advising small and minority-owned businesses in their recovery from the effects of the “education, training, and advising small and minority-owned businesses in their recovery from the effects of the
Congressional Research Service Congressional Research Service

7 7

The Minority Business Development Agency: An Overview of Its History and Programs

The Consolidated Appropriations Act, 2021 (P.L. 116-260) funded the MBDA at $48 mil ion. In The Consolidated Appropriations Act, 2021 (P.L. 116-260) funded the MBDA at $48 mil ion. In
the explanatory statement accompanying the act, Congress directed the agency to al ocate no less the explanatory statement accompanying the act, Congress directed the agency to al ocate no less
than $18 mil ion to the business center and specialty project center program and $9 mil ion for the than $18 mil ion to the business center and specialty project center program and $9 mil ion for the
BAA program, with an emphasis on “innovation and entrepreneurship, formerly incarcerated BAA program, with an emphasis on “innovation and entrepreneurship, formerly incarcerated
persons, global women’s empowerment, virtual business development, and access to finance.” persons, global women’s empowerment, virtual business development, and access to finance.”
Congress further directed the agency to al ocate $1.5 mil ion of the BAA funding to Historical y Congress further directed the agency to al ocate $1.5 mil ion of the BAA funding to Historical y
Black Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs) Black Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs)
Entrepreneurship Pilot and to “include Tribal Colleges and Universities and Alaska Native and Entrepreneurship Pilot and to “include Tribal Colleges and Universities and Alaska Native and
Native Hawai an Serving Institutions.”35 The FY2021 appropriations bil also provided $25 Native Hawai an Serving Institutions.”35 The FY2021 appropriations bil also provided $25
mil ion for business centers to assist MBEs with preventing, preparing for, and responding to the mil ion for business centers to assist MBEs with preventing, preparing for, and responding to the
COVID-19 pandemic, including “identifying and accessing local, state and Federal government COVID-19 pandemic, including “identifying and accessing local, state and Federal government
assistance related to such virus.”36 assistance related to such virus.”36
Recent Administration’s Budget Requests and Related Activities
The Biden Administration has proposed increased annual appropriations, a dedicated Assistant The Biden Administration has proposed increased annual appropriations, a dedicated Assistant
Secretary, and expanded programs and activities for the agency. The Biden Administration’s Secretary, and expanded programs and activities for the agency. The Biden Administration’s
FY2022 Budget Request included $70 mil ion for the MBDA, an amount that would be $22 FY2022 Budget Request included $70 mil ion for the MBDA, an amount that would be $22
mil ion, or almost 46%, above the FY2021 enacted level for annual appropriations.37 The Biden mil ion, or almost 46%, above the FY2021 enacted level for annual appropriations.37 The Biden
Administration also recommended, as part of its American Jobs Plan, a new $1 bil ion grant Administration also recommended, as part of its American Jobs Plan, a new $1 bil ion grant
program to assist minority-owned manufacturers access private capital as one of several, program to assist minority-owned manufacturers access private capital as one of several,
proposed initiatives to address the racial wealth gap.38 Additional y, on May 28, 2021, President proposed initiatives to address the racial wealth gap.38 Additional y, on May 28, 2021, President
Biden signed an executive order establishing the White House Initiative on Initiative on Asian Biden signed an executive order establishing the White House Initiative on Initiative on Asian
Americans, Native Hawai ans, and Pacific Islanders (AA and NHPI), which is designed, in part, Americans, Native Hawai ans, and Pacific Islanders (AA and NHPI), which is designed, in part,
to ensure “that AA and NHPI communities are empowered and equitably served by Federal to ensure “that AA and NHPI communities are empowered and equitably served by Federal
funding, grants, and contracts.”39 funding, grants, and contracts.”39

COVID-19 crisis.” See https://www.mbda.gov/performance. COVID-19 crisis.” See https://www.mbda.gov/performance.
35Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman 35Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman ~~o f~~of the House Committee on the House Committee on
Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice, Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice,
Science, and Related Agencies),” Science, and Related Agencies),” Congressional Record, vol. 166, No. 218-Book III (December 21, 2020), p. H7923 . , vol. 166, No. 218-Book III (December 21, 2020), p. H7923 .
36 P.L. 116-260. 36 P.L. 116-260.
37 OMB “Appendix: Budget of the U.S. Government, Fiscal Year 2022” (2021), p. 205, https://www.whitehouse.gov/37 OMB “Appendix: Budget of the U.S. Government, Fiscal Year 2022” (2021), p. 205, https://www.whitehouse.gov/
wp-content/uploads/2021/05/com_fy22.pdf. In FY2021, P.L. 116-260 provided the MBDA $25 in supplemental wp-content/uploads/2021/05/com_fy22.pdf. In FY2021, P.L. 116-260 provided the MBDA $25 in supplemental
funding for assistance in response to the COVID-19 pandemic, in addition to $48 million in annual appropriations, for a funding for assistance in response to the COVID-19 pandemic, in addition to $48 million in annual appropriations, for a
total of $73 million. total of $73 million.
38 White House, “ FACT SHEET : Biden-Harris Administration Announces New Actions to Build Black Wealth and 38 White House, “ FACT SHEET : Biden-Harris Administration Announces New Actions to Build Black Wealth and
Narrow the Racial Wealth Gap,” June 1, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/Narrow the Racial Wealth Gap,” June 1, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/2021/
06/01/fact -sheet-biden-harris-administration-announces-new-actions-to-build-black-wealth-and-narrow-the-racial-06/01/fact -sheet-biden-harris-administration-announces-new-actions-to-build-black-wealth-and-narrow-the-racial-
wealth-gap/. T he Appendix to the President’s FY2022 Budget Request also notes that, “ The American Jobs Plan wealth-gap/. T he Appendix to the President’s FY2022 Budget Request also notes that, “ The American Jobs Plan
proposes $1 billion to support small business access to credit, venture capital, and research & development dollars. proposes $1 billion to support small business access to credit, venture capital, and research & development dollars.
Ensuring equitable access to capital is essential to supporting the growth of entrepreneurship in communities of color Ensuring equitable access to capital is essential to supporting the growth of entrepreneurship in communities of color
and undeserved communities.” See OMB “Appendix: Budget of the U.S. Government, Fiscal Year 2022” (2021), p. and undeserved communities.” See OMB “Appendix: Budget of the U.S. Government, Fiscal Year 2022” (2021), p.
205, https://www.whitehouse.gov/wp-content/uploads/2021/05/com_fy22.pdf. 205, https://www.whitehouse.gov/wp-content/uploads/2021/05/com_fy22.pdf.
39 White House, “FACT SHEET : President Biden Establishes the White House Initiative on Asian Americans, Native 39 White House, “FACT SHEET : President Biden Establishes the White House Initiative on Asian Americans, Native
Hawaiians, and Pacific Islanders,” May 28, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/Hawaiians, and Pacific Islanders,” May 28, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/
2021/05/28/fact-sheet-president -biden-establishes-the-white-house-initiative-on-asian-americans-native-hawaiians-and-2021/05/28/fact-sheet-president -biden-establishes-the-white-house-initiative-on-asian-americans-native-hawaiians-and-
pacific-islanders/. pacific-islanders/.
Congressional Research Service Congressional Research Service

8 8

The Minority Business Development Agency: An Overview of Its History and Programs

Agency Overview
Mission and Structure
MBDA’s mission is to foster the economic growth and global competitiveness of MBEs. The MBDA’s mission is to foster the economic growth and global competitiveness of MBEs. The
agency’s activities are designed to expand access to capital, markets, and contracts through public agency’s activities are designed to expand access to capital, markets, and contracts through public
and private sector programs, policy, and research. Technical and managerial assistance and other and private sector programs, policy, and research. Technical and managerial assistance and other
services are principal y provided to MBEs through a network of Business Centers, Specialty services are principal y provided to MBEs through a network of Business Centers, Specialty
Centers, and other projects and initiatives.40 The MBDA and its network partners coordinate with Centers, and other projects and initiatives.40 The MBDA and its network partners coordinate with
other agencies, such as the Department of the Treasury, Department of Commerce International other agencies, such as the Department of the Treasury, Department of Commerce International
Trade Administration, the Export-Import (EXIM) Bank, and other federal agencies, Trade Administration, the Export-Import (EXIM) Bank, and other federal agencies,
nongovernmental organizations, and private firms to expand capital access and contracting and nongovernmental organizations, and private firms to expand capital access and contracting and
export opportunities for MBEs.41 export opportunities for MBEs.41
Minority Businesses Face Distinct Challenges
According to MBDA and other sources, MBEs have unique chal enges in accessing capital, contracts, and other According to MBDA and other sources, MBEs have unique chal enges in accessing capital, contracts, and other
areas of business development. Below are findings from a FY2020 MBDA summary of key chal enges: areas of business development. Below are findings from a FY2020 MBDA summary of key chal enges:
 
Overal , minority-owned firms are smal er in size and scale than their nonminority counterparts. The gap in Overal , minority-owned firms are smal er in size and scale than their nonminority counterparts. The gap in
combined gross receipts is 10:1, with only 2% of minority firms generating gross receipts of more than $1 combined gross receipts is 10:1, with only 2% of minority firms generating gross receipts of more than $1
mil ion and only 11% of minority-owned firms having paid employees. mil ion and only 11% of minority-owned firms having paid employees.
 
In terms of capital access, minority firms are more likely to be denied loans at a rate nearly three times In terms of capital access, minority firms are more likely to be denied loans at a rate nearly three times
higher than nonminority firms, and minority firms are likely to pay higher interest rates of, on average 7.8%, higher than nonminority firms, and minority firms are likely to pay higher interest rates of, on average 7.8%,
while nonminority firms pay on average 6.4%. Additional y, minority firms are less likely to receive loans, and while nonminority firms pay on average 6.4%. Additional y, minority firms are less likely to receive loans, and
when approved, receive lower loan amounts.when approved, receive lower loan amounts.
 
In terms of contracts, minority firms secure a lower number and dol ar amount of contracts in proportion to In terms of contracts, minority firms secure a lower number and dol ar amount of contracts in proportion to
the number of available minority firms in the relevant market. Additional y, studies indicate that market and the number of available minority firms in the relevant market. Additional y, studies indicate that market and
other barriers impact minority firms’ access to contracts.42 other barriers impact minority firms’ access to contracts.42
Source: MBDA, “The Minority Business Development Agency—Vital to Making America Great,” MBDA, “The Minority Business Development Agency—Vital to Making America Great,”
https://www.mbda.gov/sites/default/files/migrated/files-attachments/MBDAVitaltoMakingAmericaGreat_170330.pdf.https://www.mbda.gov/sites/default/files/migrated/files-attachments/MBDAVitaltoMakingAmericaGreat_170330.pdf.
Before the Minority Business Development Act of 2021’s enactment, the MBDA was composed Before the Minority Business Development Act of 2021’s enactment, the MBDA was composed
of offices focused on business development, Native American business development, policy of offices focused on business development, Native American business development, policy
analysis and development, management, administration, and education, legislative, and analysis and development, management, administration, and education, legislative, and
intergovernmental affairs.43 The Office of Business Development coordinated the agency’s intergovernmental affairs.43 The Office of Business Development coordinated the agency’s

40 MBDA, “Overview,” https://www.mbda.gov/who-we-are/overview. 40 MBDA, “Overview,” https://www.mbda.gov/who-we-are/overview.
41 MBDA, “2020 Year in Review,” https://www.mbda.gov/2020-year-in-review; MBDA, “Global Business: Strategic 41 MBDA, “2020 Year in Review,” https://www.mbda.gov/2020-year-in-review; MBDA, “Global Business: Strategic
Partners,” https://www.mbda.gov/page/global-business-strategic-partners; and T estimony of MBDA Director, Partners,” https://www.mbda.gov/page/global-business-strategic-partners; and T estimony of MBDA Director,
Alejandra Castillo, in U.S. Congress, Senate Committee on Indian Affairs, Alejandra Castillo, in U.S. Congress, Senate Committee on Indian Affairs, Accessing Capital in Indian Country, 114th 114th
Congress, 1st sess., June 17, 2015, S.Hrg. 114-97 (Washington, DC: GPO, 2015), https://www.congress.gov/event/Congress, 1st sess., June 17, 2015, S.Hrg. 114-97 (Washington, DC: GPO, 2015), https://www.congress.gov/event/
114th-congress/senate-event/LC34122/text?s=5&r=29. 114th-congress/senate-event/LC34122/text?s=5&r=29.
T he SBA, for instance, is a source of funding for minority small businesses, and it partners with MBDA in providing T he SBA, for instance, is a source of funding for minority small businesses, and it partners with MBDA in providing
assistance to minority firms. T echnical and management assistance from MBDA and its partners may facilitate assistance to minority firms. T echnical and management assistance from MBDA and its partners may facilitate
minority business entities to qualify for SBA’s Section (8)(a) small disadvantage business and other programs. minority business entities to qualify for SBA’s Section (8)(a) small disadvantage business and other programs.
42 As noted in MBDA’s summary of key challenges facing minority businesses. See MBDA, “ T he Minority Business 42 As noted in MBDA’s summary of key challenges facing minority businesses. See MBDA, “ T he Minority Business
Development Agency: Vital to Making America Great,” https://www.mbda.gov/page/minority-business-development-Development Agency: Vital to Making America Great,” https://www.mbda.gov/page/minority-business-development-
agency-vital-making-america-great . agency-vital-making-america-great .
43 U.S. Department of Commerce (DOC), 43 U.S. Department of Commerce (DOC), FY2021 MBDA Congressional Budget Justification, p. 2, , p. 2,
https://www.commerce.gov/sites/default/files/2020-02/fy2021_mbda_congressional_budget_justification.pdf, and https://www.commerce.gov/sites/default/files/2020-02/fy2021_mbda_congressional_budget_justification.pdf, and
MBDA, “Organization Chart,” https://www.mbda.gov/images/organizationchartjpg. MBDA, “Organization Chart,” https://www.mbda.gov/images/organizationchartjpg.
Congressional Research Service Congressional Research Service

9 9

link to page link to page 98 link to page link to page 98 The Minority Business Development Agency: An Overview of Its History and Programs

business center activities, and plans and implements business development strategies (e.g., business center activities, and plans and implements business development strategies (e.g.,
strategies related to access to capital, contracts, emerging domestic and international markets, and strategies related to access to capital, contracts, emerging domestic and international markets, and
global supply chains).44 In 2005, MBDA established the Office of Native American Business global supply chains).44 In 2005, MBDA established the Office of Native American Business
Development within the Office of Business Development.45 In FY2020, MBDA completed its Development within the Office of Business Development.45 In FY2020, MBDA completed its
launch of the Office of Policy Analysis and Development (OPAD). OPAD works with other launch of the Office of Policy Analysis and Development (OPAD). OPAD works with other
agencies to expand data, research, analysis, and policy recommendations for minority business agencies to expand data, research, analysis, and policy recommendations for minority business
development based on economic and industry trends.46 development based on economic and industry trends.46
The organization and duties of MBDA offices and the location of regional offices wil likely shift The organization and duties of MBDA offices and the location of regional offices wil likely shift
following the Minority Business Development Act of 2021’s enactment (see following the Minority Business Development Act of 2021’s enactment (see “Agency
Establishment”). Additional y, the MBDA wil be led by an Under Secretary of Commerce to be ). Additional y, the MBDA wil be led by an Under Secretary of Commerce to be
selected by the President and confirmed by the Senate.47 selected by the President and confirmed by the Senate.47
MBDA Clients
MBDA clients include U.S. minority business enterprises (MBEs) that are not less than 51MBDA clients include U.S. minority business enterprises (MBEs) that are not less than 51%
percent-owned by one or more social y or economical y disadvantaged individuals; and the management owned by one or more social y or economical y disadvantaged individuals; and the management
and daily business operations of which are controlled by one or more social y or and daily business operations of which are controlled by one or more social y or economical y economical y
disadvantaged individuals. According to the agency’s authorizing statute, the term disadvantaged individuals. According to the agency’s authorizing statute, the term “social y or “social y or
economical y disadvantaged individual” means economical y disadvantaged individual” means
an individual who has been subjected to racial or ethnic prejudice or cultural bias (or the an individual who has been subjected to racial or ethnic prejudice or cultural bias (or the
ability of whom to compete in the free enterprise system has been impaired due to ability of whom to compete in the free enterprise system has been impaired due to
diminished capital and credit opportunities, as compared to diminished capital and credit opportunities, as compared to ~~oth ers~~others in the same line of in the same line of
business and competitive market area) because of the identity of the individual as a member business and competitive market area) because of the identity of the individual as a member
of a group, without regard to any individual quality of the individual that is unrelated to of a group, without regard to any individual quality of the individual that is unrelated to
that identity.48 that identity.48
The agency’s authorizing statute also noted that the Under Secretary may presume that the term The agency’s authorizing statute also noted that the Under Secretary may presume that the term
“social y or economical y disadvantaged individual”’ includes any individual who is “social y or economical y disadvantaged individual”’ includes any individual who is
 Black or African American;  Black or African American;
 Hispanic or Latino;  Hispanic or Latino;
 American Indian or Alaska Native;  American Indian or Alaska Native;
 Asian;  Asian;

44 MBDA, “ Chief of the Office of Business Development,” https://www.mbda.gov/who-we-are/leadership/44 MBDA, “ Chief of the Office of Business Development,” https://www.mbda.gov/who-we-are/leadership/
Chief%20of%20the%20Office%20of%20Business%20Development . Chief%20of%20the%20Office%20of%20Business%20Development .
45 DOC, 45 DOC, FY2016 MBDA Congressional Budget Justification, p. 17, https://www.osec.doc.gov/bmi/budget/FY16CJ/, p. 17, https://www.osec.doc.gov/bmi/budget/FY16CJ/
MBDA_FY_2016_CJ_Final.pdf. MBDA_FY_2016_CJ_Final.pdf.
46 T estimony of MBDA Director Henry Childs, in U.S. Congress, Senate Committee on Indian Affairs, 46 T estimony of MBDA Director Henry Childs, in U.S. Congress, Senate Committee on Indian Affairs, Building Out
Indian Country: Tools for Com m unity Developm ent, 116th Cong., 1st sess., April 10, 2019, S.Hrg. 116-16 (Washington, 116th Cong., 1st sess., April 10, 2019, S.Hrg. 116-16 (Washington,
DC: GPO, 2019), https://www.congress.gov/event/116th-congress/senate-event/LC63799/text?s=2&r=33. DC: GPO, 2019), https://www.congress.gov/event/116th-congress/senate-event/LC63799/text?s=2&r=33.
In terms of data, MBDA and researchers have noted that existing data on MBEs, which is generally survey -based and In terms of data, MBDA and researchers have noted that existing data on MBEs, which is generally survey -based and
incomplete, is insufficient. See MBDA, “ How 11 Million Minority-Owned Firms Can Close the Wealth Gap and Drive incomplete, is insufficient. See MBDA, “ How 11 Million Minority-Owned Firms Can Close the Wealth Gap and Drive
the U.S. Economy,” September 16, 2019, https://www.mbda.gov/news/press-releases/2019/09/how-11-million- the U.S. Economy,” September 16, 2019, https://www.mbda.gov/news/press-releases/2019/09/how-11-million-
minority-owned-firms-can-close-wealth-gap-and-drive-us, and Lucas Misera, minority-owned-firms-can-close-wealth-gap-and-drive-us, and Lucas Misera, An Uphill Battle: COVID-19’s Outsized
Toll on Minority-Owned Firm s, Federal Reserve Bank of Cleveland, October 8, 2020, https://www.clevelandfed.org/ Federal Reserve Bank of Cleveland, October 8, 2020, https://www.clevelandfed.org/
newsroom-and-events/publications/community-development-briefs/db-20201008-misera-report.aspx. newsroom-and-events/publications/community-development-briefs/db-20201008-misera-report.aspx.
47 P.L. 117-58, Sec. 100003. For additional context, see CRS Report RS21412, 47 P.L. 117-58, Sec. 100003. For additional context, see CRS Report RS21412, Temporarily Filling Presidentially
Appointed, Senate-Confirm ed Positions, by Henry B. Hogue. , by Henry B. Hogue.
48 P.L. 117-58, Sec. 100002. 48 P.L. 117-58, Sec. 100002.
Congressional Research Service Congressional Research Service

