60256 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

SMALL BUSINESS ADMINISTRATION

13 CFR Part 119

PRIME Act Grants

AGENCY: Small Business Administration.

ACTION: Notice of proposed rulemaking.

SUMMARY: The U.S. Small Business

Administration is proposing regulations

to add new regulations to set up the

Program for Investment in

Microentrepreneurs Act (‘‘PRIME’’ or

‘‘the Act’’), created by Title VII of the

Gramm-Leach-Bliley Act, enacted

November 12, 1999. The proposed

regulation sets forth the Act’s grant

requirements for qualified

Microenterprise Development

Organizations (‘‘MDOs’’) to: train and

provide technical assistance to

disadvantaged microentrepreneurs;

build MDO’s capacity to give

disadvantaged microentrepreneurs such

training and technical assistance;

research and develop best practices for

training and technical assistance

programs for disadvantaged

microentrepreneurs, and perform such

other activities as the Administrator or

designee determines are consistent with

the Act.

PRIME grants will enable MDOs to

reach more disadvantaged

microentrepreneurs with training and

technical assistance, which will make a

difference in their ability to start, grow,

and sustain microenterprises in

economically distressed, high

unemployment areas. SBA will award a

minimum of 75 percent of available

funds to MDOs to use for training and

technical assistance to disadvantaged

microentrepreneurs. At a minimum,

another 15 percent will be used to build

MDOs’ capacity to give more training

and technical assistance. SBA will use

the remaining funds to make grants for

research and development on best

practices or other purposes to improve

MDOs’ services to PRIME’s ultimate

beneficiaries—disadvantaged

microentrepreneurs.

DATES: Submit comments on or before

November 9, 2000.

ADDRESSES: Written comments should

be sent to Jane Palsgrove Butler,

Associate Administrator,

Microenterprise Development Branch,

Office of Financial Assistance (OFA),

U.S. Small Business Administration,

409 3rd Street, SW, Washington, DC

20416, 202–205–6497.

FOR FURTHER INFORMATION CONTACT: Jody

Raskind, Chief, Microenterprise

Development Branch, 202–205–6485.

SUPPLEMENTARY INFORMATION: Congress

recognized that many disadvantaged

microentrepreneurs lack sufficient

training and education to gain access to

capital and to conduct other activities

necessary to establish, maintain, and

expand their businesses. It enacted the

Program for Investment in

Microentrepreneurs Act (‘‘PRIME’’ or

‘‘the Act’’) to augment training and

technical assistance under the Small

Business Act and other legislation.

PRIME grants to qualified

Microenterprise Development

Organizations (MDOs) will help meet

training and technical assistance needs

for disadvantaged microentrepreneurs,

thereby encouraging entrepreneurship

and capital formation at the community

level.

The Congressional mandate to

provide cognitive support to the target

market through the Act is recognition

that many low income and very lowincome entrepreneurs need training and

technical assistance to start, operate,

strengthen, or expand their businesses.

In order to achieve measurable success,

technical assistance providers must be

accessible, consistent and committed to

the entrepreneur’s progress over

extended periods of time. The

competency and capacity of these

providers must also be measured.

Research into the outcomes of support,

its long-term effect, and how best to

continue assistance is essential in

determining the value of support over

the long run.

The U.S. Department of Commerce’s

Characteristics of Business Ownership

shows that in 1987, approximately 17

percent (2.3 million) of businesses in

the United States were operated by lowincome and very low-income

microentrepreneurs. Since then a

variety of economic developments,

including corporate downsizing,

declining availability of lower skilled

manufacturing jobs and expanded

opportunities in the technology field,

have combined to make microenterprise

an increasingly more viable option in

the U.S. economy.

The Aspen Institute estimated that

during 1997 microlenders nationwide

provided business assistance to 172,000

microentrepreneurs, a mere fraction of

low-and very-low income individuals

involved in microenterprise. The

Institute further estimated that of that

number, about 57,000 actively pursued

and benefited from sustained businessbased training and technical assistance.

Of those, approximately 6,000 received

loans.

One of the major constraints is the

cost of providing this training and

technical assistance. Current private

sector sources simply are not meeting

the need. The Act, therefore, focuses on

expanding the cultivation, support and

motivation of these low- and very-low

income microentrepreneurs. It will also

help build the capacity of the

microenterprise industry in order to

deliver vital services to a much greater

segment of the 2.3 million or more low

income and very low income

microentrepreneurs. One of the goals of

the PRIME program is to be a resource

for MDOs as they grow and develop and

ultimately become self-sustaining.

The Act authorizes SBA to make

grants to ‘‘qualified organizations’’ to

fund training and technical assistance

for disadvantaged microentrepreneurs.

It also authorizes SBA to make grants to

increase the training and technical

assistance capacities of MDOs. Further,

it provides funding for grants for

research and development, and other

undertakings deemed by the

Administrator or designee to be

consistent with the purposes of the Act.

The PRIME program requires that grants

made by SBA be matched by grantees

from non-Federal sources. The proposed

regulations set up four categories of

technical assistance grants targeted to

these purposes.

Grants made either for the purpose of

providing technical assistance to

disadvantaged microentrepreneurs or

for capacity building purposes initially

will be awarded, on a competitive basis,

in amounts not less than $50,000. Such

grants may be renewable, annually, for

up to 4 additional years. Renewal of an

existing grant will take place at the

discretion of the SBA and will be based

on the availability of funds, continued

legislative authorization, and the

individual grantee’s performance in

terms of goals met, milestones achieved,

and demonstrated results.

Grants for research and development

will also be awarded on a competitive

basis, though not subject to the $50,000

minimum award. These grants may also

be renewed based on the

appropriateness of extended funding

periods, availability of funds, continued

legislative authorization and

appropriation and performance.

PRIME will be implemented with a

clear focus on the applicants’ abilities to

meet the purposes of the Act.

Accountability and outcomes will be an

ongoing consideration during the grant

period. Applicants for funding for

technical assistance to disadvantaged

microentrepreneurs will be evaluated

based on such items as technical

capabilities; market penetration

potential; ability to meet stated goals;

historical performance; key personnel;

resource management; community

partnering and collaboration with state

and local entities; accountability for

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60257

outcomes; program sustainability; and

replicability of program design.

Applicants for funding as capacity

builders will be similarly evaluated.

Continued performance of these two

groups will be measured in terms of

such items as number of clients served;

range and quality of service; number of

businesses started, stabilized, expanded,

and/or funded; number of jobs created;

business survival rates; capital

formation; and non-business outcomes

such as wage employment.

SBA is inviting public comment on

how the agency intends to fulfill the

purposes of the Act. SBA intends to

award PRIME grants so that they reach

MDOs that most clearly serve, have the

potential to serve, or can best improve

services to those microentrepreneurs

with the greatest need for businessbased training and technical assistance.

Section by Section Analysis

The following is a section by section

analysis of each provision of SBA’s

proposed regulations to implement the

Act.

Section 119.1 of Part 119 states the

purpose of PRIME—to make grants to

qualified MDOs to provide training and

technical assistance to disadvantaged

microentrepreneurs; to build MDO’s

service provider capacities; to pursue

research and development in the field of

microenterprise development; and for

other purposes deemed by the

Administrator or designee to be

consistent with the Act.

Section 119.2 sets forth definitions

found in the Act, and further defines

terms not included in the Act. The

following terms were either not

included or were not fully defined in

the Act:

Capacity Building Grant in § 119.2(a);

developer in § 119.2(d); disadvantaged

entrepreneur or disadvantaged

microentrepreneur in § 119.2(e);

Discretionary Grant in § 119.2(f);

economically disadvantaged

entrepreneur or economically

disadvantaged microentrepreneur in

§ 119.2(g); emerging microenterprise

development organization or program in

§ 119.2(h); grantee in § 119.2(i); group in

§ 119.2(j); large and small

microenterprise development

organization or program in §§ 119.2(n)

and (v); local community in § 119.2(o);

qualified organization in § 119.2(s);

Research and Development Grant in

§ 119.2(t); severe constraints on

available sources of matching funds in

§ 119.2(u); Technical Assistance Grant

in § 119.2(w).

In defining these terms, SBA

considered the policy objectives of the

Act and how the definitions proposed

will further the intent of Congress to

ensure that PRIME grants reach its

intended audience.

SBA proposes a definition of Indian

tribe jurisdiction in § 119.2(l) consistent

with other Federal laws extending

Federal assistance to Indian country.

Section 119.3 lists organizations

eligible to apply for PRIME grants:

(1) non-profit MDOs or groups of

MDOs with demonstrated records of

delivering microenterprise services to

disadvantaged entrepreneurs;

(2) a private, non-profit entity serving

or seeking to serve other qualified

organizations;

(3) MDOs or programs accountable to

local communities and working with

State, local or tribal governments; and

(4) an Indian tribe acting on its own

behalf, if no private organization or

program as defined in the Act exists

within its jurisdiction.

Section 119.4 lists the uses for PRIME

grants permitted by the Act:

(1) training and technical assistance

for disadvantaged microentrepreneurs;

(2) capacity building services for

MDOs;

(3) research and development on best

practices in microenterprise; and

(4) other activities not covered by the

first three categories and deemed by the

Administrator or designee to be

consistent with the Act’s purposes.

Section 119.5 states the Act’s

parameters for allocating PRIME grants

and their apportionment among the

permitted uses of PRIME funds. 50

percent of the number of the grants will

be awarded to qualified MDOs assisting

very low-income persons, including

those on Indian reservations. The

categorical allocation of PRIME grants

will be:

(1) at least 75 percent to MDOs

providing training and technical

assistance to disadvantaged

microentrepreneurs;

(2) at least 15 percent to organizations

providing training and capacity building

services to MDOs; and

(3) the remainder to be divided

between research and development and

for other purposes as the Administrator

or designee deems consistent with the

Act.

Section 119.6 states awards will be

not less than $50,000 for training and

technical assistance and capacity

building. Although the Act sets no

minimum, SBA decided that a certain

minimum sum is needed for MDOs to

carry out effective training and technical

assistance and capacity building to

further the purposes of the Act. The Act

limits the maximum sum a single MDO

may receive in one fiscal year to

$250,000 or 10% of PRIME funds

available in that fiscal year, whichever

is less.

Section 119.7 states that subject to

availability of funds and continuing

authorization of PRIME, awards will be

made to grantees on an annual basis,

and will allow for the initial grant plus

up to 4 option years, for a total of 5

years. After the initial grant, grant

awards for following option years will

be in declining amounts, declining by

20 percent of the initial grant amount in

each successive year.

Section 119.8 requires a 50 percent

match for PRIME grants. It states what

resources a grantee may use to fulfill

them and the circumstances in which

SBA may reduce or eliminate the match

requirement. It sets a 10 percent limit on

exemptions that may be made in a

single fiscal year.

For example, combining the

requirements of §§ 119.7 and 119.8, if a

grantee receives an initial grant of

$100,000, the grantee will receive

$80,000 in the first option year, $60,000

in the second option year, $40,000 in

the third option year, and $20,000 in the

fourth option year. The grantee will be

subject to a 50 percent match for each

year—$50,000 for initial year, $40,000

for first option year, $30,000 for second

option year, $20,000 for third option

year, and $10,000 for fourth option year.

Section 119.9 states that SBA will

issue Programs Announcements seeking

PRIME grant applications. SBA believes

a competitive process will allow a

greater number of varied, diverse

proposals that will accomplish the goals

of the Act.

Section 119.10 restates the Act’s

requirement that SBA not prefer SBA

Microloan Program participants under

§ 7(m) of the Small Business Act over

non-participants or former participants

in that program. Congress intended

PRIME grants to help MDOs serve a

greater number of disadvantaged

entrepreneurs than currently receive

assistance. Though Microloan

participants and former participants

will still be eligible, avoiding a

preference for them will enable SBA to

broaden opportunities for training and

technical assistance, rather than

duplicating existing programs.

Section 119.11 sets forth information

that will be requested in an application

for funding under PRIME, based on the

4 categories of PRIME grants described

in § 119.4.

Section 119.12 explains factors that

will affect grant application

consideration. To further the Act’s goals

to assist disadvantaged

microentrepreneurs most in need of

training and technical assistance, SBA

will initially give special consideration

60258 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

to organizations located in and serving

areas of, or with a history of successful

outreach to, low-income and very lowincome persons. SBA believes this

approach will further the goals of the

Act by directing grant funds to those

microentrepreneurs who are at the

greatest disadvantage.

Section 119.13 explains how grantees

may make subgrants from PRIME

awards. Subgrants will enable more

MDOs to provide training and capacity

building, and will enable them to

expand the technical assistance network

available to disadvantaged

entrepreneurs. To make sure that funds

are used to carry out purposes of the

Act, SBA is requiring grantees to obtain

its prior approval for subgrantees. The

Act limits how much grantees may use

for administrative expenses related to

making subgrants.

Section 119.14 sets forth limitations

on use of program income.

Section 119.15 explains carryover

procedures from one fiscal year to the

next or unexpended Federal funds.

Section 119.16 advises the public

about SBA reporting, record keeping,

and related requirements. Congress

stated its intent for qualified

organizations to maintain records as the

Riegle Community Development Act of

1994 (‘‘Riegle Act’’) requires of

community development financial

institutions under 12 U.S.C. § 4714. SBA

will include the details of such

requirements in its Program

Announcements.

Section 119.17 advises the public

about SBA oversight functions,

including additional reporting

requirements in accordance with

applicable OMB circulars.

Section 119.18 sets forth restrictions

against lobbying.

Section 119.19 explains that

fundraising costs are not allowable

expenditures of grant funds under the

Act.

Section 119.20 explains process for

grantees and subgrantees to raise

conflict of interest matters with SBA.

Appendix A of this rule contains the

Program Announcements SBA proposes

to issue to potential applicants. SBA

chose to draft three separate Program

Announcements, one for each of the

first three grant categories identified in

§ 119.4. The Program Announcements

(and their appendices) include such

items as the purpose and overview of

the PRIME Program, program eligibility

and evaluation criteria, application

requirements and instructions, reporting

and recordkeeping requirements. SBA

reserves the right to simultaneously

review multiple Program

Announcement responses from an

applicant applying to receive a grant

under more than one of the categories

listed in § 119.4. SBA welcomes

comments on any aspect of the

proposed Program Announcements (and

their appendices).

Compliance With Executive Order

12866, 12988 and 13132, the Regulatory

Flexibility Act, 5 U.S.C. 601–12, and the

Paperwork Reduction Act, 44 U.S.C.

Ch. 35

The Office of Management and Budget

(OMB) reviewed this rule as a

‘‘significant’’ regulatory action under

Executive Order 12866.

SBA has determined that this

proposed rule will not have a significant

economic impact on a substantial

number of small entities within the

meaning of the Regulatory Flexibility

Act, 5 U.S.C. 601–612. Because

Congress has limited the funding level

for this program, it can only serve a

limited number of small businesses by

making grants to the defined

organizations.

For purposes of the Paperwork

Reduction Act, 44 U.S.C. Ch. 35, SBA

will submit to the Office of Management

and Budget (OMB) our proposed

Program Announcements for the PRIME

program. SBA will request OMB to

approve or disapprove of these

collections of information 30 days after

submission. SBA proposes using three

separate Program Announcements, one

for each of the first three grant

categories identified in § 119.4. The data

collection requirements of the various

Program Announcements (and their

appendices) are described generally

within this proposed regulation. The

specific data collection requirements

can be found in the Program

Announcements themselves, which are

attached to this proposed rule as

Appendix A. You may also obtain a

copy of the proposed Program

Announcements for comments on the

data collection requirements by visiting

SBA’s website at www.sba.gov.

The following list identifies the

sections of this proposed regulation

which describe generally the data

collection requirements found within

the Program Announcements (and their

appendices).

(1) As referenced in § 119.11 (What

information will be requested in an

application under the PRIME program?)

and § 119.12 (What criteria will SBA use

to evaluate applications for funding

under the PRIME program?), SBA

proposes requesting information, such

as, basic identifying information and

core data, management and organization

information, descriptions of past and

present performance in serving low and

very low income individuals, technical

qualifications of the applicant,

descriptions of activities proposed using

PRIME grant funds, information

regarding community partnering efforts,

and reporting capabilities.

SBA needs this information to

evaluate applicants and ensure that

awards are made in furtherance of the

PRIME program’s objectives. SBA

anticipates that the respondents to this

request will include those organizations

identified in § 119.3 (What types of

organizations are eligible to apply for

PRIME grants?). Based upon the

Agency’s knowledge of the industry,

SBA estimates that approximately 500

applicants will apply to participate in

the PRIME program. Respondents will

need to submit the information

referenced in §§ 119.11 and .12 each

time they apply to participate in the

PRIME program. SBA estimates that it

will take respondents 80 hours to

respond to a Program Announcement

and fulfill the reporting and

recordkeeping requirements referenced

below.

(2) As referenced in § 119.13 (How

will an applicant make a subgrant?),

SBA proposes requesting information

that would support the awarding a

subgrant, such as, a description of how

the subgrant will allow the grantee to

provide expanded services and benefits.

SBA needs this information to assess

whether issuing a subgrant is in the best

interest of the objectives of the PRIME

program. SBA anticipates that the

respondents to this request will be

grantees that have identified

opportunities to enhance proposal

implementation through the use of

subgrants. Respondents will need to

submit the information referenced in

§ 119.13 each time they request a

subgrant. SBA estimates that it will take

respondents 10 hours per response to

provide the information requested by

this section.

(3) As referenced in § 119.15 (If a

grantee is unable to spend the entire

amount allotted for a single year, can

the funds be carried over to the next

year?), SBA proposes requesting

information, such as, an explanation of

why funds were not spent during the

period in which they were awarded,

budget and matching fund information.

SBA needs this information to assess

whether the grantee should be allowed

to carry funds over to the next budget

period. SBA anticipates that the

respondents to this request will be

grantees that have not expended their

grant funds during the period in which

they were awarded. If a respondent

makes a request for funds to be carried

over, this request will be made on an

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annual basis. SBA estimates that the

time it will take respondents to provide

this information is 1 hour per response. (4) As referenced in § 119.16 (What

are the reporting, record keeping, and

related requirements for grantees?) and

§ 119.17 (What types of oversight will

SBA provide to grantees?), SBA

proposes requesting a variety of data

including narrative performance reports

and financial status reports. The

recipients of: (a) Technical Assistance and Capacity

Building Grants will be required to

provide SBA with annual performance

and, initially, quarterly financial

reports. (b) Research and Development Grants

will be required to provide performance

and financial reports in accordance with

agreed upon milestones for each

particular grant proposal. (c) Discretionary Grants will be

required to provide reports as

appropriate for their proposal or on a

schedule as described for Technical

Assistance and Capacity Building

Grants.

SBA needs this information to assess

the impact of services provided by the

grantees and to measure the success rate

of individual clients, microenterprise

development organizations, and the

microenterprise development industry.

SBA anticipates that all grantees will

respond to this request as required by

their respective grant category. SBA

estimates that the time it will take

respondents an average of 4 hours to

provide this information. (5) As referenced in § 119.19 (Is

fundraising an allowable expense under

the PRIME program?), SBA proposes

requesting information supporting that

the grantees have adequate fundraising

resources for the non-Federal matching

fund requirements of the PRIME

program. SBA needs this information to ensure

that the applicants for the PRIME

program have the ability to satisfy the

program’s regulatory matching

requirements. SBA will require this

information each time a grantee applies

for grant funds under the PRIME

program. SBA estimates that it will take

respondents 2 hours to provide this

information.

(6) As referenced in § 119.20 (Should

grantees and subgrantees raise conflict

of interest matters with SBA?), SBA

proposes requesting that each grantee or

subgrantee provide a copy of its

conflicts of interest policy. SBA needs this information to ensure

that the grantees and subgrantees are in

a position to avoid conflicts of interest,

or the appearance of conflicts of

interest, in the handling of grant funds

or program provisions under the PRIME

program. SBA anticipates that all

grantees and subgrantees will provide

this information. SBA will require that

respondents provide this information

once, prior to receiving funding under

the PRIME program. SBA estimates that

it will take respondents .50 burden

hours to provide this information. SBA is seeking your comment on the

following: (a) whether the information

SBA is requesting is necessary for the

proper performance of the Agency, (b)

the accuracy of the burden estimate

(time estimated to complete each

collection of information request), (c)

ways to minimize the burden estimates,

and (d) ways to enhance the quality of

the information being collected. Please

send comments on the data collection

requirements to David Rostker, Office of

Management and Budget, Office of

Information and Regulatory Affairs, 725

17th Street, NW, Washington, DC 20503,

and to Jane Palsgrove Butler, Associate

Administrator, Office of Financial

Assistance, 409 3rd Street, SW,

Washington, DC 20416. For purposes of Executive Order

13132, SBA has determined that this

proposed rule has no federalism

implications because the legislation

authorizing it provides grants to private,

non-profit organizations working

directly with disadvantaged

entrepreneurs. For purposes of Executive Order

12988, SBA certifies that this proposed

rule is drafted, to the extent practicable,

in accordance with the standards set

forth in section 3 of that Order.

List of Subjects in 13 CFR Part 119

Grant programs—business, Small

business.

For the reasons stated in the

preamble, the Small Business

Administration proposes to add 13 CFR

part 119 as follows:

PART 119—PROGRAM FOR

INVESTMENT IN

MICROENTREPRENEURS (‘‘PRIME’’

OR ‘‘THE ACT’’)

Sec.

