The Minority Business Development Agency:
November 30, 2021August 31, 2022
An Overview of Its History and Programs
Julie M. Lawhorn
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
Analyst in Economic
Analyst in Economic
federal agency dedicated to assisting minority business enterprises (MBEs) in overcoming social
federal agency dedicated to assisting minority business enterprises (MBEs) in overcoming social
Development Policy
Development Policy
and economic disadvantages that have limited their participation in the nation’s free enterprise
and economic disadvantages that have limited their participation in the nation’s free enterprise
system. The MBDA’s mission is to support the growth and global competitiveness of the
system. The MBDA’s mission is to support the growth and global competitiveness of the
minority business community. Through a network of local business development centers and minority business community. Through a network of local business development centers and
other initiatives, the MBDA carries out this mission by providing technical and business
other initiatives, the MBDA carries out this mission by providing technical and business
assistance, support, and resources, as well as advocacy and research on behalf of MBEs. assistance, support, and resources, as well as advocacy and research on behalf of MBEs.
The agency was originally established as the Office of Minority Business Enterprise (OMBE) by Executive Order 11458
The agency was originally 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 the OMBE as the signed by President Richard Nixon in 1969. In 1979, the Carter Administration reorganized and renamed the OMBE as the
Minority Business Development Agency (MBDA). Successive Administrations have changed the agency’s focus and 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 authorization by the Minority 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 Jobs Act, IIJA, P.L. 117-58),Business Development Act of 2021 (Division K—Infrastructure Investment and Jobs Act, IIJA, P.L. 117-58),
enacted on enacted on
November 15, 2021. November 15, 2021.
The Carter Administration renamed the agency and refocused its efforts on helping businesses of all sizes
The Carter Administration renamed the agency and refocused its efforts on helping businesses of 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 program,
In 1981, the Reagan Administration established the Minority Business Development Center program,
which became the MBDA’s primary method for delivering technical and management services to minority
which became the MBDA’s primary method for delivering technical and management services to minority
businesses.businesses.
The George H.W. Bush Administration proposed eliminating the agency and transferring its mission to the
The George H.W. Bush Administration proposed eliminating the agency and transferring its mission to the
Small Business Administration (SBA), but ultimately continued the agency as an entity within the
Small Business Administration (SBA), but ultimately continued the agency as an entity within the
Department of Commerce.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 Business
establishment of Rural Business Development Centers and support the activities of the Minority Business
Development Centers and Minority Business Opportunity Committees. Development Centers and Minority Business Opportunity Committees.
The George W. Bush Administration continued efforts to coordinate the MBDA’s programs with the
The George W. Bush Administration continued efforts to coordinate the MBDA’s programs with the
SBA’s programs, pledged to focus MBDA’s resources on minority firms with at least $500,000 or more in
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 Obama Administration placed annual revenues, and to increase their presence in the global economy. The Obama Administration placed
increased emphasis on quantifying the impact of MBDA activities, increasing the efficient delivery of its increased emphasis on quantifying the impact of MBDA activities, increasing the efficient delivery of its
services to minority business communities, and increasing coordination with other federal agencies. services to minority business communities, and increasing coordination with other federal agencies.
The Trump Administration’s first budget request proposed to eliminate the agency, and later budget
The Trump Administration’s first budget request proposed to eliminate the agency, and later 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 million for the MBDA, an amount that
The Biden Administration’s FY2022 Budget Request included $70 million for the MBDA, an amount that
would be $22 million above the FY2021 enacted level, and a new $1 billion grant program to assist MBEs
would be $22 million above the FY2021 enacted level, and a new $1 billion grant program to assist MBEs
access private capital. 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, codified statutorily authorized the agency, codified
select existing programs, and added new programs and roles.
select existing programs, and added new programs and roles.
In August 2022, Donald R. Cravins, Jr. was confirmed by the Senate as the first Under Secretary of Commerce for Minority Business Development.
MBDA’s role and its services have shifted over time to address new and emerging challenges and opportunities. Today, the
MBDA’s role and its services have shifted over time to address new and emerging challenges and opportunities. Today, the
agency’s activities are designed to expand access to capital, markets, and contracts through public and agency’s activities are designed to expand access to capital, markets, and contracts through public and
p rivateprivate sector sector
programs, policy, and research. Technical assistance and other services are provided to MBEs through specialty projects and 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 agencies, nongovernmental organizations, a network of business centers. The MBDA also coordinates with other federal agencies, nongovernmental organizations,
a ndand private firms to expand capital access and contracting and export opportunities for MBEs. Current issues of congressional private firms to expand capital access and contracting and export opportunities for MBEs. Current issues of congressional
interest include the agency’s implementation of new programs to reach MBEs, individuals, and communities; interest include the agency’s implementation of new programs to reach MBEs, individuals, and communities;
and the agency’s the agency’s
funding; the integration of existing activitiesfunding; the integration of existing activities
; and the nomination and confirmation of the person who will lead the agency. Pending appropriations legislation,. The MBDA may seek to hire additional staff or otherwise increase its capacity to MBDA may seek to hire additional staff or otherwise increase its capacity to
re -establish reestablish regional offices, administer existing and new programs, and activate additional roles, such as coordination among federal regional offices, administer existing and new programs, and activate additional roles, such as coordination among federal
agencies and agencies and
the development of new areas of technical assistance and research activities. new areas of technical assistance and research activities.
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The Minority Business Development Agency: An Overview of Its History and Programs
Contents
Introduction ..................................................................................................................................... 1
MBDA Origins and Authority ......................................................................................................... 2
E.O. 11625—Expanding Agency Role ............................................................................... 3
Agency Reorganization ....................................................................................................... 3 Agency Establishment ........... 3
Agency Establishment............................................................................................. 4
Funding History .................................................................................................................. 7 6
Agency Overview ............................................................................................................................ 8
Mission and Structure ........ 9
Mission and Structure................................................................................................. 9
MBDA Clients ...... 8 MBDA Clients ......................................................................................................................... 10
Programs .................................................................................................................................. 11
Business Centers ................................................................................................................ 11 Specialty Centers .......... 11
Specialty Centers .................................................................................................... 12
Rural Business Centers .............................................................................................. 14....... 13
Entrepreneurship Education Development Activities ....................................................... 14
Related Initiatives, Events, and Partnerships .................................................................... 14
Performance Metrics ............................................................................................................... 18
Considerations for Congress .......................................................................................................... 19
Implementation of Enabling Legislation ................................................................................. 20 Duplication of SBA Activities ............ 19
Duplication of SBA Activities..................................................................................... 20
Additional Considerations ....................................................................................................... 21
Figures
Figure 1. OMBE/MBDA Appropriations History: FY1970 to FY2021FY2022 .......................................... 7
Tables
Table 1. MBDA Performance Metrics, FY2016–FY2020FY2021 ............................................................. 19
Table A-1. MBDA Appropriations, FY1970–FY2021 FY2022 .................................................................. 27
Appendixes
Appendix A. Additional Agency History ....................................................................................... 23
Appendix B. Assessments and Evaluations ................................................................................... 30
Appendix C. Legislative Proposals, 96th Congress-117th Congress ............................................... 33
Contacts
Author Information ........................................................................................................................ 35
Congressional Research Service
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The Minority Business Development Agency: An Overview of Its History and Programs
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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 engeschallenges, Congress and many successive presidential administrations since the Nixon , 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 MBDAagency statutory authorization. For example, in FY2021, the MBDA
received $48 received $48
mil ion million in in
annual appropriations and an additional $25 annual appropriations and an additional $25
mil ion million in supplemental appropriations to assist 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
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
BusinessBusiness
Enterprise as a businessEnterprise as a business
that that is ownedis owned
or controlled by one or more socially or economically disadvantaged or controlled by one or more socially or economically disadvantaged
persons. Sociallypersons. Socially
disadvantaged disadvantaged persons means those persons who have been subjectedpersons means those persons who have been subjected
to cultural, racial, or ethnic to cultural, racial, or ethnic
prejudiceprejudice
because because of their identity as members of a group without regardof their identity as members of a group without regard
to their individual qualities.to their individual qualities.
Economically Economically
disadvantageddisadvantaged
persons means those persons whose ability to compete in the free enterprise system has been impaired persons means those persons whose ability to compete in the free enterprise system has been impaired
duedue
to diminished capital and credit opportunities because of their identity as members of a group without regard to to diminished capital and credit opportunities because of their identity as members of a group without regard to
their individualtheir individual
qualities,qualities,
as compared to others in the same line of businessas compared to others in the same line of business
and competitive market area. Person means and competitive market area. Person means
a citizen of the United States or an alien lawfullya citizen of the United States or an alien lawfully
admitted for permanent residence.admitted for permanent residence.
2 U.S.
2 U.S.
Congress, HouseCongress, House
Committee on Small Business,Committee on Small Business,
Subcommittee on GeneralSubcommittee on General
Oversight and Minority Enterprise, Oversight and Minority Enterprise,
Establishm entEstablishment of a Minority Business Developm ent Adm inistration in the Departm ent of Com m erceDevelopment Administration in the Department of Commerce, 96th Congress, 2nd , 96th Congress, 2nd
sess.,sess.,
June 9, 1980, and JuneJune 9, 1980, and June
16, 1980 (Washington, DC: GPO, 1980); MBDA, “16, 1980 (Washington, DC: GPO, 1980); MBDA, “
Demographic Demographic
T rendsTrends Publications,” Publications,”
https://www.mbda.gov/page/demographic-trends-publications;https://www.mbda.gov/page/demographic-trends-publications;
and Robert W. Fairlie and Aliciaand Robert W. Fairlie and Alicia
M. Robb,M. Robb,
Race and
Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States (Cambridge, (Cambridge,
MA: MA:
T heThe MIT 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. .
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The Minority Business Development Agency: An Overview of Its History and Programs
MBDA Origins and Authority
The MBDA was original y
added new programs and roles.4 In August 2022, Donald R. Cravins, Jr. was confirmed by the Senate as the first Under Secretary of Commerce for Minority Business Development.5
MBDA Origins and Authority The MBDA was originally established as the Office of Minority Business Enterprise (OMBE) by established as the Office of Minority Business Enterprise (OMBE) by
President Richard Nixon with the signing of Executive Order (E.O.) 11458 on President Richard Nixon with the signing of Executive Order (E.O.) 11458 on
Marc hMarch 5, 1969. 5, 1969.
56 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 political power as
wel .6well.7 Eager to demonstrate his commitment to these goals and pressed by civil Eager to demonstrate his commitment to these goals and pressed by civil
rights advocates to rights advocates to
fulfil fulfill his campaign promise, President Nixon chose to bypass Congress and his campaign promise, President Nixon chose to bypass Congress and
the legislativethe legislative
process, opting to establish a Cabinet-level committee on minority enterprise.process, opting to establish a Cabinet-level committee on minority enterprise.
78 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 ACMEACME played a significant role in shaping the OMBE’s agenda. The ACME
also helped develop also helped develop
efforts to increase minority participation in franchises.efforts to increase minority participation in franchises.
8
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 59
4 P.L. 117-58, 135 Stat. 429, November 15, 2021. 5 Congress.gov, “Nomination: Donald R Cravins—Department of Commerce,” PN2062, https://www.congress.gov/nomination/117th-congress/2062?q=%7B%22search%22%3A%22cravins%22%7D.
6 Executive Order 11458, “Prescribing Arrangements for Developing and Coordinating a National Program for Executive Order 11458, “Prescribing Arrangements for Developing and Coordinating a National Program for
Minority BusinessMinority Business
Enterprise,” 34Enterprise,” 34
Federal Register 4937, March 5, 1969. 4937, March 5, 1969.
6
7 Dean Kotlowski, “Black Power-Nixon Style: Dean Kotlowski, “Black Power-Nixon Style:
T heThe Nixon Administration and Minority Business Enterprise,” 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.
78 Members of the committee included Secretary of Commerce Maurice Members of the committee included Secretary of Commerce Maurice
Stans, Secretary of Health, Education, and Stans, Secretary of Health, Education, and
Welfare Robert H. Finch, Secretary of HousingWelfare Robert H. Finch, Secretary of Housing
and Urban Development George Romneyand Urban Development George Romney
, Secretary of Agriculture , Secretary of Agriculture
Clifford Hardin, and Secretary of Clifford Hardin, and Secretary of
T ransportationTransportation John Volpe. See Dean Kotlowski, “ John Volpe. See Dean Kotlowski, “
Black Power-Nixon Style: Black Power-Nixon Style:
T heThe Nixon Administration and Minority BusinessNixon Administration and Minority Business
Enterprise,” Enterprise,”
The Business History Review, vol. 72, no. 3 (Autumn 1998), , vol. 72, no. 3 (Autumn 1998),
p. 420. p. 420.
8
9 In 1969, eager to demonstrate results, the OMBE co-sponsored with the Small In 1969, eager to demonstrate results, the OMBE co-sponsored with the Small
Business Business Administration (SBA) what Administration (SBA) what
waswas
dubbed dubbed the 25 x 25 x 2 program, which wasthe 25 x 25 x 2 program, which was
one of two federal programs focusedone of two federal programs focused
on increasing minority on increasing minority
participation in the franchise industry. participation in the franchise industry.