10 10

The Minority Business Development Agency: An Overview of Its History and Programs

 Native Hawai an or other Pacific Islander; or  Native Hawai an or other Pacific Islander; or
 A member of a group that the agency determines under part 1400 of title 15,  A member of a group that the agency determines under part 1400 of title 15,
Code of Federal Regulations, as in effect on November 23, 1984, is a social y Code of Federal Regulations, as in effect on November 23, 1984, is a social y
disadvantaged group eligible to receive assistance.49 disadvantaged group eligible to receive assistance.49
The agency provides services to MBEs through a network of business centers and other programs The agency provides services to MBEs through a network of business centers and other programs
and initiatives. The agency’s events and referral services are available to minority businesses of and initiatives. The agency’s events and referral services are available to minority businesses of
any size. In its FY2021 Notice of Funding Opportunity (NOFO), the MBDA primarily focused its any size. In its FY2021 Notice of Funding Opportunity (NOFO), the MBDA primarily focused its
Business Center services on businesses with revenues of at least $500,000 annual y.50 Business Center services on businesses with revenues of at least $500,000 annual y.50
Programs
Congress authorizes MBDA to foster, promote, and develop MBEs through grants, contracts, and Congress authorizes MBDA to foster, promote, and develop MBEs through grants, contracts, and
other agreements with public or private organizations.51 The agency’s programs and activities other agreements with public or private organizations.51 The agency’s programs and activities
focus on addressing MBDA and U.S. Department of Commerce (DOC) priorities, and include the focus on addressing MBDA and U.S. Department of Commerce (DOC) priorities, and include the
Business Center Program, among other projects and partnerships.52 Through the Business Center Business Center Program, among other projects and partnerships.52 Through the Business Center
network and partnerships, the agency facilitates export opportunities, contracts, and financings for network and partnerships, the agency facilitates export opportunities, contracts, and financings for
minority clients.53 MBDA does not provide loans or grants for business formation or expansion minority clients.53 MBDA does not provide loans or grants for business formation or expansion
purposes.54 purposes.54
Business Centers
The purpose of the MBDA Business Center Program is to The purpose of the MBDA Business Center Program is to
create a national network of public-private partnerships that— create a national network of public-private partnerships that—
(1) assist minority business enterprises in— (1) assist minority business enterprises in—
(A) accessing capital, contracts, and grants; and (A) accessing capital, contracts, and grants; and
(B) creating and maintaining jobs; (B) creating and maintaining jobs;

49 P.L. 117-58, Sec. 100002. In 15 C.F.R. Part 1400, the term “socially disadvantaged persons” has the meaning of 49 P.L. 117-58, Sec. 100002. In 15 C.F.R. Part 1400, the term “socially disadvantaged persons” has the meaning of
“those persons who have been subjected to cultural, racial or ethnic prejudice because of their identity as members of a “those persons who have been subjected to cultural, racial or ethnic prejudice because of their identity as members of a
group without regard to their individual qualities.” group without regard to their individual qualities.”
Prior to the Minority Business Development Act of 2021’s enactment and pursuant to Executive Order 11625, MBDA Prior to the Minority Business Development Act of 2021’s enactment and pursuant to Executive Order 11625, MBDA
clients included U.S. minority business enterprises owned or controlled by members of one or more of the following clients included U.S. minority business enterprises owned or controlled by members of one or more of the following
groups: African Americans, Asian Americans, Hasidic Jewish Americans, Hispanic Americans, Native Americans, and groups: African Americans, Asian Americans, Hasidic Jewish Americans, Hispanic Americans, Native Americans, and
Pacific Islanders. See also 15 C.F.R. §§1400.1 and 1400.2, https://ecfr.federalregister.gov/current/title-15/subtitle-B/Pacific Islanders. See also 15 C.F.R. §§1400.1 and 1400.2, https://ecfr.federalregister.gov/current/title-15/subtitle-B/
chapter-XIV/part -1400; and MBDA, “ Who We Are,” https://www.mbda.gov/who-we-are/overview. chapter-XIV/part -1400; and MBDA, “ Who We Are,” https://www.mbda.gov/who-we-are/overview.
50 MBDA, 50 MBDA, MBDA Notice of Funding Opportunity (NOFO)—Business Center Program, FY2021, ,
https://www.grants.gov/web/grants/search-grants.html?keywords=MBDA-OBD-2021-2006809. T he NOFO notes that, https://www.grants.gov/web/grants/search-grants.html?keywords=MBDA-OBD-2021-2006809. T he NOFO notes that,
“T his NOFO is focused on capacity building for firms with revenues of $500,000 or more.” “T his NOFO is focused on capacity building for firms with revenues of $500,000 or more.”
51 See P.L. 117-58 and P.L. 116-260. 51 See P.L. 117-58 and P.L. 116-260.
52 T he DOC strategic goals are outlined in the 2018-2022 Strategic Plan, 52 T he DOC strategic goals are outlined in the 2018-2022 Strategic Plan, Helping the American Economy Grow, and , and
include (1) accelerating American leadership through commercial space activities, foundational research investments, include (1) accelerating American leadership through commercial space activities, foundational research investments,
and protecting intellectual property; (2) enhancing job creation through increased exports and foreign direct investment; and protecting intellectual property; (2) enhancing job creation through increased exports and foreign direct investment;
(3) strengthening U.S. economic and national security; (4) fulfilling Constitutional requirements and supporting (3) strengthening U.S. economic and national security; (4) fulfilling Constitutional requirements and supporting
economic activity with reliable data; and (5) excelling in the delivery of customer-centric services. See economic activity with reliable data; and (5) excelling in the delivery of customer-centric services. See
https://www.commerce.gov/sites/default/files/us_department_of_commerce_2018-2022_strategic_plan.pdf. https://www.commerce.gov/sites/default/files/us_department_of_commerce_2018-2022_strategic_plan.pdf.
53 U.S. Department of Commerce, 53 U.S. Department of Commerce, FY2021 MBDA Congressional Budget Justification, https://www.commerce.gov/, https://www.commerce.gov/
sites/default/files/2020-02/fy2021_mbda_congressional_budget_justification.pdf. sites/default/files/2020-02/fy2021_mbda_congressional_budget_justification.pdf.
54 MBDA, “Grants,” https://www.mbda.gov/grants. 54 MBDA, “Grants,” https://www.mbda.gov/grants.
Congressional Research Service Congressional Research Service

11 11

The Minority Business Development Agency: An Overview of Its History and Programs

(2) provide counseling and mentoring to minority business enterprises; and (2) provide counseling and mentoring to minority business enterprises; and
(3) facilitate the growth of minority business enterprises by promoting trade.55 (3) facilitate the growth of minority business enterprises by promoting trade.55
MBDA provides financial assistance to organizations that operate Business Centers. In turn, MBDA provides financial assistance to organizations that operate Business Centers. In turn,
MBDA Business Centers provide management and technical assistance to minority-owned firms MBDA Business Centers provide management and technical assistance to minority-owned firms
seeking to expand to new domestic and international markets. According to MBDA’s funding seeking to expand to new domestic and international markets. According to MBDA’s funding
procedures, Business Center services focus on business development and capacity building by procedures, Business Center services focus on business development and capacity building by
assisting MBEs to assisting MBEs to
 improve operational efficiencies;  improve operational efficiencies;
 increase resources;  increase resources;
 build scale;  build scale;
 manage risk and increase liability thresholds;  manage risk and increase liability thresholds;
 strengthen management teams;  strengthen management teams;
 access and secure financing, equity, and venture capital;  access and secure financing, equity, and venture capital;
 raise online capital;  raise online capital;
 increase profits and owner equity; and  increase profits and owner equity; and
 implement and integrate new technology and equipment.  implement and integrate new technology and equipment.
Applicants eligible to compete to operate an MBDA Business Center include nonprofit Applicants eligible to compete to operate an MBDA Business Center include nonprofit
organizations, for-profit firms, state and local governments, educational institutions, and Native organizations, for-profit firms, state and local governments, educational institutions, and Native
American tribal entities. Operators are expected to contribute nonfederal cost share funding.56 The American tribal entities. Operators are expected to contribute nonfederal cost share funding.56 The
MBDA’s “List of MBDA Centers” currently includes 35 Business Centers in 29 states and Puerto MBDA’s “List of MBDA Centers” currently includes 35 Business Centers in 29 states and Puerto
Rico, including nine locations new as of FY2021.57 MBDA Business Centers provide services on Rico, including nine locations new as of FY2021.57 MBDA Business Centers provide services on
a fee-for-services basis.58 In light of the COVID-19 pandemic, MBDA and its network of a fee-for-services basis.58 In light of the COVID-19 pandemic, MBDA and its network of
Business Centers increased or shifted more activities to online events and fora and other virtual Business Centers increased or shifted more activities to online events and fora and other virtual
communications tools.59 communications tools.59
Specialty Centers
The MBDA also supports Business Centers that provide specialized business development The MBDA also supports Business Centers that provide specialized business development
services and technical assistance (“Specialty Centers”). The Minority Business Development Act services and technical assistance (“Specialty Centers”). The Minority Business Development Act
of 2021 defines Specialty Centers as MBDA Business Centers that provide specialty services of 2021 defines Specialty Centers as MBDA Business Centers that provide specialty services
focusing on specific business needs, including assistance relating to focusing on specific business needs, including assistance relating to

55 P.L. 117-58, Sec. 100111. 55 P.L. 117-58, Sec. 100111.
56 Operators are expected to contribute one-third of the amount of the financial assistance. Operators may request a 56 Operators are expected to contribute one-third of the amount of the financial assistance. Operators may request a
reduced cost share requirement based on need. P.L. 117-58, Sec. 100111. reduced cost share requirement based on need. P.L. 117-58, Sec. 100111.
57 For a list of Business Centers, see https://www.mbda.gov/mbda-programs/business-centers. See also MBDA, 57 For a list of Business Centers, see https://www.mbda.gov/mbda-programs/business-centers. See also MBDA, MBDA
Notice of Funding Opportunity (NOFO)—MBDA Business Center Program , FY2021, MBDA-OBD-2021-2006809, ,
https://www.grants.gov/web/grants/search-grants.html?keywords=mbda; and MBDA, “ Business Services,” https://www.grants.gov/web/grants/search-grants.html?keywords=mbda; and MBDA, “ Business Services,”
https://www.mbda.gov/page/business-services. https://www.mbda.gov/page/business-services.
58 P.L. 117-58, Sec. 100111. Prior to the Minority Business Development Act of 2021’s enactment, the FY2021 NOFO 58 P.L. 117-58, Sec. 100111. Prior to the Minority Business Development Act of 2021’s enactment, the FY2021 NOFO
for the MBDA Business Center program indicated that programs should be located in areas with the largest for the MBDA Business Center program indicated that programs should be located in areas with the largest
concentration of minority populations and the largest number of minority businesses. MBDA Business Centers were concentration of minority populations and the largest number of minority businesses. MBDA Business Centers were
directed to serve MBEs in any U.S. state or territory. Following the Minority Business Development Act of 2021, the directed to serve MBEs in any U.S. state or territory. Following the Minority Business Development Act of 2021, the
Under Secretary will develop criteria for selection of MBDA Business Centers. Under Secretary will develop criteria for selection of MBDA Business Centers.
59 By example, see the online 2021 Minority Enterprise Development Week event, https://www.mbda.gov/medweek- 59 By example, see the online 2021 Minority Enterprise Development Week event, https://www.mbda.gov/medweek-
2021. 2021.
Congressional Research Service Congressional Research Service

12 12

The Minority Business Development Agency: An Overview of Its History and Programs

 capital access;  capital access;
 federal procurement;  federal procurement;
 entrepreneurship;  entrepreneurship;
 technology transfer; or  technology transfer; or
 any other area determined necessary or appropriate based on the priorities of the  any other area determined necessary or appropriate based on the priorities of the
agency.60 agency.60
In FY2021, MBDA administered Notices of Funding Opportunity for Specialty Centers focused In FY2021, MBDA administered Notices of Funding Opportunity for Specialty Centers focused
on exports, advanced manufacturing, and federal procurement.61 on exports, advanced manufacturing, and federal procurement.61
  Export Centers seek to expand access to new and global markets and to help seek to expand access to new and global markets and to help
identify, screen, promote, and refer MBEs to exporting resources. MBDA export identify, screen, promote, and refer MBEs to exporting resources. MBDA export
centers are located in Mesa, AZ; Houston, TX; Miami, FL; and San Antonio, centers are located in Mesa, AZ; Houston, TX; Miami, FL; and San Antonio,
TX.62 TX.62
  Advanced Manufacturing Centers provide “[t]argeted assistance for provide “[t]argeted assistance for
manufacturers that aim to employ new technologies to increase the number of manufacturers that aim to employ new technologies to increase the number of
“Made in America” products that can be sold domestical y and global y.”63 “Made in America” products that can be sold domestical y and global y.”63
MBDA advanced manufacturing centers are located in East Hartford, CT; MBDA advanced manufacturing centers are located in East Hartford, CT;
Baltimore, MD; Louisvil e, KY; and San Antonio, TX.64 Baltimore, MD; Louisvil e, KY; and San Antonio, TX.64
  The Federal Procurement Center provides services designed to generate provides services designed to generate
increased federal procurement and acquisition opportunities for MBEs. In increased federal procurement and acquisition opportunities for MBEs. In
FY2021, the federal procurement center was located in Washington, DC.65 FY2021, the federal procurement center was located in Washington, DC.65

60 P.L. 117-58, Sec. 100002. See also MBDA, “Specialty Centers,” https://www.mbda.gov/mbda-programs/specialty-60 P.L. 117-58, Sec. 100002. See also MBDA, “Specialty Centers,” https://www.mbda.gov/mbda-programs/specialty-
centers. centers.
61 Prior to the announcement of the FY2021 Business Center and Specialty Center awards, there were four MBDA 61 Prior to the announcement of the FY2021 Business Center and Specialty Center awards, there were four MBDA
export centers, four MBDA advanced manufacturing centers, and one federal procurement center. Prior to the FY2021 export centers, four MBDA advanced manufacturing centers, and one federal procurement center. Prior to the FY2021
awards, awards,
 
the export centers were previously located in Chicago, IL; Miami, FL; San Antonio, T X; and Sacramento, the export centers were previously located in Chicago, IL; Miami, FL; San Antonio, T X; and Sacramento,
CA; CA;
 
the advanced manufacturing centers were previously located in Atlanta, GA; Detroit, MI; Baltimore, MD; the advanced manufacturing centers were previously located in Atlanta, GA; Detroit, MI; Baltimore, MD;
and San Antonio, T X; and and San Antonio, T X; and
 
the federal procurement center was located in Alexandria, VA. the federal procurement center was located in Alexandria, VA.
62 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs; and MBDA, MBDA NOFO—Export Project, 62 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs; and MBDA, MBDA NOFO—Export Project,
FY2021, MBDA-OBD-2021-2006815, https://www.grants.gov/web/grants/search-grants.html?keywords=mbda. T he FY2021, MBDA-OBD-2021-2006815, https://www.grants.gov/web/grants/search-grants.html?keywords=mbda. T he
NOFO states that prospective funding is contingent upon the availability of funds from Congress, satisfactory NOFO states that prospective funding is contingent upon the availability of funds from Congress, satisfactory
performance, and continued relevance to program objectives, and Export Center operators are expected to contribute performance, and continued relevance to program objectives, and Export Center operators are expected to contribute
nonfederal cost share funding (pp. 6-7). nonfederal cost share funding (pp. 6-7).
63 MBDA, “Specialty Centers,” https://www.mbda.gov/mbda-programs/specialty-centers. 63 MBDA, “Specialty Centers,” https://www.mbda.gov/mbda-programs/specialty-centers.
64 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs; and MBDA, MBDA NOFO—Advanced 64 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs; and MBDA, MBDA NOFO—Advanced
Manufacturing Project, FY2021, MBDA-OBD-2021-2006811, https://www.grants.gov/web/grants/search-grants.html?Manufacturing Project, FY2021, MBDA-OBD-2021-2006811, https://www.grants.gov/web/grants/search-grants.html?
keywords=mbda. T he NOFO states that prospective funding is contingent upon the availability of funds from Congress, keywords=mbda. T he NOFO states that prospective funding is contingent upon the availability of funds from Congress,
satisfactory performance, and continued relevance to program objectives, and Advanced Manufacturing Center satisfactory performance, and continued relevance to program objectives, and Advanced Manufacturing Center
operators are not required to contribute nonfederal cost share funding (pp . 7-8). operators are not required to contribute nonfederal cost share funding (pp . 7-8).
65 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs; and MBDA, MBDA NOFO—Federal 65 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs; and MBDA, MBDA NOFO—Federal
Procurement Project, FY2021, MBDA-OBD-2021-2006824, https://www.grants.gov/web/grants/search-grants.html?Procurement Project, FY2021, MBDA-OBD-2021-2006824, https://www.grants.gov/web/grants/search-grants.html?
keywords=mbda. T he NOFO states that prospective funding is contingent upon the availability of funds from Congress, keywords=mbda. T he NOFO states that prospective funding is contingent upon the availability of funds from Congress,
satisfactory performance, and continued relevance to p rogram objectives, and Federal Procurement Center operators satisfactory performance, and continued relevance to p rogram objectives, and Federal Procurement Center operators
are expected to contribute nonfederal cost share funding (p. 7). are expected to contribute nonfederal cost share funding (p. 7).
Congressional Research Service Congressional Research Service

13 13

The Minority Business Development Agency: An Overview of Its History and Programs