119.1 What is the Program for Investment in

Microentreprenuers (‘‘PRIME’’ or ‘‘the

Act’’)?

119.2 Definitions.

119.3 What types of organizations are

eligible for PRIME grants?

119.4 What services or activities may

PRIME grant funds be used for?

119.5 How are PRIME grant awards

allocated?

119.6 What are the minimum and

maximum amounts for an award?

119.7 How long will grant funding be

available to a single grantee?

119.8 Are there matching requirements for

grantees?

119.9 How will a qualified organization

apply for PRIME grant awards?

119.10 Will SBA give preferential

consideration to other SBA program

participants?

119.11 What information will be requested

in an application under the PRIME

program?

119.12 What criteria will SBA use to

evaluate applications for funding under

the PRIME program?

119.13 How will an applicant make a

subgrant?

119.14 Are there limitations regarding the

use of program income?

119.15 If a grantee is unable to spend the

entire amount allotted for a single fiscal

year, can the funds be carried over to the

next year?

119.16 What are the reporting, record

keeping, and related requirements for

grantees?

119.17 What types of oversight will SBA

provide to grantees?

119.18 What are the restrictions against

lobbying?

119.19 Is fundraising an allowable expense

under the PRIME program?

119.20 Should grantees and subgrantees

raise conflict of interest matters with

SBA?

Authority: 15 U.S.C. 634(b)(6) and Pub. L.

106–102.

§ 119.1 What is the Program for

Investment in Microentrepreneurs (‘‘PRIME’’

or ‘‘the Act’’)?

PRIME authorizes SBA to make grants

to ‘‘qualified organizations’’ to fund

training and technical assistance for

disadvantaged entrepreneurs, build

these organizations’ own capacity to

give training and technical assistance,

fund research and development of ‘‘best

practices’’ in microenterprise

development and technical assistance

programs for disadvantaged

microentrepreneurs, and to fund other

undertakings the Administrator or

designee deems consistent with these

purposes.

§ 119.2 Definitions. For the purposes of

this part, the following definitions apply:

Capacity Building Grant means a

grant made under the Act identified

under § 119.4(b).

Capacity building services means

services provided to an organization or

program that is currently, or is

developing as, a microenterprise

development organization or program,

for the purpose of enhancing its ability

to provide training and technical

assistance to disadvantaged

microentrepreneurs.

Collaborative means two or more

nonprofit entities that agree to act

jointly as a qualified organization under

this part.

Developer means a person interested

in starting or acquiring a

microenterprise.

60260 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

Disadvantaged entrepreneur, or

disadvantaged microentrepreneur,

means the owner, majority owner, or

developer, of a microenterprise who is

also—

(1) A low-income person;

(2) A very low-income person; or

(3) An entrepreneur who lacks

adequate access to capital or other

resources essential for business success,

or is economically disadvantaged, as

defined in this part.

Discretionary Grant means a grant

made under the Act identified under

§ 119.4(d).

Economically disadvantaged

entrepreneur, or economically

disadvantaged microentrepreneur,

means an owner, majority owner, or

developer of a microenterprise whose

ability to compete in the free enterprise

system has been impaired due to

diminished capital and credit

opportunities as compared to others in

the industry such that his or her

ownership of a small business would

help to qualify the small business for

assistance under the section 7(j) or

section 8(a) programs of the Small

Business Act.

Emerging microenterprise

development organization or program

means a microenterprise development

organization or program which has a

microenterprise capacity building

services component, but has had such a

component for less than 4 years at the

date of its application for a PRIME grant.

Grantee means a recipient of a grant

under the Act.

Group has the same meaning as

‘‘collaborative’’ as defined in this

section.

Indian tribe means any Indian tribe,

band, pueblo, nation, or other organized

group or community, including any

Alaska Native village or regional or

village corporation, as defined in or

established pursuant to the Alaska

Native Claims Settlement Act, which is

recognized as eligible for the special

programs and services the United States

provides to Indians because of their

status as Indians.

Indian tribe jurisdiction means Indian

country, as defined in 18 U.S.C. 1151,

and any other lands, title to which is

either held by the United States in trust

for the benefit of any Indian tribe or

individual or held by any tribe or

individual subject to a restriction by the

United States against alienation, and

any land held by Alaska Native groups,

regional corporations, and village

corporations, as defined in or

established under the Alaska Native

Claims Settlement Act, public domain

Indian allotments, and former Indian

reservations in the State of Oklahoma.

Intermediary means a private,

nonprofit entity serving or seeking to

serve microenterprise development

organizations or programs identified

under § 119.3.

Large microenterprise development

organization or program means a

microenterprise development

organization or program with 10 or more

full time employees or equivalents,

including its executive director, as of

the date it files its application with SBA

for a PRIME grant.

Local community means an

identifiable area and population

constituting a political subdivision of a

state.

Low-income person means a person

having an income, adjusted for family

size, of not more than—

(1) For metropolitan areas, 80 percent

of the median income; and

(2) For non-metropolitan areas, the

greater of—

(i) 80 percent of the area median

income; or

(ii) 80 percent of the statewide nonmetropolitan area median income.

Microenterprise means a sole

proprietorship, partnership or

corporation that—

(1) Has fewer than 5 employees,

including the owner; and

(2) Generally lacks access to

conventional loans, equity, or other

banking services.

Microenterprise development

organization or program means a

nonprofit entity, or a program

administered by such an entity,

including community development

corporations or other nonprofit

development organizations and social

service organizations, that provides

services to disadvantaged

microentrepreneurs.

Qualified organization means an

organization eligible for a PRIME grant

identified under § 119.3.

Research and Development Grant

means a grant made under the Act

identified under § 119.4(c).

Severe constraints on available

sources of matching funds means the

documented inability of a qualified

organization applying for a PRIME grant

to raise matching funds or in-kind

resources from non-Federal sources

during the 2 years immediately prior to

the date of its application because of a

lack of or increased scarcity of monetary

or in-kind resources from potential nonFederal sources.

Small microenterprise development

organization or program means a

microenterprise development

organization or program with less than

10 full time employees or equivalents,

including its executive director, as of

the date it files its application with SBA

for a PRIME grant.

Technical Assistance Grant means a

grant made under the Act identified

under § 119.4(a).

Training and technical assistance

means services and support provided to

disadvantaged entrepreneurs, such as

assistance intended to enhance business

planning, marketing, management,

financial management skills, business

operations, or assistance for the purpose

of increasing access to loans and other

financial services.

Very low income person means having

an income adjusted for family size of

not more than 150 percent of the

poverty line, as defined in section

673(2) of the Community Services Block

Grant Act, 42 U.S.C. 9902(2), including

any revision required by that section.

§ 119.3 What types of organizations are

eligible for PRIME grants?

An organization eligible for a PRIME

grant (‘‘qualified organization’’) is one

that is:

(a) A microenterprise development

organization or program as defined in

§ 119.2 (or a group or collaborative

thereof) that has a demonstrated record

of delivering microenterprise services to

disadvantaged microentrepreneurs;

(b) An intermediary, as defined in

§ 119.2;

(c) A microenterprise development

organization or program as defined in

§ 119.2 that is accountable to a local

community, working with a State or

local government or Indian tribe; or

(d) An Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization or program referred

to in paragraphs (a), (b) and (c) of this

section exists within its jurisdiction.

§ 119.4 What services or activities may

PRIME grant funds be used for?

A recipient of a PRIME grant

(‘‘grantee’’) must use PRIME grants to—

(a) Provide training and technical

assistance to disadvantaged

microentrepreneurs (‘‘Technical

Assistance Grant’’);

(b) Provide training and capacity

building services to microenterprise

development organizations and

programs to assist them to develop

microenterprise training and services

(‘‘Capacity Building Grant’’);

(c) Aid in researching and developing

the best practices in the field of

microenterprise development and

technical assistance programs for

disadvantaged microentrepreneurs

(‘‘Research and Development Grant’’); or

(d) Conduct such other activities as

the Administrator or designee

determines to be consistent with the

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60261

purposes of the Act (‘‘Discretionary

Grant’’).

§ 119.5 How are PRIME grant awards

allocated?

(a) Not less than 50 percent of the

number of grant awards made under this

part will be awarded to qualified

organizations benefiting very lowincome persons, including those

residing on Indian reservations. In

general, SBA will make grant award

decisions to serve diverse populations

by including as recipients both large

and small microenterprise development

organizations, and organizations serving

urban, rural, and Indian tribal

communities.

(b) SBA will allocate the funding

available for awards as follows:

(1) A minimum of 75 percent for

Technical Assistance Grants;

(2) A minimum of 15 percent for

Capacity Building Grants; and

(3) The remaining 10 percent or less

may be allocated by SBA, in its sole

discretion to be used for:

(i) Research and Development Grants;

or

(ii) Discretionary Grants.

§ 119.6 What are the minimum and

maximum amounts for an award?

(a) The minimum grant award for

Technical Assistance and Capacity

Building Grants will be $50,000, subject

to the availability of funds.

(b) There is no minimum grant award

for Research and Development or

Discretionary Grants.

(c) The maximum amount that an

individual grant recipient may receive

in any fiscal year from a single award

or multiple awards, under any of the

purposes of the program, may not

exceed $250,000 or 10 percent of the

total grant funds available for award in

that fiscal year, whichever is less.

§ 119.7 How long will grant funding be

available to a single grantee?

(a) Subject to the availability of funds

and continuing authorization of the

PRIME program, funding will be

available on an annual basis allowing

for the initial grant plus up to 4 option

years, for a total of 5 years. Continuation

of funding during option years will

depend upon funding limitations, the

grantee’s performance, continued

legislative authorization, and otherwise

at the discretion of SBA. A grantee may

apply for funding for less than the 5-

year time frame available.

(b) After a grantee receives an initial

grant, funding for any option years will

be in declining amounts as follows:

(1) 80 percent of initial grant amount

in first option year;

(2) 60 percent of initial grant amount

in second option year;

(3) 40 percent of initial grant amount

in third option year; and

(4) 20 percent of initial grant amount

in fourth option year.

§ 119.8 Are there matching requirements

for grantees?

Applicants and grantees must match

SBA funding as follows:

(a) Except as provided in paragraph

(c) of this section, applicants and

grantees must match Federal assistance

with funds from sources other than the

Federal Government in an amount not

less than 50 percent of the grant amount

awarded each year. Sources such as

fees, grants, gifts, income from loan

sources, and in-kind resources of a grant

recipient from non-Federal public or

private sources may be used to comply

with the matching funds requirement;

(b) Grantees receiving funds in option

years as described in § 119.7(b) are

subject to matching requirements of this

section.

(c) For an applicant or grantee with

severe constraints on available sources

of matching funds, the Administrator or

designee may reduce or eliminate the

matching requirements. Any reductions

or eliminations must not exceed 10

percent of the aggregate of all PRIME

grant funds made available by SBA in

any fiscal year.

(d) An applicant may request a waiver

of the matching fund requirement by

submitting a written request with its

application for funding. The request

must justify the need for a waiver

indicating:

(1) The cause and extent of the

constraints on the historical and

projected ability to raise matching

funds;

(2) Fund raising efforts up to the time

the application is submitted;

(3) Based on those efforts, a list of any

matching funds expected for the PRIME

grant; and

(4) The extent to which, without the

waiver, services under the PRIME

program will be unavailable to an area

with a demonstrated concentration of

microenterprises.

§ 119.9 How will a qualified organization

apply for PRIME grant awards?

(a) SBA will issue Program

Announcements specifying the terms,

conditions, and evaluation criteria for

each potential set of awards. Program

Announcements will summarize the

purpose of the available funds; will

advise potential applicants regarding

how to obtain an application packet;

and will provide summary information

regarding deadlines and other

requirements. Program Announcements

may specify any limitations, special

rules, procedures, and restrictions for

available funding.

(b) Applicants may submit

applications in response to the Program

Announcements. Each applicant shall

submit an application for a grant in

accordance with this part and the

applicable Program Announcement.

(c) SBA reserves the right to consider

at the same time multiple applications

from a single applicant when

appropriate.

§ 119.10 Will SBA give preferential

consideration to other SBA program

participants?

In making grants under this part, SBA

will not give preferential consideration

to an applicant that is a participant in

the program established under section

7(m) of the Small Business Act.

§ 119.11 What information will be

requested in an application under the

PRIME program?

Each application must contain the

information and documentation

specified in the applicable Program

Announcement including, but not

limited to, the following items.

(a) For applications seeking Technical

Assistance Grants:

(1) Identifying information and core

documentation for the applicant

including such items as the applicant’s

articles of incorporation, by-laws, proof

of IRS tax-exempt status, financial

statements, and reference contacts.

(2) A description of past and present

activities and technical qualifications of

the applicant, including workshops,

programs and other technical assistance

services, with specific descriptions of

the extent to which such services have

reached low and very low-income

individuals, and the success rates of

clients.

(3) A list of applicant’s community

partnerships and collaborations with

state and local entities, and a

description of how such partnerships

and collaborations are serving

microentrepreneurs.

(4) A description of the proposed

activity for which the applicant will use

PRIME grant funds, including training

programming plans; a plan for outreach

and delivery; applicant’s capacity to

provide thorough and detailed reports;

and a description of the applicant’s

current data collection and management

system, such as computer hardware,

software and internet capabilities.

(5) In the event the applicant is a

collaborative, a plan for maintaining

internal controls, accountability, and

program quality control among the

participants of the collaborative.

60262 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

(6) Resumes of the personnel that will

be administering and managing the

proposed activities under the PRIME

grant, showing knowledge in such areas

as business development, business

structures, financial management, and

business training and counseling.

(7) A list of grants received, and/or

contracts entered into, that are similar

in scope to the subject grant, including

name of Federal or other agency

providing funding, grant or contract

number, and a summary of services

provided.

(b) For applicants seeking Capacity

Building Grants:

(1) See paragraphs (a) (1) , (5) , (6) and

(7) of this section.

(2) A description of past and present

activities and technical qualifications of

the applicant, including workshops,

programs, operational services, and

other technical assistance services, or

program development services with

specific descriptions of the extent to

which such services have improved the

operations of client MDOs, assisted

client MDOs with operational issues,

and assisted client MDOs in reaching

low and very low-income individuals.

(3) A description of the proposed

activity for which the applicant will use

PRIME grant funds, including training

programming plans, a plan for outreach

and delivery, applicant’s capacity to

provide thorough and detailed reports; a

description of the applicant’s current

data collection and management system,

such as computer hardware, software,

and internet capabilities and a

description of how these capabilities

will or will not be integrated into the

training of MDOs.

(c) For applicants seeking Research

and Development Grants:

(1) See paragraphs (a)(1), (6), and (7)

of this section.

(2) A research proposal indicating the

thesis, method(s), scope, duration, and

implementation plans (if any).

(3) A description of the expected

effect of the research on services to

disadvantaged microentrepreneurs.

(d) For applicants seeking

Discretionary Grant:

(1) See paragraph(a)(1) of this section.

(2) A description of the proposed

activity for which the applicant will use

PRIME grant funds, including

applicant’s capacity to provide thorough

and detailed reports, and a description

of the applicant’s current data collection

and management system, such as

computer hardware, software and

internet capabilities.

§ 119.12 What criteria will SBA use to

evaluate applications for funding under the

PRIME program?

During the first year for which

funding is available for the PRIME

program, SBA will give special

consideration to organizations located

in and serving areas of, or with a history

of successful outreach to, low-income

and very low-income persons, to enable

the Prime program to assist those with

the greatest need first. SBA will evaluate

applications for funding in accordance

with the specific goals of the Act, and

as more fully described in the Program

Announcements. Evaluation criteria

include, but are not limited to, the

following:

(a) Applications for Technical

Assistance Grants:

(1) Applicants will compete within

two levels of expertise:

(i) The start-up level, for those that

have been in operation as a

microenterprise development

organization for 4 years or less; and

(ii) The experienced level, for those

that have been in operation for more

than 4 years.

(2) SBA will evaluate organizational

structure, financial stability, financial

management systems, personnel

capacity, and electronic communication

capabilities (or potential for same). SBA

will also evaluate data collection

capabilities, reporting capacities, and

ability to account for performance and

outcome.

(3) SBA will evaluate the applicant’s

history of providing technical assistance

to low-income and very low-income

microentrepreneurs. This factor

includes patterns of program growth,

client success, outcomes of training,

success in establishing new businesses,

and success in arranging micro-level

financing when the client indicates

financing as a goal.

(4) SBA will evaluate the applicant’s

ability to use community partnerships

and collaborations with state and local

entities to better serve low-income and

very low-income microentrepreneurs.

(b) Applications for Capacity Building

Grants:

(1) SBA will evaluate the criteria set

forth in paragraph (a)(2) of this section.

(2) SBA will evaluate the applicant’s

history of providing capacity building

services to MDOs, as an indication of

the organization’s understanding of the

goals and purposes of capacity building,

its historical effectiveness with the

microenterprise development industry,

and its ability to provide quality

programming to the targeted market.

SBA will evaluate patterns of program

growth, outcomes of training, types of

services provided, delivery systems

used, the number and types of clients

served, and the successes realized

within the client’s organizational goals.

(3) SBA will evaluate expected impact

on client MDOs; expected impact on

services to low-and very-low income

microentrepreneurs; and a plan for

service and delivery.

(c) Applications for Research and

Development Grants:

(1) SBA will evaluate the criteria set

forth in paragraph (a)(2) of this section.

(2) SBA will evaluate how the

research potentially will enhance

microenterprise-oriented technical

assistance services to disadvantaged

entrepreneurs. Applicants must show

the method(s), scope, duration, and

implementation plans of the proposed

research.

(3) SBA will evaluate applicant’s plan

of action incorporating original and

secondary research. Applicants must

show impact on improved access to

microenterprise development services

for disadvantaged microentrepreneurs,

and the expected replicability/

transferability of the finished product to

the field.

(d) Applications for Discretionary

Grants will be evaluated in accordance

with the requirements of each project.

§ 119.13 How will an applicant make a

subgrant?

(a) An applicant that wants to make

subgrants using PRIME grant funds must

receive written approval from SBA prior

to making subgrants. The applicant

must identify the subgrantee(s) and

describe in detail what the subgrantee(s)

will do to help the grantee implement

its proposal. An applicant must submit

information to SBA demonstrating that,

through the subgrantee(s), the grantee’s

program will:

(1) Provide expanded services to the

community,

(2) Provide a method by which one or

more previously unserved communities

will gain access to the program, or

(3) Provide other specific benefits to

the clients, such as specialized training,

expanded schedules of operation, or

other benefits.

(b) If an applicant has identified

potential subgrantee(s) at the time it

submits an application for a PRIME

grant, the applicant must include the

information requested in paragraph (a)

of this section in the application.

Otherwise, the applicant or grantee may

submit the requested information at

such time that approvals for

subgrantee(s) are requested.

(c) A grantee may not use more than

7.5 percent of the assistance received

under its PRIME grant for administrative

expenses in connection with the making

of subgrants.

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60263

§ 119.14 Are there limitations regarding

the use of program income?

Program income, as defined in OMB

Circular A–110, may only be used to

further PRIME program objectives. As

such, fees collected from clients, and

other program income as defined, may

be used to help fund the matching

requirement. All program income, as

defined, shall be reported on financial

reports submitted to SBA and added to

funds committed to the project by SBA

and the recipient organization.

However, any interest earned in excess

of the maximum allowable amount as

specified in the OMB circular

incorporated into the grant must be

returned to the Federal Government by

the grantee.

§ 119.15 If a grantee is unable to spend the

entire amount allotted for a single fiscal

year, can the funds be carried over to the

next year?

(a) The grantee may request approval

to use unexpended funds in the next

budget period. This is permissible if

funds are to be used for a non-severable,

non-recurring project or activity within

the scope of the PRIME program. Nonseverable means a project in its entirety

that cannot be subdivided. The request

for using unexpended funds in the next

budget period must include the

following:

(1) SF 424, budget pages, and

justification;

(2) Explanation of why the funds were

not expended during the period in

which they were awarded; and

(3) Evidence of match. The match

requirement for funds carried over to

the next budget period can be met by

using any excess of matching funds

from the current budget period, new

matching funds, or a combination of

both.

(b) The request must be made no later

than 60 days before the end of the

budget/project period or the deobligation process will begin. Approved

requests will require the issuance of a

revised Notice of Award. Expenditures

for funds carried over to the next budget

period must be tracked separately.

§ 119.16 What are the reporting, record

keeping, and related requirements for

grantees?

A grantee must keep records and meet

the other requirements of section 115 of

the Riegle Community Development and

Regulatory Improvement Act of 1994

(Riegle Act), as if it were a community

development financial institution. (See

12 U.S.C. 4714). In addition to meeting

requirements of the Riegle Act, a grantee

must also maintain data allowing it to

measure the impact of services provided

by it and any subgrantees, and, if

specifically required by the terms of the

PRIME grant, measure the success rate

of individual clients whom the grantees

assist. SBA will detail such

requirements in its Program

Announcements.

§ 119.17 What types of oversight will SBA

provide to grantees?

(a) In addition to reports required

under the Riegle Act, SBA will require

reports in accordance with applicable

OMB circulars. Such reports will

include the following information:

(1) For recipients of Technical

Assistance and Capacity Building

Grants, for the first three years of

receiving grant funding, narrative

performance reports and financial status

reports will be required quarterly within

15 calendar days of the end of each

quarter. Thereafter, SBA may reduce the

frequency of reports from quarterly to

semi-annually, as it deems appropriate.