T heThe plan involved the OMBE, during eight separate rounds, recruiting 25 plan involved the OMBE, during eight separate rounds, recruiting 25
national franchisors who each wouldnational franchisors who each would
commit to awardingcommit to awarding
25 franchises to minority owners each year for a two25 franchises to minority owners each year for a two
-year -year
period. Seeperiod. See
U.S.U.S.
Congress,Congress,
Senate Select Committee on Small Business,Senate Select Committee on Small Business,
The Econom ic The Economic Effects of Franchising, ,
committee print, prepared for the Small Businesscommittee print, prepared for the Small Business
Administration by Urban B. Ozanne, D.B.A. and ShelbyAdministration 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 (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 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.
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D. Hunt. Ph.
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The Minority Business Development Agency: An Overview of Its History and Programs
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 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 individualthe Commerce Secretary’s decision “not to become involved in individual
cases or with programs 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
To address concerns raised during the OMBE’s initial
two years of operations, President Nixon, 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.and Coordinating a National Program for Minority Business Enterprise.
910 The new E.O. was 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
This order gives the
Secretary a clearSecretary a clear
mandate to establish and carry out Federal policy mandate to establish and carry out Federal policy
concerningconcerning
minority enterpriseminority enterprise
and to coordinate theand to coordinate the
related efforts of all Federal related efforts of all Federal
departmentsdepartments
and agencies.and agencies.
It also directsIt also directs
the departmentsthe departments
and agenciesand agencies
to develop 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.cooperate in expanding the overall Federal effort.
10 11
In addition to reinforcing the original E.O.’s objectives, the new E.O.
In addition to reinforcing the original E.O.’s objectives, the new E.O.
cal edcalled for the OMBE to 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 marked an evolution in the agency’s role from an advisory one undertaken
principal yprincipally through the 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.authorizing the agency and its mission.
1112 In 1979, the Carter Administration reorganized and 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 fragmented, heavily focused on
smal small businesses, and favoring the number of firms assisted rather 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
economy.”12
9
D, Graduate School of Business, the University of Wisconsin, 92nd Cong., 1st sess., September 8, 1971, committee print (Washington, DC: GPO, 1971), pp. 51-55 and pp. 187-198. Two 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 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.
10 Executive Order 11625, “Prescribing Additional Arrangements for Developing and Executive Order 11625, “Prescribing Additional Arrangements for Developing and
Coor dinatingCoordinating a National Program a National Program
for Minority Businessfor Minority Business
Enterprise,” 36 Enterprise,” 36
Federal Register 19967-19970, October 13, 1971. 19967-19970, October 13, 1971.
1011 U.S. U.S.
President (Nixon), “Special MessagePresident (Nixon), “Special Message
to the Congress Urgingto the Congress Urging
Expansion of the Minority Business Enterprise 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.
1112 For a summary of legislative activities related to the establishment of a Minority Business Development For a summary of legislative activities related to the establishment of a Minority Business Development
Administration in the 96th Congress, 2nd sess.,Administration in the 96th Congress, 2nd sess.,
see H.Rept. 96-1542, pp. 129-138.
see H.Rept. 96-1542, pp. 129-138.
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 sess., June 9, 1980, and June 16, 1980 (Washington, DC: GPO, 1980), pp. 2 -3.
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The Minority Business Development Agency: An Overview of Its History and Programs
See “Additional
in growth industries that produced jobs, stabilized communities, and improved the overall economy.”13
See “Additional Agency History” inAgency History” in
Appendix A for information about the MBDA’s history for information about the MBDA’s history
since the Carter Administration. See “Legislativesince the Carter Administration. See “Legislative
Proposals, 96th Congress-117th Congress” in Proposals, 96th Congress-117th Congress” in
Appendix C forfor
a summary of a summary of
bil sbills related to the MBDA related to the MBDA
and its activities. and its activities.
Agency Establishment
Congress considered proposals to codify the MBDA for decades (
Congress considered proposals to codify the MBDA for decades (
seesee 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 (36
Fed. Reg.Federal Register 19967; relating to prescribing additional arrangements for developing and 19967; relating to prescribing additional arrangements for developing and
coordinating a national program for minority business enterprise).”coordinating a national program for minority business enterprise).”
13 14
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.offices.
1415 The act directs the agency to submit a report to Congress by March 15, 2022, that 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
how the agency
wil will function in relation to the operations carried out by other function in relation to the operations carried out by other
DOC components.
DOC components.
1516
The MBDA
The MBDA
is also required to submit two reports to Congress by November 15, 2022. The first 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.address the ways that MBEs can address gaps in the supply chain.
1617 The act directs the MBDA 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.organizations.
1718 In addition to biennial In addition to biennial
reports, the act further directs the MBDA to submit reports reports, the act further directs the MBDA to submit reports
on its entrepreneurship education activities and on its entrepreneurship education activities and
thea study on alternative financing solutions. study on alternative financing solutions.
1819 The 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.programs by no later than November 15, 2025.
1920
The Minority Business Development Act of 2021 authorized to be appropriated $110
The Minority Business Development Act of 2021 authorized to be appropriated $110
mil ion million for for
the MBDAthe MBDA
for each for each
offiscal year, FY2021 through FY2025. The act directed the MBDA to FY2021 through FY2025. The act directed the MBDA to
al ocate the
allocate the majority of annual appropriations, if approved, to the Business Center programmajority of annual appropriations, if approved, to the Business Center program
, and to reserve
13 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, 96th Congress, 2nd sess., June 9, 1980, and June 16, 1980 (Washington, DC: GPO, 1980), pp. 2-3.
14 P.L. 117-58, Division K, Title VII, Sec. 100707. 15 and to reserve $20 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
agencies are, under continuing appropriations for FY2022.
13 P.L. 117-58, Division K, T itle VII, Sec. 100707. 14 P.L. 117-58, Sec. 100003, Sec. 100001, and Sec. 100401. P.L. 117-58, Sec. 100003, Sec. 100001, and Sec. 100401.
1516 P.L. 117-58, Sec. 100003. P.L. 117-58, Sec. 100003.
1617 P.L. 117-58, Sec. 100303 and Sec. 100304. P.L. 117-58, Sec. 100303 and Sec. 100304.
1718 P.L. 117-58, Sec. 100401. P.L. 117-58, Sec. 100401.
1819 P.L. 117-58, Sec. 100705, Sec. 100203, and Sec. 100202. P.L. 117-58, Sec. 100705, Sec. 100203, and Sec. 100202.
19 P.L. 117-58, Sec. 100704. 20 P.L. 117-58, Sec. 20 P.L. 117-58, Sec.
100708100704. .
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$20 million each fiscal year for the Rural Business Center program.21 The MBDA received $73 million in appropriations for FY2021 and $55 million in appropriations for FY2022.
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, includingactivities, including
the following: :
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 Grants to
historical yhistorically black colleges and universities (HBCUs) and minority- 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 Coordination and convening activities among federal agencies regarding
social y
or economical ysocially
or economically disadvantaged businesses (Title VI). 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 MBDAprograms and activities, including the MBDA
Business Center and Specialty Center programs Business Center and Specialty Center programs
and the MBDA’s research, evaluation, outreach, and informational activities.and the MBDA’s research, evaluation, outreach, and informational activities.
2122 For instance, the 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 “offers services in “
al all regions of the United States.”regions of the United States.”
2223 The act also recommended increased The act also recommended increased
funding for the Business Center program, with the majority of MBDAfunding for the Business Center program, with the majority of MBDA
funding, as appropriated, 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 MBDA Business Center program to serve MBEs in rural areas.Business Center program to serve MBEs in rural areas.
23 24
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 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
21
21 P.L. 117-58, Sec. 100708. 22 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itleTitle I. I.
2223 P.L. 117-58, Sec. 100111. Additionally, the Under Secretary will develop selection criteria for the MBDA Business P.L. 117-58, Sec. 100111. Additionally, the Under Secretary will develop selection criteria for the MBDA Business
Center program. Center program.
T heThe Minority Business Development Act of Minority Business Development Act of
2 0212021 provides three options for consideration for the 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 disadvantaged51 percent socially or economically disadvantaged
individuals,individuals,
as determined in accordance with data collected byas determined in accordance with data collected by
the the
BureauBureau
of the Census;of the Census;
(ii) a federally recognized area of economic distress; or (iii) a State that is underserved(ii) a federally recognized area of economic distress; or (iii) a State that is underserved
with with
respect to the MBDA Businessrespect to the MBDA Business
Center Program, as defined by the Under Secretary.” SeeCenter Program, as defined by the Under Secretary.” See
P.L. 117-58, Sec. 100114. P.L. 117-58, Sec. 100114.
2324 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itle III. 24 P.L. 117-58, Sec. 100103Title III. .
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The Minority Business Development Agency: An Overview of Its History and Programs
undertake certain studies and outreach roles.25 For instance, Section 100103 noted that the agency shall conduct research, studies, and surveys, and shall “provide outreach, educational services, and technical assistance in, at a minimum, the five most commonly spoken languages in the United States to ensure that limited English proficient individualsUnited States to ensure that limited English proficient individuals
receive cultural y and
linguistical y receive culturally and linguistically appropriate access to the services and information provided by the Agency.”appropriate access to the services and information provided by the Agency.”
25 26
The Minority Business Development Act of 2021 also authorizes the MBDA
The Minority Business Development Act of 2021 also authorizes the MBDA
to implement 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 activities
specifical yspecifically with HBCUs with HBCUs
and MSIs, among other partners. The entrepreneurial 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 and other education and training opportunities for
social y or economical ysocially or economically disadvantaged disadvantaged
individuals individuals in the fields of business, management, and entrepreneurship.in the fields of business, management, and entrepreneurship.
26 27
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 MBDAspecified that the MBDA
may consider nonprofit organizations located in a may consider nonprofit organizations located in a
federal yfederally recognized 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 (e.g., community-based organizations, organizations with annual budgets under $1
mil ionmillion, and , and
organizations that serve low-income and rural communities).organizations that serve low-income and rural communities).
2728 Also, once established, the 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—members—
wil will advise the MBDAadvise the MBDA
on plans, programs, and activities that relate to on plans, programs, and activities that relate to
social y or
economical ysocially or economically disadvantaged business concerns. disadvantaged business concerns.
28 29
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.communities and MBEs.
2930 For instance, once established, the new Rural Business Centers For instance, once established, the new Rural Business Centers
wil will 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.MBEs compared to more populous regions or metropolitan areas.
30 The re-establishment31 The reestablishment of of
regional MBDAregional MBDA
offices may further extend the services of the MBDA through their engagement 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.and local procurement offices.
31 Additional y32 Additionally, the agency’s authorizing statute involves the Under , 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.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 various Administrations considered reorganizing it, authorizing it, defunding its activities, or
merging it into the Smal Business Administration (SBA) (see Appendix A).
2533
25 P.L. 117-58, Sec. 100103. 26 Additionally, the bill Additionally, the bill
encouraged the MBDA to useencouraged the MBDA to use
the common languages spoken by the groups served in their the common languages spoken by the groups served in their
outreach and communication efforts regarding the MBDAoutreach and communication efforts regarding the MBDA
Business Business Centers. SeeCenters. See
P.L. 117-58, Sec. 100116. P.L. 117-58, Sec. 100116.
26
27 P.L. 117-58, Sec. 100203. P.L. 117-58, Sec. 100203.
2728 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itleTitle IV. IV.
2829 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itleTitle V. V.
2930 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itleTitle I. I.
3031 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itleTitle III directs the Rural Business III directs the Rural Business
Center program to primarily serve clients that are Center program to primarily serve clients that are
located 50 mileslocated 50 miles
from an MBDA Businessfrom an MBDA Business
Center. Center.
3132 P.L. 117-58, Sec. 100003. P.L. 117-58, Sec. 100003.
3233 P.L. 117-58, Sec. 100102. P.L. 117-58, Sec. 100102.
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The Minority Business Development Agency: An Overview of Its History and Programs
Funding History
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 merging it into the Small Business Administration (SBA) (see Appendix A).
Figure 1 provides a visual representation of OMBE/MBDAprovides a visual representation of OMBE/MBDA
appropriations from FY1970 to appropriations from FY1970 to
FY2021FY2022. 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 arsFY2022
(in millions of dollars) )
Source: Budget Appendices of the United States. Budget Appendices of the United States.
NotesNote: Includes supplemental appropriations. Includes supplemental appropriations.
FY2020 and FY2021 Appropriations
FY2022 Appropriations The Consolidated Appropriations Act, The Consolidated Appropriations Act,
20202022 (P.L. (P.L.
116-93117-103) funded) funded
the MBDA at $ MBDA at $
42 mil ion55 million. In the . In the
explanatory statement accompanying the explanatory statement accompanying the
FY2020 agency appropriations reportact, Congress , Congress
directed the directed the
MBDA to al ocateagency to allocate no less no less
than $21 million than $18 mil ion to the business center and specialty to the business center and specialty
project center program and $project center program and $
7 mil ion10 million for the Broad Agency for the Broad Agency
Announcements (BAAs).33 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 to assist MBEs with 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
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,” Congressional Record, vol. 165, No. 204-Book II (December 17, 2019), p. H10961.