Rural Business Centers
The Minority Business Development Act of 2021 established a new Rural Business Center The Minority Business Development Act of 2021 established a new Rural Business Center
program to be implemented by MSIs for services to MBEs in rural areas.66 The program wil program to be implemented by MSIs for services to MBEs in rural areas.66 The program wil
provide education, training, and legal, financial, and technical assistance to MBEs with a focus on provide education, training, and legal, financial, and technical assistance to MBEs with a focus on
issues relating to issues relating to
 the adoption of broadband internet access service, digital literacy skil s, and e-  the adoption of broadband internet access service, digital literacy skil s, and e-
commerce; commerce;
 advanced manufacturing;  advanced manufacturing;
 the promotion of manufacturing in the United States;  the promotion of manufacturing in the United States;
 ways for MBEs to meet gaps in the supply chain for the United States;  ways for MBEs to meet gaps in the supply chain for the United States;
 improving the connectivity of rural MBEs through transportation and logistics;  improving the connectivity of rural MBEs through transportation and logistics;
 promoting trade and export opportunities;  promoting trade and export opportunities;
 securing financial capital;  securing financial capital;
 facilitating entrepreneurship in rural areas;  facilitating entrepreneurship in rural areas;
 creating jobs in rural areas; and  creating jobs in rural areas; and
 any other issue relating to the unique chal enges faced by rural MBEs.67  any other issue relating to the unique chal enges faced by rural MBEs.67
Entrepreneurship Education Development Activities
The Minority Business Development Act of 2021 also authorized new entrepreneurship education The Minority Business Development Act of 2021 also authorized new entrepreneurship education
development activities, including the Parren J. Mitcheldevelopment activities, including the Parren J. Mitchel Entrepreneurship Education Grants Entrepreneurship Education Grants
Program for grants to eligible institutions (e.g., HBCUs, MSIs, tribal colleges or universities, Program for grants to eligible institutions (e.g., HBCUs, MSIs, tribal colleges or universities,
among others). The act also directed the MBDA to partner with public and private sector entities among others). The act also directed the MBDA to partner with public and private sector entities
and educational institutions to support opportunities for business and management education, and educational institutions to support opportunities for business and management education,
apprenticeships, entrepreneurship training, and related activities for the benefit of social y or apprenticeships, entrepreneurship training, and related activities for the benefit of social y or
economical y disadvantaged individuals.68 economical y disadvantaged individuals.68
Related Initiatives, Events, and Partnerships
To further increase MBE’s access to capital, contracts, and markets, MBDA partners with other To further increase MBE’s access to capital, contracts, and markets, MBDA partners with other
federal agencies and private sector partners on business development services, cross-sector federal agencies and private sector partners on business development services, cross-sector
initiatives, annual events, and interagency groups and commissions. For instance, technical and initiatives, annual events, and interagency groups and commissions. For instance, technical and
management assistance from MBDA Business Centers may assist MBEs in qualifying for SBA’s management assistance from MBDA Business Centers may assist MBEs in qualifying for SBA’s
Section (8)(a) Business Development program for social y and economical y disadvantaged smal Section (8)(a) Business Development program for social y and economical y disadvantaged smal
businesses (as wel as other SBA programs), or to transition from the 8(a) program to the private businesses (as wel as other SBA programs), or to transition from the 8(a) program to the private
sector.69 MBDA works with other Department of Commerce agencies and the EXIM Bank of the sector.69 MBDA works with other Department of Commerce agencies and the EXIM Bank of the

66 T he Minority Business Development Act of 2021 authorized to be appropriated $20 million to the program each year 66 T he Minority Business Development Act of 2021 authorized to be appropriated $20 million to the program each year
for FY2021 through FY2025. Rural areas are defined in statute as having the meaning given the term in for FY2021 through FY2025. Rural areas are defined in statute as having the meaning given the term in ~~section~~Section 343(a) 343(a)
of the Consolidated Farm and Rural Development Act (7 U.S.C. §1991(a)). See P.L. 117-58, Sec. 100301. of the Consolidated Farm and Rural Development Act (7 U.S.C. §1991(a)). See P.L. 117-58, Sec. 100301.
67 P.L. 117-58, Sec. 100302. 67 P.L. 117-58, Sec. 100302.
68 P.L. 117-58, Sec. 100203. 68 P.L. 117-58, Sec. 100203.
69 MBDA, “ T he Minority Business Development Agency: Vital to Making America Great,” https://www.mbda.gov/69 MBDA, “ T he Minority Business Development Agency: Vital to Making America Great,” https://www.mbda.gov/
page/minority-business-development -agency-vital-making-america-great. page/minority-business-development -agency-vital-making-america-great.
For more information on the SBA’s Section (8)(a) program, see CRS Report R44844, For more information on the SBA’s Section (8)(a) program, see CRS Report R44844, SBA’s “8(a) Program”:
Overview, History, and Current Issues, by Robert Jay Dilger. , by Robert Jay Dilger.
Congressional Research Service Congressional Research Service

14 14

The Minority Business Development Agency: An Overview of Its History and Programs

United States to encourage MBE participation in international trade, and partners with the United States to encourage MBE participation in international trade, and partners with the
Department of Energy’s Office of Economic Impact to expand opportunities for MBE business in Department of Energy’s Office of Economic Impact to expand opportunities for MBE business in
the energy supply chain.70 Through the InVision Tour initiative, MBDA has partnered with the energy supply chain.70 Through the InVision Tour initiative, MBDA has partnered with
several agencies to support minority innovation and entrepreneurship in space technology, smart several agencies to support minority innovation and entrepreneurship in space technology, smart
cities, satel ites, aerospace, and related industries. InVision Tour partners include NASA’s cities, satel ites, aerospace, and related industries. InVision Tour partners include NASA’s
Johnson Space Center, the Environmental Protection Agency (EPA), and agencies of the Johnson Space Center, the Environmental Protection Agency (EPA), and agencies of the
Departments of Commerce, Defense, Energy, Health and Human Services, the Interior, and Departments of Commerce, Defense, Energy, Health and Human Services, the Interior, and
Homeland Security, among others.71 Homeland Security, among others.71
Additional MBDA initiatives have involved partners such as the U.S. India Smal Medium Additional MBDA initiatives have involved partners such as the U.S. India Smal Medium
Entrepreneurs (SME) Council, the U.S. Pan Asian American Chamber of Commerce Entrepreneurs (SME) Council, the U.S. Pan Asian American Chamber of Commerce
(USPAACC), the National Minority Supplier Development Council, the National Business (USPAACC), the National Minority Supplier Development Council, the National Business
League, U.S. Chamber of Commerce, and others.72 MBDA’s participation in interagency groups League, U.S. Chamber of Commerce, and others.72 MBDA’s participation in interagency groups
and commissions includes the President’s Advisory Commission on Asian Americans and Pacific and commissions includes the President’s Advisory Commission on Asian Americans and Pacific
Islanders, among others.73 Islanders, among others.73
MBDA assistance may also address specific chal enges or opportunities, support proof of concept MBDA assistance may also address specific chal enges or opportunities, support proof of concept
program models, meet presidential or departmental priorities, and facilitate the programs and program models, meet presidential or departmental priorities, and facilitate the programs and
initiatives not addressed through the MBDA business center program.74 For instance, in FY2019 initiatives not addressed through the MBDA business center program.74 For instance, in FY2019
and FY2020, the MBDA funded projects designed to increase MBE participation in advanced and FY2020, the MBDA funded projects designed to increase MBE participation in advanced
technology and innovation sectors. In FY2020, MBDA grants funded a capital formation technology and innovation sectors. In FY2020, MBDA grants funded a capital formation
initiative and the Minority Growth Equity Fund Initiative (MGEFI), among others.75 Additional, initiative and the Minority Growth Equity Fund Initiative (MGEFI), among others.75 Additional,
targeted MBDA initiatives include the Enterprising Women of Color (EWOC) initiative and targeted MBDA initiatives include the Enterprising Women of Color (EWOC) initiative and
centers, the American Indian, Alaska Native, and Native Hawai an (AIANNH) projects, the centers, the American Indian, Alaska Native, and Native Hawai an (AIANNH) projects, the
Entrepreneurship Education Programs for Formerly Incarcerated Persons, and the Inner-City Entrepreneurship Education Programs for Formerly Incarcerated Persons, and the Inner-City
Innovation Hub Program.76 Innovation Hub Program.76

70 EXIM Bank, “EXIM Signs Memorandum of Understanding with U.S. Department of Commerce Minority Business 70 EXIM Bank, “EXIM Signs Memorandum of Understanding with U.S. Department of Commerce Minority Business
Development Agency,” September, 14, 2020, https://www.exim.gov/news/exim-signs-memorandum-understanding-Development Agency,” September, 14, 2020, https://www.exim.gov/news/exim-signs-memorandum-understanding-
department -commerce-minority-business-development -agency, and MBDA, “ 2020 Year in Review,” department -commerce-minority-business-development -agency, and MBDA, “ 2020 Year in Review,”
https://www.mbda.gov/2020-year-in-review. https://www.mbda.gov/2020-year-in-review.
71 MBDA, “InVision T our,” https://www.mbdainvision.com/. 71 MBDA, “InVision T our,” https://www.mbdainvision.com/.
72 MBDA, “2020 Year in Review,” https://www.mbda.gov/2020-year-in-review, and Black Enterprise, “Black 72 MBDA, “2020 Year in Review,” https://www.mbda.gov/2020-year-in-review, and Black Enterprise, “Black
Enterprise, Minority Business Development Agency Partner to Help Black Businesses Gain Access to Innovation and Enterprise, Minority Business Development Agency Partner to Help Black Businesses Gain Access to Innovation and
Financing,” April 19, 2019, https://www.blackenterprise.com/black-enterprise-minority-business-development-agency-Financing,” April 19, 2019, https://www.blackenterprise.com/black-enterprise-minority-business-development-agency-
black-businesses/. black-businesses/.
73 MBDA, “ White House Initiative on Asian Americans and Pacific Islanders,” 73 MBDA, “ White House Initiative on Asian Americans and Pacific Islanders,” https://www.mbda.gov/WHIAAPI, and https://www.mbda.gov/WHIAAPI, and
Black Enterprise, “Black Enterprise, Minority Business Development Agency Partner to Help Black Businesses Gain Black Enterprise, “Black Enterprise, Minority Business Development Agency Partner to Help Black Businesses Gain
Access to Innovation and Financing,” April 19, 2019, https://www.blackenterprise.com/black-enterprise-minority-Access to Innovation and Financing,” April 19, 2019, https://www.blackenterprise.com/black-enterprise-minority-
business-development -agency-black-businesses/. business-development -agency-black-businesses/.
74 MBDA may use Broad Agency Agreements (BAAs) and unsolicited proposals to respond to specific challenges or 74 MBDA may use Broad Agency Agreements (BAAs) and unsolicited proposals to respond to specific challenges or
opportunities. See MBDA, “Frequently Asked Questions—2018 MBDA Broad Agency Announcement,” opportunities. See MBDA, “Frequently Asked Questions—2018 MBDA Broad Agency Announcement,”
https://www.mbda.gov/sites/default/files/2018baafrequentlyaskedquestions070918.pdf, and Department of Commerce, https://www.mbda.gov/sites/default/files/2018baafrequentlyaskedquestions070918.pdf, and Department of Commerce,
FY2021 MBDA Congressional Budget Justification , p. 17, https://www.commerce.gov/sites/default/files/2020-02/, p. 17, https://www.commerce.gov/sites/default/files/2020-02/
fy2021_mbda_congressional_budget_justification.pdf. fy2021_mbda_congressional_budget_justification.pdf.
75 MBDA, 75 MBDA, MBDA FY2021 Congressional Budget Justification, pp. 12-20, 23, https://www.commerce.gov/sites/default/, pp. 12-20, 23, https://www.commerce.gov/sites/default/
files/2020-02/fy2021_mbda_congressional_budget_justification.pdf; and MBDA, “ MBDA Awards $5.1 Million in files/2020-02/fy2021_mbda_congressional_budget_justification.pdf; and MBDA, “ MBDA Awards $5.1 Million in
Grants,” October 23, 2020, https://www.mbda.gov/news/news-and-announcements/2020/10/minority-business-Grants,” October 23, 2020, https://www.mbda.gov/news/news-and-announcements/2020/10/minority-business-
development -agency-awards-51-million-grants. development -agency-awards-51-million-grants.
T he American Indian, Alaska Native, and Native Hawaiian (AIANNH) projects are also awarded through BAAs. T he American Indian, Alaska Native, and Native Hawaiian (AIANNH) projects are also awarded through BAAs.
76 MBDA, “MBDA Awards $5.1 Million in Grants,” October 23, 2020, https://www.mbda.gov/news/news-and- 76 MBDA, “MBDA Awards $5.1 Million in Grants,” October 23, 2020, https://www.mbda.gov/news/news-and-
announcements/2020/10/minority-business-development -agency-awards-51-million-grants. announcements/2020/10/minority-business-development -agency-awards-51-million-grants.
Congressional Research Service Congressional Research Service

15 15

The Minority Business Development Agency: An Overview of Its History and Programs

Minority Growth Equity Funds Initiative and Equity Multiplier Project
Barriers to capital—including, but not limited to growth capital—limit expansion and scale Barriers to capital—including, but not limited to growth capital—limit expansion and scale
opportunities for many MBEs. In FY2020, an MBDA award established the Minority Growth opportunities for many MBEs. In FY2020, an MBDA award established the Minority Growth
Equity Fund Initiative (MGEFI). The MGEFI is to expand access to capital by facilitating the Equity Fund Initiative (MGEFI). The MGEFI is to expand access to capital by facilitating the
aggregation and deployment of $1 bil ion in growth equity capital to MBEs.77 In FY2021, MBDA aggregation and deployment of $1 bil ion in growth equity capital to MBEs.77 In FY2021, MBDA
announced the Equity Multiplier Project, which wil fund technical assistance to expand MBE’s announced the Equity Multiplier Project, which wil fund technical assistance to expand MBE’s
access to capital. The Equity Multiplier Project focuses on capacity building, venture capital access to capital. The Equity Multiplier Project focuses on capacity building, venture capital
readiness, and increasing access to equity and venture investment and investors.78 readiness, and increasing access to equity and venture investment and investors.78
Enterprising Women of Color (EWOC)
Entrepreneurship is often viewed as a strategy for economic growth and individual economic Entrepreneurship is often viewed as a strategy for economic growth and individual economic
independence. Minority women are considered the fastest growing population of entrepreneurs.79 independence. Minority women are considered the fastest growing population of entrepreneurs.79
MBDA-supported entrepreneurship programs include activities designed to support minority MBDA-supported entrepreneurship programs include activities designed to support minority
women business owners. Through the Enterprising Women of Color (EWOC) initiative, launched women business owners. Through the Enterprising Women of Color (EWOC) initiative, launched
in 2019, MBDA has provided assistance to expand access to capital, business education, and in 2019, MBDA has provided assistance to expand access to capital, business education, and
professional networks. The EWOC initiative also provided assistance to five projects focused on professional networks. The EWOC initiative also provided assistance to five projects focused on
minority women business enterprises beginning in FY2020.80 minority women business enterprises beginning in FY2020.80
American Indian Alaska Native / Native Hawaiian (AIANNH) Initiatives
MBDA provides assistance to entities with an expertise in American Indian, Alaska Native, and MBDA provides assistance to entities with an expertise in American Indian, Alaska Native, and
Native Hawai an (AIANNH) business for projects that focus on one or more of the following Native Hawai an (AIANNH) business for projects that focus on one or more of the following
three strategic initiatives: (1) innovation and entrepreneurship; (2) strategic planning; and/or (3) three strategic initiatives: (1) innovation and entrepreneurship; (2) strategic planning; and/or (3)
transformative projects.81 AIANNH projects may provide a range of services including, but not transformative projects.81 AIANNH projects may provide a range of services including, but not
limited to: entrepreneurial assistance, training, capital access, federal procurement assistance, limited to: entrepreneurial assistance, training, capital access, federal procurement assistance,
networking and relationship management, deal sourcing, joint ventures and partnerships, strategic networking and relationship management, deal sourcing, joint ventures and partnerships, strategic
infrastructure and economic planning assistance, and education for entrepreneurial and tribal infrastructure and economic planning assistance, and education for entrepreneurial and tribal

77 MBDA, “ MBDA Awards NAIC Million Dollar Grant to Raise $1 Billion for Investment in Minority Entrepreneurs,” 77 MBDA, “ MBDA Awards NAIC Million Dollar Grant to Raise $1 Billion for Investment in Minority Entrepreneurs,”
October 4, 2019, https://www.mbda.gov/news/press-releases/2019/10/mbda-awards-naic-million-dollar-grant -raise-1-October 4, 2019, https://www.mbda.gov/news/press-releases/2019/10/mbda-awards-naic-million-dollar-grant -raise-1-
billion-investment , and MBDA, “ 2020 Year in Review,” https://www.mbda.gov/2020-year-in-review. billion-investment , and MBDA, “ 2020 Year in Review,” https://www.mbda.gov/2020-year-in-review.
78 MBDA, 78 MBDA, FY2021 Notice of Funding Opportunity—Equity Multiplier Project, MBDA-OBD-2021- 2006868, , MBDA-OBD-2021- 2006868,
https://www.grants.gov/web/grants/search-grants.html?keywords=mbda. https://www.grants.gov/web/grants/search-grants.html?keywords=mbda.
79 American Express’ 79 American Express’ State of Women-Owned Businesses Report, 2019 (see https://about.americanexpress.com/all-(see https://about.americanexpress.com/all-
news/news-details/2019/Woman-Owned-Businesses-Are-Growing-2X-Faster-On-Average-T han-All-Businesses-news/news-details/2019/Woman-Owned-Businesses-Are-Growing-2X-Faster-On-Average-T han-All-Businesses-
Nationwide/default.aspx). T he report is based on data from the U.S. Census Bureau Survey of Business Owners (SBO). Nationwide/default.aspx). T he report is based on data from the U.S. Census Bureau Survey of Business Owners (SBO).
T he report noted that although SBO “T he report noted that although SBO “ is conducted every year in years ending in two and seven. Data from the is conducted every year in years ending in two and seven. Data from the ~~20 12~~2012
Census surveys were collated, analyzed and extrapolated forward to 2019, factoring in relative changes in Gross Census surveys were collated, analyzed and extrapolated forward to 2019, factoring in relative changes in Gross
Domestic Product (GDP) not only nationally but also at industry, state and metropolitan statistical area levels. All GDP Domestic Product (GDP) not only nationally but also at industry, state and metropolitan statistical area levels. All GDP
data was obtained from the U.S. Bureau of Economic Analysis (data was obtained from the U.S. Bureau of Economic Analysis ( bea.gov).” bea.gov).”
80 MBDA, “Enterprising Women of Color (EWOC),” https://www.mbda.gov/enterprising-women-of-color, and 80 MBDA, “Enterprising Women of Color (EWOC),” https://www.mbda.gov/enterprising-women-of-color, and
MBDA, “MBDA, “ Grant Awards,” https://www.mbda.gov/grantawards. Grant Awards,” https://www.mbda.gov/grantawards.
In the FY2020 EWOC Notice of Funding Opportunity (NOFO), MBDA cited measures of growth in levels of minority In the FY2020 EWOC Notice of Funding Opportunity (NOFO), MBDA cited measures of growth in levels of minority
women entrepreneurship as reported by American Express’ women entrepreneurship as reported by American Express’ State of Wom en-Owned Businesses Report, 2019 (see (see
https://about.americanexpress.com/all-news/news-details/2019/Woman-Owned-Businesses-Are-Growing-2X-Faster-https://about.americanexpress.com/all-news/news-details/2019/Woman-Owned-Businesses-Are-Growing-2X-Faster-
On-Average-T han-All-Businesses-Nationwide/default.aspx). Highlights include “ as of 2019, 6.4 million minority-On-Average-T han-All-Businesses-Nationwide/default.aspx). Highlights include “ as of 2019, 6.4 million minority-
owned women businesses employed nearly 2.4 million people and generated $422.5 billion in revenueowned women businesses employed nearly 2.4 million people and generated $422.5 billion in revenue , and women-, and women-
owned businesses represent 42% of all businesses, among others.” owned businesses represent 42% of all businesses, among others.”
81 MBDA, “AIANNH Projects,” https://www.mbda.gov/aiannhprojects. 81 MBDA, “AIANNH Projects,” https://www.mbda.gov/aiannhprojects.
Congressional Research Service Congressional Research Service