In addition, details of expenditures will

be required with each request for

payment. Grantees will be required to

submit audited financial statements on

an annual basis, if available, or annual

financial statements prepared by a

licensed, independent public

accountant, within 120 calendar days of

the end of the grantee’s fiscal year.

(2) For recipients of Research and

Development Grants, reports will be

required in accordance with agreed

upon milestones and as part of the

disbursement process.

(3) For recipients of Discretionary

Grants, reports will be required as

appropriate for the project, or on a

schedule as described in paragraph(a)(1)

of this section, whichever is more

frequent.

(b) In addition, SBA may, from time

to time, make site visits to the grantee,

and review all applicable books and

records.

§ 119.18 What are the restrictions against

lobbying?

No assistance made available under

the PRIME program may be expended

by a grantee or subgrantee to pay any

person to influence, or attempt to

influence, any agency, elected official,

officer, or employee of a Federal, State,

or local government in connection its

participation in the program.

§ 119.19 Is fundraising an allowable

expense under the PRIME program?

Expenditures of grant funds for

fundraising activities are not allowable

costs under this program. Applicants

must be able to raise matching funds

without the assistance of grant funds.

Unless the full requirement for

matching funds is waived, the applicant

must demonstrate that it has adequate

fundraising resources to obtain required

non-Federal matching funds to perform

the project.

§ 119.20 Should grantees and subgrantees

raise conflict of interest matters with SBA?

Each grantee or subgrantee must

provide SBA with a copy of its conflicts

of interest policies prior to receipt of

funding under the program. Such

policies must clearly describe the

grantee’s or subgrantee’s protections

from conflicts of interest or the

appearance thereof in the handling of

grant funding and program provision

under this program.

Dated: September 25, 2000.

Aida Alvarez,

Administrator.

Note: The following appendix will not

appear in the Code of Federal Regulations.

Program for Investment in

Microentrepreneurs

DATE:

TO: Applicants

FROM: Office of Procurement and

Grants Management (OPGM)

SUBJECT: Program Announcement No.

PRIME 01–1, Program for

Investment in Microenterprise Act,

(‘‘PRIME’’) to provide

disadvantaged microentrepreneurs

training and technical assistance to

start, operate, or expand their

businesses.

The U.S. Small Business

Administration plans to issue Federal

grants awards to qualified organizations

under PRIME to provide training and

technical assistance to disadvantaged

microentrepreneurs. These

organizations include: non-profit

microenterprise development

organizations or programs;

intermediaries (as defined); other

microenterprise development

organizations or programs (as defined)

that are accountable to a local

community, working in conjunction

with a State or local government or

Indian tribe; or Indian tribes acting on

their own, with proper certification that

no other qualified organization exists

within their jurisdiction. You are

invited to submit an application, an

original and two (2) copies, in response

to Program Announcement No. PRIME

01–1. You are required to bind the cost

proposal and technical proposal

separately. Prepare the technical and

cost proposals in single-spaced 12-pt.

font format. The technical proposal

must not exceed 50 pages, excluding

exhibits and appendices. The

Government will not return proposals,

but will retain them for a limited period

of time.

60264 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

The closing date for the program

announcement is llll , 4:00 P.M.,

Eastern Standard Time. Address your

applications/proposal to the U.S. Small

Business Administration, Office of

Procurement & Grants Management

(OPGM), 409 3rd Street, SW, 5th Floor,

Washington, DC 20416, Attention: Mina

Bookhard, Agreement Officer. If hand

carried, deliver the application/proposal

to Mina Bookhard, or her designee, at

the above address. Deliveries to other

locations will be considered late if not

received in OPGM at the U.S. Small

Business Administration by 4:00 p.m.

on llll . Please place the following

notation in the lower left corner of the

sealed envelope or package:

THIS IS A SEALED OFFER. DO NOT

OPEN. STAMP THE DATE AND TIME

RECEIVED ON THE ENVELOPE. THE

ENCLOSED APPLICATION IS IN

RESPONSE TO PROGRAM

ANNOUNCEMENT NUMBER PRIME

01–1, DUE llll AT 4:00 P.M.,

Eastern Standard Time, AT SBA’s

OFFICE OF PROCUREMENT &

GRANTS MANAGEMENT.

Applicants will be required to meet

the standards for financial management

systems as prescribed in the Office of

Management and Budget’s (OMB)

Circular A–110, Subpart C, sections .21

through .28, and 13 CFR Part 143.

Questions concerning this program

announcement should be directed to

Warren Boyd at (202) 205–7534.

Questions about budget or funding

matters should be directed to Mina

Bookhard, at (202) 205–7080.

Sincerely,

Sharon Gurley, Director, Office of

Procurement and Grants Management.

OFFICE OF FINANCIAL ASSISTANCE

PROGRAM ANNOUNCEMENT

PROGRAM FOR INVESTMENT IN

MICROENTREPRENEURS ACT,

(‘‘PRIME’’)

TO PROVIDE TRAINING AND

TECHNICAL ASSISTANCE TO

DISADVANTAGED ENTREPRENEURS

FISCAL YEAR 2001

U.S. SMALL BUSINESS

ADMINISTRATION OFFICE OF

FINANCIAL ASSISTANCE

OPENING DATE: llllllllllll

CLOSING DATE: llllllllllll

ANNOUNCEMENT NO: PRIME 01–1 lll

TABLE OF CONTENTS

I. LEGISLATION PURPOSE

II. INTRODUCTION

III. PROGRAM OVERVIEW

IV. ELIGIBLE APPLICANTS FOR THIS

GRANT

V. INELIGIBLE APPLICANTS FOR THIS

GRANT

VI. GENERAL INFORMATION

VII. OMB UNIFORM ADMINISTRATIVE

REQUIREMENTS AND COST

PRINCIPLES

VIII. PROPOSAL INSTRUCTIONS AND

EVALUATION CRITERIA

IX. OPTION YEAR FUNDING

X. PREPARING YOUR BUDGET

XI. ASSEMBLY AND MAILING

INSTRUCTIONS

XII. LATE SUBMISSIONS, REVISIONS,

WITHDRAWALS

XIII. UNSUCCESSFUL APPLICANTS

XIV. CANCELLATION

XV. GLOSSARY OF TERMS

XVI. PAPERWORK REDUCTION ACT

XVII. PRIVACY ACT

APPENDIX A: APPLICATION FOR FEDERAL

ASSISTANCE

APPENDIX B: ASSURANCES AND

CERTIFICATIONS

APPENDIX C: MILESTONE CHARTS

I. Legislation Purpose

The Program for Investment in

Microentrepreneurs Act of 1999 (P.L.

106–102) became law on November 12,

1999. 15 U.S.C. 6901 et seq. (‘‘PRIME’’

or ‘‘the Act). The Act authorizes the

Administrator of the U.S. Small

Business Administration (SBA) to

establish a microenterprise training and

technical assistance program for

disadvantaged microentrepreneurs and

to provide training and capacity

building grant program to

microenterprise development

organizations (MDOs). Additionally, the

Act authorizes research and

development of best practices for

microenterprise development and

technical assistance programs for

disadvantaged entrepreneurs and other

activities as the Administrator of SBA

determines are consistent with the Act.

PRIME has several purposes for which

SBA will issue separate program

announcements soliciting applications

geared toward a particular legislative

purpose. Program Announcements

called for under the Act solicit, from

eligible organizations, applications for

grant funding to be used to carry out the

purposes of the Act as follows:

Program Announcement No. PRIME

01–1 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

providing training and technical

assistance programs for disadvantaged

microentrepreneurs.

Program Announcement No. PRIME

01–2 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

providing training and capacity building

services to microenterprise development

organizations and programs and groups

of such organizations to assist them in

developing microenterprise training and

services.

Program Announcement No. PRIME

01–3 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

pursuing research and developing best

practices in the field of microenterprise

and technical assistance programs for

disadvantaged entrepreneurs.

The purpose of this Program

Announcement No. PRIME–01–1, is to

solicit applications from qualified

organizations wishing to obtain grant

funding for the purpose of providing

training and technical assistance

programs for disadvantaged

microentrepreneurs. These PRIME

grants will enable MDOs to offer

disadvantaged microentrepreneurs

training and technical assistance that

will make a difference in their ability to

start, grow, and sustain microenterprises

in economically distressed, high

unemployment areas. Seventy-five (75)

percent of available PRIME funds will

be used for training and direct technical

assistance to disadvantaged

microentrepreneurs and of the funds

allocated for training & technical

assistance, 50% will be used to benefit

very lows income persons. Subject to

the availability of funds, grants awarded

under this Program Announcement will

be for a minimum of $50,000 with no

one grant exceeding $250,000 or 10% of

the total amount appropriated,

whichever is less.

II. Introduction

Congress recognized that many

disadvantaged microentrepreneurs lack

sufficient training and education to gain

access to capital to establish and expand

their own small businesses. It enacted

PRIME to augment training and

technical assistance under the Small

Business Act and other legislation.

PRIME grants to qualified MDOs will

help meet more training and technical

assistance needs for disadvantaged

microentrepreneurs, thereby

encouraging entrepreneurship and

community development.

Many low income and very-low

income entrepreneurs need training and

technical assistance to start, operate, or

expand their businesses. In order to

achieve measurable success in the effort,

the providers of this training and

technical assistance, (MDOs) must be

accessible, competent, consistent and

committed to the entrepreneur’s

progress over extended periods of time.

For every business started or

microloan made, a number of

entrepreneurs are preparing themselves

for business start. A generally accepted

assumption in the microenterprise

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60265

industry is that it takes approximately

10 potential microentrepreneurs for

every microenterprise started or

microloan booked. The cost of training

is substantial because those at the entrylevel stage of development typically

require the greatest amount of dedicated

advice and guidance, over an extended

period of time, to achieve the highest

rates of success. Funding is scarce

relative to the need. The

microenterprise industry has found the

technical assistance-funding gap to be a

nationwide condition, particularly in

the very low-income sector.

This Program Announcement

addresses funding for training and

technical assistance for disadvantaged

entrepreneurs, as defined, in the entrylevel stages of development. The

program requires that grantees match a

portion of the SBA’s funds with funds

from other sources.

III. Program Overview

1. Project Name: Program for

Investment in Microentrepreneurs

(PRIME).

2. Purpose: Provide training and

technical assistance to disadvantaged

microentrepreneurs for the purpose of

enhancing business planning,

marketing, management, financial

management skills, and assistance for

the purpose of accessing financial

services.

3. Federal Catalog Number: 59.049.

4. Authority: The Program for

Investment in Microentrepreneurs Act

of 1999, ‘‘PRIME’’, P.L.106–102, 15

U.S.C. 6901 et seq.

5. Funding Instrument: Grant.

6. Funding: Funding is subject to the

availability of funds and the

requirements enumerated under the Act.

7. Funding Range: Target award

amounts will be a minimum of $50,000.

Award amounts may vary, depending

upon availability of funds (and

performance for option years); however,

no single person may receive more than

$250,000 or ten (10) percent of the total

funds made available for this program in

a single fiscal year, whichever is less. In

general, match is required, although

SBA may reduce or eliminate the

required match in certain circumstances

(up to a program limit of 10 percent).

8. Number of Awards: SBA anticipates

issuing multiple awards under this

Announcement. The number may vary,

based on the needs of the pool of

qualified applicants received and the

amount of available funds. At least 75%

of all funds available under the Act

must be awarded under this Program

Announcement.

9. Targeted assistance: A minimum of

50% of the funds available for grants

under the PRIME Act must be used to

benefit very low income persons (as

defined in this document), including

those residing on Indian reservations.

10. Closing Time and Date for the

Submission of Applications: lll at

4:00 P.M. Eastern Daylight Time.

11. Project Starting Date: lll

(estimated).

12. Project Duration: The period

performance for this grant is one base

year with 4 twelve-month options

subject to availability of funds and

continued program authorization. The

total possible period of performance is

five years. Each option year will

constitute a separate budget period. The

project recipient’s satisfactory

performance will be one of the key

factors in determining the award of an

option year. Failure to secure the

required annual non-Federal

contribution during any project year

may jeopardize continued option year

funding.

13. Proposal Evaluation: Applications

will first be screened to determine if the

applicant meets certain mandatory

eligibility requirements. Applicants that

do not document in their application

that they meet these requirements will

not be evaluated by SBA for

participation in the Prime Program. In

addition, applications that are

incomplete, illegible, or unreadable, in

whole or in part, will be deemed

incomplete and will not be evaluated.

Eligible proposals will be scored by

an Objective Review Committee (ORC)

based on evaluation criteria stated in

this program announcement. The ORC

will consist of SBA officials and may

include Federal Officials from other

agencies. Microenterprise Development

Branch staff will review the ORC

evaluations, the ORC’s summary report

on each applicant, and the applicant’s

proposals to determine the final scoring

of award recipients. SBA may ask

applicants for clarification on the

technical and cost aspects of the

proposals. Such clarifications must not

be construed as a commitment to fund

the proposed effort.

14. Points of Contact: Questions

concerning the technical aspects of this

Program Announcement should be

directed to the Microenterprise

Development Branch at (202) 205–7534.

However, due to the competitive

process, SBA will be unable to assist

with answers to specific questions

regarding individual proposals or

requests for assistance in completing

proposals. Questions concerning

budgeting or funding for this grant

should be directed to Mina Bookhard at

(202) 205–6621.

15. Award Notification: All applicants

will receive a written notification

relative to selection of award recipients.

This written notice will be SBA’s final

response to this program

announcement. SBA will not provide

debriefing sessions if your proposal was

not successful.

16. Cancellation: SBA reserves the

right to cancel this Program

Announcement in whole or in part at

the Agency’s discretion.

IV. Eligible Applicants for This Grant

An organization will be considered

eligible for funding for the purpose of

providing training and technical

assistance to disadvantaged

microentrepreneurs if it meets the

following qualification requirements:

1. A microenterprise development

organization or program (or group or

collaborative thereof) that has a

demonstrated record of delivering

microenterprise services to

disadvantaged entrepreneurs, OR

2. An intermediary (as defined in this

document) which has experience in

delivering technical assistance to

disadvantaged entrepreneurs, OR

3. A microenterprise development

organization or program (as defined in

this document) that is accountable to a

local community, working in

conjunction with a State or local

government or Indian tribe, OR

4. An Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization or program referred

to in this paragraph exists within its

jurisdiction.

An eligible applicant for the Prime

technical assistance grant must provide

documentation in its application that it

falls within one of the above categories

of qualified organizations. Such

documentation should include but is

not limited to:

1. A copy of your organization’s IRS

tax-exempt certificate including the IRS

code under which your organization is

considered non-profit;

2. Certification by your Secretary of

State that your organization is legally

allowed to do business in the State and

a copy of your organization’s articles of

incorporation and by-laws;

3. For category 4 in the preceding

paragraph, written certification from a

duly authorized person that no other

qualified organization (i.e. private

organization or program as defined in

categories 1–3 above) exists within its

jurisdiction; and

4. Financial statements for the past 3

years. If your organization has been in

business for less than 3 years provide

your year end financial statements for

60266 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

those years completed and a financial

statement not less than 90 days old.

SBA will not evaluate applications

that do not meet these requirements.

SBA may not screen applicants for

eligibility until after the Closing Date for

application acceptance. SBA will

attempt to notify applicants of ineligible

proposals as soon as practicable.

However, SBA is under no obligation to

notify ineligible applicants before the

Closing Date for the acceptance of

applications under this Program

Announcement. SBA strongly urges all

applicants to ensure all eligibility

requirements are met and documented

before sending an application to SBA.

V. Ineligible Applicants for This Grant

The following applicants will

automatically be considered ineligible

and their applications will not be

evaluated:

1. Any organization with an

unresolved audit by any Federal agency.

2. Any organization suspended or

debarred from any Federal agency or is

otherwise excluded from Federal nonprocurement or procurement programs.

3. Any organization which has

defaulted on an obligation to the United

States.

VI. General Information

1. Definitions

Throughout this Program

Announcement specific terminology

may be used, as defined in the Act and

the accompanying rule (13 CFR part

119) published on ll. The definitions

are contained in a glossary of terms

located at the end of this document in

Section XV.

2. Collaborative Applications

a. If you participate in a collaborative

(as defined in this document), all

entities who are party to the

collaborative must separately meet the

statutory requirements and eligibility

requirements in order to apply as a

collaborative.

b. Applications from collaboratives

must name the primary liaison with the

Federal government, and include a copy

of the collaborative agreement outlining

responsibilities of each partner

organization. An authorized signature

from each organization must appear on

the agreement. The primary liaison will

be responsible for coordinating reports

and requests for funding.

3. Program Income

All program income as defined in

OMB Circular A–110, and OMB A–122

shall be reported on financial reports

submitted to SBA and added to funds

committed to the project by SBA and

recipient organizations. Program income

may only be used to further eligible

program objectives.

4. Cost Principles

a. General: All costs approved for a

successful applicant must meet the tests

of necessity, reasonableness,

allowability and allocability in

accordance with the cost principles

applicable to this award. All proposed

costs are subject to pre-award audit.

Grantees are responsible to ensure

proper management and financial

accountability of Federal funds to

preclude future cost disallowances.

Payment will be made by

reimbursement or advance payments as

described in the grant award document

and applicable OMB Circulars.

b. Carryover Policy: The grantee may

request approval to use unexpended

funds in the next budget period. This is

permissible if funds are to be used for

a non-severable, non-recurring project

or activity within the scope of the

PRIME program. Non-severable means a

project in its entirety that cannot be

subdivided. The request for using

unexpended funds in the next budget

period must include the following:

(1) SF 424, budget pages, and

justification;

(2) Explanation of why the funds were

not expended during the period in

which they were awarded; and

(3) Evidence of match. The match

requirement for funds carried over to

the next budget period can be met by

using any excess of matching funds

from the current budget period, new

matching funds, or a combination of

both.

The request must be made no later

than 60 days before the end of the

budget/project period or the deobligation process will begin. Approved

requests will require the issuance of a

revised Notice of Award. Expenditures

for funds carried over to the next budget

period must be tracked separately.

5. Publications/Websites

Any publications or websites

developed under this grant must be

submitted to SBA for prior review and

approval. SBA will have an unlimited

license to use data and written materials

generated under this grant award,

whether or not the materials are

copyrighted. Any publications resulting

from this project must include the

following acknowledgement of support,

whether copyrighted or not, in legible,

easily readable print:

This grant is partially funded by the U.S.

Small Business Administration. SBA’s

funding is not an endorsement of any

products, opinions, or services. All SBA

funded programs are extended to the public

on a nondiscriminatory basis.

The grant recipient may not use the

U.S. Small Business Administration

name or logo for the endorsement of any

services, products, or merchandise

under this award.

The SBA logo may appear on

prominent webpages of Internet sites

that are related to this project, but must

appear with the above disclaimer in

legible, easily readable print and

acknowledgement of support in close

physical proximity (within 2 inches)

next to it.

6. Reports

a. General Reporting

The selected grantees will be required

to submit the reports as outlined below.

Participants must agree to cooperate

with SBA in the collection and retention

of data required by this agency. Your

ability to meet reporting requirements

must be addressed in the Technical

Proposal.

Payments may be withheld if reports

are not submitted within the required

time frame or if the quality of reports is

considered inadequate.

b. Performance Reports

Quarterly performance reports, unless

otherwise specified, must contain a

summary of activity for the reporting

period using the following format:

1. A comparison of actual

accomplishments to the estimated

milestones established in the proposal

and/or subsequent grant agreement.

2. A discussion of accomplished

milestones and reasons for slippage in

those cases where milestones are not

met. Where milestones were not met, a

plan of action must be provided to

overcome these slippages or a detailed

statement of how the program will

better serve disadvantaged

entrepreneurs if the milestones are

revised.

3. Evidence that at least 50% of

funding expended during the reporting

period was expended for the benefit of

very-low income clients.

4. Information relating to actual

financial expenditures of budgeted cost

categories versus the estimated budget

award, including an explanation of all

cost overruns, if any, by budgeted cost

category. Financial data furnished in

this report is from a manager’s

standpoint and is in addition to that

furnished in the financial reports cited

below.

5. Client Progress Reports. SBA is

interested in the actual outcome of

technical assistance provided to

disadvantaged entrepreneurs. As such,

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60267

participants will be required to compile,

maintain, and submit data as part of its

quarterly performance reports. This

report includes information regarding

each client as follows:

A. At Intake:

• Income level (low-income, very-low

income, other)

• Geographic location (Address,

Urban, Suburban, Rural)

• Goal of training (business start,

business enhancement, professional

improvement, self-employment, other)

• Business status (is it a start-up or

existing business)

• Financing goal (if any)

Intake reports should be compiled

and maintained by the MDO within

seven business days of initial intake

under this grant.

B. At Client Follow-up:

• Income level

• Geographic location

• Training status in terms of intake

goals

• Business status

• Financing status in terms of intake

goals

Follow up data should be collected on

all clients meeting the Six, Twelve, and

Eighteen-Month receipt of technical

assistance with the grantee. Follow-up

reports should be submitted with

quarterly performance reports.