MBDA may use Announcement (BAA) program,34 with an emphasis on “innovation and entrepreneurship, formerly incarcerated persons, global women’s empowerment, virtual business development, and access to finance.” Congress further directed the agency to allocate $3 million of the BAA funding to continue the entrepreneurship pilot program with Historically Black
34 MBDA may use Broad Agency Agreements (BAAs) to solicit responses to specific challenges or opportunities.Broad Agency Agreements (BAAs) to solicit responses to specific challenges or opportunities.
According to MBDA, a BAAAccording to MBDA, a BAA
“ “is a competitive mechanism to encourage new programs, education, outreach, is a competitive mechanism to encourage new programs, education, outreach,
innovative projects or sponsorships that are not addressed through the MBDA businessinnovative projects or sponsorships that are not addressed through the MBDA business
center program.center program.
” See MBDA, ” See MBDA,
“Frequently Asked Questions—2018 MBDA Broad“Frequently Asked Questions—2018 MBDA Broad
Agency Announcement,” https://www.mbda.gov/sites/default/files/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-cares-act-funding. According to the MBDA’s FY2020 Annual Perform ance Sum mary, CARES Act grants supported “education, training, and advising small and minority-owned businesses in their recovery from the effects of the
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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 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 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
Black
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Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs)Colleges and Universities (HBCUs) and Hispanic Serving Institutions (HSIs)
Entrepreneurship Pilot and to “include, Alaska Native Serving Institutions, Native Hawaiian Serving Institutions, and Tribal Colleges and Universities and Alaska Native and Tribal Colleges and Universities and Alaska Native and
Native Native
Hawai anHawaiian Serving Institutions.” Congress also directed the agency to allocate $3 million of BAA funding to Native American business development.35
Recent Administration’s Budget Requests and Related Activities The Biden Administration proposed appropriations for the MBDA at the full amount authorized in the Infrastructure, Investment, and Jobs Act (P.L. 117-58). The Biden Administration’s FY2023 budget request included $110 million for the MBDA, an amount that would be twice the FY2022 enacted level for annual appropriations.36
In addition to recommending increased appropriations for MBDA, since FY2021, the Biden Administration has initiated other activities to support small, disadvantaged businesses, including MBEs. For example, in June 2021, the Biden Administration 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 COVID-19 pandemic, including “identifying and accessing local, state and Federal government
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 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
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 recommended, as part of its American Jobs Plan, a new $1
bil ionbillion grant grant
program to program to
assisthelp minority-owned manufacturers access private capital as one of several, minority-owned manufacturers access private capital as one of several,
proposed initiatives to address the racial wealth gap.proposed initiatives to address the racial wealth gap.
38 Additional y, At the same time, the Administration increased by 50% the goal for the share of contracts going to small disadvantaged businesses (including minority-owned businesses) by 2026.37 Additionally, on May 28, 2021, President on May 28, 2021, President
Biden signed an executive order establishing the White House Biden signed an executive order establishing the White House
Initiative on Initiative on Asian Initiative on Asian
Americans, Native Americans, Native
Hawai ansHawaiians, and Pacific Islanders (AA and NHPI), which is designed, in part, , 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.”funding, grants, and contracts.”
39
COVID-19 crisis.” See https://www.mbda.gov/performance.
35Rep. Nita Lowey, “Explanatory Statement Submitted by Mrs. Lowey, Chairwoman of the House Committee on Appropriations Regarding H.R. 133, Consolidated Appropriations Act, 2021 (Division B—Commerce, Justice, Science, and Related Agencies),” Congressional Record, vol. 166, No. 218-Book III (December 21, 2020), p. H7923 . 36 P.L. 116-260. 37 OMB “Appendix: Budget of the U.S. Government, Fiscal Year 2022” (2021), p. 205, 38
Agency Overview
Mission and Structure 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 and private sector programs, policy, and research. Technical and managerial assistance and other
35 See explanatory statement accompanying the Consolidated Appropriations Act, 2022 (P.L. 117-103) printed in the March 9, 2022, Congressional Record (p. H1773), vol. 168, No. 42, https://www.congress.gov/117/crec/2022/03/09/168/42/CREC-2022-03-09-pt3-PgH1709.pdf.
36 OMB “Budget of the U.S. Government, Fiscal Year 2023” (2022), https://www.whitehouse.gov/wp-content/uploads/2022/03/budget_fy2023.pdf, and “Appendix: Budget of the U.S. Government, Fiscal Year 2023” (2022), pp. 202-203, https://www.whitehouse.gov/https://www.whitehouse.gov/
wp-content/uploads/wp-content/uploads/
2021/05/com_fy22.pdf. In FY2021, P.L. 116-2602022/03/com_fy2023.pdf. In FY2022, P.L. 117-103 provided the provided the
MBDA $55MBDA $25 in supplemental funding for assistance in response to the COVID-19 pandemic, in addition to $48 million in annual appropriations million in annual appropriations
, for a total of $73 million.
38.
37 White House, “ White House, “
FACT SHEET FACT SHEET: Biden-Harris: Biden-Harris
Administration Announces New Actions to BuildAdministration Announces New Actions to Build
Black Wealth and 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/fact06/01/fact
-sheet-biden-harris-administration-announces-new-actions-to-build-black-wealth-and-narrow-the-racial--sheet-biden-harris-administration-announces-new-actions-to-build-black-wealth-and-narrow-the-racial-
wealth-gap/. wealth-gap/.
T heThe Appendix to the President’s FY2022 Budget Request Appendix to the President’s FY2022 Budget Request
also also
notesnoted that, “ that, “
The American Jobs Plan The American Jobs Plan
proposes $1 billion to support small businessproposes $1 billion to support small business
access access to credit, venture capital, and research to credit, venture capital, and research
&and development dollars. development dollars.
Ensuring equitableEnsuring equitable
access access to capital is essential to supporting the growth ofto capital is essential to supporting the growth of
entrepreneurship in communities of color entrepreneurship in communities of color
and undeservedand undeserved
communities.” Seecommunities.” See
OMB “Appendix: BudgetOMB “Appendix: Budget
of the U.S.of the U.S.
Government, Fiscal Year 2022” (2021), p. 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.
3938 White House, “FACT White House, “FACT
SHEET SHEET: President Biden Establishes: President Biden Establishes
the White House Initiative on Asian Americans, Native the White House Initiative on Asian Americans, Native
Hawaiians,Hawaiians,
and Pacific Islanders,” May 28, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/and Pacific Islanders,” May 28, 2021, https://www.whitehouse.gov/briefing-room/statements-releases/
2021/05/28/fact-sheet-president2021/05/28/fact-sheet-president
-biden-establishes-the-white-house-initiative-on-asian-americans-native-hawaiians-and--biden-establishes-the-white-house-initiative-on-asian-americans-native-hawaiians-and-
pacific-islanders/. pacific-islanders/.
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Agency Overview
Mission and Structure
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 and private sector programs, policy, and research. Technical and managerial assistance and other
services are
services are
principal yprincipally provided to MBEs through a network of Business Centers, Specialty provided to MBEs through a network of Business Centers, Specialty
Centers, and other projects and initiatives.Centers, and other projects and initiatives.
4039 The MBDA The MBDA
and its network partners coordinate with 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.export opportunities for MBEs.
41 40
Minority Businesses Face Distinct Challenges
According to MBDA and other sources,
According to MBDA and other sources,
MBEs have unique MBEs have unique
chal engeschallenges in accessing capital, contracts, and other in accessing capital, contracts, and other
areas of business development.areas of business development.
Below are findings from a FY2020 MBDA summaryBelow are findings from a FY2020 MBDA summary
of key chal enges:
Overal , minority-owned firms are smal er of key challenges:
Overall, minority-owned firms are smaller in size and scale than their nonminority counterparts. The gap in in size and scale than their nonminority counterparts. The gap in
combined gross receipts is 10:1, with only 2% of minoritycombined gross receipts is 10:1, with only 2% of minority
firms firms generating gross receiptsgenerating gross receipts
of moreof more
than $1 than $1
mil ionmil ion
and only 11% of minority-ownedand only 11% of minority-owned
firms having paid employees. firms having paid employees.
In terms of capital access,
In terms of capital access,
minority firmsminority firms
are moreare more
likely likely to be denied loans at a rate nearly three times to be denied loans at a rate nearly three times
higher than nonminorityhigher than nonminority
firms,firms,
and minorityand minority
firms firms are likelyare likely
to pay higher interest rates of, on average 7.8%, to pay higher interest rates of, on average 7.8%,
while nonminority firmswhile nonminority firms
pay on average 6.4%. pay on average 6.4%.
Additional y, minority firms are less likely to receive Additionally, minority firms are less likely to receive loans, and loans, and
when approved, receivewhen approved, receive
lower lower loan amounts. loan amounts.
In terms of contracts, minority firms
In terms of contracts, minority firms
secure secure a lower number and dol ar amount of contracts in proportion to a lower number and dol ar amount of contracts in proportion to
the number of available minoritythe number of available minority
firms firms in the relevant market.in the relevant market.
Additional y, Additionally, studies indicate that market and studies indicate that market and
other barriersother barriers
impact minorityimpact minority
firms’firms’
access to contracts.access to contracts.
4241
Source: MBDA, MBDA,
“The Minority Business“The Minority Business
Development Development Agency—Vital to Making AmericaAgency—Vital to Making America
Great,” 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.intergovernmental affairs.
4342 The Office of Business Development coordinated the agency’s The Office of Business Development coordinated the agency’s
40business center activities, and plans and implements business development strategies (e.g., strategies related to access to capital, contracts, emerging domestic and international markets, and global supply chains).43 In 2005, MBDA established the Office of Native American Business Development within the Office of Business Development.44 In FY2020, MBDA completed its
39 MBDA, “Overview,” https://www.mbda.gov/who-we-are/overview. MBDA, “Overview,” https://www.mbda.gov/who-we-are/overview.
4140 MBDA, “2020 Year in Review,” MBDA, “2020 Year in Review,”
https://www.mbda.gov/2020-year-in-review; MBDA,https://www.mbda.gov/2020-year-in-review; MBDA,
“Global Business:“Global Business:
Strategic Strategic
Partners,” https://www.mbda.gov/page/global-business-strategic-partners;Partners,” https://www.mbda.gov/page/global-business-strategic-partners;
and T estimony and Testimony of MBDA Director, of MBDA Director,
Alejandra Castillo, in U.S.Alejandra Castillo, in U.S.
Congress,Congress,
Senate Committee on Indian Affairs, Senate Committee on Indian Affairs,
Accessing Capital in Indian Country, 114th 114th
Congress, 1st sess.,Congress, 1st sess.,
June 17, 2015, S.Hrg. 114-97 (Washington, DC: GPO, 2015), https://www.congress.gov/event/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 heThe SBA, SBA,
for instance, is a sourcefor instance, is a source
of fundingof funding
for minority small businesses,for minority small businesses,
and it partners with MBDAand it partners with MBDA
in providing in providing
assistance to minority firms. assistance to minority firms.
T echnicalTechnical and management assistance from MBDA and its partners may facilitate and management assistance from MBDA and its partners may facilitate
minority businessminority business
entities to qualify for SBA’sentities to qualify for SBA’s
Section (8)(a) small disadvantage businessSection (8)(a) small disadvantage business
and other programs. and other programs.
42
41 As noted in MBDA’s As noted in MBDA’s
summary of key challenges facing minority businesses.summary of key challenges facing minority businesses.
See See MBDA, “MBDA, “
T heThe Minority Business 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-greatagency-vital-making-america-great
. .
4342 U.S. U.S.
Department of Commerce (DOC), 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.
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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 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 43 MBDA, “Chief of the Office of Business Development,” https://www.mbda.gov/who-we-are/leadership/Chief%20of%20the%20Office%20of%20Business%20Development.
44 DOC, FY2016 MBDA Congressional Budget Justification, p. 17, https://www.osec.doc.gov/bmi/budget/FY16CJ/MBDA_FY_2016_CJ_Final.pdf.
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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.development based on economic and industry trends.
46 45
The organization and duties of MBDA
The organization and duties of MBDA
offices and the location of regional offices offices and the location of regional offices
wil likely shift
followingwill likely shift due to the enactment of the Minority Business Development Act of 2021 the Minority Business Development Act of 2021
’s enactment (see (see
“Agency
Establishment”). Additional y, the MBDA wil ). Additionally, the MBDA will be led by an Under Secretary of Commerce be led by an Under Secretary of Commerce
to be
recently selected by the President and confirmed by the Senate.selected by the President and confirmed by the Senate.
47 46
MBDA Clients
MBDAMBDA
clients include U.S. minority business enterprises (MBEs) that are not less than 51 clients include U.S. minority business enterprises (MBEs) that are not less than 51
percent-owned by one or more percent-owned by one or more
social y or economical ysocially or economically disadvantaged individuals; and the disadvantaged individuals; and the
management and daily business operations of which are controlled by one or more management and daily business operations of which are controlled by one or more
social y or
economical ysocially or economically disadvantaged individuals. disadvantaged individuals.