16 16

The Minority Business Development Agency: An Overview of Its History and Programs

entities. In FY2019-FY2021, the agency supported 13 projects designed to address specific needs entities. In FY2019-FY2021, the agency supported 13 projects designed to address specific needs
of Native American businesses.82 In FY2021, MBDA funded 13 AIANNH projects.83 of Native American businesses.82 In FY2021, MBDA funded 13 AIANNH projects.83
Entrepreneurship Education Programs for Formerly Incarcerated Persons
The Entrepreneurship Education Programs for Formerly Incarcerated Persons are designed to The Entrepreneurship Education Programs for Formerly Incarcerated Persons are designed to
provide individuals with skil s and a business network to enable them to start their own business provide individuals with skil s and a business network to enable them to start their own business
after incarceration. The programs also aim to reduce the rates of recidivism. According to MBDA after incarceration. The programs also aim to reduce the rates of recidivism. According to MBDA
and other sources, researchers have linked recidivism to unemployment, education level, and and other sources, researchers have linked recidivism to unemployment, education level, and
inability to reintegrate into communities after prison.84 inability to reintegrate into communities after prison.84
Inner City Innovation Hub Program
The Inner City Innovation Hub program supports new and established entrepreneurs in inner The Inner City Innovation Hub program supports new and established entrepreneurs in inner
cities and urban areas with high concentrations of minority populations and MBEs. The program cities and urban areas with high concentrations of minority populations and MBEs. The program
focuses on entrepreneurship, digital innovation, artificial intel igence, and research and focuses on entrepreneurship, digital innovation, artificial intel igence, and research and
technology transfer. Recent awards facilitate the growth of MBEs in regional y-specific industry technology transfer. Recent awards facilitate the growth of MBEs in regional y-specific industry
concentrations, such as the aerospace industry, and by providing technical assistance to MBEs concentrations, such as the aerospace industry, and by providing technical assistance to MBEs
through accelerators, incubators, and co-working spaces and university-focused technology, through accelerators, incubators, and co-working spaces and university-focused technology,
artificial intel igence, technology, research, mergers, and acquisitions.85 artificial intel igence, technology, research, mergers, and acquisitions.85
National Minority Enterprise Development (MED) Week
According to MBDA, since 1983, every president has issued a Presidential Proclamation According to MBDA, since 1983, every president has issued a Presidential Proclamation
designating one week as National Minority Enterprise Development (MED) Week.86 The event designating one week as National Minority Enterprise Development (MED) Week.86 The event
highlights the role of minority entrepreneurs in creating jobs, products, and services, and highlights the role of minority entrepreneurs in creating jobs, products, and services, and
contributions to local economic activity. Features of recent MED Week events include a contributions to local economic activity. Features of recent MED Week events include a
conference panel focused on global markets and the National Minority Business Awards Program. conference panel focused on global markets and the National Minority Business Awards Program.

82 MBDA, 82 MBDA, FY2019 Notice of Funding Opportunity—AIANNH Projects, MBDA-OBD-2019-2006047, , MBDA-OBD-2019-2006047,
https://www.grants.gov/web/grants/view-opportunity.html?oppId=315200. For a list of current AIANNH projects, see https://www.grants.gov/web/grants/view-opportunity.html?oppId=315200. For a list of current AIANNH projects, see
MBDA, “ AIANNH Projects,” https://www.mbda.gov/aiannhprojects. MBDA, “ AIANNH Projects,” https://www.mbda.gov/aiannhprojects.
A list and map of prior AIANNH A list and map of prior AIANNH ~~projects~~project s is available at https://www.mbda.gov/sites/default/files/aiannh_2.pdf. See is available at https://www.mbda.gov/sites/default/files/aiannh_2.pdf. See
also MBDA, “ Minority Business Development Agency Awards $3.6 Million for Business Development in Indian also MBDA, “ Minority Business Development Agency Awards $3.6 Million for Business Development in Indian
Country,” September 26, 2019, https://www.mbda.gov/news/press-releases/2019/09/minority-business-development-Country,” September 26, 2019, https://www.mbda.gov/news/press-releases/2019/09/minority-business-development-
agency-awards-36-million-business, and “ Native American Success Stories,” https://www.mbda.gov/native-american-agency-awards-36-million-business, and “ Native American Success Stories,” https://www.mbda.gov/native-american-
success-stories. success-stories.
83 MBDA, “AIANNH Projects,” https://www.mbda.gov/aiannhprojects; and MBDA, 83 MBDA, “AIANNH Projects,” https://www.mbda.gov/aiannhprojects; and MBDA, FY2021 Notice of Funding
Opportunity—AIANNH Projects, MBDA-OBD-2021-2006916, https://www.grants.gov/web/grants/search-grants.html?, MBDA-OBD-2021-2006916, https://www.grants.gov/web/grants/search-grants.html?
keywords=mbda. keywords=mbda.
84 MBDA, 84 MBDA, FY2020 Notice of Funding Opportunity—Entrepreneurship Education Programs for Formerly Incarcerated
Persons, MBDA-OBD-2020-2006457, April 2020, https://www.mbda.gov/sites/default/files/2020-10/, MBDA-OBD-2020-2006457, April 2020, https://www.mbda.gov/sites/default/files/2020-10/
Entrepreneurship%20Education%20Program%20for%20Formerly%20Incarcerated%20Persons_Full%20AnnouncemeEntrepreneurship%20Education%20Program%20for%20Formerly%20Incarcerated%20Persons_Full%20Announceme
nt%20%28April%202020%29.pdf. nt%20%28April%202020%29.pdf.
85 MBDA, 85 MBDA, Notice of Funding Opportunity—Inner City Innovation Hubs, MBDA-OBD-2020-2006442, April 2020, , MBDA-OBD-2020-2006442, April 2020,
https://www.mbda.gov/sites/default/files/2020-10/https://www.mbda.gov/sites/default/files/2020-10/
Inner%20City%20Innovation%20Hubs_Full%20Announcement%20%28April%202020%29.pdfInner%20City%20Innovation%20Hubs_Full%20Announcement%20%28April%202020%29.pdf , and MBDA, “ Grant , and MBDA, “ Grant
Awards,” https://www.mbda.gov/grantawards. Awards,” https://www.mbda.gov/grantawards.
86 MBDA, “ MBDA Announces 2019 National MED Week Award Winners,” https://medweek.mbda.gov/awards-86 MBDA, “ MBDA Announces 2019 National MED Week Award Winners,” https://medweek.mbda.gov/awards-
program. program.
Congressional Research Service Congressional Research Service

17 17

The Minority Business Development Agency: An Overview of Its History and Programs

MBDA also coordinates, sponsors, and participates in other national events, such as Buy Minority MBDA also coordinates, sponsors, and participates in other national events, such as Buy Minority
Business Enterprises Day, among others.87 Business Enterprises Day, among others.87
Other Initiatives
The Minority Business Development Act of 2021 established a Minority Business Enterprise The Minority Business Development Act of 2021 established a Minority Business Enterprise
Advisory Council and authorized the Under Secretary to coordinate on matters relating to federal Advisory Council and authorized the Under Secretary to coordinate on matters relating to federal
MBE programs. The act also authorized grants to nonprofit organizations to support MBEs. MBE programs. The act also authorized grants to nonprofit organizations to support MBEs.
Additional initiatives and activities support the MBDA mission and priorities of the Department Additional initiatives and activities support the MBDA mission and priorities of the Department
of Commerce. For instance, MBDA initiatives include global and domestic Business-to-Business of Commerce. For instance, MBDA initiatives include global and domestic Business-to-Business
(B2B) efforts to expand MBE access to domestic and global markets. In March 2020, in (B2B) efforts to expand MBE access to domestic and global markets. In March 2020, in
collaboration with Amazon Business, the MBDA launched the Minority Business and Technology collaboration with Amazon Business, the MBDA launched the Minority Business and Technology
Initiative, to expand MBE participation in e-commerce and the use of digital technology for Initiative, to expand MBE participation in e-commerce and the use of digital technology for
domestic and international sales.88 MBDA and Business Center partners participate in Global domestic and international sales.88 MBDA and Business Center partners participate in Global
B2B efforts in Africa, Asia, Latin America, and the Caribbean. MBDA has also joined trade B2B efforts in Africa, Asia, Latin America, and the Caribbean. MBDA has also joined trade
missions and partnered with the Department of Commerce International Trade Administration, the missions and partnered with the Department of Commerce International Trade Administration, the
EXIM Bank, and other agencies and organizations to expand export opportunities for MBEs.89 EXIM Bank, and other agencies and organizations to expand export opportunities for MBEs.89
Performance Metrics
The MBDA uses several performance metrics to measure its effectiveness, including The MBDA uses several performance metrics to measure its effectiveness, including
 dollar value of contracts secured for MBDA clients,  dollar value of contracts secured for MBDA clients,
 dollar value of capital secured for MBDA clients,  dollar value of capital secured for MBDA clients,
 number of jobs created, and  number of jobs created, and
 number of jobs retained.  number of jobs retained.
According to the latest data available, in FY2020, the MBDA reported 27,317 jobs were created According to the latest data available, in FY2020, the MBDA reported 27,317 jobs were created
or retained with the assistance of MBDA resources.90 MBDA’s measure of jobs created or or retained with the assistance of MBDA resources.90 MBDA’s measure of jobs created or
retained included the number of new full-time and/or part-time positions reported on the client’s retained included the number of new full-time and/or part-time positions reported on the client’s
payroll, and positions MBDA clients would have eliminated without the contract and/or financing payroll, and positions MBDA clients would have eliminated without the contract and/or financing
obtained with the MBDA’s help.91 Although the value of contracts measures both public and obtained with the MBDA’s help.91 Although the value of contracts measures both public and
private sector activity, in FY2020, approximately 70% of contracts that MBDA helped MBEs to private sector activity, in FY2020, approximately 70% of contracts that MBDA helped MBEs to

87 U.S. Department of Commerce, “Minority Business Development Agency: Agency Information Collection 87 U.S. Department of Commerce, “Minority Business Development Agency: Agency Information Collection
Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request; Activities; Submission to the Office of Management and Budget (OMB) for Review and Approval; Comment Request;
National Minority Business Awards,” 86 National Minority Business Awards,” 86 Federal Register 10544-10545, February 22, 2021, and MBDA, “ 10544-10545, February 22, 2021, and MBDA, “ Minority Minority
Enterprise Development Week,” https://www.mbda.gov/MEDWeek. Enterprise Development Week,” https://www.mbda.gov/MEDWeek.
88 MBDA, “ Minority Business and T echnology Initiative,” https://www.mbda.gov/page/minority-business-and-88 MBDA, “ Minority Business and T echnology Initiative,” https://www.mbda.gov/page/minority-business-and-
technology-initiative, and “ The Minority Business Development Agency Launches the ‘Minority Business and technology-initiative, and “ The Minority Business Development Agency Launches the ‘Minority Business and
T echnology T echnology ~~Initiative~~Init iative’ with Amazon Business,” March 17, 2020, https://www.mbda.gov/news/press-releases/2020/03/’ with Amazon Business,” March 17, 2020, https://www.mbda.gov/news/press-releases/2020/03/
minority-business-development -agency-launches-minority-business-and. minority-business-development -agency-launches-minority-business-and.
89 DOC, 89 DOC, FY2020-2022 Annual Performance Plan and Report, p. 61, https://www.commerce.gov/sites/default/files/, p. 61, https://www.commerce.gov/sites/default/files/
2021-01/DOC-FY20-22-APPR-Final.pdf, and MBDA, “ Global Business: Strategic Partners,” https://www.mbda.gov/2021-01/DOC-FY20-22-APPR-Final.pdf, and MBDA, “ Global Business: Strategic Partners,” https://www.mbda.gov/
page/global-business-strategic-partners. page/global-business-strategic-partners.
90 MBDA, “Annual Performance Summary, FY2021,” https://www.mbda.gov/sites/default/files/2021-04/ 90 MBDA, “Annual Performance Summary, FY2021,” https://www.mbda.gov/sites/default/files/2021-04/
MBDA_FY%202020%20APR%20Summary_042121.pdf . MBDA_FY%202020%20APR%20Summary_042121.pdf .
91 For definitions of MBDA measures, see “MBDA Performance Metrics,” https://www.mbda.gov/sites/default/files/ 91 For definitions of MBDA measures, see “MBDA Performance Metrics,” https://www.mbda.gov/sites/default/files/
2020-11/MBDA%20Performance%20Metrics.pdf. 2020-11/MBDA%20Performance%20Metrics.pdf.
Congressional Research Service Congressional Research Service

18 18

link to page link to page 3529 link to page link to page 3231 The Minority Business Development Agency: An Overview of Its History and Programs

secure were for private sector deals.92 Se secure were for private sector deals.92 See ~~Appendix B~~0 for a summary of assessments and for a summary of assessments and
evaluations of the evaluations of the agency.agency.
Table 1. MBDA Performance Metrics, FY2016–FY2020

FY2016
FY2017
FY2018
FY2019
FY2020
Total Value of Contracts Total Value of Contracts
$1.4 bil ion $1.4 bil ion
$3 bil ion $3 bil ion
$3.4 bil ion $3.4 bil ion
$3.1 bil ion $3.1 bil ion
$6.9 bil ion $6.9 bil ion
Total Value of Capital Total Value of Capital
$1.3 bil ion $1.3 bil ion
$4.9 bil ion $4.9 bil ion
$1.2 bil ion $1.2 bil ion
$1.8 bil ion $1.8 bil ion
$967 mil ion $967 mil ion
Jobs Created Jobs Created
5,784 5,784
10,191 10,191
10,196 10,196
10,366 10,366
11,597 11,597
Jobs Retained Jobs Retained
5,689 5,689
8,364 8,364
9,277 9,277
11,764 11,764
15,720 15,720
Source: MBDA, “MBDA Annual Performance Reports,” https://www.mbda.gov/performance. MBDA, “MBDA Annual Performance Reports,” https://www.mbda.gov/performance.
Notes: The source of data regarding contracts, financial transactions, and jobs created/retained are reported by The source of data regarding contracts, financial transactions, and jobs created/retained are reported by
MBDA Business Centers and are verified by MBDA headquarters staff. The performance data date of retrieval MBDA Business Centers and are verified by MBDA headquarters staff. The performance data date of retrieval
was April 30, 2021. was April 30, 2021.
Considerations for Congress
In considering the Minority Business Development Act of 2021’s implementation, Congress may In considering the Minority Business Development Act of 2021’s implementation, Congress may
continue its oversight role, focusing on the new and expanded activities authorized by the continue its oversight role, focusing on the new and expanded activities authorized by the
agency’s enabling legislation. Congress may also consider appropriations legislation and the agency’s enabling legislation. Congress may also consider appropriations legislation and the
confirmation of an Under Secretary of confirmation of an Under Secretary of ~~the MBDA. A~~ Commerce for Minority Business Development. A perennial issue of congressional interest perennial issue of congressional interest
involves debates about the agency’s role in involves debates about the agency’s role in supplementing (or duplicating) other forms of federal supplementing (or duplicating) other forms of federal
assistance for businesses. In addition, there has been continued interest in developing strategies to assistance for businesses. In addition, there has been continued interest in developing strategies to
use the MBDA to promote individualuse the MBDA to promote individual economic mobility, as wel as broader national economic economic mobility, as wel as broader national economic
growth, especial y with regard to reducing inequities and advancing minority entrepreneurship, growth, especial y with regard to reducing inequities and advancing minority entrepreneurship,
innovation, and business expansion innovation, and business expansion activities. activities.
Implementation of Enabling Legislation
As mentioned, the Minority Business Development Act of 2021 created several new programs As mentioned, the Minority Business Development Act of 2021 created several new programs
and reporting requirements for the agency and authorized the appropriation of $110 mil ion each and reporting requirements for the agency and authorized the appropriation of $110 mil ion each
fiscal year from FY2021 through FY2025 (sefiscal year from FY2021 through FY2025 (see Table A-1 for recent MBDA appropriations). for recent MBDA appropriations).
Pending appropriations legislation, MBDA may seek to hire additional staff or otherwise increase Pending appropriations legislation, MBDA may seek to hire additional staff or otherwise increase
its capacity to re-establish regional offices, administer existing and new programs, and activate its capacity to re-establish regional offices, administer existing and new programs, and activate
additional roles, such as coordination among federal agencies and new areas of technical additional roles, such as coordination among federal agencies and new areas of technical
assistance and research (e.g., workforce development services, supply chain opportunities, and assistance and research (e.g., workforce development services, supply chain opportunities, and
other priorities outlined in the act). Congress wil have an opportunity to oversee al of these other priorities outlined in the act). Congress wil have an opportunity to oversee al of these
activities. For example, Congress may seek to monitor key milestones and engage with MBDA as activities. For example, Congress may seek to monitor key milestones and engage with MBDA as
it implements new structures, roles, and programs.93 Congress may also seek to monitor the it implements new structures, roles, and programs.93 Congress may also seek to monitor the

92 David Byrd, National Director, MBDA, “Meeting Notes—President’s Advisory Commission on Asian Americans 92 David Byrd, National Director, MBDA, “Meeting Notes—President’s Advisory Commission on Asian Americans
and Pacific Islanders Fourth Quart erly Meeting and AAPI T own Hall,” January 13, 2021, https://www.commerce.gov/and Pacific Islanders Fourth Quart erly Meeting and AAPI T own Hall,” January 13, 2021, https://www.commerce.gov/
sites/default/files/2021-02/PAC-sites/default/files/2021-02/PAC-
AAPI%20Fourth%20Quarterly%20Meeting%20Minutes%20Final_January%2013%202021.pdf . AAPI%20Fourth%20Quarterly%20Meeting%20Minutes%20Final_January%2013%202021.pdf .
93 P.L. 117-58, Sec. 100003 and Sec. 100401. 93 P.L. 117-58, Sec. 100003 and Sec. 100401.
Congressional Research Service Congressional Research Service

