I

103D CONGRESS

2D SESSION H. R. 4366

To amend the Small Business Act to establish a minority graduate mentor

program.

IN THE HOUSE OF REPRESENTATIVES

MAY 5, 1994

Mr. WYNN (for himself, Mr. ENGEL, and Mr. FOGLIETTA) introduced the

following bill; which was referred to the Committee on Small Business

A BILL

To amend the Small Business Act to establish a minority

graduate mentor program.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. MINORITY GRADUATE MENTOR PROGRAM.

4 The Small Business Act (15 U.S.C. 631 et seq.) is

5 amended—

6 (1) by redesignating section 28, as added by

7 section 2 of the Women’s Business Development Act

8 of 1991 (105 Stat. 1589), as section 29;

9 (2) by redesignating section 30 as section 31;

10 and
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1 (3) by inserting after section 29, as redesig2 nated by paragraph (1), the following:

3 ‘‘SEC. 30. MINORITY GRADUATE MENTOR PROGRAM.

4 ‘‘(a) ESTABLISHMENT.—The Administrator shall

5 issue regulations to establish a minority graduate mentor

6 program (hereinafter in this section referred to as the

7 ‘program’) in accordance with the requirements of this

8 section.

9 ‘‘(b) DESCRIPTION.—Under the program, a small

10 business concern that is a graduate of the small business

11 and capital ownership development program established by

12 section (7)(j)(10) (hereinafter in this section referred to

13 as a ‘graduate concern’) may serve as a mentor to 1 or

14 more small business concerns that are in the developmen15 tal stage of such small business and capital ownership de16 velopment program (hereinafter in this section referred to

17 as a ‘developmental stage concern’).

18 ‘‘(c) ELIGIBILITY FOR CONTRACTS.—Notwithstand19 ing any other provision of law, a graduate concern that

20 participates as a mentor in the program shall be eligible

21 to receive, during the period of such participation, any

22 contract awarded under section 8(a) if the graduate con23 cern agrees to subcontract not less than 20 percent and

24 not more than 49 percent of the value of the contract to

25 1 or more developmental stage concerns for which the
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1 graduate concern has agreed to serve as a mentor under

2 the program.

3 ‘‘(d) REGULATIONS.—Regulations to be issued pursu4 ant to subsection (a) shall contain, at a minimum, the fol5 lowing:

6 ‘‘(1) Application requirements for participation

7 by graduate concerns and developmental stage con8 cerns in the program.

9 ‘‘(2) Criteria to be used by the Administrator in

10 selecting graduate concerns for participation as men11 tors in the program, including standards for evaluat12 ing a graduate concern’s bonding, financing, and

13 line of credit.

14 ‘‘(3) Procedures for establishing partnerships

15 between graduate concerns and developmental stage

16 concerns under the program, including procedures

17 by which a graduate concern may initiate such a

18 partnership.

19 ‘‘(4) A description of the types of assistance

20 that a graduate concern will provide to a devel21 opmental stage concern under the program, includ22 ing the establishment of goals and regular assess23 ments of the achievement of such goals.

24 ‘‘(5) Monitoring methods to be used by the Ad25 ministrator to prevent abuse under the program, in-
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1 cluding a requirement that all participants in the

2 program submit a financial capability statement to

3 the Administrator at least once every 2 years.

4 ‘‘(6) Procedures to permit a graduate concern

5 and a developmental stage concern to terminate

6 their partnership under the program upon the com7 pletion of a contract.’’.

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