47 According to the agency’s authorizing statute, the term According to the agency’s authorizing statute, the term
“social y or economical y“socially or economically disadvantaged individual” disadvantaged individual”
means 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 competeability of whom to compete
in thein the
free enterprise system has been impaired due to diminished capital and credit opportunities, as compared to others in the same free enterprise system has been impaired due to diminished capital and credit opportunities, as compared to others in the same line of 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.48that 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“socially or economically disadvantaged individual”’ disadvantaged individual”’
includes any individualincludes any individual
who is 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/Chief%20of%20the%20Office%20of%20Business%20Development . 45 DOC, FY2016 MBDA Congressional Budget Justification, p. 17, https://www.osec.doc.gov/bmi/budget/FY16CJ/MBDA_FY_2016_CJ_Final.pdf.
46 T estimony of MBDA Director Henry Childs, in U.S. Congress, Native Hawaiian or other Pacific Islander; or 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 socially disadvantaged group eligible to receive assistance.49
45 Testimony of MBDA Director Henry Childs, in U.S. Congress, Senate Committee on Indian Affairs, Senate Committee on Indian Affairs,
Building Out
Indian Country: Tools for Com m unity Developm entCommunity Development, 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:DC:
GPO, 2019), https://www.congress.gov/event/116th-congress/senate-event/LC63799/text?s=2&r=33. 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
In terms of data, MBDA and researchers have noted that existing data on MBEs, which is generally survey
-based-based
and and
incomplete, is insufficient. Seeincomplete, is insufficient. See
MBDA, “MBDA, “
How 11 Million Minority-Owned Firms Can Close the Wealth Gap and Drive 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 Lucasminority-owned-firms-can-close-wealth-gap-and-drive-us, and Lucas
Misera, Misera,
An Uphill Battle: COVID-19’s Outsized
Toll on Minority-Owned Firm sFirms, Federal Federal
Reserve Bank of Cleveland, October 8, 2020, https://www.clevelandfed.org/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.
4746 P.L. 117-58, Sec. 100003. For additional context, see CRS P.L. 117-58, Sec. 100003. For additional context, see CRS
Report RS21412, Report RS21412,
Temporarily Filling Presidentially
Appointed, Senate-Confirm edConfirmed Positions, by Henry B. Hogue. As noted, in August 2022, Donald R. Cravins, Jr. was confirmed by the Senate as the first Under Secretary of Commerce for Minority Business Development.
47 The MBDA’s establishing statute defines MBEs at 15 U.S.C. §9501 (9). 48 P.L. 117-58, Sec. 100002. 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
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Positions, by Henry B. Hogue.
48 P.L. 117-58, Sec. 100002.
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Native Hawai an or other Pacific Islander; or 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 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 Business Center services on businesses with revenues of at least $500,000
annual y.50 annually.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 MBDAminority clients.53 MBDA
does not provide loans or grants for business formation or expansion 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 “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.”
(2) provide counseling and mentoring to minority business enterprises; and
(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 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
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 includedclients included
U.S.U.S.
minority business enterprises owned or controlled by members of one or more of the following minority business enterprises owned or controlled by members of one or more of the following
groups:groups:
African Americans, Asian Americans, HasidicAfrican Americans, Asian Americans, Hasidic
Jewish Jewish Americans, Hispanic Americans, Native Americans, and Americans, Hispanic Americans, Native Americans, and
Pacific Islanders. SeePacific Islanders. See
also 15 C.F.R.also 15 C.F.R.
§§1400.1 and 1400.2, https://ecfr.federalregister.gov/current/title-15/subtitle-B/§§1400.1 and 1400.2, https://ecfr.federalregister.gov/current/title-15/subtitle-B/
chapter-XIV/partchapter-XIV/part
-1400; and MBDA, “-1400; and MBDA, “
Who We Are,” https://www.mbda.gov/who-we-are/overview.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. https://www.grants.gov/web/grants/search-grants.html?keywords=MBDA-OBD-2021-2006809.
T heThe NOFO notes that, NOFO notes that,
““
T hisThis NOFO is NOFO is
focused on capacity buildingfocused on capacity building
for firms with revenues of $500,000 or more.” for firms with revenues of $500,000 or more.”
51 See51 See
P.L. 117-58 and P.L. 116-260. P.L. 117-58 and P.L. 116-260.
52 52
T heThe DOC strategic goals are outlined in the 2018-2022 Strategic Plan, DOC strategic goals are outlined in the 2018-2022 Strategic Plan,
Helping the American Economy Grow, and , and
includeinclude
(1) accelerating American leadership through commercial space activities, foundational research investments, (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(3) strengthening U.S. economic and national security; (4) fulfilling
Constitutional requirements and supporting 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.
53 U.S.
Department of Commerce, 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.
55 P.L. 117-58, Sec. 100111.
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(2) provide counseling and mentoring to minority business enterprises; and
(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 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
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 manage risk and increase liability
thresholds; 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
Applicants eligible
to compete to operate an MBDA Business Center include nonprofit 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 Rico, including nine locations new as of FY2021.57 MBDA Business Centers
may provide services on 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 Business Centers increased or shifted more activities to online events and fora and
through other virtual other virtual
communications tools.59 communications tools.59
Specialty Centers
The MBDA
The MBDA
also supports Business Centers that provide specialized business development 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 focusing on specific business needs, including assistance
relating to
55 P.L. 117-58, Sec. 100111. related to
capital access; federal procurement; entrepreneurship; technology transfer; or
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
reducedreduced
cost share requirement basedcost share requirement based
on need. P.L. 117-58, Sec. 100111.
57 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, 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.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 Prior to the Minority Business Development Act of 2021’s enactment, the FY2021 NOFO
for the MBDA Businessfor the MBDA Business
Center program indicated that programs should beCenter program indicated that programs should be
located in areas with the largest located in areas with the largest
concentration of minority populations and the largest number of minority businesses.concentration of minority populations and the largest number of minority businesses.
MBDA BusinessMBDA Business
Centers were Centers were
directed to serve MBEsdirected to serve MBEs
in any U.S.in any U.S.
state or territory. Following the Minority Businessstate or territory. Following the Minority Business
Development Act of 2021, the Development Act of 2021, the
Under Secretary willUnder Secretary will
develop criteria for selection of MBDA Businessdevelop criteria for selection of MBDA Business
Centers.Centers.
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.mbda.gov/page/business-services.
58 See P.L. 117-58, Sec. 100114. 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.
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capital access; federal procurement; entrepreneurship; 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
In FY2021, MBDA
administered published Notices of Funding Opportunity for Specialty Centers focused 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 “Made in America” products that can be sold
domestical y and global y.”63
MBDA domestically and globally.”63 MBDA advanced manufacturing centers are located in East Hartford, CT; advanced manufacturing centers are located in East Hartford, CT;
Baltimore, MD; Baltimore, MD;
Louisvil e, Louisville, KY; and San Antonio, TX.64 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
Rural Business Centers
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 will
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,61 Prior to the announcement of the FY2021 Business Center and Specialty Center awards,
there were four MBDA 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
the export centers were previously located in Chicago, IL; Miami, FL; San
Antonio, Antonio,
T XTX; and Sacramento, ; and Sacramento,
CA; CA;
the advanced manufacturing centers were
the advanced manufacturing centers were
previously located in Atlanta, GA; Detroit, MI; Baltimore, MD; previously located in Atlanta, GA; Detroit, MI; Baltimore, MD;
and Sanand San
Antonio, Antonio,
T XTX; and ; 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;
62 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs;
and MBDA, MBDAand MBDA, MBDA
NOFO—Export Project, NOFO—Export Project,
FY2021, MBDA-OBD-2021-2006815, https://www.grants.gov/web/grants/search-grants.html?keywords=mbda.FY2021, MBDA-OBD-2021-2006815, https://www.grants.gov/web/grants/search-grants.html?keywords=mbda.
T he The 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 fundingnonfederal cost share funding
(pp. 6-7). (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;64 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs;
and MBDA, MBDAand MBDA, MBDA
NOFO—Advanced 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.keywords=mbda.
T he The NOFO states that prospective funding is contingent upon the availability of funds from Congress, 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 (ppoperators are not required to contribute nonfederal cost share funding (pp
. 7-8). . 7-8).
65 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs;
65 MBDA, “MBDA Programs,” https://www.mbda.gov/mbda-programs;
and MBDA, MBDAand MBDA, MBDA
NOFO—Federal 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.keywords=mbda.
T he The NOFO states that prospective funding is contingent upon the availability of funds from Congress, NOFO states that prospective funding is contingent upon the availability of funds from Congress,
satisfactory performance, and continued relevance to satisfactory performance, and continued relevance to
p rogramprogram objectives, and Federal objectives, and Federal
Procurement Center operators Procurement Center operators
are expected to contribute nonfederal cost share funding (p. 7). are expected to contribute nonfederal cost share funding (p. 7).
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Rural Business Centers
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 66 The 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 Section 343(a)
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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
the adoption of broadband internet access service, digital literacy
skil sskills, and e-, 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 any other issue relating to the unique
chal engeschallenges faced by rural MBEs.67 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. development activities, including the Parren J.
Mitchel Mitchell 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 apprenticeships, entrepreneurship training, and related activities for the benefit of
social y or
economical ysocially or economically disadvantaged individuals.68 disadvantaged individuals.68
In FY2022, MBDA announced a Broad Agency Announcement (BAA) to develop entrepreneurship programs for students at Minority Serving Institutions (MSIs).69
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 Section (8)(a) Business Development program for
social y and economical ysocially and economically disadvantaged disadvantaged
smal small businesses (as businesses (as
wel well as other SBA programs), or to transition from the 8(a) program to the private as other SBA programs), or to transition from the 8(a) program to the private
sector.sector.
6970 MBDA works with other Department of Commerce agencies and the EXIM Bank of the 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 for FY2021 through FY2025. Rural areas are defined in statute as having the meaning given the term in Section 343(a) United States to encourage MBE participation in international trade, and partners with the of the Consolidated Farm andof the Consolidated Farm and
Rural Development Act (7 U.S.C. §1991(a)). SeeRural Development Act (7 U.S.C. §1991(a)). See
P.L. 117-58, Sec. 100301. 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, “69 MBDA, “
T heMinority Business Development Agency Announces $1.8 Million Grant Opportunity to Develop Entrepreneurship Programs at Minority Serving Institutions,” May 4, 2022, https://www.mbda.gov/news/news-and-announcements/2022/05/minority-business-development-agency-announces-18-million-grant.
70 MBDA, “The Minority Business Development Agency: Vital to Making America Great,” https://www.mbda.gov/ Minority Business Development Agency: Vital to Making America Great,” https://www.mbda.gov/
page/minority-business-developmentpage/minority-business-development
-agency-vital-making-america-great. -agency-vital-making-america-great.
For more information on the SBA’s Section (8)(a) program, see CRSFor more information on the SBA’s Section (8)(a) program, see CRS
Report R44844, Report R44844,
SBA’s “8(a) Program”:
Overview, History, and Current Issues, by Robert Jay Dilger. , by Robert Jay Dilger.
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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
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.the energy supply chain.
7071 Through the InVision Tour initiative, MBDA Through the InVision Tour initiative, MBDA
has partnered with 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, cities,
satel itessatellites, aerospace, and related industries. InVision Tour partners include NASA’s , 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.Homeland Security, among others.
71 72
Additional
Additional
MBDA initiatives MBDA initiatives have involved partners such as the U.S. India have involved partners such as the U.S. India
Smal Small Medium 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.League, U.S. Chamber of Commerce, and others.
7273 MBDA’s participation in interagency groups 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.Islanders, among others.
7374
MBDA
MBDA
assistance may also address specific assistance may also address specific
chal engeschallenges or opportunities, support proof of concept 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 initiatives not addressed through the MBDA business center program.not addressed through the MBDA business center program.
7475 For instance, in FY2019 For instance, in FY2019
and FY2020, the MBDAand FY2020, the MBDA
funded projects designed to increase MBE participation in advanced 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
initiativeinitiative
and the Minority Growth Equity Fund Initiative (MGEFI), among others.and the Minority Growth Equity Fund Initiative (MGEFI), among others.
7576 Additional, Additional,
targeted MBDA initiativestargeted MBDA initiatives
include the Enterprising Women of Color (EWOC) initiativeinclude the Enterprising Women of Color (EWOC) initiative
and and
centers, the American Indian, Alaska Native, and Native centers, the American Indian, Alaska Native, and Native
Hawai an Hawaiian (AIANNH) projects, the (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
70
71 EXIM Bank, “EXIM Signs EXIM Bank, “EXIM Signs
Memorandum of Understanding with U.S.Memorandum of Understanding with U.S.
Department of Commerce Minority Business 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-
departmentdepartment
-commerce-minority-business-development-commerce-minority-business-development
-agency, and MBDA, “-agency, and MBDA, “
2020 Year in Review,” 2020 Year in Review,”
https://www.mbda.gov/2020-year-in-review. https://www.mbda.gov/2020-year-in-review.
71
72 MBDA, “InVision MBDA, “InVision
T ourTour,” https://www.mbdainvision.com/. ,” https://www.mbdainvision.com/.