19 19

link to page link to page 1514 link to page link to page 98 The Minority Business Development Agency: An Overview of Its History and Programs

agency’s performance metrics, which may be revised to reflect expanded service areas and/or agency’s performance metrics, which may be revised to reflect expanded service areas and/or
different types of outcomes.94 different types of outcomes.94
Additional y, the Senate may receive and consider a presidential nominee for the MBDA’s Under Additional y, the Senate may receive and consider a presidential nominee for the MBDA’s Under
Secretary position. Secretary position.
Other issues of congressional interest includeOther issues of congressional interest include
 the degree to which MBDA services may be available to previously unserved or  the degree to which MBDA services may be available to previously unserved or
underserved minority communities and MBEs (e.g., rural areas and areas not underserved minority communities and MBEs (e.g., rural areas and areas not
served by existing programs). As noted, the act directed MBDA to apply revised served by existing programs). As noted, the act directed MBDA to apply revised
criteria to define MBEs, and Congress may be interested in the impact of a criteria to define MBEs, and Congress may be interested in the impact of a
revised MBE definition on the agency’s outreach and program activities (see revised MBE definition on the agency’s outreach and program activities (see
“MBDA Clients”). ).
 the MBDA’s efforts to coordinate with other federal agencies in the  the MBDA’s efforts to coordinate with other federal agencies in the
“establishment, preservation, and strengthening of social y or economical y “establishment, preservation, and strengthening of social y or economical y
disadvantaged business concerns.”95 disadvantaged business concerns.”95
 the MBDA’s required reports (see  the MBDA’s required reports (see “Agency Establishment”). ).
The MBDA is further tasked with evaluating the impact of federal support of social y or The MBDA is further tasked with evaluating the impact of federal support of social y or
economical y disadvantaged business concerns.96 economical y disadvantaged business concerns.96
Duplication of SBA Activities
Whether the MBDA complements or duplicates the SBA’s programs, especial y those programs Whether the MBDA complements or duplicates the SBA’s programs, especial y those programs
targeted to minority populations (e.g., the Microloan program97) or the social y and economical y targeted to minority populations (e.g., the Microloan program97) or the social y and economical y
disadvantaged (e.g., the 8(a) Business Development Program98), has been a perennial issue of disadvantaged (e.g., the 8(a) Business Development Program98), has been a perennial issue of
congressional interest. There have been several proposals in the past to terminate the MBDAcongressional interest. There have been several proposals in the past to terminate the MBDA ~~and~~
transfer its activities to the SBA. There have also been proposals to transfer SBA programs that transfer its activities to the SBA. There have also been proposals to transfer SBA programs that
support minority business development to the MBDA (or a reorganized version of the agency support minority business development to the MBDA (or a reorganized version of the agency
within the Department of Commerce).99 MBDA’s proponents have argued that the agency within the Department of Commerce).99 MBDA’s proponents have argued that the agency
complements rather than conflicts with the SBA’s programs. The SBA focuses on smal complements rather than conflicts with the SBA’s programs. The SBA focuses on smal
businesses. The MBDA does not restrict its activities, referrals, or events based on business size. businesses. The MBDA does not restrict its activities, referrals, or events based on business size.
However, MBDA BusinessHowever, MBDA Business Centers have recently focused on providing technical and business Centers have recently focused on providing technical and business
development services to minority firms with employees and revenues that exceed $500,000.100 development services to minority firms with employees and revenues that exceed $500,000.100
Additional y, Title VI of the Minority Business Development Act of 2021 directs the Under
94 T he Minority Business Development Act of 2021 requires a report on the organizational structure of the agency and 94 T he Minority Business Development Act of 2021 requires a report on the organizational structure of the agency and
reports on other activities. reports on other activities.
95 P.L. 117-58, Division K, T itle IV. 95 P.L. 117-58, Division K, T itle IV.
96 Ibid. 96 Ibid.
97 For further information and analysis of the Microloan program, see CRS Report R41057, 97 For further information and analysis of the Microloan program, see CRS Report R41057, Small Business
Adm inistration Microloan Program , by Robert Jay Dilger. , by Robert Jay Dilger.
98 For further information and analysis of the 8(a) Business Development program, see CRS Report R44844, 98 For further information and analysis of the 8(a) Business Development program, see CRS Report R44844, SBA’s
“8(a) Program”: Overview, History, and Current Issues, by Robert Jay Dilger, by Robert Jay Dilger~~, SBA’s “8(a) Program”: Overview,~~
~~History, and Current Issues, by Robert Jay Dilger~~. .
99 See U.S. Commission on Minority Business Development (CMBD), 99 See U.S. Commission on Minority Business Development (CMBD), Final Report, 1992 (Washington, DC: GPO) 1992 (Washington, DC: GPO)
and U.S. Congress, House Committee on Small Business, and U.S. Congress, House Committee on Small Business, Minority Business Developm ent, H102-91, 102nd Cong., 2nd , H102-91, 102nd Cong., 2nd
sess., September 24, 1992, pp. 7-8, 16 (Washington, DC: GPO, 1992). T he commission was established by P.L. 100-sess., September 24, 1992, pp. 7-8, 16 (Washington, DC: GPO, 1992). T he commission was established by P.L. 100-
656 to assess and review federal programs designed to promote minority business development. 656 to assess and review federal programs designed to promote minority business development.
100 MBDA, 100 MBDA, MBDA Notice of Funding Opportunity—Business Center Program, FY2021, https://www.grants.gov/web/, https://www.grants.gov/web/
grants/search-grants.html?keywords=MBDA-OBD-2021-2006809. grants/search-grants.html?keywords=MBDA-OBD-2021-2006809.
Congressional Research Service Congressional Research Service

20 20

The Minority Business Development Agency: An Overview of Its History and Programs

~~Additional y, Title VI of the Minority Business Development Act of 2021 directs the Under~~
Secretary “to ensure consistency with program goals and to avoid duplication” by reviewing al Secretary “to ensure consistency with program goals and to avoid duplication” by reviewing al
proposed federal training and technical assistance activities in direct support of the programs proposed federal training and technical assistance activities in direct support of the programs
carried out under the Business Center program and the Rural Business Center program.101 carried out under the Business Center program and the Rural Business Center program.101
Additional Considerations
MBDA financial and technical assistance has been designed to build wealth, expand employment MBDA financial and technical assistance has been designed to build wealth, expand employment
opportunities, and increase MBE capital access and economic activity in order to improve opportunities, and increase MBE capital access and economic activity in order to improve
individual outcomes and build local and national economies. Over the years, due to the unique set individual outcomes and build local and national economies. Over the years, due to the unique set
of chal enges and circumstances faced by minority business owners, some analysts and of chal enges and circumstances faced by minority business owners, some analysts and
policymakers have cal ed for the MBDA to take on new or expanded roles, services, and policymakers have cal ed for the MBDA to take on new or expanded roles, services, and
partnerships. The Minority Business Development Act of 2021 expanded the MBDA’s scope of partnerships. The Minority Business Development Act of 2021 expanded the MBDA’s scope of
activities by providing it several new roles and programs. As Congress reviews options to support activities by providing it several new roles and programs. As Congress reviews options to support
economic development, the MBDA may continue to offer existing and potential y new avenues economic development, the MBDA may continue to offer existing and potential y new avenues
for providing financial and technical assistance to MBEs. For instance, in light of COVID-19’s for providing financial and technical assistance to MBEs. For instance, in light of COVID-19’s
disproportionate impact on MBEs, Congress may further consider economic recovery policy disproportionate impact on MBEs, Congress may further consider economic recovery policy
options to address the unique chal enges faced by MBEs as wel as other options to involve options to address the unique chal enges faced by MBEs as wel as other options to involve
MBDA in additional convening, coordinating, and assistance roles.102 MBDA in additional convening, coordinating, and assistance roles.102

101 P.L. 117-58, Division K, T itle IV. 101 P.L. 117-58, Division K, T itle IV.
102 Prior to the COVID-19 pandemic, researchers identified challenges and outcomes that are unique to MBEs and 102 Prior to the COVID-19 pandemic, researchers identified challenges and outcomes that are unique to MBEs and
small MBEs in particular. For reports on aspects of minority business ownership, including capital access and small MBEs in particular. For reports on aspects of minority business ownership, including capital access and
entrepreneurship, see MBDA, “Demographic T rends Publications,” https://www.mbda.gov/page/demographic-trends-entrepreneurship, see MBDA, “Demographic T rends Publications,” https://www.mbda.gov/page/demographic-trends-
publications; Robert W. Fairlie, Alicia Robb, and David T . Robinsonpublications; Robert W. Fairlie, Alicia Robb, and David T . Robinson , “ Black and White: Access to Capital Among , “ Black and White: Access to Capital Among
Minority-Owned Startups,” NBER Working Paper No. 28154 (November 2020); V. Hwang, S. Desai, and R. Baird, Minority-Owned Startups,” NBER Working Paper No. 28154 (November 2020); V. Hwang, S. Desai, and R. Baird,
“Access to Capital for Entrepreneurs: Removing Barriers,” Ewing Marion Kauffman Foundation: Kansas City (2019). “Access to Capital for Entrepreneurs: Removing Barriers,” Ewing Marion Kauffman Foundation: Kansas City (2019).
T imothy Bates, W.D. Bradford, and Robert Seamans, “ Minority Entrepreneurship in T wenty-First Century America,” T imothy Bates, W.D. Bradford, and Robert Seamans, “ Minority Entrepreneurship in T wenty-First Century America,”
Sm all Business Econom ics, 50, pp., 50, pp. 415-427 (2018); Robert W. Fairlie and Alicia M. Robb, 415-427 (2018); Robert W. Fairlie and Alicia M. Robb, Race and Entrepreneurial
Success: Black-, Asian-, and White-Owned Businesses in the United States (Cambridge, MA: T he MIT Press, 2010); (Cambridge, MA: T he MIT Press, 2010);
and Robert W. Fairlie, Alicia M. Robb, and David Hinson, “ Disparities in Capital Access Between Minority and Non-and Robert W. Fairlie, Alicia M. Robb, and David Hinson, “ Disparities in Capital Access Between Minority and Non-
Minority-Owned Businesses,” Minority Business Development Agency (2010), https://www.mbda.gov/sites/default/Minority-Owned Businesses,” Minority Business Development Agency (2010), https://www.mbda.gov/sites/default/
files/migrated/files-attachments/DisparitiesinCapitalAccessReport.pdf. files/migrated/files-attachments/DisparitiesinCapitalAccessReport.pdf.
Studies indicate that the economic impact of the coronavirus pandemic has Studies indicate that the economic impact of the coronavirus pandemic has affected minority business owners more affected minority business owners more
severely than nonminority business owners. For a summary of research on the economic impact of the coronavirus severely than nonminority business owners. For a summary of research on the economic impact of the coronavirus
pandemic on MBEs, see Lucas Misera, pandemic on MBEs, see Lucas Misera, An Uphill Battle: COVID-19’s Outsized Toll on Minority-Owned Firm s,
Federal Reserve Bank of Cleveland, October 8, 2020, https://www.clevelandfed.org/newsroom-and-events/Federal Reserve Bank of Cleveland, October 8, 2020, https://www.clevelandfed.org/newsroom-and-events/
publications/community-development-briefs/db-20201008-misera-report.aspx. publications/community-development-briefs/db-20201008-misera-report.aspx.
For analysis of metrics related to small businesses, including disparities between small MBEs and small nonminority For analysis of metrics related to small businesses, including disparities between small MBEs and small nonminority
firms, see firms, see Sm all Business Credit Survey: 2021 Report on Em ployer Firm s, Federal Reserve Banks, February 2021, , Federal Reserve Banks, February 2021,
https://www.fedsmallbusiness.org/survey/2021/report -on-employer-firms; and Mels de Zeeuw, https://www.fedsmallbusiness.org/survey/2021/report -on-employer-firms; and Mels de Zeeuw, Sm all Business Credit
Survey: 2019 Report on Minority-Owned Firm s, Federal Reserve Bank of Atlanta, December 2019, , Federal Reserve Bank of Atlanta, December 2019,
https://www.fedsmallbusiness.org/survey/2019/report -on-minority-owned-firms, among others. https://www.fedsmallbusiness.org/survey/2019/report -on-minority-owned-firms, among others.
For additional analysis of the economic impact of the coronavirus pandemic on small For additional analysis of the economic impact of the coronavirus pandemic on small businesses, see Daniel Wilmoth, businesses, see Daniel Wilmoth,
“T he Effects of the COVID-19 Pandemic on Small Businesses,” SBA, Office of Advocacy, Issue Brief Number 16, “T he Effects of the COVID-19 Pandemic on Small Businesses,” SBA, Office of Advocacy, Issue Brief Number 16,
March 2021, https://cdn.advocacy.sba.gov/wp-content/uploads/2021/03/02112318/COVID-19-Impact-On-Small-March 2021, https://cdn.advocacy.sba.gov/wp-content/uploads/2021/03/02112318/COVID-19-Impact-On-Small-
Business.pdf; Robert Fairlie, Business.pdf; Robert Fairlie, The Im pact of COVID-19 on Sm all Business Owners: Evidence of Early-Stage Losses
from the April 2020 Current Population Survey, National Bureau of Economic Research, Working Paper 27309, 2020, , National Bureau of Economic Research, Working Paper 27309, 2020,
doi.org/10.3386/w27309; and Alexander W. Bartik, et al.,doi.org/10.3386/w27309; and Alexander W. Bartik, et al., How Are Sm all Businesses Adjusting to COVID-19? Early
Evidence from a Survey, National Bureau of Economic Research, Working Paper 26989, 2020, , National Bureau of Economic Research, Working Paper 26989, 2020,
doi.org/10.3386/w26989, among others. doi.org/10.3386/w26989, among others.
Researchers have also proposed additional roles, services, outreach, and partnerships for the agency in recent years. Researchers have also proposed additional roles, services, outreach, and partnerships for the agency in recent years.
Some suggest that MBDA resources could be directed to focus on minority serving-institutions (MSIs) that would Some suggest that MBDA resources could be directed to focus on minority serving-institutions (MSIs) that would
~~Congressional Research Service~~

21

~~The Minority Business Development Agency: An Overview of Its History and Programs~~

administer business incubators and accelerators or operate business centers; administer an equity grant program to fund administer business incubators and accelerators or operate business centers; administer an equity grant program to fund
municipal capital projects; and develop and administer a minority business investment company (MBIC) —similar to municipal capital projects; and develop and administer a minority business investment company (MBIC) —similar to
Congressional Research Service 21 The Minority Business Development Agency: An Overview of Its History and Programs the SBA’s small business investment company (SBIC) program—to allow the agency to license lenders and lend the SBA’s small business investment company (SBIC) program—to allow the agency to license lenders and lend
capital for business investments, among other activities. For an example of these perspectives, see Connor Maxwell, capital for business investments, among other activities. For an example of these perspectives, see Connor Maxwell,
Darrick Hamilton, Andre M. Perry, and Danyelle Solomon , “ A Blueprint for Revamping the Minority Business Darrick Hamilton, Andre M. Perry, and Danyelle Solomon , “ A Blueprint for Revamping the Minority Business
Development Agency,” July 31, 2020, https://www.americanprogress.org/issues/race/reports/2020/07/31/488423/Development Agency,” July 31, 2020, https://www.americanprogress.org/issues/race/reports/2020/07/31/488423/
blueprint -revamping-minority-business-development -agency/. blueprint -revamping-minority-business-development -agency/.
Congressional Research Service Congressional Research Service

22 22

The Minority Business Development Agency: An Overview of Its History and Programs

Appendix A. Additional Agency History
Successive Administrations since the Carter Administration have changed the agency’s focus and Successive Administrations since the Carter Administration have changed the agency’s focus and
reorganized the delivery of its assistance and services. Among other shifts, the agency expanded reorganized the delivery of its assistance and services. Among other shifts, the agency expanded
its services through the Business Center program in the 1980s and focused on enhancing global its services through the Business Center program in the 1980s and focused on enhancing global
competitiveness of MBEs in the 1990s and early 2000s. During the Obama Administration, the competitiveness of MBEs in the 1990s and early 2000s. During the Obama Administration, the
agency continued to enhance global competitiveness and coordinated inter-agency minority agency continued to enhance global competitiveness and coordinated inter-agency minority
business initiatives. Beginning in FY2017, the Trump Administration proposed cuts to the business initiatives. Beginning in FY2017, the Trump Administration proposed cuts to the
agency’s budget and proposed orienting the agency’s initiatives away from services for individual agency’s budget and proposed orienting the agency’s initiatives away from services for individual
businesses. The Biden Administration has proposed increased annual appropriations, a dedicated businesses. The Biden Administration has proposed increased annual appropriations, a dedicated
Assistant Secretary, and expanded programs and activities for the agency. Assistant Secretary, and expanded programs and activities for the agency.
Evolving Delivery System
In 1981, the Reagan Administration established the Minority Business Development Center In 1981, the Reagan Administration established the Minority Business Development Center
program (MBDC), which became the MBDA’s primary method for delivering technical and program (MBDC), which became the MBDA’s primary method for delivering technical and
management services to minority businesses. The centers, located in metropolitan areas, were management services to minority businesses. The centers, located in metropolitan areas, were
designed to serve as “one-stop” service centers intended to address the needs of minority designed to serve as “one-stop” service centers intended to address the needs of minority
entrepreneurs. The centers focused on recruiting and encouraging private corporations to do entrepreneurs. The centers focused on recruiting and encouraging private corporations to do
business with minority firms, including creating a directory of minority firms and their business with minority firms, including creating a directory of minority firms and their
capabilities. President Ronald Reagan also issued E.O. 12432, capabilities. President Ronald Reagan also issued E.O. 12432, Minority Business Enterprise
Development, which required federal agencies with substantial procurement and grant-making , which required federal agencies with substantial procurement and grant-making
authority to develop plans that encourage minority business participation in federal procurement, authority to develop plans that encourage minority business participation in federal procurement,
contracts, and grants.103 President George H.W. Bush proposed eliminating the agency and contracts, and grants.103 President George H.W. Bush proposed eliminating the agency and
transferring its mission to the SBA, but ultimately continued the agency as an entity within the transferring its mission to the SBA, but ultimately continued the agency as an entity within the
Department of Commerce.104 Department of Commerce.104
In 1994, President Clinton issued E.O. 12928, In 1994, President Clinton issued E.O. 12928, Promoting Procurement with Small Businesses
Owned and Controlled by Socially and Economically Disadvantaged Individuals, Historically
Black Colleges and Universities, and Minority Institutions.105 Although E.O. 12928 did not .105 Although E.O. 12928 did not
directly reference E.O. 11625, it reiterated support for expanding access to federal procurement directly reference E.O. 11625, it reiterated support for expanding access to federal procurement
contracts for businesses owned by social y and economical y disadvantaged individuals, black contracts for businesses owned by social y and economical y disadvantaged individuals, black
colleges and universities, and other minority institutions. The Clinton Administration supported colleges and universities, and other minority institutions. The Clinton Administration supported
substantial increases in the agency’s budget. In seeking to expand the reach and capacity of the substantial increases in the agency’s budget. In seeking to expand the reach and capacity of the
MBDA, the Clinton Administration sought increases to fund the establishment of Rural Business MBDA, the Clinton Administration sought increases to fund the establishment of Rural Business
Development Centers, and the activities of the MBDCs and Minority Business Opportunity Development Centers, and the activities of the MBDCs and Minority Business Opportunity
Committees (MBOC). Committees (MBOC).
In 1996, the agency announced the initiation of a pilot program, the Community Based In 1996, the agency announced the initiation of a pilot program, the Community Based
Enhancement Services (CBES). According to the Enhancement Services (CBES). According to the Federal Register Notice on March 6, 1996, the on March 6, 1996, the
CBES’s goal was “to enable MBDA to enter into strategic al iances, coordinating the delivery of CBES’s goal was “to enable MBDA to enter into strategic al iances, coordinating the delivery of

