### §9561. Grants to nonprofit organizations that support minority business enterprises

#### (a) Definition

In this section, the term "covered entity" means a private nonprofit organization that—

(1) is described in paragraph (3), (4), (5), or (6) of section 501(c) of title 26 and exempt from tax under section 501(a) of such title; and

(2) can demonstrate that a primary activity of the organization is to provide services to minority business enterprises, whether through education, making grants or loans, or other similar activities.

#### (b) Purpose

The purpose of this section is to make grants to covered entities to help those covered entities continue the necessary work of supporting minority business enterprises.

#### (c) Designation of office

#### (1) In general

Not later than 180 days after November 15, 2021, the Under Secretary shall designate an office to make and administer grants under this section.

#### (2) Considerations

In designating an office under paragraph (1), the Under Secretary shall ensure that the office designated has adequate staffing to carry out the responsibilities of the office under this section.

#### (d) Application

A covered entity desiring a grant under this section shall submit to the Under Secretary an application at such time, in such manner, and containing such information as the Under Secretary may require.

#### (e) Priority

The Under Secretary shall, in carrying out this section, prioritize granting an application submitted by a covered entity that is located in a federally recognized area of economic distress.

#### (f) Use of funds

A covered entity to which a grant is made under this section may use the grant funds to support the development, growth, or retention of minority business enterprises.

#### (g) Procedures

The Under Secretary shall establish procedures to—

(1) discourage and prevent waste, fraud, and abuse by applicants for, and recipients of, grants made under this section; and

(2) ensure that grants are made under this section to a diverse array of covered entities, which may include—

(A) covered entities with a national presence;

(B) community-based covered entities;

(C) covered entities with annual budgets below $1,000,000; or

(D) covered entities that principally serve low-income and rural communities.

#### (h) Inspector General audit

Not later than 180 days after the date on which the Under Secretary begins making grants under this section, the Inspector General of the Department of Commerce shall—

(1) conduct an audit of grants made under this section, which shall seek to identify any discrepancies or irregularities with respect to those grants; and

(2) submit to Congress a report regarding the audit conducted under paragraph (1).

#### (i) Updates to Congress

Not later than 90 days after the date on which the Under Secretary makes the designation required under subsection (c), and once every 30 days thereafter, the Under Secretary shall submit to Congress a report that contains—

(1) the number of grants made under this section during the period covered by the report; and

(2) with respect to the grants described in paragraph (1)—

(A) the geographic distribution of those grants by State and county;

(B) if applicable, demographic information with respect to the minority business enterprises served by the covered entities to which the grants were made; and

(C) information regarding the industries of the minority business enterprises served by the covered entities to which the grants were made.

(Pub. L. 117–58, div. K, title IV, §100401, Nov. 15, 2021, 135 Stat. 1461.)