7273 MBDA, “2020 Year in Review,” MBDA, “2020 Year in Review,”
https://www.mbda.gov/2020-year-in-review, and Black Enterprise, “Black https://www.mbda.gov/2020-year-in-review, and Black Enterprise, “Black
Enterprise, Minority Business Development Agency Partner to Help Black BusinessesEnterprise, Minority Business Development Agency Partner to Help Black Businesses
Gain Access Gain Access to Innovation and 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/.
7374 MBDA, “ MBDA, “
White House Initiative on Asian Americans and Pacific Islanders,”White House Initiative on Asian Americans and Pacific Islanders,”
https://www.mbda.gov/WHIAAPI,https://www.mbda.gov/WHIAAPI,
and and
Black Enterprise, “Black Enterprise, Minority Business Development Agency Partner to Help Black BusinessesBlack Enterprise, “Black Enterprise, Minority Business Development Agency Partner to Help Black Businesses
Gain Gain
AccessAccess
to Innovation and Financing,” April 19, 2019, https://www.blackenterprise.com/black-enterprise-minority-to Innovation and Financing,” April 19, 2019, https://www.blackenterprise.com/black-enterprise-minority-
business-developmentbusiness-development
-agency-black-businesses/. -agency-black-businesses/.
7475 MBDA may use Broad MBDA may use Broad
Agency Agreements (BAAs) and unsolicited proposals to respond to specific challenges or Agency Agreements (BAAs) and unsolicited proposals to respond to specific challenges or
opportunities. See MBDA, “Frequently Askedopportunities. See MBDA, “Frequently Asked
Questions—2018 MBDA Broad Agency Announcement,” 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
76 MBDA, 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, “files/2020-02/fy2021_mbda_congressional_budget_justification.pdf; and MBDA, “
MBDA AwardsMBDA Awards
$5.1 Million in $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-
developmentdevelopment
-agency-awards-51-million-grants. -agency-awards-51-million-grants.
T heThe American Indian, Alaska Native, and Native Hawaiian (AIANNH) projects are also awarded 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-announcements/2020/10/minority-business-development -agency-awards-51-million-grants.
through BAAs.
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Minority Growth Equity Funds Initiative and Equity Multiplier Project
Innovation Hub Program.77 In FY2022, the MBDA solicited proposals under a BAA for the Access to Capital/Innovative Finance initiative.78
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 MBDAopportunities for many MBEs. In FY2020, an MBDA
award established the Minority Growth 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 aggregation and deployment of $1
bil ion billion in growth equity capital to MBEs.in growth equity capital to MBEs.
7779 In FY2021, MBDA In FY2021, MBDA
announced the Equity Multiplierannounced the Equity Multiplier
Project, which Project, which
wil will fund technical assistance to expand MBE’s 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.readiness, and increasing access to equity and venture investment and investors.
7880
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.independence. Minority women are considered the fastest growing population of entrepreneurs.
7981 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
American Indian Alaska Native / Native Hawaiian (AIANNH) Initiatives
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 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 limited to: entrepreneurial assistance, training, capital access, federal procurement assistance, networking and relationship management, deal sourcing, joint ventures and partnerships, strategic 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,” minority women business enterprises beginning in FY2020.82
77 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.
78 MBDA, “MBDA Announces Grant Competition to Fund Innovative Access Capital Project for Minority-Owned Businesses,” May 5, 2022, https://www.mbda.gov/news/news-and-announcements/2022/05/mbda-announces-grant-competition-fund-innovative-access-capital.
79 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-grantOctober 4, 2019, https://www.mbda.gov/news/press-releases/2019/10/mbda-awards-naic-million-dollar-grant
-raise-1--raise-1-
billion-investmentbillion-investment
, and MBDA, “, and MBDA, “
2020 Year in Review,” https://www.mbda.gov/2020-year-in-review. 2020 Year in Review,” https://www.mbda.gov/2020-year-in-review.
7880 MBDA, 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
81 American Express’ 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-news/news-details/2019/Woman-Owned-Businesses-Are-Growing-2X-Faster-On-Average-
T hanThan-All-Businesses--All-Businesses-
Nationwide/default.aspx). Nationwide/default.aspx).
T heThe report is based report is based
on data from the U.S. Censuson data from the U.S. Census
Bureau Survey of Business Owners (SBO). T he Bureau Survey of Business Owners (SBO).
The report noted that although SBO “ report noted that although SBO “
is conducted every year in years ending in two andis conducted every year in years ending in two and
seven. Data from the 2012 seven. Data from the 2012
CensusCensus
surveys weresurveys were
collated, analyzed and extrapolated forward to 2019, factoring in relative changes in Gross 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 wasdata was
obtained from the U.S. Bureauobtained from the U.S. Bureau
of Economic Analysis (of Economic Analysis (
bea.gov).” bea.gov).”
8082 MBDA, “Enterprising Women of Color (EWOC),” https://www.mbda.gov/enterprising-women-of-color, and MBDA, “Enterprising Women of Color (EWOC),” https://www.mbda.gov/enterprising-women-of-color, and
MBDA, “Grant Awards,”MBDA, “Grant Awards,”
https://www.mbda.gov/grantawards.https://www.mbda.gov/grantawards.
In the FY2020 EWOC Notice of Funding
In the FY2020 EWOC Notice of Funding
Opportunity (NOFO), MBDA cited measuresOpportunity (NOFO), MBDA cited measures
of growth in levels of minority of growth in levels of minority
women entrepreneurship as reported by American Express’ women entrepreneurship as reported by American Express’
State of Wom enWomen-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-On-Average-
T hanThan-All-Businesses-Nationwide/default.aspx). Highlights include-All-Businesses-Nationwide/default.aspx). Highlights include
“ “as of 2019, 6.4 million minority-as of 2019, 6.4 million minority-
ownedowned
women businesseswomen businesses
employed nearly 2.4 million people and generated $422.5 billion in revenueemployed nearly 2.4 million people and generated $422.5 billion in revenue
, and, and
women-women-
ownedowned
businesses businesses represent 42% of all businesses,represent 42% of all businesses,
among others.” 81 MBDA, “AIANNH Projects,” https://www.mbda.gov/aiannhprojects. among others.”
Congressional Research Service
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American Indian Alaska Native / Native Hawaiian (AIANNH) Initiatives and Reports MBDA provides assistance to entities with an expertise in American Indian, Alaska Native, and Native Hawaiian (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) transformative projects.83 AIANNH projects may provide a range of services including, but not limited to: entrepreneurial assistance, training, capital access, federal procurement assistance, networking and relationship management, deal sourcing, joint ventures and partnerships, strategic infrastructure and economic planning assistance, and education for entrepreneurial and tribal
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.of Native American businesses.
8284 In FY2021, MBDA funded 13 AIANNH projects. In FY2021, MBDA funded 13 AIANNH projects.
83 85 In FY2022, MBDA’s OPAD published a report on business development and economic growth in tribal communities.86
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 individualsprovide individuals
with with
skil sskills and a business network to enable them to start their own business 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 inability to reintegrate into communities after prison.to reintegrate into communities after prison.
84 87
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 focuses on entrepreneurship, digital innovation, artificial
intel igenceintelligence, and research and , and research and
technology transfer. Recent awards facilitate the growth of MBEs in technology transfer. Recent awards facilitate the growth of MBEs in
regional yregionally-specific industry -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,
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 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
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.
82
83 MBDA, “AIANNH Projects,” https://www.mbda.gov/aiannhprojects. 84 MBDA, 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, “MBDA, “
AIANNH Projects,” https://www.mbda.gov/aiannhprojects. AIANNH Projects,” https://www.mbda.gov/aiannhprojects.
A list and map of prior AIANNH
A list and map of prior AIANNH
project sprojects is available at https://www.mbda.gov/sites/default/files/aiannh_2.pdf. is available at https://www.mbda.gov/sites/default/files/aiannh_2.pdf.
See See
also MBDA, “also MBDA, “
Minority Business Development Agency AwardsMinority Business Development Agency Awards
$3.6 Million for Business$3.6 Million for Business
Development in Indian 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,agency-awards-36-million-business,
and “and “
Native American SuccessNative American Success
Stories,” https://www.mbda.gov/native-american-Stories,” https://www.mbda.gov/native-american-
success-stories. success-stories.
8385 MBDA, “AIANNH Projects,” https://www.mbda.gov/ MBDA, “AIANNH Projects,” https://www.mbda.gov/
mbda-programs/aiannhprojects; and MBDA, 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
86 Ashley Winston et al., “Keys to Unlocking Business Development in Indian Country,” MBDA Research Report, August 2021, https://www.mbda.gov/files/keys-unlocking-business-development-indian-country.
87 MBDA, 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, Notice of Funding Opportunity—Inner City Innovation Hubs, MBDA-OBD-2020-2006442, April 2020, https://www.mbda.gov/sites/default/files/2020-10/Inner%20City%20Innovation%20Hubs_Full%20Announcement%20%28April%202020%29.pdf, and MBDA, “ Grant Awards,” https://www.mbda.gov/grantawards. 86 MBDA, “ MBDA Announces 2019 National MED Week Award Winners,” https://medweek.mbda.gov/awards-program.
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MBDA
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through accelerators, incubators, and co-working spaces and university-focused technology, artificial intelligence, technology, research, mergers, and acquisitions.88
National Minority Enterprise Development (MED) Week According to MBDA, since 1983, every president has issued a Presidential Proclamation designating one week as National Minority Enterprise Development (MED) Week.89 The event 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 conference panel focused on global markets and the National Minority Business Awards Program. MBDA also coordinates, sponsors, and participates in other national events, such as Buy Minority also coordinates, sponsors, and participates in other national events, such as Buy Minority
Business Enterprises Day, among others.Business Enterprises Day, among others.
8790
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
Additional
initiatives initiatives and activities support the MBDA mission and priorities of the Department and activities support the MBDA mission and priorities of the Department
of Commerce. For instance, MBDA initiativesof Commerce. For instance, MBDA initiatives
include global and domestic Business-to-Business 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 MBDAcollaboration with Amazon Business, the MBDA
launched the Minority Business and Technology launched the Minority Business and Technology
Initiative,Initiative,
to expand MBE participation in e-commerce and the use of digital technology for to expand MBE participation in e-commerce and the use of digital technology for
domestic and international sales.domestic and international sales.
8891 MBDA MBDA
and Business Center partners participate in Global and Business Center partners participate in Global
B2BB2B
efforts in Africa, Asia, Latin America, and the Caribbean. MBDAefforts in Africa, Asia, Latin America, and the Caribbean. MBDA
has also joined trade 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.EXIM Bank, and other agencies and organizations to expand export opportunities for MBEs.
8992
Performance Metrics
The MBDAThe MBDA
uses several performance metrics to measure its effectiveness, includinguses several performance metrics to measure its effectiveness, including
dollar value of contracts secured for MBDA clients,
88 MBDA, Notice of Funding Opportunity—Inner City Innovation Hubs, MBDA-OBD-2020-2006442, April 2020, https://www.mbda.gov/sites/default/files/2020-10/Inner%20City%20Innovation%20Hubs_Full%20Announcement%20%28April%202020%29.pdf, and MBDA, “Grant Awards,” https://www.mbda.gov/grantawards. 89 MBDA, “MBDA Announces 2019 National MED Week Award Winners,” https://medweek.mbda.gov/awards-program.
90 U.S.
dollar value of contracts secured for MBDA clients, dollar value of capital secured for MBDA clients, number of jobs created, and number of jobs retained.
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 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 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
87 U.S. Department of Commerce, “Minority Business Development Agency: Agency Information Collection Department of Commerce, “Minority Business Development Agency: Agency Information Collection
Activities; SubmissionActivities; Submission
to the Office of Management and Budgetto the Office of Management and Budget
(OMB) for Review(OMB) for Review
and Approval; Comment Request; and Approval; Comment Request;
National Minority Business Awards,”National Minority Business Awards,”
86 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.
8891 MBDA, “ MBDA, “
Minority Business and Minority Business and
T echnologyTechnology Initiative,” https://www.mbda.gov/page/minority-business-and- Initiative,” https://www.mbda.gov/page/minority-business-and-
technology-initiative, and “technology-initiative, and “
The Minority Business Development Agency Launches the ‘Minority Business and The Minority Business Development Agency Launches the ‘Minority Business and
T echnology Init iativeTechnology Initiative’ 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-developmentminority-business-development
-agency-launches-minority-business-and. -agency-launches-minority-business-and.
89
92 DOC, 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, “2021-01/DOC-FY20-22-APPR-Final.pdf, and MBDA, “
Global Global Business:Business:
Strategic Partners,” https://www.mbda.gov/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/MBDA_FY%202020%20APR%20Summary_042121.pdf .
91 For definitions of MBDA measures, see “MBDA Performance Metrics,” https://www.mbda.gov/sites/default/files/2020-11/MBDA%20Performance%20Metrics.pdf.
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secure were for private sector deals.92 See 0 Congressional Research Service
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dollar value of capital secured for MBDA clients, number of jobs created, and number of jobs retained.