6. Any other pertinent information,

including any significant

accomplishments or met milestones of

special significance. The report should

include items which may be determined

appropriate by SBA after acceptance of

the grant proposal but which cannot be

pre-determined due to the

undetermined special purpose of the

grant at the writing of this document.

Quarterly reports will be due no later

than:

(a) January 15 for the period ending

December 31,

(b) April 15 for the period ending

March 31,

(c) July 15 for the period ending June

30, and

(d) October 15 for the period ending

September 30.

c. Financial Reports

1. Financial Status Report Forms must

be submitted every quarter with the

performance reports. Reports must

include Standard Form (‘‘SF’’) 269, the

Financial Status Report, and SF 272, the

Federal Cash Transactions Report.

2. The year-end report must include a

cost breakdown of actual expenditures

and costs incurred by line item.

Participants will also be required to

submit the SF 2069, Detailed Actual

Expenditures for Period Covered by

Request, with the final SF 269.

3. In addition, grantees will be

required to submit audited annual

financial statements, if available, or

annual financial statements prepared by

a licensed, independent public

accountant, within 120 days of the end

of the grantee’s fiscal year period.

SBA may withhold payment of

advances or reimbursements if reports

are not received or are regarded as

inadequate.

SBA may, at its discretion, reduce

reporting requirements to semi-annually

as it deems appropriate. SBA will notify

participants if it decides to take such

action.

7. Match Requirements

In general, funds awarded under the

PRIME Program will require a nonFederal match of not less than 50% of

each dollar awarded. Matching funds

may come from fees, non-Federal grants,

gifts, funds from loan sources, and inkind resources. After the initial grant,

grant awards for the following option

years will be made in declining

amounts, declining by 20% of the initial

grant amount in each successive year.

Exception: In the case of an applicant

with severe constraints on available

sources of matching funds, SBA may

reduce or eliminate the 50% match

requirement on a case by case basis.

Any reductions or eliminations must

not exceed 10% of the aggregate of all

PRIME grant funds made available by

SBA in any fiscal year.

Organizations seeking to receive a

reduction or elimination of the

matching fund requirement must

include such a request (as a cover letter)

with their proposal, and include

justification and supporting

documentation for their request.

Submission of a request will not

automatically guarantee that an

exception, in whole or in part, will be

granted. Rather, it will alert SBA to the

applicant’s desire to receive an

exception.

8. Fundraising Not Allowable Expense

Expenditures for fundraising activities

are not allowable costs under this grant.

Applicants must be able to raise

matching funds without the assistance

of grant funds. The applicant must

demonstrate that it has adequate

fundraising resources to obtain required

non-Federal matching funds to perform

the project.

9. Subgrants

An organization selected to receive a

grant under the PRIME Program may

provide sub-grants to qualified small

and emerging microenterprise

development organizations.

Applicants wishing to provide subgrants as a part of their implementation

plan should include detailed

information regarding same in their

Technical Proposal.

An applicant that wants to make

subgrants using PRIME grant funds must

receive written approval from SBA prior

to making subgrants. The applicant

must identify the subgrantee(s) and

describe in detail what the subgrantee(s)

will do to help the grantee implement

its proposal. An applicant must submit

information to SBA demonstrating that,

through the subgrantee(s), the grantee’s

program will:

(1) provide expanded services to the

community,

(2) provide a method by which one or

more previously unserved communities

will gain access to the program, or

(3) provide other specific benefits to

the clients, such as specialized training,

expanded schedules of operation, or

other benefits.

If an applicant has identified potential

subgrantee(s) at the time it submits an

application for a PRIME grant, the

applicant must include the information

requested in paragraph above in the

application. Otherwise, the applicant or

grantee may submit the requested

information at such time that approvals

for subgrantee(s) are requested.

The total amount of monies

subgranted by the grantee must not

exceed 50% of the total amount of the

PRIME grant. A maximum of 7.5% of

the funds awarded may be used by the

grantee for administrative expenses in

connection with the making of

subgrants.

10. Subcontracts

Any and all subcontracts awarded

under this grant must be approved by

SBA in advance and in writing and

must not exceed 50% of the total

amount of the PRIME grant.

11. Diversity

In making grants under the Act, SBA

will ensure that grant recipients include

both large and small microenterprise

organizations, serving diverse

populations including urban, rural and

Indian tribal communities serving

diverse populations.

12. Prohibition on Preferential

Consideration of Certain SBA Program

Participants

In making grants under this Program

Announcement, SBA will not give

preferential consideration to an

applicant that is a participant in the

program established under section 7(m)

of the Small Business Act.

60268 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

VII. OMB Uniform Administrative

Requirements and Cost Principles

The Prime Grant Notice of Award

incorporates by reference all applicable

OMB Circulars, including:

1. OMB Circular A–21, ‘‘Cost

Principles for Educational Institutions,’’

containing cost principles for

educational institutions;

2. OMB Circular A–87 ‘‘Cost

Principles for State, Local, and Indian

Tribal Governments,’’ containing cost

principles for State, local governments,

and federally recognized Indian tribal

governments.

3. OMB Circular A–110, ‘‘Uniform

Administrative Requirements for Grants

and Agreements with Institutions of

Higher Education, Hospitals, and Other

Non-Profit Organizations,’’ containing

administrative requirements;

4. OMB Circular A–122, ‘‘Cost

Principles for Non-Profit

Organizations,’’ containing cost

principles for non-profits; and

5. OMB Circular A–133, ‘‘Audits of

States, Local Governments, and NonProfit Organizations,’’ concerning

audits.

Current versions of OMB Circulars are

available from the Office of Management

and Budget’s website. The address is:

www.whitehouse.gov/WH/EOP/OMB/

html/circular.html.

VIII. Proposal Instructions and

Evaluation Criteria

The technical and cost proposals must

be bound separately. The technical

proposal must be single-spaced and not

exceed 50 pages, excluding exhibits and

appendices. Prepare your proposal

using the following outline.

1. Application Format

A. Technical Proposal

Section 1. Eligibility Requirements (not

to exceed 5 pages)

In this section the applicant must

prove that it falls within one of the four

categories of qualified organizations.

(See Section IV)

Applicants are reminded to include

documentation of the mandatory

eligibility requirements in their

technical narrative. Failure to provide

the mandatory eligibility documentation

will result in disqualification of the

application, and the application will not

be evaluated. In addition, incomplete or

illegible (in whole or in part)

applications will not be evaluated.

Section 2. Applicant Experience and

Activities. (not to exceed 15 pages).

Applicant experience includes

information regarding current and past

performance in providing training and

technical assistance to disadvantaged

entrepreneurs (as defined in this

document.)

In this section, the applicant should

discuss the items delineated below. To

the extent possible, the applicant should

provide internal statistical data to

document its past experience and

illustrate current activities.

1. An understanding of the

microentrepreneur community and the

needs of disadvantaged entrepreneurs.

2. Its existing and historical training

and technical assistance program. If the

applicant is a start-up organization it

should discuss in detail the its current

methods of training. Details regarding

curriculum, types of technical

assistance offered, and counseling

services should be included. This

discussion should include a detailed

description of the programmatic

information regarding activities and

services offered to low and very low

income individuals, and the success

rates of the clients served.

3. As part of documenting past

experience, the applicant should

include a list of grants and or contracts

similar in scope to the grant for which

you are applying. Specifically provide

the name, if any, of any Federal or nonFederal, agency(ies) or private sector

foundations or organizations providing

funding, the grant or contract number, a

short summary of services provided

under each grant, and the period(s) of

performance. Include in each summary

the name and contact information

(phone number and E-mail address) of

the person providing oversight on each

grant or contract.

4. Discuss your organization’s ability

to penetrate the target market, including

past and current strategies for outreach.

Section 3. Institutional Capacity (not to

exceed 5 pages)

This section should include the

following:

1. Personnel Qualifications and Internal

Structure

• You must have, or exhibit the

ability to obtain, personnel who are

qualified to meet the goals of providing

technical assistance under this grant.

Provide resumes of personnel key to

your organization’s participation in the

PRIME Program. The resumes should

clearly present personnel’s

qualifications relative to this particular

work. Special mention should be made

of relevant experience. Personnel

indicated must demonstrate knowledge

of business development, business

structures, business planning,

marketing, business management,

financial management, and training and

counseling.

• Provide an organizational chart all

proposed full-time and part-time project

staff and the amount of time each will

devote to the project. The PRIME Project

Director must be a full time employee of

the organization; however, the PRIME

Project Director does not have to be

solely dedicated to this activity. The

Project Director (and other federally

funded staff positions) must not engage

in fundraising activities using Federal

funds provided under this grant.

• Describe the role of subcontractors,

subgrantees and/or outside consultants

and indicate the percent of the project

services you anticipate they will

provide.

• Provide a description of at least one

staff or consultant function to handle

on-going program data collection and

electronic reporting to SBA.

• Indicate the position(s) within your

organization that will be responsible for

financial record keeping regarding

receipt and expenditure of program

funds.

2. Data Collection and Maintenance

Capacity

• Describe your organization’s current

client data collection and management

system and how it will be used and/or

modified to meet reporting and other

requirements of this grant. If applying as

a group or collaborative, describe how

data management systems will be

integrated for an inter-organizational

uniform approach to data gathering and

reporting.

• Discuss your organization’s

computer capacities, if any, and the

software used. Indicate whether or not

your organization is connected to the

Internet and, if not, delineate plans to

become connected. The applicant

should indicate its level of willingness/

capability to report data via the Internet

as well as how the applicant will

accomplish its electronic management,

communication, and reporting goals.

• Describe your organization’s

internal systems of checks and balances

in terms of financial, data collection,

and reporting systems. If applying as a

group or collaborative, also describe the

plan for inter-organizational checks and

balances in terms of those systems. Also

indicate which member of the group or

collaborative will be responsible for

coordination and submission of data

and reports, and how the collaborative

will ensure that this responsibility will

be fully implemented.

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60269

Section 4. Program Narrative (not to

exceed 15 pages)

In this section, each applicant must

set forth the following:

1. Proposed training and technical

assistance management plan. The

management plan to provide training

and technical assistance to

disadvantaged entrepreneurs plan

should include but not be limited to

long and short term training, counseling

and technical assistance. Technical

assistance and training activities under

the Act must include the following

activities:

• assistance for the purpose of

enhancing business planning,

• marketing assistance,

• management assistance,

• assistance with financial

management skills, and

• assistance for the purpose of

accessing financial services.

For purposes of this grant program,

technical assistance should be viewed

as an ongoing function during the prestart-up, start-up, maintenance, and

growth periods of the business cycle. It

includes, but is not necessarily limited

to, assistance with the broad issues of

business ownership such as business

planning assistance, marketing

assistance, management assistance,

financial management skills assistance,

and assistance for the purpose of

accessing financial services. It should

also include specific assistance in areas

of expertise specific to the type of

business being pursued. Technical

assistance should include both

counseling and training. Counseling

should be viewed in terms of giving

advice, guidance, or instruction

specifically tailored to the needs of a

single business. Training may include

counseling, but can also include

teaching in classroom or other public

settings. Topics of training and

counseling must include information

necessary to start, manage, and/or

operate a microbusiness. Information

delivery media may vary from program

to program and may include person to

person oral communication,

teleconferencing, video tape, printed

materials, computer software, or any

similar delivery mechanism provided it

is effective in assisting clients in

meeting their training goals. Technical

assistance should not stop in the event

microbusiness financing is obtained. It

should continue through a significant

period of time, to assist the

microbusiness owner with continuing

knowledge to enhance the chances for

success.

2. Outreach and delivery plan. The

plan should include, but not necessarily

be limited to:

• brief description and map of the

proposed service area;

• demonstration of the need for this

program in the proposed geographic

area;

• description of the target market to

be served—geographic size, population

numbers, population type

(empowerment zone, urban, rural,

suburban, Indian reservation);

• plans for penetration of the target

market;

• strategies to be used for reaching its

scheduling and delivery goals;

• methods by which the applicant

organization will incorporate outside

resources into the plan;

• evidence of and/or plans for

building relationships with financing

sources and/or otherwise making

financial assistance available to those

clients in need of micro-level financing.

• discussion of how the applicant

organization will reach its goals in terms

of local nuances in population density,

economic stratification, levels of

education, and racial and ethnic

oriented issues that affect the

disadvantaged in the defined area of

operation.

Section 5. Strategic Alliances and

Partnerships (not to exceed 5 pages)

In this section, the applicant should

describe strategic alliances and

partnerships with state and local

entities. Inter-organizational

cooperation regarding funding, training

activities, utilization of space,

utilization of human and other

resources, client referral networks, and

other such activities should be

discussed. Organizations should

illustrate how these alliances serve the

best interests of disadvantaged

entrepreneurs and how the alliances

have enhanced the applicant’s ability to

provide training and technical

assistance services to the target market.

Section 6 Timeline/Milestones (not to

exceed 5 pages)

In this section the applicant must

include a timeline with milestones

covering the 12-month grant period.

Milestones should clearly illustrate the

applicant’s goals for training and

technical assistance activity in terms of

the projected client, projected

programming, and projected use of

funds.

Section 7. Supporting Documentation

In this section the applicant should

provide any necessary documentation to

support its proposal, including but not

limited to the following documents:

1. A statement signed by your

Executive Director (or his/her duly

authorized representative), authorizing

SBA to make inquiries to other Federal

Agencies as to the performance

capabilities of your organization.

2. A copy of your organization’s IRS

tax exempt certificate including the IRS

code under which your organization is

considered non-profit.

3. Certification by your Secretary of

State that your organization is legally

allowed to do business in the State and

a copy of your organization’s articles of

incorporation and by-laws.

4. A copy of your organization’s

financial statements for the last 3 years.

If your organization has been in

business for less than 3 years, provide

your year-end financial statements for

those years completed and a year-todate financial statement not less than 90

days old.

5. A summary table of the training

and technical assistance provided to

date (limit to 3 pages). Include the

income levels of clients served (low,

very-low, other).

6. Re ́sume ́s and reference information

for personnel key to the delivery of

technical assistance services to date.

7. An organizational chart of the

entire organization. If you are applying

as a group, or plan to use subcontractors, or make sub-grants, include

a second organizational chart that shows

how the members of the group will

interact and collaborate and/or how the

sub-contractors and/or sub-grantees will

fit into the work flow plan.

B. Cost Proposal

The cost proposal must include the

application cover sheet, budget

information, assurances and

certifications. Additional information

on how to organize the proposal is

provided on page 23, ‘‘Preparing Your

Budget.’’ The applicant’s Cost Proposal

will be evaluated in terms of the quality

and effectiveness of the proposed

training and technical assistance to be

provided.

2. Evaluation Factors

SBA will evaluate applicant

experience on two levels. Applicants

having 4 years or less of experience

providing training and technical

assistance to disadvantaged

entrepreneurs at time of application will

be evaluated as ‘‘start-up’’ organizations.

Applicants having more than 4 years or

more of experience providing such

services at time of application will be

evaluated as ‘‘experienced’’

organizations. Whether start-up, or

experienced, applicants are expected to

provide information as requested in this

Program Announcement.

60270 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

Start-up organizations will be

evaluated based on the general criteria

listed below. The maximum number of

points an applicant may receive for each

criterion group are shown to the right of

the listing.

A. Institutional Capability (total of 90

points)

The following factors are considered

under this criteria:

(1) Organizational structure, financial

stability, and financial management

systems (20).

(2) Personnel (30).

(3) Electronic communication or

potential for same (20).

(4) Data collection and reporting

capability (20).

B. Past performance and history of

performing technical assistance,

especially to low and very-low income

microentrepreneurs (20 points).

C. Management Plan for Proposed

training and technical assistance,

including outreach and delivery (total of

140 points).

The following factors are considered

under this criteria:

(1) Proposed training and technical

assistance activities to low and very low

income mircoentrepreneurs (30).

(2) Outreach and delivery plan (20).

(3) Proposed use of community

partnerships and collaborations with

State and local entities (30).

(4) The appropriateness of the

proposed activity to the purposes of the

Act (10).

(5) The perceived ability of the

applicant to carry out the proposed

activity as well as the clarity of the

proposal and its attainability in terms of

the milestones set. (30).

(6) Performance and outcome

measurement tools (20).

The total number of points an

applicant may achieve as a start-up

organization is 250. Experienced

organizations will be evaluated based on

the general criteria listed below. The

maximum number of points an

applicant may receive for each criterion

group are shown to the right of the

listing.

A. Institutional Capability (total of 90

points).

The following factors are considered

under this criteria:

(1) Organizational structure, financial

stability, and financial management

systems (20).

(2) Personnel (30).

(3) Electronic communication or

potential for same (20).

(4) Data collection and reporting

capability (20).

B. Past performance and history of

performing technical assistance,

especially to low and very-low income

microentrepreneurs (20 points).

C. Management Plan for Proposed

training and technical assistance,

including outreach and delivery (total of

140 points).

The following factors are considered

under this criteria:

(1) Proposed training and technical

assistance activities to low and very low

income mircoentrepreneurs (30).

(2) Outreach and delivery plan (20).

(3) Proposed use of community

partnerships and collaborations with

State and local entities (30).

(4) The appropriateness of the

proposed activity to the purposes of the

Act (10).

(5) The perceived ability of the

applicant to carry out the proposed

activity as well as the clarity of the

proposal and its attainability in terms of

the milestones set. (30).

(6) Performance and outcome

measurement tools (20).

The total number of points an

applicant may achieve as a start-up

organization is 250. As indicated above,

applications will be reviewed for

technical merit using the evaluation

factors listed. Included in the evaluation

processes will be qualitative and

quantitative analyses of:

a. the applicant’s management plan to

provide training and technical

assistance as described in this Program

Announcement. SBA will analyze items

including but not limited to the

methods, materials, and counseling

used to provide training & technical

assistance. The evaluation will also

include the outreach and delivery plan

to identify and provide the assistance to

the targeted recipients.

b. the applicants organizational

structure, financial stability, financial

management systems, personnel

capacities, and electronic

communication capabilities (or

potential for same.) Additional analyses

will be made regarding data collection

capabilities, reporting capacities, and

ability to account for performance of

both the organization and the client.

c. the applicant’s current activity and

history of providing technical assistance

to low and very-low income

microentrepreneurs will be evaluated

considering patterns of program growth,

client success, outcomes of training,

success in establishing new businesses,

and success in arranging micro-level

financing in instances where a client

indicated financing as a goal.

d. the applicant’s involvement in and

ability to use community partnerships

and collaboration with other entities

will be analyzed. Collaborations will be

analyzed in terms of any positive effects

that such collaborations have had, or are

anticipated to have on the applicant’s

ability to serve low- and very-low

income microentrepreneurs. Applicants

will also be evaluated in terms of the

types, number, and frequency of

collaborations needed based on the

experience level of the organization.

IX. Option Year Funding

Applicants shall prepare application

cover sheets (SF Form 424) and budgets

for each of the 5 budget periods

consisting of 12 months each.

Applicants are advised that the

performance period for specific awards

made under this announcement may

consist of one base year with up to 4

twelve-month option years. The project

periods may consist of up to 5 twelvemonth budget periods. Each additional

twelve-month budget period beyond the

original base year may be exercised at

the discretion of the Government.

Among the factors involved in deciding

whether to exercise an option are the

availability of funds, continuing

program authorization, satisfactory

performance of the applicant, and the

determination that continued funding

would be in the best interest of the

Government.

After the initial grant, grant awards

for the option years will be made in

declining amounts, declining by 20

percent of the initial grant amount in

each successive year.

X. Preparing Your Budget

INSTRUCTIONS FOR STANDARD

FORM 424 (APPLICATION FOR

FEDERAL ASSISTANCE)

Standard Form 424, Application of

Federal Assistance, will be found

beginning at page A–1 of this

announcement. This guidance

supplements that contained on the

reverse side of the form.

Item 1. Self-explanatory

Item 2. Refer to instructions on reverse

of form

Item 3. Refer to instructions on reverse

of form

Item 4. Leave Blank

Item 5. Refer to instructions on reverse

of form

Item 6. Refer to instructions on reverse

of form

Item 7. Refer to instructions on reverse

of form

Item 8. Enter: ‘‘new’’

Item 9. Enter: ‘‘U.S. Small Business

Administration’’

Item 10. Enter: 59.049 Program for

Investment for Microentrepreneurs

(PRIME)

Item 11. Refer to instructions on reverse

of form

Item 12. Refer to instructions on reverse

of form

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60271

Item 13. Refer to instructions on reverse

of form

Item 14. Refer to instructions on reverse

of form

Item 15. Refer to instructions on reverse

of form

Item 16. Enter: Check ‘‘b.’’ This program

is not covered by E.O. 12372.

Item 17. Refer to instructions on reverse

of form

Item 18. Refer to instructions on reverse

of form

INSTRUCTIONS FOR STANDARD

FORM 424A (BUDGET INFORMATION)

Budget information is found on pages

A–1 through A–11.

The budget is the applicant’s estimate

of the total cost of performing the

project or activity for which grant

support is requested. The budget is to be

based upon the cost of performing the

project, including Federal and private

sources. All proposed costs reflected in

the budget must be necessary to the

project, reasonable and otherwise

allowable under applicable cost

principles and Agency policies. All

costs must be justified and itemized by

unit cost on the Budget Worksheets (p.

A–3).

Section A—Budget Summary

Column (A): Enter ‘‘PRIME 01–1’’.

Column (B): Enter the Catalog of Federal

Domestic Assistance Number 59.049.

