I 

116TH CONGRESS 

2D SESSION H. R. 7844 

To authorize the Director of the Minority Business Development Agency 

of the Department of Commerce to provide assistance for nonprofit 

economic development organizations to provide services for low- and 

moderate-income individuals who are aspiring entrepreneurs or seeking 

employment and for owners of smaller businesses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2020 

Mr. PANETTA (for himself, Mr. GARCI ́A of Illinois, Ms. SA ́NCHEZ, and Mr. 

GOMEZ) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Small 

Business, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To authorize the Director of the Minority Business Development Agency of the Department of Commerce to provide 

assistance for nonprofit economic development organizations to provide services for low- and moderate-income 

individuals who are aspiring entrepreneurs or seeking 

employment and for owners of smaller businesses, and 

for other purposes. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Community Economic 

3 Development Center Support Act of 2020’’. 

4 SEC. 2. CONGRESSIONAL FINDINGS. 

5 The Congress finds that, in the United States— 

6 (1) the number of African-American business 

7 owners dropped from 1.1 million to 640,000, or 41 

8 percent, from February 2020 to April 2020; 

9 (2) the number of immigrant business owners 

10 dropped from 3.1 million to 2 million, or 36 percent, 

11 from February 2020 to April 2020; 

12 (3) the number of Latinx business owners 

13 dropped from 2.1 million to 1.4 million, or 32 per14 cent, from February 2020 to April 2020; 

15 (4) the number of Asian-American business 

16 owners dropped from 890,000 to 657,000, or 26 

17 percent, from February 2020 to April 2020; and 

18 (5) the number of Native American business 

19 owners dropped from 12 million to 9.7 million, or 18 

20 percent, from February 2020 to April 2020. 

21 SEC. 3. PROGRAM AUTHORITY. 

22 The Director of the Minority Business Development 

23 Agency of the Department of Commerce shall carry out 

24 a program under this Act to provide financial assistance, 

25 through eligible intermediaries, for providing financial and 

26 technical assistance to eligible minority-serving economic 


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1 development organizations that provide services to benefit 

2 low- and moderate-income individuals who are aspiring en3 trepreneurs or seeking employment, or both, and to own4 ers of businesses having annual revenues in an amount 

5 less than $500,000. 

6 SEC. 4. FINANCIAL ASSISTANCE. 

7 (a) GRANTS.—The Director shall select, and make 

8 grants under this Act to, multiple eligible intermediaries. 

9 (b) USE OF ASSISTANCE BY ELIGIBLE INTER10 MEDIARIES.— 

11 (1) IN GENERAL.—Except as provided in para12 graphs (2) and (3), an eligible intermediary that re13 ceives a grant under this Act shall use the grant 

14 amounts to provide grants to eligible minority-serv15 ing community development organizations for use 

16 for carrying out economic development activities of 

17 such organizations, including activities described in 

18 section 5(1)(A). 

19 (2) CAPACITY BUILDING EXPENSES.—An eligi20 ble intermediary that receives a grant under this Act 

21 may use not more than 5 percent of the grant to 

22 provide training and technical assistance activities 

23 designed primarily to build the capacity of eligible 

24 minority-serving economic development organiza25 tions. 


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1 (3) INDIRECT EXPENSES.—An eligible inter2 mediary that receives a grant under this Act may 

3 use not more than 5 percent of the grant amounts 

4 for indirect expenses incurred in disbursing and ad5 ministering such grants. 

6 SEC. 5. DEFINITIONS. 

7 For purposes of this Act, the following definitions 

8 shall apply: 

9 (1) DIRECTOR.—The term ‘‘Director’’ means 

10 the Director of the Minority Business Development 

11 Agency of the Department of Commerce. 

12 (2) ELIGIBLE INTERMEDIARY.— 

13 (A) IN GENERAL.—The term ‘‘eligible 

14 intermediary’’ means a nonprofit organization 

15 that— 

16 (i) operates on a national basis; 

17 (ii) has demonstrated experience in 

18 delivering and administering grants and 

19 capacity-building support to eligible minor20 ity-serving economic development organiza21 tions; and 

22 (iii) has a governing board or execu23 tive leadership that reasonably reflects the 

24 communities to be served by the organiza25 tion with assistance provided pursuant to 


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1 this section, with respect to race, ethnicity, 

2 and tribal affiliation. 

3 (B) EXCLUSIONS.—Such term does not in4 clude— 

5 (i) any organization that has received 

6 funding through the Small Business Devel7 opment Center, Women’s Business Center, 

8 or SCORE programs of the Small Busi9 ness Administration or the intermediary 

10 funding program of the Department of 

11 Housing and Urban Development under 

12 section 4 of the HUD Demonstration Act 

13 of 1993 (42 U.S.C. 9816 note); or 

14 (ii) the Neighborhood Reinvestment 

15 Corporation. 

16 (3) ELIGIBLE MINORITY-SERVING ECONOMIC

17 DEVELOPMENT ORGANIZATION.—The term ‘‘eligible 

18 minority-serving economic development organiza19 tion’’ means a nonprofit organization that— 

20 (A) has among its primary functions— 

21 (i) providing technical assistance re22 lated to the formation, operation, and ex23 pansion of smaller businesses having an24 nual revenues of less than $500,000; 


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1 (ii) lending to and equity investment 

2 in small businesses to facilitate growth and 

3 sustainability; and 

4 (iii) providing training, skills develop5 ment, and technical assistance to aspiring 

6 entrepreneurs and individuals who are 

7 independent contractors for purposes of 

8 Form 1099 of the Internal Revenue Serv9 ice; and 

10 (B) primarily serves low- and moderate-in11 come persons and communities that are— 

12 (i) African-American and other Black 

13 communities, Hispanic, including Afro14 Latino communities, Asian and Pacific 

15 American communities, Native Hawaiian 

16 communities, Native American commu17 nities, or Alaskan Native communities; or 

18 (ii) immigrants or refugees, 

19 as such terms are defined by the Director. 

20 SEC. 6. OTHER REQUIREMENTS. 

21 The Director shall by notice establish other such re22 quirements as may be necessary to carry out the provi23 sions of this Act and such notice shall take effect upon 

24 issuance. 


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1 SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

2 There is authorized to be appropriated to the Direc3 tor $75,000,000 for grants under this Act. 

Æ 


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