According to the latest data available, in FY2020, the MBDA reported 27,317 jobs were created or retained with the assistance of MBDA resources.93 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 payroll, and positions MBDA clients would have eliminated without the contract and/or financing obtained with the MBDA’s help.94 Although the value of contracts measures both public and private sector activity, in FY2020, approximately 70% of contracts that MBDA helped MBEs to secure were for private sector deals.95 See Table 1 for a summary of assessments and evaluations of the for a summary of assessments and evaluations of the
agency.agency.
Table 1. MBDA Performance Metrics, FY2016–FY2020FY2021
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
Total Value of 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
$3.1
$6.9 bil ion bil ion
$
$
6.92.8 bil ion
Contracts
bil ion 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
$1.8
bil
$967 mil ion ion
$
$
967709 mil ion mil ion
bil 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
6,265
Jobs Retained Jobs Retained
5,689
5,689
8,364
8,364
9,277
9,277
11,764
11,764
15,720
15,720
7,478
Source: MBDA,MBDA,
“MBDA Annual Performance“MBDA Annual Performance
Reports,”Reports,”
https://www.mbda.gov/performance. 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 BusinessMBDA Business
Centers and are verifiedCenters and are verified
by MBDA headquarters staff. The performance data date of retrieval by MBDA headquarters staff. The performance data date of retrieval
was was
April 30, 2021. August 22, 2022.
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
continuefocus its oversight role its oversight role
, focusing on the new and expanded activities authorized by the on the new and expanded activities authorized by the
agency’s enabling agency’s enabling
legislation. A legislation. Congress may also consider appropriations legislation and the confirmation of an Under Secretary of Commerce for Minority Business Development. A perennial issue of congressional interest involves debates about the agency’s role in perennial issue of congressional interest involves debates about the agency’s role in
supplementing (or duplicating) other forms of federal assistance for businesses. In addition, there supplementing (or duplicating) other forms of federal assistance for businesses. In addition, there
has been continued interest in developing strategies to use the MBDAhas been continued interest in developing strategies to use the MBDA
to promote individual to promote individual
economic mobility, as economic mobility, as
wel well as broader national economic growth, as broader national economic growth,
especial yespecially with regard to with regard to
reducing inequities and advancing minority entrepreneurship, innovation, and business expansion reducing inequities and advancing minority entrepreneurship, innovation, and business expansion
activities. activities.
93 MBDA, “Annual Performance Summary, FY2021,” https://www.mbda.gov/sites/default/files/2021-04/MBDA_FY%202020%20APR%20Summary_042121.pdf.
94 For definitions of MBDA measures, see “MBDA Performance Metrics,” https://www.mbda.gov/sites/default/files/2020-11/MBDA%20Performance%20Metrics.pdf.
95 David Byrd, National Director, MBDA, “Meeting Notes—President’s Advisory Commission on Asian Americans and Pacific Islanders Fourth Quarterly Meeting and AAPI Town Hall,” January 13, 2021, https://www.commerce.gov/sites/default/files/2021-02/PAC-AAPI%20Fourth%20Quarterly%20Meeting%20Minutes%20Final_January%2013%202021.pdf.
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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 and reporting requirements for the agency and authorized the appropriation of $110
mil ion million each each
fiscal year from FY2021 through FY2025 (sefiscal year from FY2021 through FY2025 (se
e Table A-1 for recent MBDA appropriations). for recent MBDA appropriations).
Pending appropriations legislation, MBDA may seek to hire additionalMBDA may seek to hire additional
staff or otherwise increase staff or otherwise increase
its capacity to its capacity to
re-establishreestablish regional offices, administer existing and new programs, and activate 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 other priorities outlined in the act). Congress
wil will have an opportunity to oversee have an opportunity to oversee
al all of these 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.it implements new structures, roles, and programs.
9396 Congress may also seek to monitor the Congress may also seek to monitor the
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/sites/default/files/2021-02/PAC-AAPI%20Fourth%20Quarterly%20Meeting%20Minutes%20Final_January%2013%202021.pdf .
93 P.L. 117-58, Sec. 100003 and Sec. 100401.
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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.different types of outcomes.
94
Additional y, the Senate may receive and consider a presidential nominee for the MBDA’s Under
Secretary position. 97
Other issues of congressional interest include Other issues of congressional interest include
the degree to which MBDA services may be available
the degree to which MBDA services may be available
to previously unserved or 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
“establishment, preservation, and strengthening of
social y or economical ysocially or economically disadvantaged business concerns.”disadvantaged business concerns.”
9598
the MBDA’s required reports (see
the MBDA’s required reports (see
“Agency Establishment”). ).
The MBDA
The MBDA
is further tasked with evaluating the impact of federal support of is further tasked with evaluating the impact of federal support of
social y or
economical ysocially or economically disadvantaged business concerns. disadvantaged business concerns.
9699
Duplication of SBA Activities
Whether the MBDAWhether the MBDA
complements or duplicates the SBA’s programs, complements or duplicates the SBA’s programs,
especial yespecially those programs those programs
targeted to minority populations (e.g., the Microloan targeted to minority populations (e.g., the Microloan
program97) or the social y and economical y
program100) or the socially and economically disadvantaged (e.g., the 8(a) Business Development disadvantaged (e.g., the 8(a) Business Development
Program98Program101), has been a perennial issue of ), has been a perennial issue of
congressional interest. There have been several proposals in the past to terminate the MBDA congressional 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).within the Department of Commerce).
99102 MBDA’s proponents have argued that the agency
96 P.L. 117-58, Sec. 100003 and Sec. 100401. 97 The MBDA’s proponents have argued that the agency 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. However, MBDA Business Centers have recently focused on providing technical and business 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 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.
9598 P.L. 117-58, Division K, P.L. 117-58, Division K,
T itleTitle IV. IV.
9699 Ibid. Ibid.
97100 For further information and analysis of the Microloan program, see CRS For further information and analysis of the Microloan program, see CRS
Report R41057, Report R41057,
Small Business
Adm inistrationAdministration Microloan Program , by Robert Jay Dilger. , by Robert Jay Dilger.
98101 For further information and analysis of the 8(a) Business For further information and analysis of the 8(a) Business
Development program, see CRSDevelopment program, see CRS
Report R44844, Report R44844,
SBA’s
“8(a) Program”: Overview, History, and Current Issues,,
by Robert Jay Dilger. by Robert Jay Dilger.
99102 See See
U.S.U.S.
Commission on Minority BusinessCommission on Minority Business
Development (CMBD), Final Report, 1992 (Washington, DC: GPO)
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complements rather than conflicts with the SBA’s programs. The SBA focuses on small businesses. The MBDA does not restrict its activities, referrals, or events based on business size. However, MBDA Business Centers have recently focused on providing technical and business development services to minority firms with employees and revenues that exceed $500,000.103 Additionally, Title VI of the Minority Business Development Act of 2021 directs the Under Development (CMBD), Final Report, 1992 (Washington, DC: GPO) and U.S. Congress, House Committee on Small Business, Minority Business Developm ent, 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. 100-656 to assess and review federal programs designed to promote minority business development.
100 MBDA, MBDA Notice of Funding Opportunity—Business Center Program, FY2021, https://www.grants.gov/web/grants/search-grants.html?keywords=MBDA-OBD-2021-2006809.
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Secretary “to ensure consistency with program goals and to avoid duplication” by reviewing Secretary “to ensure consistency with program goals and to avoid duplication” by reviewing
al all 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.carried out under the Business Center program and the Rural Business Center program.
101104
Additional Considerations
Additional Considerations
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 individual outcomes and build local and national economies. Over the years, due to the unique set
of chal engesOver the years, due to the unique set of challenges and circumstances faced by minority business owners, some analysts and and circumstances faced by minority business owners, some analysts and
policymakers have policymakers have
cal edcalled for the MBDA for the MBDA
to take on new or expanded roles, services, and 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 economic development, the MBDA may continue to offer existing and
potential ypotentially new avenues 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 options to address the unique
chal engeschallenges faced by MBEs as faced by MBEs as
wel well as other options to involve as other options to involve
MBDA MBDA in additional convening, coordinating, and assistance roles.in additional convening, coordinating, and assistance roles.
102
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 small MBEs in particular. For reports on aspects of minority business ownership, including capital access and entrepreneurship, see MBDA, “Demographic T rends105
and U.S. Congress, House Committee on Small Business, Minority Business Development, H102-91, 102nd Cong., 2nd sess., September 24, 1992, pp. 7-8, 16 (Washington, DC: GPO, 1992). The commission was established by P.L. 100-656 to assess and review federal programs designed to promote minority business development.
103 MBDA, MBDA Notice of Funding Opportunity—Business Center Program, FY2021, https://www.grants.gov/web/grants/search-grants.html?keywords=MBDA-OBD-2021-2006809.
104 P.L. 117-58, Division K, Title IV. 105 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 entrepreneurship, see MBDA, “Demographic Trends Publications,” https://www.mbda.gov/page/demographic-trends- Publications,” https://www.mbda.gov/page/demographic-trends-
publications; Robert W. Fairlie, Alicia Robb,publications; Robert W. Fairlie, Alicia Robb,
and David Tand David T
. Robinson. 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,Minority-Owned Startups,” NBER Working Paper No. 28154 (November 2020); V. Hwang,
S. S. Desai, and R. Baird, Desai, and R. Baird,
“Access to Capital for Entrepreneurs: Removing Barriers,” Ewing“Access to Capital for Entrepreneurs: Removing Barriers,” Ewing
Marion Kauffman Foundation: Kansas CityMarion Kauffman Foundation: Kansas City
(2019). (2019).
T imothyTimothy Bates, W.D. Bradford, and Robert Seamans, Bates, W.D. Bradford, and Robert Seamans,
“ “Minority Entrepreneurship in Minority Entrepreneurship in
T wentyTwenty-First Century America,” -First Century America,”
Sm all Business Econom icsSmall Business Economics, 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, (Cambridge,
MA: MA:
T heThe MIT MIT
Press, 2010); Press, 2010);
and Robert W. Fairlie, Alicia M. Robb,and Robert W. Fairlie, Alicia M. Robb,
and David Hinson, “and David Hinson, “
Disparities in Capital Access Between Minority and Non-Disparities in Capital Access Between Minority and Non-
Minority-Owned Businesses,”Minority-Owned Businesses,”
Minority BusinessMinority Business
Development Agency (2010), https://www.mbda.gov/sites/default/Development Agency (2010), https://www.mbda.gov/sites/default/
files/migrated/files-attachments/DisparitiesinCapitalAccessReport.pdf. files/migrated/files-attachments/DisparitiesinCapitalAccessReport.pdf.
Studies
Studies
indicate that the economic impact of the coronavirus pandemic has affected minority business owners more indicate that the economic impact of the coronavirus pandemic has 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 Lucaspandemic on MBEs, see Lucas
Misera, Misera,
An Uphill Battle: COVID-19’s Outsized Toll on Minority-Owned Firm sFirms, FederalFederal
Reserve Bank of Cleveland,Reserve Bank of Cleveland,
October 8, 2020, https://www.clevelandfed.org/newsroom-and-events/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,
For analysis of metrics related to small businesses,
including including disparities betweendisparities between
small MBEs and smallsmall MBEs and small
nonminority nonminority
firms, seefirms, see
Sm all Small Business Credit Survey: 2021 Report on Em ployer Firm sEmployer Firms, Federal Reserve Banks, February, Federal Reserve Banks, February
2021, 2021,
https://www.fedsmallbusiness.org/survey/2021/reporthttps://www.fedsmallbusiness.org/survey/2021/report
-on-employer-firms; and Mels de Zeeuw,-on-employer-firms; and Mels de Zeeuw,
Sm all Small Business Credit
Survey: 2019 Report on Minority-Owned Firm sFirms, Federal, Federal
Reserve Bank of Atlanta, December 2019, Reserve Bank of Atlanta, December 2019,
https://www.fedsmallbusiness.org/survey/2019/reporthttps://www.fedsmallbusiness.org/survey/2019/report
-on-minority-owned-firms, among others. -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,businesses,
see Daniel Wilmoth, see Daniel Wilmoth,
““
T heThe Effects of the COVID-19 Pandemic on Small Businesses,” Effects of the COVID-19 Pandemic on Small Businesses,”
SBA,SBA,
Office of Advocacy, IssueOffice of Advocacy, Issue
Brief Number 16, 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;Business.pdf;
Robert Fairlie, Robert Fairlie,
The Im pactImpact of COVID-19 on Sm allSmall Business Owners: Evidence of Early-Stage Losses
from
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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 Small Businesses Adjusting to COVID-19? Early
Evidence from a Survey, National Bureau, National Bureau
of Economic Research, Working Paper 26989, 2020, 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 suggestSome suggest
that MBDA resourcesthat MBDA resources
could becould be
directed to focus on minority serving-institutions (MSIs) that would directed to focus on minority serving-institutions (MSIs) that would
administer businessadminister business
incubators and accelerators or operate businessincubators and accelerators or operate business
centers; administer an equity grant program to fund centers; administer an equity grant program to fund
municipal capital projects; and develop and administer a minority business investment company (MBIC)municipal capital projects; and develop and administer a minority business investment company (MBIC)
—similar to
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the SBA’s small business —similar to the SBA’s small business investment company (SBIC) program—to allow the agency to license lenders and lend investment company (SBIC) program—to allow the agency to license lenders and lend
capital for businesscapital for business
investments, among other activities. For an example of these perspectives, see Connor Maxwell, investments, among other activities. For an example of these perspectives, see Connor Maxwell,
Darrick Hamilton, Andre M. Perry, and Danyelle SolomonDarrick Hamilton, Andre M. Perry, and Danyelle Solomon
, “, “
A Blueprint for Revamping the Minority Business 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/
blueprintblueprint
-revamping-minority-business-development-revamping-minority-business-development
-agency/. -agency/.