Section B—Budget Categories

Amounts entered by budget category

in this section are for summary

purposes only. Itemization and

justification of specific needs by budget

category are to be shown under line 21,

Section F.

Line 6.a.–6.h. The budget amounts

must reflect the total requirements for

funds regardless of the source of funds.

All amounts entered in this section are

to be expressed in terms of whole

dollars only after completing the

requirements of Section F.

Line 6.j. Indirect costs are those costs

related to the project that are not

included as direct costs in a. through h.

Section C—Non-Federal Resources

Refer to instructions on reverse of

form.

Section D—Forecasted Cash Needs

Refer to instructions on reverse of

form.

Section E—Budget Estimates of Federal

Funds Needed for Balance of the Project

Refer to instructions on reverse of

form.

Section F—Other Budget Information

Line 21, Direct Charges: Identify and

explain all items or categories under

Section B in accordance with the

instructions set forth below. The

itemization must reflect the total

requirements for funding from Federal

and non-Federal sources. In most

instances, Line 21 does not provide

sufficient space to reflect all of the

necessary information. Budget

Worksheets are enclosed for your

convenience. You may use these

worksheets for the detailed budget

information listed below or a reasonable

facsimile; BUT each budget line item

pertinent to your submission MUST

ALSO be completed on the application.

Please show a complete breakdown of

all cost elements summarized in Section

B on a separate sheet. Do not list on

Line 21 any items included in the

indirect expenses entered on Line 22

below.

a. Personnel: List the name, title,

salary and estimated amount of time for

each employee who will be assigned to

this project. Note that fees, expenses,

and estimated amount of time for

outside consultants should be included

in f., Contractual. The estimated

performance time for outside

consultants is not to exceed 50 percent

of the total amount of the Prime grant.

Resumes of all personnel assigned to

this effort must be included in the

application.

b. Fringe Benefits: Leave blank if

fringe benefits applicable to direct

salaries and wages are treated as part of

indirect costs in the indirect cost rate

negotiation agreement. If your

organization does not have a federally

negotiated fringe benefit package, list

each component included as a fringe

benefit.

c. Travel: Reimbursement will be

made based on incurred cost. Estimates

should be based on knowledge of the

geographical area of small business

locations. Reimbursement to contractors

or volunteers will not be made for time

in travel to and from the client’s

location. Supporting data should

include numbers of trips anticipated,

costs per trip per person, destinations

proposed, modes of transportation, and

related subsistence expenses.

Line 22 Indirect Charges:

(Attach Budget Worksheets or

reasonable facsimile if sufficient space

is not provided.)

Enter the indirect cost rate, date, and

agency that issued rate.

If an indirect cost rate is not

established, itemize elements and costs

of overhead and G&A (General and

Administrative) expense categories

relative to the performance of this

project.

XI. Assembly And Mailing Instructions

1. Please indicate the following

information on the front of your return

envelope:

a. Your organization’s name and

return address including zip code in the

upper left-hand corner of the return

envelope.

b. Place the following notation in the

lower left-hand corner of the sealed

envelope.

THIS IS A SEALED OFFER. DO NOT

OPEN. STAMP THE DATE AND TIME

RECEIVED ON THE ENVELOPE. THIS

PROPOSAL IS IN RESPONSE TO

PROGRAM ANNOUNCEMENT

NUMBER, llll DUE llll,

2000, AT 4:00 P.M., EASTERN

STANDARD TIME, AT THE U.S.

SMALL BUSINESS ADMINISTRATION,

OFFICE OF PROCUREMENT &

GRANTS MANAGEMENT, 409 3RD

STREET, SW, 5TH FLOOR,

WASHINGTON, DC 20416,

ATTENTION: MINA BOOKHARD.

2. Application. Please submit an

original and 2 copies of the pages

described below in items a and b. They

are part of the Announcement and

should be completed and submitted

with an original and 2 copies of your

proposal:

a. The Federal Assistance Application

(Standard Form 424), including the cost

and technical proposals, and related

budgetary data.

b. Appendix B, Assurances and

Certifications (with appropriate

signature).

3. To facilitate review and processing

of the proposals, your submission must

be arranged, as follows, in two

separately bound parts:

a. Part I: COST PROPOSAL—This part

is to be comprised of the Application,

the Budget Information, and the

Assurances and Certifications. The

material identified as Part I must be

bound separately from the Technical

Proposal. DO NOT include any

technical information in Part I, The Cost

Proposal.

b. Part II: TECHNICAL PROPOSAL—

This part is comprised of the Program

Narrative. The proposal should be

completed with a table of contents and

must be responsive to the evaluation

criteria set forth on the pages 20–22.

The Technical Proposal must be bound

separately from Section I and must not

exceed 50 pages, excluding exhibits and

appendices. DO NOT include any cost

information in Part II, The Technical

Proposal.

4. Your application should be

submitted in original and 2 copies to:

60272 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

U.S. Small Business Administration,

Office of Procurement and Grants

Management, 409 Third Street, SW, 5th

Floor, Washington, DC 20416, ATTN:

Mina Bookhard.

XII. Late Submission, Revisions and

Withdrawals

1. Any Application received at the

Office of Procurement and Grants

Management after the exact time

specified for receipt will not be

considered unless it is received before

award is made, AND:

a. It was sent by registered or certified

U.S. mail not later than the fifth

calendar day before the date specified

for receipt of offers (e.g., an offer

submitted in response to a solicitation

requiring receipt of offers by the 20th of

the month must have been mailed by

the 15th);

b. It was sent by U.S. mail or handcarried (including delivery by a

commercial carrier) if it is determined

by the Government that the late receipt

was due primarily to Government

mishandling after receipt at the

Government installation;

c. It was sent by U.S. Postal Service

Express Mail Next Day Service-Post

Office to Addressee, not later than 5:00

p.m. at the place of mailing two working

days prior to the date specified for

receipt of proposals. The term ‘‘working

days’’ excludes weekends and U.S.

Federal holidays;

d. There is acceptable evidence to

establish that it was received at OPGM

and was under the Government’s

control prior to the time set for receipt

of offers, and the Grants Management

Officer determines that accepting the

late offer would not unduly delay the

grant review process; or

e. It is the only proposal received.

XIII. Unsuccessful Applicants

After a decision has been reached and

if your proposal is not successful, you

will receive written notification. This

written notice will be SBA’s final

response to this program

announcement. SBA will not provide

debriefing sessions if your proposal was

not successful.

XIV. Cancellation

SBA reserves the right to cancel this

announcement in whole or in part at the

Agency’s discretion.

XV. Glossary of Terms

• ADMINISTRATION: Means the U.S.

Small Business Administration (SBA);

• ADMINISTRATOR: Means the

Administrator of the Small Business

Administration;

• CAPACITY BUILDING SERVICES:

means services provided to an

organization or program that is, or is

developing as, a microenterprise

development organization or program,

for the purpose of enhancing its ability

to provide training and services to

disadvantaged entrepreneurs;

• COLLABORATIVE: means two or

more nonprofit entities that agree to act

jointly as a qualified organization under

this part;

• DISADVANTAGED

ENTREPRENEUR, or

DISADVANTAGED

MICROENTREPRENEUR: means the

owner, majority owner, or developer of

a microenterprise who is also—

1. A low-income person

2. A very low-income person; or

3. An entrepreneur who lacks

adequate access to capital or other

resources essential for business success,

or, is economically disadvantaged as

determined by the Administrator.

• EMERGING MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

which has a microenterprise capacity

building services component, but has

had such a component for less than 4

years at the date of its application for a

PRIME grant.

• GRANTEE: means a recipient of a

grant under the Act.

• GROUP: has the same meaning as

‘‘collaborative’’ defined above.

• INDIAN TRIBE: means any Indian

tribe, band, pueblo, nation, or other

organized group or community,

including any Alaska Native village or

regional or village corporation, as

defined in or established pursuant to the

Alaska Native Claims Settlement Act,

which is recognized as eligible for the

special programs and services the

United States provides to Indians

because of their status as Indians.

• INDIAN TRIBE JURISDICTION:

means Indian country, as defined in 18

U.S.C. 1151, and any other lands, title

to which is either held by the United

States in trust for the benefit of any

Indian tribe or individual or held by any

tribe or individual subject to a

restriction by the United States against

alienation, and any land held by Alaska

Native groups, regional corporations,

and village corporations, as defined in

or established under the Alaska Native

Claims Settlement Act, public domain

Indian allotments, and former Indian

reservations in the State of Oklahoma.

• INTERMEDIARY: means a private,

nonprofit entity that seeks to serve

qualified microenterprise development

organizations and programs;

• LARGE MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

with 10 or more full time employees or

equivalents, including its executive

director, as of the date it files its

application with SBA for a PRIME grant.

• LOCAL COMMUNITY: means an

identifiable area and population

constituting a political subdivision of a

state.

• LOW-INCOME PERSON: means a

person having an income, adjusted for

family size, of not more than—

(1) for metropolitan areas, the greater

of 80 percent of the median income; and

(2) for non-metropolitan areas, the

greater of—

(a) 80 percent of the area median

income; or

(b) 80 percent of the statewide nonmetropolitan area median income;

• MICROENTREPRENEUR: means the

owner or developer of a

microenterprise;

• MICROENTERPRISE: means a sole

proprietorship, partnership, limited

liability corporation or corporation that

has fewer than 5 employees, including

the owner, and generally lacks access to

conventional loans, equity, or other

banking services.

• MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a nonprofit entity, or

a program administered by such an

entity, including community

development corporations or other

nonprofit development organizations

and social service organizations, that

provides services to disadvantaged

entrepreneurs.

• QUALIFIED ORGANIZATION:

means an organization eligible for a

PRIME grant that is—

(1) a microenterprise development

organization or program as defined

above (or a group or collaborative

thereof) that has demonstrated a record

of delivering microenterprise services to

disadvantaged microentrepreneurs;

(2) an intermediary, as defined above;

(3) a microenterprise development

organization or program as defined

above that is accountable to a local

community, working with a State or

local government or Indian tribe; or

(4) an Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization referred to in this

definition exists within its jurisdiction.

• SEVERE CONSTRAINTS ON

AVAILABLE SOURCES OF MATCHING

FUNDS: means the documented

inability of a qualified organization

applying for a PRIME grant to raise

matching funds or in-kind resources

from non-Federal sources during the 2

years immediately prior to the date of its

application because of a lack of or

increased scarcity of monetary or inVerDate 11<MAY>2000 19:03 Oct 06, 2000 Jkt 194001 PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 E:\FR\FM\10OCP2.SGM pfrm01 PsN: 10OCP2
Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60273

kind resources from potential nonFederal sources.

• SMALL MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

with less than 10 full time employees or

equivalents, including its executive

director, as of the date it files its

application with SBA for a PRIME grant.

• TRAINING AND TECHNICAL

ASSISTANCE: means services and

support provided to disadvantaged

entrepreneurs, such as assistance for the

purpose of enhancing business

planning, marketing, management,

financial management skills, and

assistance for the purpose of accessing

financial services.

• VERY LOW INCOME PERSON:

means having an income adjusted for

family size of not more than 150 percent

of the poverty line (as defined in

§ 673(2) of the Community Services

Block Grant Act (42 U.S.C. 9902(2),

including any revision required by that

section).

XVI. Paperwork Reduction Act (44

U.S.C. Ch. 35)

The information being requested in

this Program Announcement is needed

to evaluate applicants and ensure that

awards are made in furtherance of the

PRIME program’s objectives. The

information will be used to grant awards

to provide training and technical

assistance to disadvantaged

microentrepreneurs. Applicants’

responses to the data collection

requirements are necessary for them to

receive a benefit under the Prime

Program. The information provided by

applicants will be kept confidential to

the extent required by law. Applicants

are not required to respond to the

Program Announcement unless it

displays a currently valid OMB number.

SBA estimates it will take applicants 80

hours to respond.

XVII. Privacy Act (5 U.S.C. § 552A)

Any person can request to see or get

copies of any personal information that

SBA has in the requestor’s file, when

that file is retrieved by individual

identifiers, such as name or social

security number. Requests for

information about another party may be

denied unless SBA has the written

permission of the individual to release

the information to the requestor or

unless the information is subject to

disclosure under the Freedom of

Information Act (FOIA).

Note: Any person concerned with the

collection, use and disclosure of information,

under the Privacy Act may contact the Chief,

Freedom of Information/Privacy Act Office,

U.S. Small Business Administration, Suite

5900, 409 Third Street, SW, Washington, DC

20416, for information about the Agency’s

procedures relating to the Privacy Act and

FOIA.

DATE: lllllllllllllllll

TO: Applicants

FROM: Office of Procurement and Grants

Management (OPGM)

SUBJECT: Program Announcement No.

PRIME 01–2, Program for Investment in

Microenterprise Act, (‘‘PRIME’’) to

Provide Microenterprise Development

Organizations (MDOs) Capacity Building

Services.

The U.S. Small Business

Administration plans to issue Federal

grant awards to qualified organizations

under PRIME to provide capacity

building services to microenterprise

development organizations and

organizations interested in becoming

microenterprise development

organizations. These organizations

include: Non-profit microenterprise

development organizations or programs;

intermediaries (as defined); other

microenterprise development

organizations or programs (as defined)

that are accountable to a local

community, working in conjunction

with a State or local government or

Indian tribe; or Indian tribes acting on

their own, with proper certification that

no other qualified organization exists

within their jurisdiction.

You are invited to submit an

application, an original and two (2)

copies, in response to Program

Announcement No. PRIME 01–2. You

are required to bind the cost proposal

and technical proposal separately.

Prepare the technical and cost proposals

in single-spaced, 12-pt. font format. The

technical proposal must not to exceed

45 pages, excluding exhibits and

appendices. The Government will not

return proposals, but will retain them

for a limited period of time.

The closing date for the program

announcement is llll , 4 p.m.,

Eastern Standard Time. Address your

applications/proposal to the U.S. Small

Business Administration, Office of

Procurement and Grants Management

(OPGM), 409 3rd Street, SW, 5th Floor,

Washington, DC 20416, Attention: Mina

Bookhard, Agreement Officer. If hand

carried, deliver the application/proposal

to Mina Bookhard, or her designee, at

the above address. Deliveries to other

locations will be considered late if not

received in OPGM at the U.S. Small

Business Administration by 4 p.m. on

llll . Please place the following

notation in the lower left corner of the

sealed envelope or package:

THIS IS A SEALED OFFER. DO NOT

OPEN. STAMP THE DATE AND TIME

RECEIVED ON THE ENVELOPE. THE

ENCLOSED APPLICATION IS IN

RESPONSE TO PROGRAM

ANNOUNCEMENT NUMBER PRIME

01–2, DUE llll AT 4 P.M.,

EASTERN STANDARD TIME, AT SBA’s

OFFICE OF PROCUREMENT &

GRANTS MANAGEMENT.

Applicants will be required to meet

the standards for financial management

systems as prescribed in the Office of

Management and Budget’s (OMB)

Circular A–110, Subpart C, sections .21

through .28, and 13 CFR Part 143.

Questions concerning this program

announcement should be directed to

Warren Boyd at (202) 205–7534.

Questions about budget or funding

matters should be directed to Mina

Bookhard, at (202) 205–7080.

Sincerely,

Sharon Gurley

Director, Office of Procurement and Grants

Management

OFFICE OF FINANCIAL ASSISTANCE

PROGRAM ANNOUNCEMENT

PROGRAM FOR INVESTMENT IN

MICROENTREPRENEURS ACT,

(‘‘PRIME’’)

TO PROVIDE CAPACITY BUILDING

SERVICES TO NEW, EMERGING, AND

EXISTING MICROENTERPRISE

DEVELOPMENT ORGANIZATIONS

FISCAL YEAR 2001

U.S. SMALL BUSINESS

ADMINISTRATION

OFFICE OF FINANCIAL ASSISTANCE

OPENING DATE: llllllllllll

CLOSING DATE: llllllllllll

ANNOUNCEMENT NO: PRIME 01–

TABLE OF CONTENTS

I. LEGISLATION PURPOSE

II. INTRODUCTION

III. PROGRAM OVERVIEW

IV. ELIGIBLE APPLICANTS FOR THIS

GRANT

V. INELIGIBLE APPLICANTS FOR THIS

GRANT

VI. GENERAL INFORMATION

VII. OMB UNIFORM ADMINISTRATIVE

REQUIREMENTS AND COST

PRINCIPLES

VIII. PROPOSAL INSTRUCTIONS AND

EVALUATION CRITERIA

IX. OPTION YEAR FUNDING

X. PREPARING YOUR BUDGET

XI. ASSEMBLY AND MAILING

INSTRUCTIONS

XII. LATE SUBMISSIONS, REVISIONS,

WITHDRAWALS

XIII. UNSUCCESSFUL APPLICANTS

XIV. CANCELLATION

XV. GLOSSARY OF TERMS

XVIII. PAPERWORK REDUCTION ACT

60274 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

XIX. PRIVACY ACT

APPENDIX A: APPLICATION FOR FEDERAL

ASSISTANCE

APPENDIX B: ASSURANCES AND

CERTIFICATIONS

APPENDIX C: MILESTONE CHARTS

I. Legislation Purpose

The Program for Investment in

Microentrepreneurs Act of 1999 (Pub. L.

106–102) became law on November 12,

1999. 15 U.S.C. 6901 et seq. (‘‘PRIME’’

or ‘‘the Act). The Act authorizes the

Administrator of the U.S. Small

Business Administration (SBA) to

establish a microenterprise training and

technical assistance program for

disadvantaged microentrepreneurs and

to provide training and capacity

building grant program to

microenterprise development

organizations (MDOs). Additionally, the

Act authorizes research and

development of best practices for

microenterprise development and

technical assistance programs for

disadvantaged entrepreneurs and other

activities as the Administrator of SBA

determines are consistent with the Act.

PRIME has several purposes for which

SBA will issue separate program

announcements soliciting applications

geared toward a particular legislative

purpose. Program Announcements

called for under the Act solicit, from

eligible organizations, applications for

grant funding to be used to carry out the

purposes of the Act as follows:

Program Announcement No. PRIME

01–1 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

providing training and technical

assistance programs for disadvantaged

microentrepreneurs.

Program Announcement No. PRIME

01–2 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

providing training and capacity building

services to microenterprise development

organizations and programs and groups

of such organizations to assist them in

developing microenterprise training and

services.

Program Announcement No. PRIME

01–3 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

pursuing research and developing best

practices in the field of microenterprise

and technical assistance programs for

disadvantaged microentrepreneurs.

PRIME 01–2 solicits proposals from

qualified organizations wishing to

obtain grant funding for the purpose of

providing Training and Capacity

Building. These PRIME grants will

enable MDOs to improve, expand, and/

or enhance the number of MDOs

providing training and technical

assistance programs for disadvantaged

microentrepreneurs.

SBA will use 15 percent of available

PRIME funds for grants that provide

Training and Capacity Building

services. Grants awarded under this

program announcement will be for a

minimum of $50,000 with no one grant

exceeding $250,000 or 10% of the total

appropriated, whichever is less.

II. Introduction

Congress recognized that many

disadvantaged microentrepreneurs lack

sufficient training and education to gain

access to capital to establish and expand

their own small businesses. It enacted

PRIME to augment training and

technical assistance under the Small

Business Act and other legislation.

PRIME grants to qualified MDOs will

help meet more training and technical

assistance needs for disadvantaged

microentrepreneurs, thereby

encouraging entrepreneurship and

community development.

Many low income and very-low

income entrepreneurs need training and

technical assistance to start, operate, or

expand their businesses. In order to

achieve measurable success in the effort

to providing direct training and

technical assistance to low and very low

income individuals, another goal of the

PRIME Act is to expand and build the

capacity of microenterprise

development organizations (MDOs) to

provide training and technical

assistance to the microentrepreneur.

For every business started or

microloan made, a number of

entrepreneurs are preparing themselves

for a business start. A generally

accepted assumption in the

microenterprise industry is that it takes

approximately 10 microentrepreneurs

for every microenterprise started or

booked. The cost of training is

substantial because those at the entrylevel stage of development typically

require the greatest amount of dedicated

advice and guidance, over an extended

period of time, to achieve the highest

rates of success. Funding is scarce

relative to the need. The

microenterprise industry has found the

technical assistance-funding gap to be a

nationwide condition, particularly in

the very-low income sector.

The Program for Investment in

Microentrepreneurs (PRIME) authorizes

SBA to make grants to ‘‘qualified

organizations’’ to fund capacity building

services to MDOs. The SBA will also

make grants to provide training and

technical assistance to low and very low

income individuals, fund research and

development of ‘‘best practices’’ in

microenterprise development and

technical assistance programs, and to

fund other undertakings consistent with

these purposes. The program requires

that grantees match a portion of the

SBA’s funds with funds from other

sources.