103 Executive Order 12432, “Minority Business Enterprise Development,” 48 103 Executive Order 12432, “Minority Business Enterprise Development,” 48 Federal Register 32551, July 14, 1983. 32551, July 14, 1983.
104 U.S. Congress, House Committee on Appropriations, Subcommittee on the Departments of Commerce, Justice, and 104 U.S. Congress, House Committee on Appropriations, Subcommittee on the Departments of Commerce, Justice, and
State, the Judiciary, and Related Agencies, State, the Judiciary, and Related Agencies, Departm ents of Com m erce, Justice, And State, The Judiciary, and Related
Agencies Appropriations for 1990, H181-26, 101st Cong., 2nd sess., March 14-17, 20-22, 1989 (Washington, DC: GPO, H181-26, 101st Cong., 2nd sess., March 14-17, 20-22, 1989 (Washington, DC: GPO,
1989). 1989).
105 Executive Order 12928, “Promoting Procurement with Small Businesses Owned and Controlled by Socially and 105 Executive Order 12928, “Promoting Procurement with Small Businesses Owned and Controlled by Socially and
Economically Disadvantaged Individuals, Historically Black Colleges and Universities, Economically Disadvantaged Individuals, Historically Black Colleges and Universities, ~~a nd~~and Minority Institutions,” 59 Minority Institutions,” 59
Federal Register 48377, September 20, 1994. 48377, September 20, 1994.
Congressional Research Service Congressional Research Service

23 23

The Minority Business Development Agency: An Overview of Its History and Programs

its services with those of other entities capable of assisting in minority and/or smal and its services with those of other entities capable of assisting in minority and/or smal and
disadvantaged business development in a particular market.”106 disadvantaged business development in a particular market.”106
An audit of the pilot program found significant deficiencies in MBDA’s administration of the An audit of the pilot program found significant deficiencies in MBDA’s administration of the
pilot project, noting that MBDA failed to monitor and assess the grantees’ performance in accord pilot project, noting that MBDA failed to monitor and assess the grantees’ performance in accord
with its own handbook.107 The report recommended that MBDA develop project-specific with its own handbook.107 The report recommended that MBDA develop project-specific
performance measures to reflect the nature of the project, assign staff with adequate technical and performance measures to reflect the nature of the project, assign staff with adequate technical and
business expertise to monitor project activities, and undertake timely and thorough evaluation to business expertise to monitor project activities, and undertake timely and thorough evaluation to
determine program effectiveness.108 determine program effectiveness.108
Under the George W. Bush Administration, the MBDA continued efforts to coordinate its Under the George W. Bush Administration, the MBDA continued efforts to coordinate its
programs with the programs of the SBA supporting minority and disadvantaged firms. The Bush programs with the programs of the SBA supporting minority and disadvantaged firms. The Bush
Administration, based on research findings, pledged to focus its resources on minority firms with Administration, based on research findings, pledged to focus its resources on minority firms with
$500,000 or more in annual revenues.109 $500,000 or more in annual revenues.109
The agency funded programs and services including The agency funded programs and services including
 National Enterprise Centers staffed by MBDC personnel who provided support  National Enterprise Centers staffed by MBDC personnel who provided support
services, including referrals and marketing services, to business entities of services, including referrals and marketing services, to business entities of
significant size and capacity; significant size and capacity;
 MBDCs, which provided consultant services to firms with significant  MBDCs, which provided consultant services to firms with significant ~~grow th~~growth
potential; and potential; and
 MBOCs that provided consulting services, including identifying potential sources  MBOCs that provided consulting services, including identifying potential sources
of equity and working capital, assisting minority entrepreneurs gain access to of equity and working capital, assisting minority entrepreneurs gain access to
profitable markets. profitable markets.
The agency also funded a number of projects intended to address communities with special needs The agency also funded a number of projects intended to address communities with special needs
(Special Projects). Other activities included supporting youth entrepreneurship (Emerging (Special Projects). Other activities included supporting youth entrepreneurship (Emerging
Minority Business Leaders Program), improving access to capital (Equity Capital Access Minority Business Leaders Program), improving access to capital (Equity Capital Access
Committee), and the continued development of an online database of potential procurement and Committee), and the continued development of an online database of potential procurement and
contracting opportunities. contracting opportunities.

106 U.S. Department of Commerce, “Minority Business Development Agency: Implementation of Pilot Community -106 U.S. Department of Commerce, “Minority Business Development Agency: Implementation of Pilot Community -
Based Enhanced Services (CBES) Initiative in Baltimore, Maryland, and the Based Enhanced Services (CBES) Initiative in Baltimore, Maryland, and the ~~Iden tification~~Identification of Other Markets T o Be of Other Markets T o Be
Considered as Alternatives to the Minority Business Development Center Program for the Delivery of Management Considered as Alternatives to the Minority Business Development Center Program for the Delivery of Management
and T echnical Assistance to Minority Firms and Entrepreneurs,” 61 and T echnical Assistance to Minority Firms and Entrepreneurs,” 61 Federal Register 8919-8920, March 6, 1996. 8919-8920, March 6, 1996.
107 U.S. Department of Commerce, Office of Inspector General, 107 U.S. Department of Commerce, Office of Inspector General, Minority Business Development Agency Community-
Based Enhanced Services Pilot Project Award Not Effectively Monitored , Final Audit Report No. EDD-9406-8-0002, , Final Audit Report No. EDD-9406-8-0002,
Washington, DC, May 1998, pp. i-ii. Washington, DC, May 1998, pp. i-ii.
108 Ibid. p. 8. 108 Ibid. p. 8.
109 U.S. Department of Commerce, Minority Business Development Agency, 109 U.S. Department of Commerce, Minority Business Development Agency, The State of Minority Business
Enterprises, An Overview of the 2002 Survey of Business Owners, Washington, DC, August 2006, p. 30, , Washington, DC, August 2006, p. 30,
https://archive.mbda.gov/sites/mbda.gov/files/migrated/files-attachments/https://archive.mbda.gov/sites/mbda.gov/files/migrated/files-attachments/
StateofMinorityBusiness2002SurveyofBusinessOwners.pdf. StateofMinorityBusiness2002SurveyofBusinessOwners.pdf.
Later, a 2015 report also noted that minority firms with gross annual receipts of $500,000 or more generated a much Later, a 2015 report also noted that minority firms with gross annual receipts of $500,000 or more generated a much
larger percentage of all minority revenues and were more likely to have paid employees compared to minority firms larger percentage of all minority revenues and were more likely to have paid employees compared to minority firms
with annual gross receipts under $500,000 . See Sumiye “ Sue” Obuko and Mark Planting, with annual gross receipts under $500,000 . See Sumiye “ Sue” Obuko and Mark Planting, The State of Minority
Business Enterprises: An Overview of the 2007 Survey of Business Owners, U.S. Department of Commerce, Minority , U.S. Department of Commerce, Minority
Business Development Agency, Washington, DC, 2015, p. 36 (footnote), https://archive.mbda.gov/sites/mbda.gov/Business Development Agency, Washington, DC, 2015, p. 36 (footnote), https://archive.mbda.gov/sites/mbda.gov/
files/migrated/files-attachments/State_Minority_Business_Enterprises_2007Data.pdf. files/migrated/files-attachments/State_Minority_Business_Enterprises_2007Data.pdf.
Congressional Research Service Congressional Research Service

24 24

The Minority Business Development Agency: An Overview of Its History and Programs

Global Competitiveness
Starting in the 1990s, the agency began to focus on assisting minority firms enter and compete in Starting in the 1990s, the agency began to focus on assisting minority firms enter and compete in
the global economy. A 2003 MBDA study explored issues and opportunities for minority the global economy. A 2003 MBDA study explored issues and opportunities for minority
businesses seeking international opportunities. The preliminary study’s key findings included the businesses seeking international opportunities. The preliminary study’s key findings included the
following observations: following observations:
 Minority businesses may not be able to compete directly with massive U.S.  Minority businesses may not be able to compete directly with massive U.S.
companies that have already established a multinational presence in developed companies that have already established a multinational presence in developed
economies. economies.
 By capitalizing on their unique competitive strengths, especial y in developing  By capitalizing on their unique competitive strengths, especial y in developing
countries, minority-business enterprises (MBEs) can compete with larger countries, minority-business enterprises (MBEs) can compete with larger
multinational companies. multinational companies.
 A secondary conclusion is that the quality of information about MBE interaction  A secondary conclusion is that the quality of information about MBE interaction
with the international economy is badly outdated, and further research must be with the international economy is badly outdated, and further research must be
conducted. Given the need to design successful policies and programs to support conducted. Given the need to design successful policies and programs to support
MBE international expansion, this lack of data is a critical hurdle that must be MBE international expansion, this lack of data is a critical hurdle that must be
overcome.110 overcome.110
During the Obama Administration, in addition to a focus on facilitating entry or expansion of During the Obama Administration, in addition to a focus on facilitating entry or expansion of
minority firms into the global market place, increased emphasis was placed on quantifying the minority firms into the global market place, increased emphasis was placed on quantifying the
impact of MBDA activities, increasing the efficient delivery of services to minority business impact of MBDA activities, increasing the efficient delivery of services to minority business
communities, and increasing coordination with other federal agencies. Federal agencies that have communities, and increasing coordination with other federal agencies. Federal agencies that have
partnered with MBDA include the SBA, the International Trade Administration, the Export-partnered with MBDA include the SBA, the International Trade Administration, the Export-
Import Bank, the National Institute of Standards and Technology, and the Economic Development Import Bank, the National Institute of Standards and Technology, and the Economic Development
Administration. Administration.
Proposals to Establish, Transfer, or Eliminate the Agency
Executive branch and legislative proposals have sought to transfer, eliminate, or—alternatively— Executive branch and legislative proposals have sought to transfer, eliminate, or—alternatively—
statutorily authorize the agency. statutorily authorize the agency.
The MBDA was original y created by executive order. Prior to the Minority Business The MBDA was original y created by executive order. Prior to the Minority Business
Development Act of 2021’s enactment in 2021, there were a number of proposals over the years Development Act of 2021’s enactment in 2021, there were a number of proposals over the years
to statutorily authorize the MBDA. Absent specific statutory requirements, the President could to statutorily authorize the MBDA. Absent specific statutory requirements, the President could
have exercised authority to effectively terminate the MDBA’s discretionary activities at any time have exercised authority to effectively terminate the MDBA’s discretionary activities at any time
without congressional consultation or consent. Nevertheless, during this time, Congress could without congressional consultation or consent. Nevertheless, during this time, Congress could
have (and has from time to time) appropriated funds to carry out specific activities, and have (and has from time to time) appropriated funds to carry out specific activities, and
potential y supersede presidential discretion.111 In addition, Congress could have revoked or potential y supersede presidential discretion.111 In addition, Congress could have revoked or
modified the executive order, potential y eliminating, expanding, or restricting the agency. modified the executive order, potential y eliminating, expanding, or restricting the agency.

110 John Owens and Robert Pazornik,110 John Owens and Robert Pazornik, Globalization and Minority-Owned Businesses in the United States: Assessment
and Prospects, Minority Business Developm ent Agency, Preliminary Study, Washington, DC, September 28, 2003, p. 1, , Preliminary Study, Washington, DC, September 28, 2003, p. 1,
https://www.mbda.gov/sites/default/files/migrated/files-attachments/MBEintheGlobalEconomy.pdf. https://www.mbda.gov/sites/default/files/migrated/files-attachments/MBEintheGlobalEconomy.pdf.
111 In general, when Congress appropriates a specific amount of budget authority for a specific purpose, the President 111 In general, when Congress appropriates a specific amount of budget authority for a specific purpose, the President
has only limited authority to order executive branch agencies to reduce or withhold funds. Decisions by federal courts, has only limited authority to order executive branch agencies to reduce or withhold funds. Decisions by federal courts,
including a unanimous decision by the Supreme Court in including a unanimous decision by the Supreme Court in Train v City of New York, 420 U.S. 35 (1975), and the , 420 U.S. 35 (1975), and the
enactment of the Congressional Budget and Impoundment Control Act of 1974, P.L. 93-344, clarified this. Specifically, enactment of the Congressional Budget and Impoundment Control Act of 1974, P.L. 93-344, clarified this. Specifically,
under ICA, the President can withhold funds for a limited time if he complies with specific reporting requirements to under ICA, the President can withhold funds for a limited time if he complies with specific reporting requirements to
Congress, but he cannot permanently prevent the obligation or expenditure of funds provided in law unless Congress Congress, but he cannot permanently prevent the obligation or expenditure of funds provided in law unless Congress
agrees. agrees.
Congressional Research Service Congressional Research Service

25 25

The Minority Business Development Agency: An Overview of Its History and Programs

Transferring the agency would have changed the agency’s role and visibility. Several Transferring the agency would have changed the agency’s role and visibility. Several
reorganization plans from the late 1970s through the 1990s from the executive branch would have reorganization plans from the late 1970s through the 1990s from the executive branch would have
moved the MBDA out of the Department of Commerce.112 For instance, the George H.W. Bush moved the MBDA out of the Department of Commerce.112 For instance, the George H.W. Bush
Administration proposed to transfer the MBDA into the SBA in FY1989 and FY1990.113 In Administration proposed to transfer the MBDA into the SBA in FY1989 and FY1990.113 In
FY2018, the Trump Administration recommended a $6 mil ion budget for MBDA, to be used to FY2018, the Trump Administration recommended a $6 mil ion budget for MBDA, to be used to
close out the agency.114 The Trump Administration’s budgets in FY2019, FY2020, and FY2021 close out the agency.114 The Trump Administration’s budgets in FY2019, FY2020, and FY2021
would have reduced the agency’s annual funding to approximately $10 mil ion and proposed to would have reduced the agency’s annual funding to approximately $10 mil ion and proposed to
change the focus of MBDA services from assisting individual MBEs to efforts to address issues change the focus of MBDA services from assisting individual MBEs to efforts to address issues
facing the broader minority business community.115 facing the broader minority business community.115
The Trump Administration’s first budget request (for FY2018) proposed to eliminate the agency, The Trump Administration’s first budget request (for FY2018) proposed to eliminate the agency,
and later budget requests proposed reductions to the agency’s budget by approximately 75%. For and later budget requests proposed reductions to the agency’s budget by approximately 75%. For
example, the Trump Administration sought to reduce the agency’s budget to $10.3 mil ion for example, the Trump Administration sought to reduce the agency’s budget to $10.3 mil ion for
FY2021, with the intent of redirecting resources away from services for individual businesses.116 FY2021, with the intent of redirecting resources away from services for individual businesses.116
According to budget documents, the Trump Administration supported the termination of the According to budget documents, the Trump Administration supported the termination of the
MDBA and its programs as part of its wider efforts to reduce federal spending and to redefine the MDBA and its programs as part of its wider efforts to reduce federal spending and to redefine the
role of the federal government in domestic affairs. MBDA and its activities are among a number role of the federal government in domestic affairs. MBDA and its activities are among a number
of federal programs that support private sector job creation.117 The Administration’s opposition of federal programs that support private sector job creation.117 The Administration’s opposition