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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. Beginningbusiness initiatives. Beginning
in FY2017, the Trump Administration proposed cuts to the 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.contracts, and grants.
103106 President George H.W. Bush proposed eliminating the agency and 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.Department of Commerce.
104107
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..
105108 Although E.O. 12928 did not 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 contracts for businesses owned by
social y and economical ysocially and economically disadvantaged individuals, black 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 MBDACBES’s goal was “to enable MBDA
to enter into strategic to enter into strategic
al iancesalliances, coordinating the delivery of , coordinating the delivery of
103
106 Executive Order 12432, “Minority Business Enterprise Development,” 48 Executive Order 12432, “Minority Business Enterprise Development,” 48
Federal Register 32551, July 14, 1983. 32551, July 14, 1983.
104107 U.S. U.S.
Congress, HouseCongress, House
Committee on Appropriations, Subcommittee on the Departments of Commerce, Justice, and Committee on Appropriations, Subcommittee on the Departments of Commerce, Justice, and
State, the Judiciary,State, the Judiciary,
and Related Agencies, and Related Agencies,
Departm ents of Com m erceDepartments of Commerce, 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).
105108 Executive Order 12928, “Promoting Procurement with Small Businesses Executive Order 12928, “Promoting Procurement with Small Businesses
Owned Owned and Controlled by Sociallyand Controlled by Socially
and and
Economically Disadvantaged Individuals,Economically Disadvantaged Individuals,
Historically Black CollegesHistorically Black Colleges
and Universities, and Minority Institutions,” 59 and Universities, and Minority Institutions,” 59
Federal Register 48377, September 20, 1994. 48377, September 20, 1994.
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its services with those of other entities capable of assisting in minority and/or
its services with those of other entities capable of assisting in minority and/or
smal small and and
disadvantaged business development in a particular market.”disadvantaged business development in a particular market.”
106 109
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.with its own handbook.
107110 The report recommended that MBDA develop project-specific 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.determine program effectiveness.
108 111
Under the George W. Bush Administration, the MBDA
Under the George W. Bush Administration, the MBDA
continued efforts to coordinate its 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.$500,000 or more in annual revenues.
109 112
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 growth
MBDCs, which provided consultant services to firms with significant 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.
109 U.S. Department of Commerce, “Minority Business Development Agency: Implementation of Pilot CommunityDepartment of Commerce, “Minority Business Development Agency: Implementation of Pilot Community
--
BasedBased
Enhanced ServicesEnhanced Services
(CBES)(CBES)
Initiative in Baltimore, Maryland, and the Identification of Other Markets Initiative in Baltimore, Maryland, and the Identification of Other Markets
T oTo Be Be
ConsideredConsidered
as Alternatives to the Minority Business Development Center Program for the Delivery of Management as Alternatives to the Minority Business Development Center Program for the Delivery of Management
and and
T echnicalTechnical Assistance to Minority Firms and Entrepreneurs,” 61 Assistance to Minority Firms and Entrepreneurs,” 61
Federal Register 8919-8920, March 6, 1996. 8919-8920, March 6, 1996.
107110 U.S. U.S.
Department of Commerce, Office of Inspector General, Department of Commerce, Office of Inspector General,
Minority Business Development Agency Community-
Based Enhanced Services Pilot Project Award Not Effectively Monitored , Final Audit, Final Audit
Report No. EDD-9406-8-0002, Report No. EDD-9406-8-0002,
Washington, DC, May 1998, pp. i-ii. Washington, DC, May 1998, pp. i-ii.
108111 Ibid. Ibid.
p. 8. p. 8.
109112 U.S. U.S.
Department of Commerce, Minority Business Development Agency, Department of Commerce, Minority Business Development Agency,
The State of Minority Business
Enterprises, An Overview of the 2002 Survey of Business Owners,,
Washington, DC, AugustWashington, DC, August
2006, p. 30, 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 werelarger percentage of all minority revenues and were
more likely to have paid employees compared to minority firms more likely to have paid employees compared to minority firms
with annual gross receipts under $500,000with annual gross receipts under $500,000
. See Sumiye. See Sumiye
“ Sue” Obuko “Sue” Obuko and Mark Planting, and Mark Planting,
The State of Minority
Business Enterprises: An Overview of the 2007 Survey of Business Owners,,
U.S.U.S.
Department of Commerce, Minority Department of Commerce, Minority
BusinessBusiness
Development Agency, Washington, DC, 2015, p. 36 (footnote), https://archive.mbda.gov/sites/mbda.gov/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.
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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 MBDAthe global economy. A 2003 MBDA
study explored issues and opportunities for minority 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
By capitalizing
on their unique competitive strengths, on their unique competitive strengths,
especial yespecially in developing in developing
countries, minority-business enterprises (MBEs) can compete with larger
countries, minority-business enterprises (MBEs) can compete with larger
multinationalmultinational
companies. 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.overcome.
110 113
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 MBDAimpact of MBDA
activities, increasing the efficient delivery of services to minority business 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
The MBDA
was original y was originally created by executive order. Prior to the Minority Business 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 have exercised authority to effectively terminate the
MDBAMBDA’s discretionary activities at any time ’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 ypotentially supersede presidential discretion. supersede presidential discretion.
111114 In addition, Congress could have revoked or In addition, Congress could have revoked or
modified the executive order, modified the executive order,
potential ypotentially eliminating, eliminating,
expanding, or restricting the agency. expanding, or restricting the agency.
110 John Owens
113 John Owens and Robert Pazornik,and Robert Pazornik,
Globalization and Minority-Owned Businesses in the United States: Assessment
and Prospects, Minority Business Developm entDevelopment 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.
111114 In general, when Congress In general, when Congress
appropriates a specific amount of budgetappropriates a specific amount of budget
authority for a specific purpose, the President authority for a specific purpose, the President
has only limited authority to order executive branch agencies to reduce or withhold funds.has only limited authority to order executive branch agencies to reduce or withhold funds.
Decisions by federal courts, Decisions by federal courts,
includingincluding
a unanimous decisiona unanimous decision
by the Supreme Court inby the Supreme Court in
Train v City of New York, 420 U.S., 420 U.S.
35 (1975), and the 35 (1975), and the
enactment of the Congressional Budget and Impoundment Control Act of 1974,enactment of the Congressional Budget and Impoundment Control Act of 1974,
P.L. 93-344, clarified this. Specifically, P.L. 93-344, clarified this. Specifically,
under ICA, the President can withhold fundsunder ICA, the President can withhold funds
for a limited time if he complies with specific reporting requirements to for a limited time if he complies with specific reporting requirements to
Congress, butCongress, but
he cannot permanently prevent the obligation or expenditure of funds provided in lawhe cannot permanently prevent the obligation or expenditure of funds provided in law
unless unless Congress Congress
agrees. agrees.
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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 MBDAmoved the MBDA
out of the Department of Commerce.out of the Department of Commerce.
112115 For instance, the George H.W. Bush For instance, the George H.W. Bush
Administration proposed to transfer the MBDA into the SBAAdministration proposed to transfer the MBDA into the SBA
in FY1989 and FY1990.in FY1989 and FY1990.
113116 In In
FY2018, the Trump Administration recommended a $6 FY2018, the Trump Administration recommended a $6
mil ionmillion budget for MBDA, to be used to budget for MBDA, to be used to
close out the agency.close out the agency.
114117 The Trump Administration’s budgets in FY2019, FY2020, and FY2021 The Trump Administration’s budgets in FY2019, FY2020, and FY2021
would have reduced the agency’s annual funding to approximately $10 would have reduced the agency’s annual funding to approximately $10
mil ion million and proposed to 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.facing the broader minority business community.
115 118
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 example, the Trump Administration sought to reduce the agency’s budget to $10.3
mil ionmillion for for
FY2021, with the intent of redirecting resources away from services for individual businesses.FY2021, with the intent of redirecting resources away from services for individual businesses.
116119 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 MBDA and its programs as part of its wider efforts to reduce federal spending and to redefine the 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.of federal programs that support private sector job creation.
117120 The Administration’s opposition The Administration’s opposition
112
115 For example, in the 95th Congress, the Senate Committee on Appropriations urged “the Office of Management and For example, in the 95th Congress, the Senate Committee on Appropriations urged “the Office of Management and
BudgetBudget
to consider the merger of OMBEto consider the merger of OMBE
into SBA’sinto SBA’s
programs of assistance to minority businesses so that a unified programs of assistance to minority businesses so that a unified
program willprogram will
be be available for consideration in the 1980 budget review.”available for consideration in the 1980 budget review.”
See See S.Rept. 95-1043. S.Rept. 95-1043.
In the 98th Congress, the Department of International
In the 98th Congress, the Department of International
T radeTrade and Industry Act of 1983 and Industry Act of 1983
(S. 121) proposed a transfer of (S. 121) proposed a transfer of
the MBDA to the SBAthe MBDA to the SBA
as one of several aspects of a reorganization plan for the Department of Commerce.as one of several aspects of a reorganization plan for the Department of Commerce.
See S.Rept. 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 proposal to reorganize the Department of Commerce and establish the Department of International
T radeTrade and Industry. and Industry.
IncludedIncluded
in the proposal are references to efforts to consolidate government and the following proposed action: 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 Congress98th Congress
approved by OMB,approved by OMB,
except that PTO [Patent and except that PTO [Patent and
T rademarkTrademark Office] would Office] would
go togo to
Justice and MBDA Justice and MBDA
wouldwould
go to HUD (unless SBAgo to HUD (unless SBA
receives continued funding).” Seereceives continued funding).” See
Memo, Malcolm BaldrigeMemo, Malcolm Baldrige
to Edwinto Edwin
Meese, James Meese, James
Baker, RichardBaker, Richard
Darman, January 5, 1985, folder “Darman, January 5, 1985, folder “
Cabinet Affairs (1)” box 6, James Baker Files, RonaldCabinet Affairs (1)” box 6, James Baker Files, Ronald
Reagan Reagan
Library. (At the time, Malcolm BaldrigeLibrary. (At the time, Malcolm Baldrige
was was Secretary of the Department of Commerce, Edwin Meese wasSecretary of the Department of Commerce, Edwin Meese was
Counselor Counselor
to the President, and Richard Darman wasto the President, and Richard Darman was
Assistant to the President and Deputy to the Chief of Staff.) 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, includingeliminate several Commerce agencies, including
the MBDA. S.the MBDA. S.
929 and H.R. 1756 are noted in the analysis of trade 929 and H.R. 1756 are noted in the analysis of trade
reorganization in CRSreorganization in CRS
Report R42555, Report R42555,
Trade Reorganization: Overview and Issues for Congress, by Shayerah I. , by Shayerah I.
Akhtar. Akhtar.
113
116 OMB, “Budget of the U.S. Government - FY1989,” pp. 5-69 and 5-70, available at https://fraser.stlouisfed.org/title/ OMB, “Budget of the U.S. Government - FY1989,” pp. 5-69 and 5-70, available at https://fraser.stlouisfed.org/title/
54/item/18995; and “54/item/18995; and “
Budget of the U.S. GovernmentBudget of the U.S. Government
—FY1990,” p. 5-78, available at https://fraser.stlouisfed.org/title/—FY1990,” p. 5-78, available at https://fraser.stlouisfed.org/title/
54/item/18996. 54/item/18996.
114117 OMB “ OMB “
Appendix: BudgetAppendix: Budget
of the U.S. Government, Fiscal Year 2018” (2017), p. 190, https://www.govinfo.gov/of the U.S. Government, Fiscal Year 2018” (2017), p. 190, https://www.govinfo.gov/
content/pkg/BUDGETcontent/pkg/BUDGET
-2018-APP/pdf/BUDGET-2018-APP/pdf/BUDGET
-2018-APP.pdf. -2018-APP.pdf.