The PRIME grant program should be

viewed as a system of tiers. Primary

MDOs (PMDOs) are those principally

involved in the provision of financial

and/or technical assistance services to

individual clients, entrepreneurs, and

microbusiness owners. Secondary

MDOs (SMDOs) are those primarily

involved in the training and capacity

building of PMDOs through professional

development, organizational

development, and/or coordination of

funds and services within a specific

geographic area. While there may be

instances where PMDO and SMDO

activity types overlap, the distinction

between the two types of organizations

lies in the major focus of their

respective activity. Training and

Capacity Building may be viewed as

separate and distinct activities, or may

be presented as a single, integrated

package of services. Training is best

described as a classroom or course of

study approach and will generally

involve coursework, seminars, and other

types of professional development

activities designed to address a larger

audience. Capacity Building, which may

include a training aspect, will involve

organizational development, site visits,

individualized strategic planning, and

goal-setting specifically designed to

assist a single MDO (but ideally

transferable to other MDOs). Capacity

Building may also include, as indicated

above, the coordination of activities,

funds, and information for MDO

networks or geographically related

groups. Organizations applying for

funding under this Program

Announcement, PRIME–01–2, should

remain cognizant of the information

provided above as they plan and apply

for funding.

III. Program Overview

1. Project Name: Program for

Investment in Microentrepreneurs

(PRIME).

2. Purpose: Provide Training and

Capacity Building Services to MDOs,

and organizations in the process of

becoming MDOs, to enhance their

ability to provide training and technical

assistance to low, very-low income, and

otherwise disadvantaged entrepreneurs.

3. Federal Catalog Number: 59.049

4. Authority: The Program for

Investment in Microentrepreneurs Act

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60275

of 1999, ‘‘PRIME’’, Pub. L. 106–102, 15

U.S.C. § 6901 et seq.

5. Funding Instrument: Grant

6. Funding: Funding is subject to

availability and the requirements

enumerated under the Act.

7. Funding Range: Target award

amounts will be a minimum of $50,000.

Award amounts may vary, depending

upon availability of funds (and

performance for option years); however,

no single person may receive more than

$250,000 or 10 percent of the total funds

made available for this program in a

single fiscal year, whichever is less. In

general, match is required, although

SBA may reduce or eliminate the

required match in certain circumstances

(up to a program limit of 10 percent).

8. Number of Awards: SBA anticipates

issuing multiple awards under this

Announcement. The number may vary,

based on the pool of qualified

applicants and the amount of available

funds. At least 15% of the funds

available for grants under PRIME must

be awarded under this Program

Announcement.

9. Targeted assistance: A minimum of

50% of the funds available for grants

under the PRIME Act must be used to

benefit very low income persons (as

defined in this document), including

those residing on Indian reservations.

10. Closing Time and Date for the

Submission of Applications: llll at

4 p.m. Eastern Daylight Time.

11. Project Starting Date: llll

(estimated).

12. Project Duration: The period

performance for this grant is one base

year with 4 twelve-month options

subject to availability of funds and

continued program authorization. The

total possible period of performance is

5 years. Each option year will constitute

a separate budget period. The project

recipient’s satisfactory performance will

be one of the key factors in determining

the award of an option year. Failure to

secure the required annual non-Federal

contribution during any project year

may jeopardize continued option year

funding.

13. Proposal Evaluation: Applications

will first be screened to determine if the

applicant meets certain mandatory

eligibility requirements. Applicants that

do not document in their application

that they meet these requirements will

not be evaluated by SBA for

participation in the Prime Program. In

addition, applications that are

incomplete, illegible, or unreadable, in

whole or in part, will be deemed

incomplete and will not be evaluated.

Eligible proposals will be scored by

an Objective Review Committee (ORC)

based on evaluation criteria stated in

this program announcement. The ORC

will consist of SBA officials and may

include Federal Officials from other

agencies. Microenterprise Development

Branch staff will review the ORC

evaluations, the ORC’s summary report

on each applicant, and the applicant’s

proposals to determine the final scoring

of award recipients. SBA may ask

applicants for clarification on the

technical and cost aspects of the

proposals. Such clarifications must not

be construed as a commitment to fund

the proposed effort.

14. Points of Contact: Questions

concerning the technical aspects of this

Program Announcement should be

directed to the Microenterprise

Development Branch at (202) 205–7534.

However, due to the competitive

process, SBA will be unable to assist

with answers to specific questions

regarding individual proposals or

requests for assistance in completing

proposals.

Questions concerning budget or

funding of this Grant should be directed

to Mina Bookhard at (202) 205–6621.

15. Award Notification: All applicants

will receive a written notification

relative to selection of award recipients.

This written notice will be SBA’s final

response to this Program

Announcement. SBA will not provide

debriefing sessions if your proposal was

not successful.

16. Cancellation: SBA reserves the

right to cancel this Program

Announcement in whole or in part at

the Agency’s discretion.

IV. Eligible Applicants for This Grant

An organization will be considered

eligible for funding for the purpose of

providing training and capacity building

services to MDOs, or organizations in

the process of becoming MDOs, if it is:

1. A microenterprise development

organization or program (or group or

collaborative thereof) that has a

demonstrated record of delivering

microenterprise services to

disadvantaged entrepreneurs, OR

2. An intermediary (as defined in this

document) which has experience in

delivering technical assistance to

disadvantaged entrepreneurs, OR

3. A microenterprise development

organization or program (as defined in

this document) that is accountable to a

local community, working in

conjunction with a State or local

government or Indian tribe, OR

4. An Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization or program referred

to in this paragraph exists within its

jurisdiction.

An eligible applicant for a PRIME

capacity building grant must provide

documentation in its application

demonstrating that it falls within one of

the above categories of qualified

organizations. Such documentation

should include but is not limited to:

1. A copy of your organization’s IRS

tax-exempt certificate including the IRS

code under which your organization is

considered non-profit;

2. Certification by your Secretary of

State that your organization is legally

allowed to do business in the State and

a copy of your organization’s articles of

incorporation and by-laws;

3. For category 4 in the preceding

paragraph, written certification from a

duly authorized person that no other

qualified organization (i.e. private

organization or program as defined in

categories 1–3 above) exists within its

jurisdiction; and

4. Financial statements for the past 3

years. If your organization has been in

business for less than 3 years provide

your year end financial statements for

those years completed and a financial

statement not less than 90 days old.

SBA will not evaluate applications

that do not meet these requirements.

SBA may not screen applicants for

eligibility until after the Closing Date for

application acceptance. SBA will

attempt to notify applicants of ineligible

proposals as soon as practicable.

However, SBA is under no obligation to

notify ineligible applicants before the

Closing Date. SBA strongly urges all

applicants to ensure all eligibility

requirements are met and documented

before sending an application to SBA.

V. Ineligible Applicants for This Grant

Regardless of the satisfactory

submission of information called for in

Paragraph IV, above, the following

applicants will automatically be

considered ineligible and their

applications will not be evaluated:

1. Any organization with an

unresolved audit by any Federal agency.

2. Any organization suspended or

debarred from receiving grants from any

Federal agency or otherwise excluded

from Federal procurement or nonprocurement programs.

3. Any organization which has

defaulted on an obligation to the United

States.

VI. General Information

1. Definitions

Throughout this Program

Announcement specific terminology

may be used, as defined in the Act and

the accompanying rule (13 CFR part

119) published on lll . The

60276 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

definitions are contained in a glossary of

terms located at the end of this

document in Section XV.

2. Collaborative Applications

a. If you participate in a collaborative

(as defined in this document), all

entities who are party to the

collaborative must separately meet the

statutory and eligibility requirements in

order to apply as a collaborative.

b. Applications from collaboratives

must name the primary liaison with the

Federal government and include a copy

of the collaborative agreement outlining

responsibilities of each partner

organization. An authorized

representative from each organization

must sign the agreement. The primary

liaison will be responsible for

coordinating reporting and requests for

funding.

3. Program Income

All program income as defined in

OMB Circular A–110, and OMB A–122

must be reported on financial reports

submitted to SBA and added to funds

committed to the project by SBA and

recipient organizations. Program income

may only be used to further eligible

program objectives.

4. Cost Principles

a. General: All costs approved for a

successful applicant must meet the tests

of necessity, reasonableness,

allowability and allocability in

accordance with the cost principles

applicable to this award. All proposed

costs are subject to pre-award audit.

Grantees are responsible to ensure

proper management and financial

accountability of Federal funds to

preclude future cost disallowances.

Payment will be made by

reimbursement or advance payments as

described in the grant award document

and applicable OMB Circulars.

b. Carryover Policy: The grantee may

request approval to use unexpended

funds in the next budget period. This is

permissible if funds are to be used for

a non-severable, non-recurring project

or activity within the scope of the

PRIME program. Non-severable means a

project in its entirety that cannot be

subdivided. The request for using

unexpended funds in the next budget

period must include the following:

(1) SF 424, budget pages, and

justification;

(2) Explanation of why the funds were

not expended during the period in

which they were awarded; and

(3) Evidence of match. The match

requirement for funds carried over to

the next budget period can be met by

using any excess of matching funds

from the current budget period, new

matching funds, or a combination of

both.

The request must be made no later

than 60 days before the end of the

budget/project period or the deobligation process will begin. Approved

requests will require the issuance of a

revised Notice of Award. Expenditures

for funds carried over to the next budget

period must be tracked separately.

5. Publications/Websites

Any publications or websites

developed under this grant must be

submitted to SBA for prior review and

approval. SBA will have an unlimited

license to use data and written materials

generated under this grant award,

whether or not the materials are

copyrighted. Any publications resulting

from this project must include the

following acknowledgement of support,

whether copyrighted or not, in legible,

easily readable print:

This grant is partially funded by the U.S.

Small Business Administration. SBA’s

funding is not an endorsement of any

products, opinions, or services. All SBA

funded programs are extended to the public

on a nondiscriminatory basis.

The grant recipient may not use the

U.S. Small Business Administration

name or logo for the endorsement of any

services, products, or merchandise

under this award.

The SBA logo may appear on

prominent webpages of Internet sites

that are related to this project, but must

appear with the above disclaimer in

legible, easily readable print and

acknowledgement of support in close

physical proximity (within 2 inches)

next to it.

6. Reports

a. General Reporting

The selected grantees will be required

to submit the reports as outlined below.

Participants must agree to cooperate

with SBA in the collection and retention

of data required by this agency. Your

ability to meet reporting requirements

must be addressed in the Technical

Proposal.

Payments may be withheld if reports

are not submitted within the required

time frame or if the quality of reports is

considered inadequate.

b. Performance Reports:

Quarterly performance reports, unless

otherwise specified, must contain a

summary of activity for the reporting

period using the following format:

1. A comparison of actual

accomplishments to the estimated

milestones established in the proposal

and/or subsequent grant agreement.

2. A discussion of accomplished

milestones and reasons for slippage in

those cases where milestones are not

met. Where milestones were not met, a

plan of action must be provided to

overcome these slippages or a detailed

statement of how the program will

better serve MDOs, and organizations in

the process of becoming MDOs, if the

milestones are revised.

3. Evidence of the amount of funding

expended to the benefit of very-low

income program clients.

4. Information relating to actual

financial expenditures of budgeted cost

categories versus the estimated budget

award, including an explanation of all

cost overruns, if any, by budgeted cost

category. Financial data furnished in

this report is from a manager’s

standpoint and is in addition to that

furnished in the financial reports cited

below.

5. Other pertinent information,

including any significant

accomplishments or milestones of

special significance that have been met.

6. Because SBA is interested in the

actual outcome of capacity building

services provided under the PRIME

Program, Client MDO Progress Reports

will be required as part of the quarterly

performance reports. As such, grantees

will be required to compile, maintain,

and submit data regarding each client as

follows:

A. At the start of the training

relationship:

• Client identification information

(location, urban, rural, tribal)

• Level of operating budget

• Total number of employees,

excluding volunteers,

• Average number of employee hours

used to provide training and technical

assistance to disadvantaged

entrepreneurs

• Average number of volunteer hours

used per month for same purpose

• Number of clients served during

each of two years prior to the start of the

relationship and an indication of the

number and percent of those clients that

were low- or very-low income

individuals

• The goal of the capacity building

project or activity

B. Follow-up:

• Changes in the operating budget of

the client

• Changes in human resource

utilization patterns (employees and

volunteers)

• Changes in the numbers and

percentages of end-user client service

data as called for above

• Status of training in terms of the

stated goal.

Follow-up data should be collected on

client MDOs on the six, twelve, and

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60277

eighteen-month anniversary of the

beginning of the capacity building

relationship. It is understood that new

goals may be stated at the beginning of

a new project or specific activity. This

understanding is to be built into the

grantee’s reporting structure.

Quarterly reports will be due no later

than:

(a) January 15 for the period ending

December 31;

(b) April 15 for the period ending

March 31;

(c) July 15 for the period ending June

30; and

(d) October 15 for the period ending

September 30.

c. Financial Reports

1. Financial Status Report Forms must

be submitted every quarter with the

performance reports. Reports must

include the SF 269, Financial Status

Report, and the SF 272, Federal Cash

Transactions Report.

2. The year-end report must include a

cost breakdown of actual expenditures

and costs incurred by line item.

Participants will also be required to

submit the SBA Form 2069, Detailed

Actual Expenditures for Period Covered

by Request, with the final Standard

Form 269.

3. In addition, grantees will be

required to submit audited annual

financial statements, if available, or

annual financial statements prepared by

a licensed, independent public

accountant, within 120 days of the end

of the grantee’s fiscal year period.

SBA may withhold payment of

advances or reimbursements if reports

are not received or are regarded as

inadequate.

SBA may, at its discretion, reduce any

reporting requirements to semi-annually

as it deems appropriate. SBA will notify

participants if it decides to take such

action.

7. Match Requirements

In general, funds awarded under the

PRIME Program will require a nonFederal match of not less than 50% of

each dollar awarded. Matching funds

may come from fees, non-Federal grants,

gifts, funds from loan sources, and inkind resources. After the initial grant,

grant awards for the following option

years will be made in declining

amounts, declining by 20% of the initial

grant amount in each successive year.

Exception: In the case of an applicant

with severe constraints on available

sources of matching funds, SBA may

reduce or eliminate the 50% match

requirement on a case by case basis.

Any reductions or eliminations must

not exceed 10% of the aggregate of all

PRIME grant funds made available by

SBA in any fiscal year.

Organizations seeking to receive a

reduction or elimination of the

matching fund requirement must

include such a request (as a cover letter)

with their proposal, and include

justification and supporting

documentation for their request.

Submission of a request will not

automatically guarantee that an

exception, in whole or in part, will be

granted. Rather, it will alert SBA to the

applicant’s desire to receive an

exception.

8. Fundraising Not Allowable Expense

Expenditures for fundraising activities

are not allowable costs under this grant.

Applicants must be able to raise

matching funds without the assistance

of grant funds. The applicant must

demonstrate that it has adequate

fundraising resources to obtain required

non-Federal matching funds to perform

the project.

9. Subgrants

An organization selected to receive a

grant under the PRIME Program may

provide sub-grants to qualified small

and emerging MDOs solely for the

purpose of having them assist with

Training and Capacity Building services

to other MDOs. Applicants wishing to

provide sub-grants as a part of their

implementation plan should include

detailed information regarding same in

their Technical Proposal. An applicant

that wants to make subgrants using

PRIME grant funds must receive written

approval from SBA prior to making

subgrants. The applicant must identify

the subgrantee(s) and describe in detail

what the subgrantee(s) will do to help

the grantee implement its proposal. An

applicant must submit information to

SBA demonstrating that, through the

subgrantee(s), the grantee’s program

will:

(1) Provide expanded services to the

community,

(2) Provide a method by which one or

more previously unserved communities

will gain access to the program, or

(3) Provide other specific benefits to

the clients, such as specialized training,

expanded schedules of operation, or

other benefits.

If an applicant has identified potential

subgrantee(s) at the time it submits an

application for a PRIME grant, the

applicant must include the information

requested in the paragraph above in the

application. Otherwise, the applicant or

grantee may submit the requested

information at such time that approvals

for subgrantee(s) are requested.

The total amount of money

subgranted by the grantee must not

exceed 50% of the amount of the PRIME

grant. A maximum of 7.5% of the funds

awarded may be used by the grantee for

administrative expenses in connection

with the making of subgrants.

10. Subcontracts

Any and all subcontracts awarded

under this grant must be approved by

SBA in advance in writing and must not

exceed 50% of the amount of the PRIME

grant.

11. Diversity

In making grants under this Program

Announcement, SBA will ensure that

grant recipients include both large and

small microenterprise organizations,

serving urban, rural and Indian tribal

communities and diverse populations.

12. Prohibition on Preferential

Consideration of Certain SBA Program

Participants

In making grants under this Program

Announcement, SBA will not give

preferential consideration to an

applicant that is a participant in the

program established under section 7(m)

of the Small Business Act.

VII. OMB Uniform Administrative

Requirements and Cost Principles

The Prime Grant Notice of Award

incorporates by reference all applicable

OMB Circulars, including:

1. OMB Circular A–21, ‘‘Cost

Principles for Educational Institutions,’’

containing cost principles for

educational institutions;

2. OMB Circular A–87 ‘‘Cost

Principles for State, Local, and Indian

Tribal Governments,’’ containing cost

principles for State, local governments,

and federally recognized Indian tribal

governments.

3. OMB Circular A–110, ‘‘Uniform

Administrative Requirements for Grants

and Agreements with Institutions of

Higher Education, Hospitals, and Other

Non-Profit Organizations,’’ containing

administrative requirements;

4. OMB Circular A–122, ‘‘Cost

Principles for Non-Profit

Organizations,’’ containing cost

principles for non-profits; and

5. OMB Circular A–133, ‘‘Audits of

States, Local Governments, and NonProfit Organizations,’’ concerning

audits.

Current versions of OMB Circulars are

available from the Office of Management

and Budget’s website. The address is:

www.whitehouse.gov/WH/EOP/OMB/

html/circular.html.

60278 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

VIII. Proposal Instructions and

Evaluation Criteria

The technical and cost proposals must

be bound separately. The technical

proposal must be single-spaced and not

exceed 45 pages, excluding exhibits and

appendices. Prepare your proposal

using the following outline.

1. APPLICATION FORMAT

A. Technical Proposal

Section 1. Eligibility Requirements (not

to exceed 5 pages)

In this section the applicant must

prove that it falls within one of the four

categories of qualified organizations.

(See Section IV)

Applicants are reminded to include

documentation of the mandatory

eligibility requirements in their

technical narrative. Failure to provide

the mandatory eligibility documentation

will result in disqualification of the

application, and the application will not

be evaluated. In addition, incomplete or

illegible (in whole or in part)

applications will not be evaluated.

Section 2. Applicant Experience (not to

exceed 15 pages)

Applicant experience includes

information regarding current and past

performance in providing training and

capacity building services to new,

emerging, and existing MDOs.

In this section, the applicant should

discuss the items delineated below. To

the extent possible, the applicant should

provide internal statistical data to

document its past experience and

illustrate current activities.

1. An understanding of the

microentrepreneur and MDO

communities and the needs of

disadvantaged entrepreneurs.

2. The applicant’s existing and

historical capacity building services to

MDOs. This discussion should include

a detailed description of the

programmatic information as to the

activities and services offered to MDOs

with specific descriptions of the extent

to which such services have improved

the operations of client MDOs and

assisted MDOs in reaching low and very

low income individuals.

3. Provide a list of grants and or

contracts similar in scope to the grant

for which you are applying. Specifically

provide the name of, if any, any Federal,

or non-Federal, agency(ies) or private

sector foundations or organizations

providing funding, the grant or contract

number, a short summary of services

provided under each grant, and the

period(s) of performance. Include in

each summary the name and contact

information (phone number and E-mail

address) of the person providing

oversight on each grant or contract.

Section 3. Institutional Capacity (not to

exceed 5 pages)

This section should include the

following:

1. Personnel Qualifications and Internal

Structure

• You must have, or exhibit the

ability to obtain, personnel who are

qualified to meet the goals of providing

technical assistance under this grant.

Provide resumes of personnel key to

your organization’s participation in the

PRIME Program. The resumes should

clearly present personnel’s

qualifications relative to this particular

work. Special mention should be made

of relevant experience. Personnel

indicated must demonstrate knowledge

of business development, business

structures, business planning,

marketing, business management,

financial management, and training and

counseling.

• Organizational chart for all

proposed full-time and part-time project

staff and the amount of time each will

devote to the project. The Project

Director must be a full time employee of

the organization; however, the Project

Director does not have to be dedicated

solely to this activity. The Project

Director (and other federally funded

staff positions) must not engage in

fundraising activities using Federal

funds provided under this grant.

• A description of the role of

subcontractors, subgrantees and/or

outside consultants.

• A description of at least one staff or

consultant function to handle on-going

program data collection and electronic

reporting to SBA.

• A description of whom will be

responsible for financial record keeping

on the receipt and expenditure of

program funds.

2. Data Collection and Maintenance

Capacity

• Describe your organization’s current

data collection and management system.

If applying as a group or collaborative,

describe how data management systems

will be integrated for an interorganizational uniform approach to data

gathering and reporting, as well as how

these capabilities will or will not be

integrated for training MDOs.

• Provide your organization’s

computer capacities, if any, and the

software used. Indicate whether or not

your organization is connected to the

Internet and, if not, delineate plans to

become connected. The applicant

should indicate its level of willingness/

capability to report data via the Internet

as well as how funds received under

this grant may help the applicant

accomplish its electronic management,

communication, and reporting goals.

• Describe your organization’s

internal systems of checks and balances

in terms of financial, data collection,

and reporting systems. If applying as a

group or collaborative, also describe the

plan for inter-organizational checks and

balances in terms of those systems. Also

indicate which member of the group or

collaborative will be responsible for

coordination and submission of data

and reports, and how the collaborative

will ensure that this responsibility will

be fully implemented.