112 For example, in the 95th Congress, the Senate Committee on Appropriations urged “the Office of Management and 112 For example, in the 95th Congress, the Senate Committee on Appropriations urged “the Office of Management and
Budget to consider the merger of OMBE into SBA’s programs of assistance to minority businesses so that a unified Budget to consider the merger of OMBE into SBA’s programs of assistance to minority businesses so that a unified
program will be available for consideration in the 1980 budget review.” See S.Rept. 95-1043. program will be available for consideration in the 1980 budget review.” See S.Rept. 95-1043.
In the 98th Congress, the Department of International T rade and Industry Act of 1983 (S. 121) proposed a transfer of In the 98th Congress, the Department of International T rade and Industry Act of 1983 (S. 121) proposed a transfer of
the MBDA to the SBA as one of several aspects of a reorganization plan for the Department of Commerce. See S.Rept. the MBDA to the SBA as one of several aspects of a reorganization plan for the Department of Commerce. See S.Rept.
98-374. Later, during the Reagan Administration, a memo from the Secretary of Commerce, James Baker, outlined a 98-374. Later, during the Reagan Administration, a memo from the Secretary of Commerce, James Baker, outlined a
proposal to reorganize the Department of Commerce and establish the Department of International T rade and Industry. proposal to reorganize the Department of Commerce and establish the Department of International T rade and Industry.
Included in the proposal are references to efforts to consolidate government and the following proposed action: Included in the proposal are references to efforts to consolidate government and the following proposed action:
“Disposition of other elements of the Department of Commerce will be identical to the Administration proposal of the “Disposition of other elements of the Department of Commerce will be identical to the Administration proposal of the
98th Congress approved by OMB, except that PTO [Patent and T rademark Office] would go to Justice and MBDA 98th Congress approved by OMB, except that PTO [Patent and T rademark Office] would go to Justice and MBDA
would go to HUD (unless SBA receives continued funding).” See Memo, Malcolm Baldrige to Edwin Meese, James would go to HUD (unless SBA receives continued funding).” See Memo, Malcolm Baldrige to Edwin Meese, James
Baker, Richard Darman, January 5, 1985, folder “ Cabinet Affairs (1)” box 6, James Baker Files, Ronald Reagan Baker, Richard Darman, January 5, 1985, folder “ Cabinet Affairs (1)” box 6, James Baker Files, Ronald Reagan
Library. (At the time, Malcolm Baldrige was Secretary of the Department of Commerce, Edwin Meese was Counselor Library. (At the time, Malcolm Baldrige was Secretary of the Department of Commerce, Edwin Meese was Counselor
to the President, and Richard Darman was Assistant to the President and Deputy to the Chief of Staff.) to the President, and Richard Darman was Assistant to the President and Deputy to the Chief of Staff.)
In the 104th Congress, the Commerce Department Termination and Government Reorganization Act of 1995 (S. 929, In the 104th Congress, the Commerce Department Termination and Government Reorganization Act of 1995 (S. 929,
S.Rept. 104-164) and the Department of Commerce Dismantling Act (H.R. 1756, H.Rept. 104-260) proposed to S.Rept. 104-164) and the Department of Commerce Dismantling Act (H.R. 1756, H.Rept. 104-260) proposed to
eliminate several Commerce agencies, including the MBDA. S. 929 and H.R. 1756 are noted in the analysis of trade eliminate several Commerce agencies, including the MBDA. S. 929 and H.R. 1756 are noted in the analysis of trade
reorganization in CRS Report R42555, reorganization in CRS Report R42555, Trade Reorganization: Overview and Issues for Congress, by Shayerah I. , by Shayerah I.
Akhtar. Akhtar.
113 OMB, “Budget of the U.S. Government 113 OMB, “Budget of the U.S. Government —- FY1989,” pp. 5-69 and 5-70, available at https://fraser.stlouisfed.org/title/FY1989,” pp. 5-69 and 5-70, available at https://fraser.stlouisfed.org/title/
54/item/18995; and “ Budget of the U.S. Government —FY1990,” p. 5-78, available at https://fraser.stlouisfed.org/title/54/item/18995; and “ Budget of the U.S. Government —FY1990,” p. 5-78, available at https://fraser.stlouisfed.org/title/
54/item/18996. 54/item/18996.
114 OMB “ Appendix: Budget of the U.S. Government, Fiscal Year 2018” (2017), p. 190, https://www.govinfo.gov/ 114 OMB “ Appendix: Budget of the U.S. Government, Fiscal Year 2018” (2017), p. 190, https://www.govinfo.gov/
content/pkg/BUDGET -2018-APP/pdf/BUDGET -2018-APP.pdf. content/pkg/BUDGET -2018-APP/pdf/BUDGET -2018-APP.pdf.
115 OMB, “Budget of the United States Government, Fiscal Year 2019,” (2018), p. 31, https://www.govinfo.gov/115 OMB, “Budget of the United States Government, Fiscal Year 2019,” (2018), p. 31, https://www.govinfo.gov/
content/pkg/BUDGET -2019-BUD/pdf/BUDGET -2019-BUD.pdf, and “ Appendix: Budget of the United States content/pkg/BUDGET -2019-BUD/pdf/BUDGET -2019-BUD.pdf, and “ Appendix: Budget of the United States
Government, Fiscal Year 2019” (2018), p. 189, https://www.govinfo.gov/content/pkg/BUDGET -2019-APP/pdf/Government, Fiscal Year 2019” (2018), p. 189, https://www.govinfo.gov/content/pkg/BUDGET -2019-APP/pdf/
BUDGET -2019-APP.pdf; “ Appendix: Budget of the United States Government, Fiscal Year 2020” (2019), p. 187, BUDGET -2019-APP.pdf; “ Appendix: Budget of the United States Government, Fiscal Year 2020” (2019), p. 187,
https://www.govinfo.gov/content/pkg/BUDGET -2020-APP/pdf/BUDGET -2020-APP.pdf; and “ Appendix: Budget of https://www.govinfo.gov/content/pkg/BUDGET -2020-APP/pdf/BUDGET -2020-APP.pdf; and “ Appendix: Budget of
the United States Government, Fiscal Year 2021” (2020), p. 198, https://www.govinfo.gov/content/pkg/BUDGET -the United States Government, Fiscal Year 2021” (2020), p. 198, https://www.govinfo.gov/content/pkg/BUDGET -
2021-APP/pdf/BUDGET -2021-APP.pdf. 2021-APP/pdf/BUDGET -2021-APP.pdf.
116 U.S. Office of Management and Budget (OMB), “ A Budget for America’s Future—Appendix,” FY2021 116 U.S. Office of Management and Budget (OMB), “ A Budget for America’s Future—Appendix,” FY2021
Congressional Budget Justification, p. 198, https://www.govinfo.gov/content/pkg/BUDGET -2021-APP/pdf/BUDGET -Congressional Budget Justification, p. 198, https://www.govinfo.gov/content/pkg/BUDGET -2021-APP/pdf/BUDGET -
2021-APP.pdf. 2021-APP.pdf.
117 Other agencies and programs that support private job creation and economic development include the SBA; 117 Other agencies and programs that support private job creation and economic development include the SBA;
Congressional Research Service Congressional Research Service

26 26

link to page link to page 3837 link to page link to page 3231 link to page link to page 3231 The Minority Business Development Agency: An Overview of Its History and Programs

may have been rooted in a view of federalism which argues that these kinds of activities are the may have been rooted in a view of federalism which argues that these kinds of activities are the
responsibilities of state and local governments and the private and nonprofit sectors, not the responsibilities of state and local governments and the private and nonprofit sectors, not the
federal government. Supporters of the MBDA contend that the agency’s mission is critical to the federal government. Supporters of the MBDA contend that the agency’s mission is critical to the
nation’s economic future and that the agency’s programs and services address a number of nation’s economic future and that the agency’s programs and services address a number of
deficiencies and impediments faced by minority entrepreneurs. deficiencies and impediments faced by minority entrepreneurs.
As previously noted, Congress continued to provide the MBDA appropriations even as various As previously noted, Congress continued to provide the MBDA appropriations even as various
Administrations and legislative proposals considered reorganizing the agency, defunding the Administrations and legislative proposals considered reorganizing the agency, defunding the
agency’s activities, or merging it into the SBA. Legislative proposals to transfer or establish the agency’s activities, or merging it into the SBA. Legislative proposals to transfer or establish the
MBDA and its programs are included i MBDA and its programs are included in Appendix C, a and Table A-1 provides a history of provides a history of
Administrations’ annual budget requests and enacted appropriations for the agency since FY1970. Administrations’ annual budget requests and enacted appropriations for the agency since FY1970.
MBDA Annual Budget Requests and Enacted Appropriations, FY1970–FY2021
Table A-1 provides a history of annual budget requests and enacted appropriations for the MBDA provides a history of annual budget requests and enacted appropriations for the MBDA
since FY1970. since FY1970.
Table A-1. MBDA Appropriations, FY1970–FY2021
(in mil ions of dol ars) (in mil ions of dol ars)
Fiscal Year
Admin. Request
Enacted
1970 1970
1.5 1.5
1.2 1.2
1971 1971
1.8 1.8
2.1 2.1
1972 1972
3.5 3.5
43.6 43.6
1972supplemental 1972supplemental
40.0 40.0
40.0 40.0
1973 1973
63.6 63.6
63.9 63.9
1974 1974
74.5 74.5
35.6 35.6
1975 1975
52.0 52.0
52.0 52.0
1976 1976
52.6 52.6
49.8 49.8
1977 1977
0.0 0.0
50.3 50.3
1978 1978
50.3 50.3
49.4 49.4
1979 1979
60.6 60.6
57.9 57.9
1980 1980
58.8 58.8
58.9 58.9
1981 1981
62.9 62.9
59.6 59.6
1982 1982
65.4 65.4
56.6 56.6
1983 1983
50.0 50.0
47.3 47.3
1984 1984
54.0 54.0
53.9 53.9
1985 1985
49.6 49.6
49.6 49.6
1986 1986
44.8 44.8
43.0 43.0

federally chartered regional economic development agencies, includin g the Appalachian Regional Commission, the federally chartered regional economic development agencies, includin g the Appalachian Regional Commission, the
Delta Regional Authority, the Northern Border Regional Commission, and the Denali Commission ; the Economic Delta Regional Authority, the Northern Border Regional Commission, and the Denali Commission ; the Economic
Development Administration and its programs; the rural development programs administered by the Rural Development Administration and its programs; the rural development programs administered by the Rural
Development Administration of the Department of Agriculture; and the Community Development Block Grant Development Administration of the Department of Agriculture; and the Community Development Block Grant
program administered by the Department of Housing and Urban Development. See CRS Report R46683, program administered by the Department of Housing and Urban Development. See CRS Report R46683, Federal
Resources for State and Local Econom ic Developm ent, by Julie M. Lawhorn. , by Julie M. Lawhorn.
Congressional Research Service Congressional Research Service

27 27

The Minority Business Development Agency: An Overview of Its History and Programs

Fiscal Year
Admin. Request
Enacted
1987 1987
45.4 45.4
39.8 39.8
1988 1988
4.6 4.6
39.7 39.7
1989 1989
0.0 0.0
39.7 39.7
1990 1990
0.0 0.0
39.7 39.7
1991 1991
46.2 46.2
41.1 41.1
1992 1992
0 0
42.6 42.6
1993 1993
37.9 37.9
37.9 37.9
1994 1994
46.0 46.0
44.1 44.1
1995 1995
46.2 46.2
43.8 43.8
1996 1996
47.9 47.9
32.0 32.0
1997 1997
34.0 34.0
28.0 28.0
1998 1998
28.0 28.0
25.0 25.0
1999 1999
28.1 28.1
27.3 27.3
2000 2000
27.6 27.6
27.3 27.3
2001 2001
28.2 28.2
27.3 27.3
2002 2002
28.4 28.4
28.3 28.3
2003 2003
29.8 29.8
28.9 28.9
2004 2004
29.5 29.5
28.9 28.9
2005 2005
34.5 34.5
29.9 29.9
2006 2006
30.7 30.7
30.0 30.0
2007 2007
29.6 29.6
30.0 30.0
2008 2008
28.7 28.7
28.6 28.6
2009 2009
29.0 29.0
29.8 29.8
2010 2010
31.0 31.0
31.5 31.5
2011 2011
32.3 32.3
30.3 30.3
2012 2012
32.3 32.3
30.3 30.3
2013 2013
28.7 28.7
27.5 27.5
2014 2014
29.3 29.3
28.0 28.0
2015 2015
28.3 28.3
30.0 30.0
2016 2016
30.0 30.0
32.0 32.0
2017 2017
35.6 35.6
34.0 34.0
2018 2018
6.0 6.0
39.0 39.0
2019 2019
10.0 10.0
40.0 40.0
2020 2020
10.0 10.0
52.0 52.0
2021 2021
10.3 10.3
73.0 73.0
2022 2022
70.0 70.0
NA NA
Source: Budget Appendices of the United States; FY1970-FY2022. Budget Appendices of the United States; FY1970-FY2022.
Congressional Research Service Congressional Research Service

28 28

The Minority Business Development Agency: An Overview of Its History and Programs

Notes: In FY2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) provided In FY2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) provided
the MBDA an additional $10 mil ion in supplemental funding in addition to $42 mil ionthe MBDA an additional $10 mil ion in supplemental funding in addition to $42 mil ion in annual appropriations, in annual appropriations,
for a total of $52 mil ion. The supplemental funding was to assist MBEs with preventing, preparing for, and for a total of $52 mil ion. The supplemental funding was to assist MBEs with preventing, preparing for, and
responding to the COVID-19 pandemic through education, training, and advising grants to minority business responding to the COVID-19 pandemic through education, training, and advising grants to minority business
centers and minority chambers of commerce. In FY2021, the Consolidated Appropriations Actcenters and minority chambers of commerce. In FY2021, the Consolidated Appropriations Act (P.L. 116-260) (P.L. 116-260)
provided the MBDA with $25 mil ion in supplemental funding, in addition to $48 mil ion in annual appropriations. provided the MBDA with $25 mil ion in supplemental funding, in addition to $48 mil ion in annual appropriations.
Congressional Research Service Congressional Research Service

29 29

The Minority Business Development Agency: An Overview of Its History and Programs

Appendix B. Assessments and Evaluations
During its 52-year history, MBDA has been the subject of numerous evaluative reports. These During its 52-year history, MBDA has been the subject of numerous evaluative reports. These
reports have examined the agency’s efficacy in creating and assisting minority businesses, reports have examined the agency’s efficacy in creating and assisting minority businesses,
performance measures used to gauge progress in achieving agency objectives, and program performance measures used to gauge progress in achieving agency objectives, and program
management and duplication issues. management and duplication issues.
National Advisory Council on Minority Business Enterprise 2013
In 2013, the National Advisory Council on Minority Business Enterprise (NACMBE) released a In 2013, the National Advisory Council on Minority Business Enterprise (NACMBE) released a
set of recommendations to improve MBDA’s effectiveness. The NACMBE, which was created set of recommendations to improve MBDA’s effectiveness. The NACMBE, which was created
by the Obama Administration in 2010, was a voluntary body comprised of representatives from by the Obama Administration in 2010, was a voluntary body comprised of representatives from
business and public sectors. The final recommendations included the following: business and public sectors. The final recommendations included the following:
 centralizing and consolidating federal MBE development efforts into one single  centralizing and consolidating federal MBE development efforts into one single
wel -funded agency; wel -funded agency;
 assisting MBEs’ development of long-term contractual relations with larger  assisting MBEs’ development of long-term contractual relations with larger
businesses to facilitate integration; businesses to facilitate integration;
 expanding MBE access to capital by establishing new sources of capital through  expanding MBE access to capital by establishing new sources of capital through
the use of tax credits in exchange for equity capital investments in MBEs or by the use of tax credits in exchange for equity capital investments in MBEs or by
an enterprise bond fund; an enterprise bond fund;
 establishing an MBE Academy to provide ongoing education to MBE owners  establishing an MBE Academy to provide ongoing education to MBE owners
through a public private partnership; and through a public private partnership; and
 building a comprehensive longitudinal database to support long-term policy  building a comprehensive longitudinal database to support long-term policy
analysis of the issues and opportunities.118 analysis of the issues and opportunities.118
PART Evaluation 2007
Starting in 2002, the George W. Bush Administration initiated its Program Assessment Rating Starting in 2002, the George W. Bush Administration initiated its Program Assessment Rating
Tool (PART) as a means to evaluate the effectiveness of federal programs. The PART instrument Tool (PART) as a means to evaluate the effectiveness of federal programs. The PART instrument
was a set of questionnaires focused on four elements: purpose and design; strategic planning; was a set of questionnaires focused on four elements: purpose and design; strategic planning;
program management; and program outcomes. A PART evaluation of the agency conducted in program management; and program outcomes. A PART evaluation of the agency conducted in
2007 found MBDA performance to be Adequate with high marks for program purpose and design 2007 found MBDA performance to be Adequate with high marks for program purpose and design
(80%); strategic planning (75%); and program management (100%).119 Among the highlights, the (80%); strategic planning (75%); and program management (100%).119 Among the highlights, the
evaluation noted the following: evaluation noted the following:
 The program has developed appropriate annual and long-term measures that  The program has developed appropriate annual and long-term measures that
focus on the direct impact of its assistance on business clients. However, more focus on the direct impact of its assistance on business clients. However, more
research and evaluation needs to be conducted on the long-term impact of MBDA research and evaluation needs to be conducted on the long-term impact of MBDA
assistance. assistance.

118 Department of Commerce, 118 Department of Commerce, National Advisory Council on Minority Business Enterprise Recommendations, ,
Washington, DC, December 2013, https://www.mbda.gov/sites/default/files/migrated/files-attachments/Washington, DC, December 2013, https://www.mbda.gov/sites/default/files/migrated/files-attachments/
NACMBEFinalReport041314.PDF. NACMBEFinalReport041314.PDF.
119 U.S. Office of Management and Budget (OMB), 119 U.S. Office of Management and Budget (OMB), Program Assessment: Minority Business Development Agency, ,
Washington, DC, 2007, https://obamawhitehouse.archives.gov/sites/default/files/omb/assets/omb/expectmore/Washington, DC, 2007, https://obamawhitehouse.archives.gov/sites/default/files/omb/assets/omb/expectmore/
summary/10000034.2007.html. summary/10000034.2007.html.
Congressional Research Service Congressional Research Service

30 30

The Minority Business Development Agency: An Overview of Its History and Programs

 The program has strong management. It awards grants using a competitive  The program has strong management. It awards grants using a competitive
process, and provides sufficient oversight of grant activities, including tracking process, and provides sufficient oversight of grant activities, including tracking
of progress towards meeting performance goals. of progress towards meeting performance goals.
 While MBDA is focused on minority smal businesses, there are many other  While MBDA is focused on minority smal businesses, there are many other
sources of minority business assistance and support at the federal, state, and local sources of minority business assistance and support at the federal, state, and local
level. At the federal level, the SBA provides similar assistance through its level. At the federal level, the SBA provides similar assistance through its
entrepreneurial development programs.120 entrepreneurial development programs.120
Office of Inspector General Reports
Past reports of the Commerce Department’s Office of Inspector General (IG) examined various Past reports of the Commerce Department’s Office of Inspector General (IG) examined various
aspects of the agency and its operations. Three of these reports are summarized below.121 aspects of the agency and its operations. Three of these reports are summarized below.121
 A 2017 report by the Department of Commerce IG reviewed MBDA’s  A 2017 report by the Department of Commerce IG reviewed MBDA’s
management of cooperative agreements for the Minority Business Center management of cooperative agreements for the Minority Business Center
Program and found no significant problems. The MBDA director concurred with Program and found no significant problems. The MBDA director concurred with
the report’s recommendations, which directed MBDA to enforce existing and the report’s recommendations, which directed MBDA to enforce existing and
implement new procedures related to oversight, reporting policies and implement new procedures related to oversight, reporting policies and
procedures, and the agency’s methodology for verifying select performance procedures, and the agency’s methodology for verifying select performance
measures.122 measures.122
 A 2006 report by the IG found that MBDA performance measures were  A 2006 report by the IG found that MBDA performance measures were
undermined by inappropriately combining results for three different programs undermined by inappropriately combining results for three different programs
and unreliable performance data. The report was initiated after the agency and unreliable performance data. The report was initiated after the agency
reported a 300% increase in the number of clients assisted during the 2004 reported a 300% increase in the number of clients assisted during the 2004
program year by MBOCs despite a decrease in FY2004 appropriations. The program year by MBOCs despite a decrease in FY2004 appropriations. The
report found that MBDA, in reporting FY2004 results, inappropriately combined report found that MBDA, in reporting FY2004 results, inappropriately combined
results for MBOCs with two other programs—Business Development Centers results for MBOCs with two other programs—Business Development Centers
and the Phoenix program—resulting in the inflation of the number of clients and the Phoenix program—resulting in the inflation of the number of clients
served by MBOCs.123 The MBDA director concurred with the recommendations served by MBOCs.123 The MBDA director concurred with the recommendations
of the report, which directed the MBDA to define clearly key performance of the report, which directed the MBDA to define clearly key performance
measures and the types of actions that may be counted toward measuring the measures and the types of actions that may be counted toward measuring the
“dollar value of contract awards obtained,” and report performance measures of “dollar value of contract awards obtained,” and report performance measures of
its programs separately. its programs separately.
A 1998 audit report by the IG identified deficiencies in the process MBDA used to monitor the A 1998 audit report by the IG identified deficiencies in the process MBDA used to monitor the
performance of a pilot project that would test the viability of the Community-Based Enhancement performance of a pilot project that would test the viability of the Community-Based Enhancement
Services initiatives as an alternative to the Minority Business Development Center. The IG report Services initiatives as an alternative to the Minority Business Development Center. The IG report
found that MBDA’s monitoring of the pilot project failed to follow the agency’s written policies found that MBDA’s monitoring of the pilot project failed to follow the agency’s written policies
and procedures and thus was ineffective in its assessment of the program. The MBDA concurred and procedures and thus was ineffective in its assessment of the program. The MBDA concurred