115
118 OMB, “Budget of the United States Government, Fiscal Year 2019,” (2018), p. 31, https://www.govinfo.gov/ OMB, “Budget of the United States Government, Fiscal Year 2019,” (2018), p. 31, https://www.govinfo.gov/
content/pkg/BUDGETcontent/pkg/BUDGET
-2019-BUD/pdf/BUDGET-2019-BUD/pdf/BUDGET
-2019-BUD.pdf, and “-2019-BUD.pdf, and “
Appendix: Budget of the United States Appendix: Budget of the United States
Government, Fiscal Year 2019” (2018), p. 189, https://www.govinfo.gov/content/pkg/BUDGETGovernment, Fiscal Year 2019” (2018), p. 189, https://www.govinfo.gov/content/pkg/BUDGET
-2019-APP/pdf/-2019-APP/pdf/
BUDGETBUDGET
-2019-APP.pdf; “-2019-APP.pdf; “
Appendix: Budget of the United States Government, Fiscal Year 2020” (2019), p. 187, Appendix: Budget of the United States Government, Fiscal Year 2020” (2019), p. 187,
https://www.govinfo.gov/content/pkg/BUDGEThttps://www.govinfo.gov/content/pkg/BUDGET
-2020-APP/pdf/BUDGET-2020-APP/pdf/BUDGET
-2020-APP.pdf; and “-2020-APP.pdf; and “
Appendix: Budget of Appendix: Budget of
the United States Government, Fiscal Year 2021” (2020), p. 198, https://www.govinfo.gov/content/pkg/BUDGETthe United States Government, Fiscal Year 2021” (2020), p. 198, https://www.govinfo.gov/content/pkg/BUDGET
--
2021-APP/pdf/BUDGET2021-APP/pdf/BUDGET
-2021-APP.pdf. -2021-APP.pdf.
116119 U.S. U.S.
Office of Management and BudgetOffice of Management and Budget
(OMB), “(OMB), “
A BudgetA Budget
for America’s Future—Appendix,” FY2021 for America’s Future—Appendix,” FY2021
Congressional BudgetCongressional Budget
Justification, p. 198, https://www.govinfo.gov/content/pkg/BUDGETJustification, p. 198, https://www.govinfo.gov/content/pkg/BUDGET
-2021-APP/pdf/BUDGET-2021-APP/pdf/BUDGET
--
2021-APP.pdf. 2021-APP.pdf.
117
120 Other agencies and programs that support private job creation and economic development include the SBA; Other agencies and programs that support private job creation and economic development include the SBA;
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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 legislativeAdministrations and legislative
proposals considered reorganizing the agency, defunding the proposals considered reorganizing the agency, defunding the
agency’s activities, or merging it into the SBA. Legislativeagency’s activities, or merging it into the SBA. Legislative
proposals to transfer or establish the proposals to transfer or establish the
MBDA MBDA and its programs are included iand its programs are included i
n Appendix C, and 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–FY2021FY2022
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 arsFY2022
(in millions of dollars) )
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, federally chartered regional economic development agencies,
includin g including the Appalachian Regional Commission, the the Appalachian Regional Commission, the
Delta RegionalDelta Regional
Authority, the Northern Border Regional Commission, and the Denali CommissionAuthority, the Northern Border Regional Commission, and the Denali Commission
; the Economic ; 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.program administered by the Department of Housing and Urban Development.
See CRSSee CRS
Report R46683, Report R46683,
Federal
Resources for State and Local Econom ic Developm entEconomic Development, by Julie M. Lawhorn. , by Julie M. Lawhorn.
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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
Source: Budget Appendices of the United States; FY1970-FY2022. 55.0
2023
110.0
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Source: Budget Appendices of the United States, FY1970-FY2023.
Notes: In FY2020, the Coronavirus Aid, Relief, In FY2020, the Coronavirus Aid, Relief,
and Economic Security Act (CARES Act,and Economic Security Act (CARES Act,
P.L. 116-136) provided P.L. 116-136) provided
the MBDA an additional $10 mil ionthe MBDA an additional $10 mil ion
in supplemental funding in addition to $42 mil ionin supplemental funding in addition to $42 mil ion
in annual appropriations, in annual appropriations,
for a total of $52 mil ion.for a total of $52 mil ion.
The supplemental funding was to assist MBEs with preventing, preparing for, and 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 minorityresponding to the COVID-19 pandemic through education, training, and advising grants to minority
business business
centers and minoritycenters and minority
chambers of commerce.chambers of commerce.
In FY2021, the Consolidated Appropriations ActIn FY2021, the Consolidated Appropriations Act
(P.L. 116-260) (P.L. 116-260)
provided the MBDA with $25 mil ionprovided the MBDA with $25 mil ion
in supplemental funding, in addition to $48 mil ionin supplemental funding, in addition to $48 mil ion
in annual appropriations.in annual appropriations.
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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 well-funded agency; -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.
analysis of the issues and opportunities.
118 121
PART Evaluation 2007
Starting in 2002, the George W. Bush Administration initiated
Starting in 2002, the George W. Bush Administration initiated
its Program Assessment Rating 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%).(80%); strategic planning (75%); and program management (100%).
119122 Among the highlights, the 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
121 Department of Commerce, 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.
119122 U.S. U.S.
Office of Management and BudgetOffice of Management and Budget
(OMB), (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.
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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
While MBDA
is focused on minority is focused on minority
smal small businesses, there are many other 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.entrepreneurial development programs.
120 123
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.aspects of the agency and its operations. Three of these reports are summarized below.
121 124
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.measures.
122125
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 unreliableand unreliable
performance data. The report was initiated after the agency 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.served by MBOCs.
123126 The MBDA The MBDA
director concurred with the recommendations 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 viabilityperformance of a pilot project that would test the viability
of the Community-Based Enhancement 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. 121
123 Ibid. 124 Another report of note is the U.S. Government Accountability Office, 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
125 Department of Commerce, Office of Inspector General, Department of Commerce, Office of Inspector General,
MBDA Can Improve Processes to More Effectively Monitor
Cooperative Agreem entsAgreements, 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.
123126 Department of Commerce, Office of Department of Commerce, Office of
Inspect orInspector General, General,
Minority Business Development Agency Value of MBDA
Perform ancePerformance Measures Is Underm inedUndermined by Inappropriate Com biningCombining of Program Results and Unreliable Perform ancePerformance
Data from MBOC Program 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.
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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 report, which included assigning staff with appropriate expertise who
wil will follow MBDAfollow MBDA
policies 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.requirements to reflect the specific nature of the project.
124
124 U.S. 127
127 U.S. Department of Commerce, Office of the Inspector General, Department of Commerce, Office of the Inspector General,
Minority Business Development Agency
Com m unityCommunity-Based Enhancement Services Pilot Project Award Not Effectively Monitored , EDD-9406-8-0002, , EDD-9406-8-0002,
Washington, DC, JuneWashington, DC, June
1998, p. 8, https://www.oig.doc.gov/OIGPublications/MBDA-EDD-9406-2-06-1998.pdf. 1998, p. 8, https://www.oig.doc.gov/OIGPublications/MBDA-EDD-9406-2-06-1998.pdf.
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Appendix C. Legislative Proposals, 96th Congress-
117th Congress
Since the MBDA’s inception, a number of Since the MBDA’s inception, a number of
bil sbills have been introduced that would have “codified” 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 functions. The following
bil sbills—introduced in the 96th -117th Congresses—address the agency’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
the MBDA
statutory authorization. The House Committee on statutory authorization. The House Committee on
Smal Small Business Business
held hearings on held hearings on
bil sbills (H.R. 6904 and S. 2565) that would have established a (H.R. 6904 and S. 2565) that would have established a
permanent MBDA within the Department of Commerce.permanent MBDA within the Department of Commerce.
125128 The House The House
bil ,
bill, introduced by Representatives Parren introduced by Representatives Parren
Mitchel Mitchell and Joseph Addabbo, would have 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 minority business management education. A Senate
bil bill, S. 2565, introduced by , 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 the provision of technical assistance to minority firms. The Senate
bil bill included included
much of the language of E.O. 11625. much of the language of E.O. 11625.
In the 98th Congress, Senator
In the 98th Congress, Senator
Wil iamWilliam Roth introduced the Department of 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 MBDAof the MBDA
to the SBAto the SBA
as one of several aspects of an executive branch agency as one of several aspects of an executive branch agency
reorganization plan.reorganization plan.
126 129
During the 99th Congress, Representative Parren
During the 99th Congress, Representative Parren
Mitchel Mitchell introduced H.R. 4632, introduced H.R. 4632,
a
a
bil bill that would have denied any appropriations to the MBDAthat would have denied any appropriations to the MBDA
to avoid potential 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 Small Business and Capital Ownership Development. The activities of the Business and Capital Ownership Development. The activities of the
MBDA, as MBDA, as
wel well as any unexpended balances, would have been transferred to the as any unexpended balances, would have been transferred to the
SBA Associate Administrator for Minority SBA Associate Administrator for Minority
Smal Small Business and Capital 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 MBDAthat would have redesignated MBDA
as the Minority Business Development as the Minority Business Development
Administration. The Administration. The
bil bill would have directed the MBDAwould have directed the MBDA
to assist disadvantaged 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
128 U.S. Congress, House Committee on Small Business,Committee on Small Business,
Subcommittee on GeneralSubcommittee on General
Oversight and Minority Enterprise, Oversight and Minority Enterprise,
Establishment of a Minority Business Development Administration in the Department of Commerce, Establishment of a Minority Business Development Administration in the Department of Commerce,
96 th96th Cong., 2nd Cong., 2nd
sess.,sess.,
June 9 and 16, 1980 (Washington, DC: GPO, 1980).June 9 and 16, 1980 (Washington, DC: GPO, 1980).
126 S.
129 S. 121 would121 would
have establishedhave established
a new Cabinet a new Cabinet-level agency and eliminated the Department of Commerce. See U.S. -level agency and eliminated the Department of Commerce. See U.S.
Congress, Senate Committee on Government Affairs, Report on the Congress, Senate Committee on Government Affairs, Report on the
T radeTrade Reorganization Act Reorganization Act
o fof 1983, 98th Cong., 2nd 1983, 98th Cong., 2nd
sess.,sess.,
April 3, 1984, S.Rept. 98-374 (Washington, DC: GPO, 1984). April 3, 1984, S.Rept. 98-374 (Washington, DC: GPO, 1984).
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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
Business Development Improvements Act of 2010. This
bil bill would have required would have required
the MBDAthe MBDA
to establish the Minority Business Development Program and charged 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 contract procurement assistance. This
bil bill would have also outlined minority 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 yunconditionally owned or controlled by owned or controlled by
historical yhistorically disadvantaged individuals; 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 would meet the definition of a
historical yhistorically disadvantaged individual. disadvantaged individual.
Additional y, the bil Additionally, the bill would have authorized the program to provide technical 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 The
bil bill would have defined a qualified minority business as a business that is at would have defined a qualified minority business as a business that is at
least 51% directly owned or controlled by least 51% directly owned or controlled by
historical yhistorically disadvantaged individuals. 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 exceed $2
mil ion. The bil million. The bill would have directed the MBDA’s National Director would have directed the MBDA’s National Director
to (1) establish a database to assist prime contractors in identifying to (1) establish a database to assist prime contractors in identifying
historical yhistorically 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 This
bil bill included a provision that would have required MBDAincluded a provision that would have required MBDA
to establish a 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 minority businesses. This
bil bill would have also authorized MBDAwould have also authorized MBDA
to (1) enter into 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 This
bil bill would have also required MBDAwould have also required MBDA
to establish a database to assist prime to establish a database to assist prime
contractors in identifying contractors in identifying
historical yhistorically disadvantaged firms for subcontracting. disadvantaged firms for subcontracting.
During the 112th Congress, Senator Tom
During the 112th Congress, Senator Tom
Udal Udall introduced S. 1334, Expanding introduced S. 1334, Expanding
Opportunities for Main Street Act of 2011. An identical
Opportunities for Main Street Act of 2011. An identical
bil bill (H.R. 2424) was (H.R. 2424) was
introduced by Representative Bobby Rush. Both introduced by Representative Bobby Rush. Both
bil sbills’ MBDA’ MBDA
provisions are 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
Expanding Opportunities for Main Street Act. Title II of the
bil bill deals exclusively deals exclusively
with the MBDAwith the MBDA
and includes the same provisions included in H.R. 4343, and includes the same provisions included in H.R. 4343,
introduced during the 111th Congress. introduced during the 111th Congress.
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The Minority Business Development Agency: An Overview of Its History and Programs
During the 114th and 115th Congresses, no
During the 114th and 115th Congresses, no
bil sbills were introduced to were introduced to
formal yformally
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 MBDAestablish the MBDA
as the Minority Business Development Administration. 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 Resiliency Act of 2020. Both
bil s bills were designed to codify the agency by were designed to codify the agency by
providing it statutory authorization and provide additionalproviding it statutory authorization and provide additional
funding to help MBEs 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 Senator Benjamin Cardin introduced the Heroes
Smal Small Business Lifeline Act (S. 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 of the larger
bil . bill. Representative Karen Bass introduced H.R. 8352 and Senator 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 Resiliency Act of 2020 as a subtitle of the larger
bil bill. During the 116th Congress, . 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 MBEs impacted by the
coronavirusCOVID-19 pandemic, among other activities. Also pandemic, among other activities. Also
during the 116th Congress, Senator during the 116th Congress, Senator
Kel yKelly Loeffler introduced S. 5011 to codify Loeffler introduced S. 5011 to codify
the MBDA the MBDA and establish an Office of African American Affairs within the 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
the Minority Business Resiliency Act of 2021 (S. 1255 in April
2021) 2021 and and
(S. 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 AlRepresentative Al
Green introduced companion legislation in the House (H.R. 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
Retired CRS
analystAnalyst Eugene Boyd was the original author of CRS Report R45015, Minority Business 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.
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This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan
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