Section 4. Program Narrative (not to

exceed 15 pages)

In this section, each applicant must

describe the following:

1. Its management plan to provide

capacity building and training services

to MDOs. This plan should include but

not be limited to long and short term

training, counseling and technical

assistance.

2. Its outreach and delivery plan. The

plan should include, but not necessarily

be limited to:

• A description of the types of client

MDOs your organization plans to target

including whether or not those client

organizations serve very-low income

populations

• A demonstration of the need for the

planned services in terms of both the

anticipated client base and the end user

of the client MDOs’ services;

• Strategies to be used for reaching

your scheduling and delivery goals;

• Methods by which your

organization will incorporate outside

resources into the plan; and,

• A description of any planned or

existing strategic alliances and

partnerships with state and local

entities (public or private) and how

these alliances assist, or will assist, your

organization in providing capacity

building services to client MDOs.

Section 6. Timeline/Milestones (not to

exceed 5 pages)

In this section the applicant must

include a timeline with milestones

covering the 12-month grant period.

Milestones should clearly illustrate the

applicant’s goals for delivery of capacity

building services in terms of the number

and types of projected clients, projected

activities, and projected use of funds.

Section 7. Supporting Documentation

In this section the applicant should

provide any necessary documentation to

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60279

support its proposal, including but not

limited to the following documents:

1. A statement signed by your

Executive Director (or an equivalent

duly authorized person), authorizing

SBA to make inquiries to other Federal

Agencies as to the performance

capabilities of your organization.

2. A copy of your organization’s IRS

tax exempt certificate, including the IRS

code under which your organization is

considered non-profit.

3. Certification by your Secretary of

State that your organization is legally

allowed to do business in the State and

a copy of your organization’s articles of

incorporation and by-laws.

4. A copy of your organization’s

financial statements for the last 3 years.

If your organization has not been in

business for 3 years, submit the most

recent full-year financial statements and

a copy of your organizations Year-toDate balance sheet.

5. A summary of the training and

technical assistance provided to date

(limit to 3 pages).

6. Re ́sume ́s and reference information

for personnel key to the delivery of

technical assistance services to date.

7. An organizational chart, if you are

applying as a group, or plan to use subcontractors, include a second

organizational chart that shows how the

members of the group will interact and

collaborate and/or how the subcontractors will fit into the work flow

plan.

B. Cost Proposal

The cost proposal must include the

application cover sheet, budget

information, assurances and

certifications. Additional information

on how to organize the proposal is

provided on page 21, ‘‘Preparing Your

Budget.’’ The applicant’s Cost Proposal

will be evaluated in terms of the quality

and effectiveness of the proposed

capacity building services and impact as

identified in item 3 of the evaluation

factors.

2. Evaluation Factors

Capacity Building awards will be

competed among a single pool of

applicants. The Technical Proposal will

be evaluated in terms of the following

evaluation criteria. The maximum

number of points available under each

criterion will be as follows:

(a) Institutional Capability (total of 90

points) The following factors will be

considered under this criteria:

(1) Organizational structure, financial

stability, and financial management

systems (20)

(2) Personnel (30)

(3) Electronic communication or

potential for same (20)

(4) Data collection and reporting

capability (20)

(b) Past performance and history of

providing capacity building services to

Microenterprise Development

Organizations (MDOs) (30)

(c) Management plan for proposed

training and capacity building

assistance, including outreach and

delivery (total of 80 points)

The following factors will be

considered under this criteria:

(1) Proposed training and capacity

building assistance to client MDOs and

services to low-and very-low income

microentrepreneurs (30)

(2) Service plan and delivery (30)

(3) Performance and outcome

measurement tools (20)

The total number of points an

organization may attain under this

evaluation system is 200.

As indicated above, applications will

be reviewed for technical merit using

the evaluation factors listed. Included in

the evaluation processes will be

qualitative and quantitative analyses of:

a. The applicant’s organizational

structure, financial stability, financial

management systems, personnel

capacity, and electronic communication

capabilities (or potential for same).

Additional evaluations will be made on

the data collection capabilities,

reporting capacities, and ability to

account for performance.

b. The applicant’s history of providing

capacity building services to MDOs, as

an indication of the organization’s

understanding of the goals and purposes

of capacity building, its historical

effectiveness with the microenterprise

development industry, and its ability to

provide quality services to the targeted

market. In addition, patterns of program

growth, outcomes of training, types of

services provided, delivery systems

used, the number and types of clients

served, and the successes realized

within the client’s organizational goals.

c. The applicants projected impact on

client MDOs, and on their ability to

serve or improve services to low- and

very-low income microentrepreneurs.

d. The value of the proposed activity

to the enhancement of the MDO

community and the applicant’s ability

to attain the stated goals of the proposal.

In addition, the transferability and

replicability of the project will be

considered.

IX. Option Year Funding

Applicants will prepare application

cover sheets (SF Form 424) and budgets

for each of the 5 budget periods

consisting of 12 months each.

Applicants are advised that the

performance period for specific awards

made under this announcement may

consist of one base year with up to 4

twelve-month option years. The project

periods may consist of up to 5 twelvemonth budget periods. Each additional

twelve-month budget period beyond the

original base year may be exercised at

the discretion of the Government.

Among the factors involved in deciding

whether to exercise an option are the

availability of funds, continuing

program authorization, satisfactory

performance of the applicant, and the

determination that continued funding

would be in the best interest of the

Government.

After the initial grant, grant awards

for the option years will be made in

declining amounts, declining by 20

percent of the initial grant amount in

each successive year

X. Preparing Your Budget

INSTRUCTIONS FOR STANDARD

FORM 424 (APPLICATION FOR

FEDERAL ASSISTANCE)

Standard Form 424, Application of

Federal Assistance, will be found

beginning at page A–1 of this

announcement. This guidance

supplements that contained on the

reverse side of the form.

Item 1. Self-explanatory

Item 2. Refer to instructions on reverse

of form

Item 3. Refer to instructions on reverse

of form

Item 4. Leave Blank

Item 5. Refer to instructions on reverse

of form

Item 6. Refer to instructions on reverse

of form

Item 7. Refer to instructions on reverse

of form

Item 8. Enter: ‘‘new’’

Item 9. Enter: ‘‘U.S. Small Business

Administration’’

Item 10. Enter: 59.049 Program for

Investment for Microentrepreneurs

(PRIME)

Item 11. Refer to instructions on reverse

of form

Item 12. Refer to instructions on reverse

of form

Item 13. Refer to instructions on reverse

of form

Item 14. Refer to instructions on reverse

of form

Item 15. Refer to instructions on reverse

of form

Item 16. Enter: Check ‘‘b.’’ This program

is not covered by E.O. 12372.

Item 17. Refer to instructions on reverse

of form

Item 18. Refer to instructions on reverse

of form

60280 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

INSTRUCTIONS FOR STANDARD

FORM 424A (BUDGET INFORMATION)

Budget information is found on pages

A–1 through A–11

The budget is the applicant’s estimate

of the total cost of performing the

project or activity for which grant

support is requested. The budget is to be

based upon the cost of performing the

project, including Federal and private

sources. All proposed costs reflected in

the budget must be necessary to the

project, reasonable and otherwise

allowable under applicable cost

principles and Agency policies. All

costs must be justified and itemized by

unit cost on the Budget Worksheets (p.

A–3).

Section A—Budget Summary

Column (A): Enter ‘‘PRIME 01–2’’

Column (B): Enter the Catalog of Federal

Domestic Assistance Number 59.049

Section B—Budget Categories

Amounts entered by budget category

in this section are for summary

purposes only. Itemization and

justification of specific needs by budget

category are to be shown under line 21,

Section F.

Line 6.a.–6.h. The budget amounts

must reflect the total requirements for

funds regardless of the source of funds.

All amounts entered in this section are

to be expressed in terms of whole

dollars only after completing the

requirements of Section F.

Line 6.j. Indirect costs are those costs

related to the project that are not

included as direct costs in a. through h.

Section C—Non-Federal Resources

Refer to instructions on reverse of

form.

Section D—Forecasted Cash Needs

Refer to instructions on reverse of

form.

Section E—Budget Estimates of Federal

Funds Needed for Balance of the Project

Refer to instructions on reverse of

form.

Section F—Other Budget Information

Line 21, Direct Charges: Identify and

explain all items or categories under

Section B in accordance with the

instructions set forth below. The

itemization must reflect the total

requirements for funding from Federal

and non-Federal sources. In most

instances, Line 21 does not provide

sufficient space to reflect all of the

necessary information. Budget

Worksheets are enclosed for your

convenience. You may use these

worksheets for the detailed budget

information listed below or a reasonable

facsimile; but each budget line item

pertinent to your submission MUST

ALSO be completed on the application.

Please show a complete breakdown of

all cost elements summarized in Section

B on a separate sheet. Do not list on

Line 21 any items included in the

indirect expenses entered on Line 22

below.

a. Personnel: List the name, title,

salary and estimated amount of time for

each employee who will be assigned to

this project. Note that fees, expenses,

and estimated amount of time for

outside consultants should be included

in f., Contractual. The estimated

performance time for outside

consultants is not to exceed 50% of the

total amount of the grant. Resumes of all

personnel assigned to this effort must be

included in the application.

b. Fringe Benefits: Leave blank if

fringe benefits applicable to direct

salaries and wages are treated as part of

indirect costs in the indirect cost rate

negotiation agreement. If your

organization does not have a federally

negotiated fringe benefit package, list

each component included as a fringe

benefit.

c. Travel: Reimbursement will be

made based on incurred cost. Estimates

should be based on knowledge of the

geographical area of small business

locations. Reimbursement to contractors

or volunteers will not be made for time

in travel to and from the client’s

location. Supporting data should

include numbers of trips anticipated,

costs per trip per person, destinations

proposed, modes of transportation, and

related subsistence expenses.

Line 22 Indirect Charges:

(Attach Budget Worksheets or

reasonable facsimile if sufficient space

is not provided.)

Enter the indirect cost rate, date, and

agency that issued rate.

If an indirect cost rate is not

established, itemize elements and costs

of overhead and G&A (General and

Administrative) expense categories

relative to the performance of this

project.

XI. Assembly and Mailing Instructions

1. Please indicate the following

information on the front of your return

envelope:

a. Your organization’s name and

return address including zip code in the

upper left-hand corner of the return

envelope.

b. Place the following notation in the

lower left-hand corner of the sealed

envelope.

THIS IS A SEALED OFFER. DO NOT

OPEN. STAMP THE DATE AND TIME

RECEIVED ON THE ENVELOPE. THIS

PROPOSAL IS IN RESPONSE TO

PROGRAM ANNOUNCEMENT

NUMBER,____ DUE, ____ 2000, AT 4:00

P.M., EASTERN STANDARD TIME, AT

THE U.S. SMALL BUSINESS

ADMINISTRATION, OFFICE OF

PROCUREMENT & GRANTS

MANAGEMENT, 409 3RD STREET, SW,

5TH FLOOR, WASHINGTON, DC

20416, ATTENTION: MINA

BOOKHARD.

2. Application. Please submit an

original and 2 copies of the pages

described below in items a and b. They

are part of the Announcement and

should be completed and submitted

with an original and 2 copies of your

proposal:

a. The Federal Assistance Application

(Standard Form 424), including the cost

and technical proposals, and related

budgetary data.

b. Appendix B, Assurances and

Certifications (with appropriate

signature).

3. To facilitate review and processing

of the proposals, your submission must

be arranged, as follows, in two

separately bound parts:

a. Part I: COST PROPOSAL—This part

is to be comprised of the Application,

the Budget Information, and the

Assurances and Certifications. The

material identified as Part I must be

bound separately from the Technical

Proposal. DO NOT include any

technical information in Part I, The Cost

Proposal.

b. Part II: TECHNICAL PROPOSAL—

This part is comprised of the Program

Narrative. The proposal should be

completed with a table of contents and

must be responsive to the evaluation

criteria set forth on pages 20–21. The

Technical Proposal must be bound

separately from Section I and must not

exceed 45 pages. DO NOT include any

cost information in Part II, The

Technical Proposal.

4. Your application should be

submitted in original and 2 copies to:

U.S. Small Business Administration,

Office of Procurement and Grants

Management, 409 Third Street, SW, 5th

Floor, Washington, DC 20416, ATTN:

Mina Bookhard.

XII. Late Submission, Revisions and

Withdrawals

1. Any Application received at the

Office of Procurement and Grants

Management after the exact time

specified for receipt will not be

considered unless it is received before

award is made, AND:

a. It was sent by registered or certified

U.S. mail not later than the fifth

calendar day before the date specified

for receipt of offers (e.g., an offer

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60281

submitted in response to a solicitation

requiring receipt of offers by the 20th of

the month must have been mailed by

the 15th);

b. It was sent by U.S. mail or handcarried (including delivery by a

commercial carrier) if it is determined

by the Government that the late receipt

was due primarily to Government

mishandling after receipt at the

Government installation;

c. It was sent by U.S. Postal Service

Express Mail Next Day Service-Post

Office to Addressee, not later than 5:00

p.m. at the place of mailing two working

days prior to the date specified for

receipt of proposals. The term ‘‘working

days’’ excludes weekends and U.S.

Federal holidays;

d. There is acceptable evidence to

establish that it was received at OPGM

and was under the Government’s

control prior to the time set for receipt

of offers, and the Grants Management

Officer determines that accepting the

late offer would not unduly delay the

grant review process; or

e. It is the only proposal received.

XIII. Unsuccessful Applicants

After a decision has been reached and

if your proposal is not successful, you

will receive written notification. This

written notice will be SBA’s final

response to this program

announcement. SBA will not provide

debriefing sessions if your proposal was

not successful.

XIV. Cancellation

SBA reserves the right to cancel this

announcement in whole or in part at the

Agency’s discretion.

XV. Glossary of Terms

• ADMINISTRATION: Means the U.S.

Small Business Administration (SBA);

• ADMINISTRATOR: Means the

Administrator of the Small Business

Administration;

• CAPACITY BUILDING SERVICES:

means services provided to an

organization or program that is, or is

developing as, a microenterprise

development organization or program,

for the purpose of enhancing its ability

to provide training and services to

disadvantaged entrepreneurs;

• COLLABORATIVE: means two or

more nonprofit entities that agree to act

jointly as a qualified organization under

this part;

• DISADVANTAGED

ENTREPRENEUR, or

DISADVANTAGED

MICROENTREPRENEUR: means the

owner, majority owner, or developer of

a microenterprise who is also—

1. A low-income person

2. A very low-income person; or

3. An entrepreneur who lacks

adequate access to capital or other

resources essential for business success,

or, is economically disadvantaged as

determined by the Administrator.

• EMERGING MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

which has a microenterprise capacity

building services component, but has

had such a component for less than 4

years at the date of its application for a

PRIME grant.

• GRANTEE: means a recipient of a

grant under the Act.

• GROUP: has the same meaning as

‘‘collaborative’’ defined above.

• INDIAN TRIBE: means any Indian

tribe, band, pueblo, nation, or other

organized group or community,

including any Alaska Native village or

regional or village corporation, as

defined in or established pursuant to the

Alaska Native Claims Settlement Act,

which is recognized as eligible for the

special programs and services the

United States provides to Indians

because of their status as Indians.

• INDIAN TRIBE JURISDICTION:

means Indian country, as defined in 18

U.S.C. § 1151, and any other lands, title

to which is either held by the United

States in trust for the benefit of any

Indian tribe or individual or held by any

tribe or individual subject to a

restriction by the United States against

alienation, and any land held by Alaska

Native groups, regional corporations,

and village corporations, as defined in

or established under the Alaska Native

Claims Settlement Act, public domain

Indian allotments, and former Indian

reservations in the State of Oklahoma.

• INTERMEDIARY: means a private,

nonprofit entity that seeks to serve

qualified microenterprise development

organizations and programs;

• LARGE MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

with 10 or more full time employees or

equivalents, including its executive

director, as of the date it files its

application with SBA for a PRIME grant.

• LOCAL COMMUNITY: means an

identifiable area and population

constituting a political subdivision of a

state.

• LOW-INCOME PERSON: means a

person having an income, adjusted for

family size, of not more than—

(1) for metropolitan areas, the greater

of 80 percent of the median income; and

(2) for non-metropolitan areas, the

greater of—

(a) 80 percent of the area median

income; or

(b) 80 percent of the statewide nonmetropolitan area median income;

• MICROENTREPRENEUR: means the

owner or developer of a

microenterprise;

• MICROENTERPRISE: means a sole

proprietorship, partnership, limited

liability corporation or corporation that

has fewer than 5 employees, including

the owner, and generally lacks access to

conventional loans, equity, or other

banking services.

• MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a nonprofit entity, or

a program administered by such an

entity, including community

development corporations or other

nonprofit development organizations

and social service organizations, that

provides services to disadvantaged

entrepreneurs.

• QUALIFIED ORGANIZATION:

means an organization eligible for a

PRIME grant that is—

1. a microenterprise development

organization or program as defined

above (or a group or collaborative

thereof) that has demonstrated a record

of delivering microenterprise services to

disadvantaged microentrepreneurs;

2. an intermediary, as defined above;

3. a microenterprise development

organization or program as defined

above that is accountable to a local

community, working with a State or

local government or Indian tribe; or

4. an Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization referred to in this

definition exists within its jurisdiction.

• SEVERE CONSTRAINTS ON

AVAILABLE SOURCES OF MATCHING

FUNDS: means the documented

inability of a qualified organization

applying for a PRIME grant to raise

matching funds or in-kind resources

from non-Federal sources during the 2

years immediately prior to the date of its

application because of a lack of or

increased scarcity of monetary or inkind resources from potential nonFederal sources.

• SMALL MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

with less than 10 full time employees or

equivalents, including its executive

director, as of the date it files its

application with SBA for a PRIME grant.

• TRAINING AND TECHNICAL

ASSISTANCE: means services and

support provided to disadvantaged

entrepreneurs, such as assistance for the

purpose of enhancing business

planning, marketing, management,

60282 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

financial management skills, and

assistance for the purpose of accessing

financial services.

• VERY LOW INCOME PERSON:

means having an income adjusted for

family size of not more than 150 percent

of the poverty line (as defined in 673(2)

of the Community Services Block Grant

Act (42 U.S.C. 9902(2), including any

revision required by that section).

XVI. Paperwork Reduction Act (44

U.S.C. Ch. 35)

The information being requested in

this Program Announcement is needed

to evaluate applicants and ensure that

awards are made in furtherance of the

PRIME program’s objectives. The

information will be used to grant awards

to provide training and technical

assistance to disadvantaged

microentrepreneurs. Applicants’

responses to the data collection

requirements are necessary for them to

receive a benefit under the Prime

Program. The information provided by

applicants will be kept confidential to

the extent required by law. Applicants

are not required to respond to the

Program Announcement unless it

displays a currently valid OMB number.

SBA estimates it will take applicants 80

hours to respond.

XVII. Privacy Act (5 U.S.C. 552a)

Any person can request to see or get

copies of any personal information that

SBA has in the requestor’s file, when

that file is retrieved by individual

identifiers, such as name or social

security number. Requests for

information about another party may be

denied unless SBA has the written

permission of the individual to release

the information to the requestor or

unless the information is subject to

disclosure under the Freedom of

Information Act (FOIA).

Note: Any person concerned with the

collection, use and disclosure of information,

under the Privacy Act may contact the Chief,

Freedom of Information/Privacy Act Office,

U.S. Small Business Administration, Suite

5900, 409 Third Street, SW, Washington, DC

20416, for information about the Agency’s

procedures relating to the Privacy Act and

FOIA.

DATE: lllllllllllllllll

TO: Applicants

FROM: Office of Procurement and Grants

Management (OPGM)

SUBJECT: Program Announcement No.

PRIME 01–3, Program for Investment in

Microenterprise Act, (‘‘PRIME’’) for

Research and Development of Best

Practices in the Field Microenterprise

and Technical Assistance to

Disadvantaged Entrepreneurs.

The U.S. Small Business

Administration plans to issue Federal

grants awards to qualified organizations

under PRIME to provide research and

development in the field of

microenterprise and technical assistance

programs to disadvantaged

entrepreneurs. These organizations

include: non-profit microenterprise

development organizations or programs;

intermediaries (as defined); other

microenterprise development

organizations or programs (as defined)

that are accountable to a local

community, working in conjunction

with a State or local government or

Indian tribe; or Indian tribes acting on

their own, with proper certification that

no other qualified organization exists

within their jurisdiction.

You are invited to submit an

application, an original and two (2)

copies, in response to Program

Announcement No. PRIME 01–3. You

are required to bind the cost proposal

and technical proposal separately.

Prepare the technical and cost proposals

in single-spaced 12-pt. font format, not

to exceed 45 pages including exhibits

and appendices. The Government will

not return proposals, but will retain

them for a limited period of time. The

closing date for the program

announcement is llllll, 4:00

P.M., Eastern Standard Time. Address

your applications/proposal to the U.S.