120 Ibid. 120 Ibid.
121 Another report of note is the U.S. Government Accountability Office, 121 Another report of note is the U.S. Government Accountability Office, Minority Business Development Agency
Needs to Address Program Weaknesses, RCED-91-114, April 16, 1991, http://www.gao.gov/products/RCED-91-114. , RCED-91-114, April 16, 1991, http://www.gao.gov/products/RCED-91-114.
122 Department of Commerce, Office of Inspector General, 122 Department of Commerce, Office of Inspector General, MBDA Can Improve Processes to More Effectively Monitor
Cooperative Agreem ents, Final Report OIG-17-029-A, Washington, DC, September 2017, https://www.oig.doc.gov/, Final Report OIG-17-029-A, Washington, DC, September 2017, https://www.oig.doc.gov/
OIGPublications/2017-09-05_MBDA-Business-Centers_final-report-Secured.pdf. OIGPublications/2017-09-05_MBDA-Business-Centers_final-report-Secured.pdf.
123 Department of Commerce, Office of 123 Department of Commerce, Office of ~~Inspector~~Inspect or General, General, Minority Business Development Agency Value of MBDA
Perform ance Measures Is Underm ined by Inappropriate Com bining of Program Results and Unreliable Perform ance
Data from MBOC Program , FSD-17252-5-0001, Washington, DC, September 2005, https://www.oig.doc.gov/, FSD-17252-5-0001, Washington, DC, September 2005, https://www.oig.doc.gov/
OIGPublications/MBDA-FSD-17252-5-0001-09-2005.pdf. OIGPublications/MBDA-FSD-17252-5-0001-09-2005.pdf.
Congressional Research Service Congressional Research Service

31 31

The Minority Business Development Agency: An Overview of Its History and Programs

with the report’s findings and committed to incorporating the recommendations put forth by the with the report’s findings and committed to incorporating the recommendations put forth by the
report, which included assigning staff with appropriate expertise who wil follow MBDA policies report, which included assigning staff with appropriate expertise who wil follow MBDA policies
and procedures; and developing project specific performance measures and specific reporting and procedures; and developing project specific performance measures and specific reporting
requirements to reflect the specific nature of the project.124 requirements to reflect the specific nature of the project.124

124 U.S. Department of Commerce, Office of the Inspector General, 124 U.S. Department of Commerce, Office of the Inspector General, Minority Business Development Agency
Com m unity-Based Enhancement Services Pilot Project Award Not Effectively Monitored , EDD-9406-8-0002, , EDD-9406-8-0002,
Washington, DC, June 1998, p. 8, https://www.oig.doc.gov/OIGPublications/MBDA-EDD-9406-2-06-1998.pdf. Washington, DC, June 1998, p. 8, https://www.oig.doc.gov/OIGPublications/MBDA-EDD-9406-2-06-1998.pdf.
Congressional Research Service Congressional Research Service

32 32

The Minority Business Development Agency: An Overview of Its History and Programs

Appendix C. Legislative Proposals, 96th Congress-
117th Congress
Since the MBDA’s inception, a number of bil s have been introduced that would have “codified” Since the MBDA’s inception, a number of bil s have been introduced that would have “codified”
the agency or its duties by, for example, establishing, redesignating, or transferring the agency; the agency or its duties by, for example, establishing, redesignating, or transferring the agency;
creating new programs within the agency; or authorizing the agency to carry out certain creating new programs within the agency; or authorizing the agency to carry out certain
functions. The following bil s—introduced in the 96th -117th Congresses—address the agency’s functions. The following bil s—introduced in the 96th -117th Congresses—address the agency’s
statutory authority or its activities. statutory authority or its activities.
 The 96th Congress considered, but did not pass, legislative proposals to provide  The 96th Congress considered, but did not pass, legislative proposals to provide
the MBDA statutory authorization. The House Committee on Smal Business the MBDA statutory authorization. The House Committee on Smal Business
held hearings on bil s (H.R. 6904 and S. 2565) that would have established a held hearings on bil s (H.R. 6904 and S. 2565) that would have established a
permanent MBDA within the Department of Commerce.125 The House bil , permanent MBDA within the Department of Commerce.125 The House bil ,
introduced by Representatives Parren Mitchel and Joseph Addabbo, would have introduced by Representatives Parren Mitchel and Joseph Addabbo, would have
granted the agency the authority to engage in a number of activities in support of granted the agency the authority to engage in a number of activities in support of
the agency’s mission, including equity financing of minority business; financial the agency’s mission, including equity financing of minority business; financial
and technical assistance in penetrating domestic and foreign markets; and and technical assistance in penetrating domestic and foreign markets; and
minority business management education. A Senate bil , S. 2565, introduced by minority business management education. A Senate bil , S. 2565, introduced by
Senator Abraham Ribicoff and backed by the Carter Administration, would have Senator Abraham Ribicoff and backed by the Carter Administration, would have
authorized the creation of a Minority Business Development Agency focused on authorized the creation of a Minority Business Development Agency focused on
the provision of technical assistance to minority firms. The Senate bil included the provision of technical assistance to minority firms. The Senate bil included
much of the language of E.O. 11625. much of the language of E.O. 11625.
 In the 98th Congress, Senator Wil iam Roth introduced the Department of  In the 98th Congress, Senator Wil iam Roth introduced the Department of
International Trade and Industry Act of 1983 (S. 121), which proposed a transfer International Trade and Industry Act of 1983 (S. 121), which proposed a transfer
of the MBDA to the SBA as one of several aspects of an executive branch agency of the MBDA to the SBA as one of several aspects of an executive branch agency
reorganization plan.126 reorganization plan.126
 During the 99th Congress, Representative Parren Mitchel introduced H.R. 4632,  During the 99th Congress, Representative Parren Mitchel introduced H.R. 4632,
a bil that would have denied any appropriations to the MBDA to avoid potential a bil that would have denied any appropriations to the MBDA to avoid potential
duplication of services with the SBA’s Associate Administrator for Minority duplication of services with the SBA’s Associate Administrator for Minority
Smal Business and Capital Ownership Development. The activities of the Smal Business and Capital Ownership Development. The activities of the
MBDA, as wel as any unexpended balances, would have been transferred to the MBDA, as wel as any unexpended balances, would have been transferred to the
SBA Associate Administrator for Minority Smal Business and Capital SBA Associate Administrator for Minority Smal Business and Capital
Ownership Development. Ownership Development.
 During the 101st through the 104th Congresses, Representative Kweisi Mfume  During the 101st through the 104th Congresses, Representative Kweisi Mfume
introduced legislation (H.R. 1769, H.R. 373, H.R. 278, H.R. 114, respectively) introduced legislation (H.R. 1769, H.R. 373, H.R. 278, H.R. 114, respectively)
that would have redesignated MBDA as the Minority Business Development that would have redesignated MBDA as the Minority Business Development
Administration. The bil would have directed the MBDA to assist disadvantaged Administration. The bil would have directed the MBDA to assist disadvantaged
businesses penetrate domestic and foreign markets, encourage firms to form joint businesses penetrate domestic and foreign markets, encourage firms to form joint
ventures to increase their share of the market, provide financial assistance to ventures to increase their share of the market, provide financial assistance to
public and private entities in support of the mission of MBDA, conduct pilot public and private entities in support of the mission of MBDA, conduct pilot
projects that would assist disadvantaged businesses obtain and expand access to projects that would assist disadvantaged businesses obtain and expand access to
capital; support management education efforts, and conduct research to advance capital; support management education efforts, and conduct research to advance

125 U.S. Congress, House Committee on Small Business, Subcommittee on General Oversight and Minority Enterprise, 125 U.S. Congress, House Committee on Small Business, Subcommittee on General Oversight and Minority Enterprise,
Establishment of a Minority Business Development Administration in the Department of Commerce, 96 th Cong., 2nd Establishment of a Minority Business Development Administration in the Department of Commerce, 96 th Cong., 2nd
sess., June 9 and 16, 1980 (Washington, DC: GPO, 1980). sess., June 9 and 16, 1980 (Washington, DC: GPO, 1980).
126 S. 121 would have established a new Cabinet -level agency and eliminated the Department of Commerce. See U.S. 126 S. 121 would have established a new Cabinet -level agency and eliminated the Department of Commerce. See U.S.
Congress, Senate Committee on Government Affairs, Report on the T rade Reorganization Act o f 1983, 98th Cong., 2nd Congress, Senate Committee on Government Affairs, Report on the T rade Reorganization Act o f 1983, 98th Cong., 2nd
sess., April 3, 1984, S.Rept. 98-374 (Washington, DC: GPO, 1984). sess., April 3, 1984, S.Rept. 98-374 (Washington, DC: GPO, 1984).
Congressional Research Service Congressional Research Service

33 33

The Minority Business Development Agency: An Overview of Its History and Programs

the nation’s understanding of the issues and opportunities surrounding minority the nation’s understanding of the issues and opportunities surrounding minority
business enterprises. business enterprises.
 During the 111th Congress, Senator Bob Casey introduced S. 4026, the Minority  During the 111th Congress, Senator Bob Casey introduced S. 4026, the Minority
Business Development Improvements Act of 2010. This bil would have required Business Development Improvements Act of 2010. This bil would have required
the MBDA to establish the Minority Business Development Program and charged the MBDA to establish the Minority Business Development Program and charged
it with providing qualified minority businesses with technical assistance and it with providing qualified minority businesses with technical assistance and
contract procurement assistance. This bil would have also outlined minority contract procurement assistance. This bil would have also outlined minority
business qualification requirements for the program. It would have required that business qualification requirements for the program. It would have required that
(1) not less than 51% of the qualified minority business is directly and (1) not less than 51% of the qualified minority business is directly and
unconditional y owned or controlled by historical y disadvantaged individuals; unconditional y owned or controlled by historical y disadvantaged individuals;
and (2) each officer or other individual exercising control over regular operations and (2) each officer or other individual exercising control over regular operations
would meet the definition of a historical y disadvantaged individual. would meet the definition of a historical y disadvantaged individual.
Additional y, the bil would have authorized the program to provide technical Additional y, the bil would have authorized the program to provide technical
assistance to qualified disadvantaged businesses and support efforts to expand assistance to qualified disadvantaged businesses and support efforts to expand
federal procurement opportunities for disadvantaged businesses. federal procurement opportunities for disadvantaged businesses.
 Also during the 111th Congress, Representative Bobby Rush introduced H.R.  Also during the 111th Congress, Representative Bobby Rush introduced H.R.
4343, the Minority Business Development Improvements Act of 2009, which 4343, the Minority Business Development Improvements Act of 2009, which
would have required the National Director of the Minority Business would have required the National Director of the Minority Business
Development Agency to establish and administer a Minority Business Development Agency to establish and administer a Minority Business
Development Program focused on providing loan guarantees, technical Development Program focused on providing loan guarantees, technical
assistance, and contract procurement assistance to qualified minority businesses. assistance, and contract procurement assistance to qualified minority businesses.
The bil would have defined a qualified minority business as a business that is at The bil would have defined a qualified minority business as a business that is at
least 51% directly owned or controlled by historical y disadvantaged individuals. least 51% directly owned or controlled by historical y disadvantaged individuals.
In addition, the net worth of each principal of the minority business could not In addition, the net worth of each principal of the minority business could not
exceed $2 mil ion. The bil would have directed the MBDA’s National Director exceed $2 mil ion. The bil would have directed the MBDA’s National Director
to (1) establish a database to assist prime contractors in identifying historical y to (1) establish a database to assist prime contractors in identifying historical y
disadvantaged firms for subcontracting, (2) enter into agreements to provide set-disadvantaged firms for subcontracting, (2) enter into agreements to provide set-
aside contracting opportunities to minority businesses, and (3) terminate a aside contracting opportunities to minority businesses, and (3) terminate a
minority business from the program for specified violations. Representative Rush minority business from the program for specified violations. Representative Rush
also introduced H.R. 4929, Expanding Opportunities for Main Street Act of 2010. also introduced H.R. 4929, Expanding Opportunities for Main Street Act of 2010.
This bil included a provision that would have required MBDA to establish a This bil included a provision that would have required MBDA to establish a
Minority Business Development Program with the objective of providing Minority Business Development Program with the objective of providing
technical assistance, loan guarantees, and contract procurement assistance to technical assistance, loan guarantees, and contract procurement assistance to
minority businesses. This bil would have also authorized MBDA to (1) enter into minority businesses. This bil would have also authorized MBDA to (1) enter into
agreements to provide set-aside contracting opportunities to minority businesses; agreements to provide set-aside contracting opportunities to minority businesses;
and (2) terminate a minority business from the program for specified violations. and (2) terminate a minority business from the program for specified violations.
This bil would have also required MBDA to establish a database to assist prime This bil would have also required MBDA to establish a database to assist prime
contractors in identifying historical y disadvantaged firms for subcontracting. contractors in identifying historical y disadvantaged firms for subcontracting.
 During the 112th Congress, Senator Tom Udal introduced S. 1334, Expanding  During the 112th Congress, Senator Tom Udal introduced S. 1334, Expanding
Opportunities for Main Street Act of 2011. An identical bil (H.R. 2424) was Opportunities for Main Street Act of 2011. An identical bil (H.R. 2424) was
introduced by Representative Bobby Rush. Both bil s’ MBDA provisions are introduced by Representative Bobby Rush. Both bil s’ MBDA provisions are
identical to provisions included in H.R. 4929, introduced by Representative Rush identical to provisions included in H.R. 4929, introduced by Representative Rush
during the 111th Congress. during the 111th Congress.
 During the 113th Congress, Representative Bobby Rush introduced H.R. 2551,  During the 113th Congress, Representative Bobby Rush introduced H.R. 2551,
Expanding Opportunities for Main Street Act. Title II of the bil deals exclusively Expanding Opportunities for Main Street Act. Title II of the bil deals exclusively
with the MBDA and includes the same provisions included in H.R. 4343, with the MBDA and includes the same provisions included in H.R. 4343,
introduced during the 111th Congress. introduced during the 111th Congress.
Congressional Research Service Congressional Research Service

34 34

The Minority Business Development Agency: An Overview of Its History and Programs

 During the 114th and 115th Congresses, no bil s were introduced to formal y  During the 114th and 115th Congresses, no bil s were introduced to formal y
establish the agency and its duties by statute. establish the agency and its duties by statute.
 During the 116th Congress, Representative Jerry McNerney introduced H.R.  During the 116th Congress, Representative Jerry McNerney introduced H.R.
1432, the Minority Business Development Act of 2019, to redesignate and 1432, the Minority Business Development Act of 2019, to redesignate and
establish the MBDA as the Minority Business Development Administration. establish the MBDA as the Minority Business Development Administration.
Later in the 116th Congress, Representative Al Green introduced H.R. 6869 and Later in the 116th Congress, Representative Al Green introduced H.R. 6869 and
Senator Benjamin Cardin introduced S. 4208, both titled the Minority Business Senator Benjamin Cardin introduced S. 4208, both titled the Minority Business
Resiliency Act of 2020. Both bil s were designed to codify the agency by Resiliency Act of 2020. Both bil s were designed to codify the agency by
providing it statutory authorization and provide additional funding to help MBEs providing it statutory authorization and provide additional funding to help MBEs
recover from the COVID-19 pandemic, among other activities. Later in 2020, recover from the COVID-19 pandemic, among other activities. Later in 2020,
Senator Benjamin Cardin introduced the Heroes Smal Business Lifeline Act (S. Senator Benjamin Cardin introduced the Heroes Smal Business Lifeline Act (S.
4818), and it included the Minority Business Resiliency Act of 2020 as a subtitle 4818), and it included the Minority Business Resiliency Act of 2020 as a subtitle
of the larger bil . Representative Karen Bass introduced H.R. 8352 and Senator of the larger bil . Representative Karen Bass introduced H.R. 8352 and Senator
Charles Schumer introduced S. 5065, which both included the Minority Business Charles Schumer introduced S. 5065, which both included the Minority Business
Resiliency Act of 2020 as a subtitle of the larger bil . During the 116th Congress, Resiliency Act of 2020 as a subtitle of the larger bil . During the 116th Congress,
versions of the Heroes Act (H.R. 925, S. 4800, H.R. 8406) included language to versions of the Heroes Act (H.R. 925, S. 4800, H.R. 8406) included language to
establish the agency and fund emergency grants for nonprofit organizations and establish the agency and fund emergency grants for nonprofit organizations and
MBEs impacted by the coronavirus pandemic, among other activities. Also MBEs impacted by the coronavirus pandemic, among other activities. Also
during the 116th Congress, Senator Kel y Loeffler introduced S. 5011 to codify during the 116th Congress, Senator Kel y Loeffler introduced S. 5011 to codify
the MBDA and establish an Office of African American Affairs within the the MBDA and establish an Office of African American Affairs within the
agency. agency.
 During the 117th Congress, Senator Benjamin Cardin introduced two versions of  During the 117th Congress, Senator Benjamin Cardin introduced two versions of
the Minority Business Resiliency Act of 2021 (S. 1255 in April 2021) and (S. the Minority Business Resiliency Act of 2021 (S. 1255 in April 2021) and (S.
2068 in June 2021) to make permanent and expand the activities of the MBDA. 2068 in June 2021) to make permanent and expand the activities of the MBDA.
Representative Al Green introduced companion legislation in the House (H.R. Representative Al Green introduced companion legislation in the House (H.R.
2689). Senator Roger Wicker also introduced the Reaching 2689). Senator Roger Wicker also introduced the Reaching
America’s Rural Minority Businesses Act of 2021 (S. 1749). The Minority America’s Rural Minority Businesses Act of 2021 (S. 1749). The Minority
Business Development Act of 2021 (Division K—Infrastructure Investment and Business Development Act of 2021 (Division K—Infrastructure Investment and
Jobs Act, P.L. 117-58), enacted on November 15, 2021, provided statutory Jobs Act, P.L. 117-58), enacted on November 15, 2021, provided statutory
authorization for the agency. authorization for the agency.

Author Information

Julie M. Lawhorn Julie M. Lawhorn

Analyst in Economic Development Policy Analyst in Economic Development Policy

Acknowledgments
Retired CRS analyst Eugene Boyd was the original author of CRS Report R45015, Minority Business Retired CRS analyst Eugene Boyd was the original author of CRS Report R45015, Minority Business
Development Agency: An Overview of Its History and Current Issues, which was published in November Development Agency: An Overview of Its History and Current Issues, which was published in November
2017. Several sections of Mr. Boyd’s report are included in this report. Mr. Boyd received research support 2017. Several sections of Mr. Boyd’s report are included in this report. Mr. Boyd received research support
from Christina Miracle Finch in the preparation of R45015.from Christina Miracle Finch in the preparation of R45015.
Congressional Research Service Congressional Research Service

35 35

The Minority Business Development Agency: An Overview of Its History and Programs

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
shared staff to congressional committees and Members of Congress. It operates solely at the behest of and shared staff to congressional committees and Members of Congress. It operates solely at the behest of and
under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
than public understanding of information that has been provided by CRS to Members of Congress in than public understanding of information that has been provided by CRS to Members of Congress in
connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not
subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in
its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or
material from a third party, you may need to obtain the permission of the copyright holder if you wish to material from a third party, you may need to obtain the permission of the copyright holder if you wish to
copy or otherwise use copyrighted material. copy or otherwise use copyrighted material.

Congressional Research Service Congressional Research Service
R46816 R46816 · VERSION 36 · UPDATED
36 36