Small Business Administration, Office

of Procurement & Grants Management

(OPGM), 409 3rd Street, SW, 5th Floor,

Washington, DC 20416, Attention: Mina

Bookhard, Agreement Officer. If hand

carried, deliver the application/proposal

to Mina Bookhard, or her designee, at

the above address. Deliveries to other

locations will be considered late if not

received in OPGM at the U.S. Small

Business Administration by 4:00 p.m.

on llllll. Please place the

following notation in the lower left

corner of the sealed envelope or

package:

THIS IS A SEALED OFFER. DO NOT

OPEN. STAMP THE DATE AND TIME

RECEIVED ON THE ENVELOPE. THE

ENCLOSED APPLICATION IS IN

RESPONSE TO PROGRAM

ANNOUNCEMENT NUMBER PRIME

01–3, DUE llllll AT 4:00 P.M.,

Eastern Standard Time, AT SBA’s

OFFICE OF PROCUREMENT &

GRANTS MANAGEMENT.

Applicants will be required to meet

the standards for financial management

systems as prescribed in the Office of

Management and Budget’s (OMB)

Circular A–110, Subpart C, sections .21

through .28, and 13 C.F.R. Part 143.

Questions concerning this program

announcement should be directed to

Warren Boyd at (202) 205–7534.

Questions about budget or funding

matters should be directed to Mina

Bookhard, at (202) 205–7080.

Sincerely,

Sharon Gurley,

Director, Office of Procurement and

Grants Management

OFFICE OF FINANCIAL ASSISTANCE

PROGRAM ANNOUNCEMENT

PROGRAM FOR INVESTMENT IN

MICROENTREPRENEURS ACT,

(‘‘PRIME’’)

TO RESEARCH AND DEVELOP BEST

PRACTICES IN THE FIELD OF

MICROENTERPRISE AND TECHNICAL

ASSISTANCE PROGRAMS TO

DISADVANTAGED ENTREPRENEURS

FISCAL YEAR 2001

U.S. SMALL BUSINESS

ADMINISTRATION

OFFICE OF FINANCIAL ASSISTANCE

OPENING DATE: llllllllllll

CLOSING DATE: llllllllllll

ANNOUNCEMENT NO: PRIME 01–3

TABLE OF CONTENTS

I. LEGISLATION PURPOSE

II. INTRODUCTION

III. PROGRAM OVERVIEW

IV. ELIGIBLE APPLICANTS FOR THIS

GRANT

V. INELIGIBLE APPLICANTS FOR THIS

GRANT

VI. GENERAL INFORMATION

VII. OMB UNIFORM ADMINISTRATIVE

REQUIREMENTS AND COST

PRINCIPLES

VIII. PROPOSAL INSTRUCTIONS AND

EVALUATION CRITERIA

IX. OPTION YEAR FUNDING

X. PREPARING YOUR BUDGET

XI. ASSEMBLY AND MAILING

INSTRUCTIONS

XII. LATE SUBMISSIONS, REVISIONS,

WITHDRAWALS

XIII. UNSUCCESSFUL APPLICANTS

XIV. CANCELLATION

XV. GLOSSARY OF TERMS

XX. PAPERWORK REDUCTION ACT

XXI. PRIVACY ACT

APPENDIX A: APPLICATION FOR FEDERAL

ASSISTANCE

APPENDIX B: ASSURANCES AND

CERTIFICATIONS

APPENDIX C: MILESTONE CHARTS

I. Legislation Purpose

The Program for Investment in

Microentrepreneurs Act of 1999 (P.L.

106–102) became law on November 12,

1999. 15 U.S.C. 6901 et seq. (‘‘PRIME’’

or ‘‘the Act’’). The Act authorizes the

Administrator of the U.S. Small

Business Administration (SBA) to

establish a microenterprise training and

technical assistance program for

disadvantaged microentrepreneurs and

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60283

to provide training and capacity

building grant program to

microenterprise development

organizations (MDOs). Additionally, the

Act authorizes research and

development of best practices for

microenterprise development and

technical assistance programs for

disadvantaged entrepreneurs and other

activities as the Administrator of SBA

determines are consistent with the Act.

PRIME has several purposes for which

SBA will issue separate program

announcements soliciting applications

geared toward a particular legislative

purpose.

Program Announcements called for

under the Act solicit, from eligible

organizations, applications for grant

funding to be used to carry out the

purposes of the Act as follows:

Program Announcement No. PRIME

01–1 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

providing training and technical

assistance programs for disadvantaged

microentrepreneurs.

Program Announcement No. PRIME

01–2 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

providing training and capacity building

services to microenterprise development

organizations and programs and groups

of such organizations to assist them in

developing microenterprise training and

services.

Program Announcement No. PRIME

01–3 calls for applications from

qualified organizations wishing to

obtain grant funding for the purpose of

pursuing research and developing best

practices in the field of microenterprise

and technical assistance programs for

disadvantaged microentrepreneurs.

The purpose of this Program

Announcement No. PRIME 01–3, is to

solicit applications from eligible

organizations wishing to obtain grant

funding for the purpose of conducting

research development of

microenterprise development best

practices. Specifically, PRIME–01–3

solicits proposals from qualified

organizations wishing to obtain grant

funding for the purpose of researching

and developing best practices in the

field of microenterprise and technical

assistance programs for disadvantaged

microentrepreneurs. Grants will be

awarded subject to the availability of

funds. And, no single entity will receive

a grant in excess of $250,000 or 10% of

the total amount appropriated,

whichever is less.

II. Introduction

Congress recognized that many

disadvantaged microentrepreneurs lack

sufficient training and education to gain

access to capital to establish and expand

their own small businesses. It enacted

PRIME to augment training and

technical assistance under the Small

Business Act and other legislation, and

to foster research and development of

best practices in microenterprise and

technical assistance to disadvantaged

microentrepreneurs to further advance

programs to the disadvantaged

microentrepreneurs and further advance

the microenterprise industry.

Many low income and very-low

income entrepreneurs need training and

technical assistance to start, operate, or

expand their businesses. In order to

achieve measurable success in the effort

to providing direct training and

technical assistance to low and very low

income individuals, PRIME will award

grants for the research and development

of best practices in the delivery of

services to disadvantaged

microentrepreneurs.

For every business started or

microloan made, a number of

entrepreneurs are preparing themselves

for business start. A generally accepted

assumption in the microenterprise

industry is that it takes approximately

10 potential microentrepreneurs for

every microenterprise started or

microloan booked. The cost of training

is substantial because those at the entrylevel stage of development typically

require the greatest amount of dedicated

advice and guidance, over an extended

period of time, to achieve the highest

rates of success. Funding is scarce

relative to the need. The

microenterprise industry has found the

technical assistance-funding gap to be a

nationwide condition, particularly in

the very low-income sector.

The Program for Investment in

Microenterpreneurs (PRIME) authorizes

SBA to make grants to fund research

and development of ‘‘best practices.’’

The microenterprise development

industry has reached a stage of

development that can produce, and will

benefit from, substantive research that

captures the best practices in this area.

The program requires that grantees

match a portion of the SBA’s funds with

funds from other sources.

III. Program Overview

1. Project Name: Program for

Investment in Microentrepreneurs

(PRIME).

2. Purpose: Aid in researching and

developing best practices in the field of

microenterprise and technical assistance

programs for disadvantaged

microentrepreneurs.

3. Federal Catalog Number: 59.049.

4. Authority: The Program for

Investment in Microentrepreneurs Act

of 1999, ‘‘PRIME’’, P.L.106–102, 15

U.S.C. § 6901 et seq.

5. Funding Instrument: Grant.

6. Funding: Funding is subject to the

availability of funds and the

requirements enumerated under the Act.

7. Funding Range: Award amounts

may vary, depending upon availability

of funds (and performance for option

years); however, no single person may

receive more than $250,000 or ten (10)

percent of the total funds made

available for this program in a single

fiscal year, whichever is less. In general,

match is required, although SBA may

reduce or eliminate the required match

in certain circumstances (up to a

program limit of 10 percent).

8. Number of Awards: SBA anticipates

issuing multiple awards under this

Announcement. The number may vary,

based on the needs of the pool of

qualified applicants received and the

amount of available funds.

9. Targeted assistance: A minimum of

50% of the funds available for grants

under the PRIME Act must be used to

benefit very low income persons (as

defined in this document), including

those residing on Indian reservations.

10. Closing Time and Date for the

Submission of Applications:

llllll at 4:00 P.M. Eastern

Daylight Time.

11. Project Starting Date:llllll

(estimated).

12. Project Duration: The period

performance for this grant is one base

year with four (4) twelve-month options

subject to availability of funds and

continued program authorization. The

total possible period of performance is

five years. Each option year will

constitute a separate budget period. The

project recipient’s satisfactory

performance will be one of the key

factors in determining the award of an

option year. Failure to secure the

required annual non-Federal

contribution during any project year

may jeopardize continued option year

funding.

13. Proposal Evaluation: Applications

will first be screened to determine if the

applicant meets certain mandatory

eligibility requirements. Applicants that

do not document in their application

that they meet these requirements will

not be evaluated by SBA for

participation in the Prime Program. In

addition, applications that are

incomplete, illegible, or unreadable, in

whole or in part, will be deemed

incomplete and will not be evaluated.

60284 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

Eligible proposals will be scored by

an Objective Review Committee (ORC)

based on evaluation criteria stated in

this program announcement. The ORC

will consist of SBA officials and may

include Federal Officials from other

agencies. Microenterprise Development

Branch staff will review the ORC

evaluations, the ORC’s summary report

on each applicant, and the applicant’s

proposals to determine the final scoring

of award recipients. SBA may ask

applicants for clarification on the

technical and cost aspects of the

proposals. Such clarifications must not

be construed as a commitment to fund

the proposed effort.

14. Points of Contact: Questions

concerning the technical aspects of this

Program Announcement should be

directed to the Microenterprise

Development Branch at (202) 205–7534.

However, due to the competitive

process, SBA will be unable to assist

with answers to specific questions

regarding individual proposals or

requests for assistance in completing

proposals. Questions concerning budget

or funding of this Grant should be

directed to Mina Bookhard at (202) 205–

6621.

15. Award Notification: All applicants

will receive a written notification

relative to selection of award recipients.

This written notice will be SBA’s final

response to this program

announcement. SBA will not provide

debriefing sessions if your proposal was

not successful.

16. Cancellation: SBA reserves the

right to cancel this Program

Announcement in whole or in part at

the Agency’s discretion.

IV. Eligible Applicants for This Grant

An organization will be considered

eligible for funding for research and

development of best practices in the

field of microenterprise and technical

assistance programs for disadvantaged

microentrepreneurs if it meets the

following eligibility criteria:

1. A microenterprise development

organization or program (or group or

collaborative thereof) that has a

demonstrated record of delivering

microenterprise services to

disadvantaged entrepreneurs, OR

2. An intermediary (as defined in this

document) which has experience in

delivering technical assistance to

disadvantaged entrepreneurs, OR

3. A microenterprise development

organization or program (as defined in

this document) that is accountable to a

local community, working in

conjunction with a State or local

government or Indian tribe, OR

4. An Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization or program referred

to in this paragraph exists within its

jurisdiction.

An eligible applicant for the PRIME

research and development grant must

provide documentation in its

application that it falls within one of the

above categories of qualified

organizations. Such documentation

should include but is not limited to:

1. A copy of your organization’s IRS

tax-exempt certificate including the IRS

code under which your organization is

considered non-profit;

2. Certification by your Secretary of

State that your organization is legally

allowed to do business in the State and

a copy of your organization’s articles of

incorporation and by-laws;

3. For category 4 in the preceding

paragraph, written certification from a

duly authorized person that no other

qualified organization (i.e. private

organization or program as defined in

categories 1–3 above) exists within its

jurisdiction; and

4. Financial statements for the past 3

years. If your organization has been in

business for less than 3 years provide

your year end financial statements for

those years completed and a financial

statement not less than 90 days old.

SBA will not evaluate applications

that do not meet these requirements.

SBA may not screen applicants for

eligibility until after the Closing Date for

application acceptance. SBA will

attempt to notify applicants of ineligible

proposals as soon as practicable.

However, SBA is under no obligation to

notify ineligible applicants before the

Closing Date for the acceptance of

applications under this Program

Announcement. SBA strongly urges all

applicants to ensure all eligibility

requirements are met and documented

before sending an application to SBA.

V. Ineligible Applicants for This Grant

The following applicants will

automatically be considered ineligible

and their applications will not be

evaluated:

1. Any organization with an

unresolved audit by any Federal agency.

2. Any organization suspended or

debarred from receiving grants from any

Federal agency or is otherwise excluded

from Federal non-procurement or

procurement programs.

3. Any organization which has

defaulted on an obligation to the United

States.

VI. General Information

1. Definitions

Throughout this program

announcement specific terminology

may be used, as defined in the Act and

the accompanying rule (13 CFR part

119) published on lll. The

definitions are contained in a glossary of

terms located at the end of this

document in Section XV.

2. Collaborative Applications

a. If you participate in a collaborative

(as defined in this document), all

entities who are party to the

collaborative must separately meet the

statutory requirements and eligibility

requirements in order to apply as a

collaborative.

b. Applications from collaboratives

must name the primary liaison with the

Federal government, and include a copy

of the collaborative agreement outlining

responsibilities of each partner

organization. An authorized signature

from each organization must appear on

the agreement. The primary liaison will

be responsible for coordinated reporting

and requests for funding.

3. Program Income

All program income as defined in

OMB Circular A–110, and OMB A–122

shall be reported on financial reports

submitted to SBA and added to funds

committed to the project by SBA and

recipient organizations. Program income

may only be used to further eligible

program objectives.

4. Cost Principles

a. General: All costs approved for a

successful applicant must meet the tests

of necessity, reasonableness,

allowability and allocability in

accordance with the cost principles

applicable to this award. All proposed

costs are subject to pre-award audit.

Grantees are responsible to ensure

proper management and financial

accountability of Federal funds to

preclude future cost disallowances.

Payment will be made by

reimbursement or advance payments as

described in the grant award document

and applicable OMB Circulars.

b. Carryover Policy: The grantee may

request approval to use unexpended

funds in the next budget period. This is

permissible if funds are to be used for

a non-severable, non-recurring project

or activity within the scope of the

PRIME program. Non-severable means a

project in its entirety that cannot be

subdivided.

The request for using unexpended

funds in the next budget period must

include the following:

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60285

(1) SF 424, budget pages, and

justification;

(2) Explanation of why the funds were

not expended during the period in

which they were awarded; and

(3) Evidence of match. The match

requirement for funds carried over to

the next budget period can be met by

using any excess of matching funds

from the current budget period, new

matching funds, or a combination of

both.

The request must be made no later

than 60 days before the end of the

budget/project period or the deobligation process will begin. Approved

requests will require the issuance of a

revised Notice of Award. Expenditures

for funds carried over to the next budget

period must be tracked separately.

5. Publications/Websites

Any publications or websites

developed under this grant must be

submitted to SBA for prior review and

approval. SBA will have an unlimited

license to use data and written materials

generated under this grant award,

whether or not the materials are

copyrighted. Any publications resulting

from this project must include the

following acknowledgement of support,

whether copyrighted or not, in legible,

easily readable print:

This grant is partially funded by the U.S.

Small Business Administration. SBA’s

funding is not an endorsement of any

products, opinions, or services. All SBA

funded programs are extended to the public

on a nondiscriminatory basis.

The grant recipient may not use the

U.S. Small Business Administration

name or logo for the endorsement of any

services, products, or merchandise

under this award.

The SBA logo may appear on

prominent webpages of Internet sites

that are related to this project, but must

appear with the above disclaimer in

legible, easily readable print and

acknowledgement of support in close

physical proximity (within 2 inches)

next to it.

6. Reports

a. General Reporting

The selected grantees will be required

to submit the reports as outlined below.

Participants must agree to cooperate

with SBA in the collection and retention

of data required by this agency. Your

ability to meet reporting requirements

must be addressed in the Technical

Proposal.

Payments may be withheld if reports

are not submitted within the required

time frame or if the quality of reports is

considered inadequate.

b. Performance Reports

Quarterly performance reports, unless

otherwise specified, must contain a

summary of activity for the reporting

period using the following format:

1. A comparison of actual

accomplishments to the estimated

milestones established in the proposal

and/or subsequent grant agreement.

2. A discussion of accomplished

milestones and reasons for slippage in

those cases where milestones are not

met. Where milestones were not met, a

plan of action must be provided to

overcome these slippages or a detailed

statement of how the project will be

improved if the milestones are revised.

3. Information relating to actual

financial expenditures of budgeted cost

categories versus the estimated budget

award, including an explanation of all

cost overruns, if any, by budgeted cost

category. Financial data furnished in

this report is from a manager’s

standpoint and is in addition to that

furnished in the financial reports cited

below.

4. Any other pertinent information,

including any significant

accomplishments or met milestones of

special significance. The report should

include items which may be determined

appropriate by SBA after acceptance of

the grant proposal but which cannot be

pre-determined due to the

undetermined special purpose of the

grant at the writing of this document.

Quarterly reports will be due no later

than:

(a) January 31 for the period ending

December 31,

b) April 31 for the period ending

March 31,

(c) July 31 for the period ending June

30, and

(d) October 31 for the period ending

September 30.

c. Financial Reports

1. Financial Status Report Forms must

be submitted every quarter with the

performance reports. Reports must

include the SF 269, Financial Status

Report, and the SF 272, Federal Cash

Transactions Report.

2. The year-end report must include a

cost breakdown of actual expenditures

and costs incurred by line item.

Participants will also be required to

submit the SBA Form 2069, Detailed

Actual Expenditures for Period Covered

by Request, with the final SF 269.

3. In addition, grantees will be

required to submit audited annual

financial statements, if available, or

annual financial statements prepared by

a licensed, independent public

accountant, within 120 days of the end

of the grantee’s fiscal year period.

SBA may withhold payment of

advances or reimbursements if reports

are not received or are regarded as

inadequate.

SBA may, at its discretion, reduce

reporting requirements to semi-annually

as it deems appropriate. SBA will notify

participants if it decides to take such

action.

7. Match Requirements

In general, funds awarded under the

PRIME Program will require a nonFederal match of not less than 50% of

each dollar awarded. Matching funds

may come from fees, non-Federal grants,

gifts, funds from loan sources, and inkind resources. After the initial grant,

grant awards for the following option

years will be made in declining

amounts, declining by 20% of the initial

grant amount in each successive year.

Exception: In the case of an applicant

with severe constraints on available

sources of matching funds, SBA may

reduce or eliminate the 50% match

requirement on a case by case basis.

Any reductions or eliminations must

not exceed 10% of the aggregate of all

PRIME grant funds made available by

SBA in any fiscal year.

Organizations seeking to receive a

reduction or elimination of the

matching fund requirement must

include such a request (as a cover letter)

with their proposal, and include

justification and supporting

documentation for their request.

Submission of a request will not

automatically guarantee that an

exception, in whole or in part, will be

granted. Rather, it will alert SBA to the

applicant’s desire to receive an

exception.

8. Fundraising Not Allowable Expense

Expenditures for fundraising activities

are not allowable costs under this grant.

Applicants must be able to raise

matching funds without the assistance

of grant funds. The applicant must

demonstrate that it has adequate

community based fundraising resources

to obtain required non-Federal matching

funds to perform the project.

9. Subgrants

An organization selected to receive a

grant under the PRIME Program may

provide sub-grants to qualified small

and emerging microenterprise

development organizations. Applicants

wishing to provide sub-grants as a part

of their implementation plan should

include detailed information regarding

same in their Technical Proposal. An

applicant that wants to make subgrants

using PRIME grant funds must receive

written approval from SBA prior to

60286 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

making subgrants. The applicant must

identify the subgrantee(s) and describe

in detail what the subgrantee(s) will do

to help the grantee implement its

proposal.

An applicant must submit

information to SBA demonstrating that

the subgrantee(s) will:

(1) Further the goals of the grantee’s

research and development project, or

(2) Provide necessary services to the

grantee that grantee otherwise would

not be able to obtain.

If an applicant has identified potential

subgrantee(s) at the time it submits an

application for a PRIME grant, the

applicant must include the information

requested in the paragraph above in the

application. Otherwise, the applicant or

grantee may submit the requested

information at such time that approvals

for subgrantee(s) are requested.

The total amount of monies

subgranted by the grantee must not

exceed 50% of the total amount of the

PRIME grant. A maximum of 7.5% of

the funds awarded may be used by the

grantee for administrative expenses in

connection with the making of

subgrants.

10. Subcontracts

Any and all subcontracts awarded

under this grant must be approved by

SBA in advance and in writing and

must not exceed 50% of the total

amount of the PRIME grant.

11. Diversity

In making grants under this Program

Announcement, SBA will ensure that

grant recipients include both large and

small microenterprise organizations,

serving urban, rural and Indian tribal

communities serving diverse

populations.

12. Prohibition on Preferential

Consideration of Certain SBA Program

Participants

In making grants under this Program

Announcement, SBA will not give

preferential consideration to an

applicant that is a participant in the

program established under section 7(m)

of the Small Business Act.

VII. OMB Uniform Administrative

Requirements And Cost Principles

The Prime Grant Notice of Award

incorporates by reference all applicable

OMB Circulars, including:

1. OMB Circular A–21, ‘‘Cost

Principles for Educational Institutions,’’

containing cost principles for

educational institutions;

2. OMB Circular A–87 ‘‘Cost

Principles for State, Local, and Indian

Tribal Governments,’’ containing cost

principles for State, local governments,

and federally recognized Indian tribal

governments.

3. OMB Circular A–110, ‘‘Uniform

Administrative Requirements for Grants

and Agreements with Institutions of

Higher Education, Hospitals, and Other

Non-Profit Organizations,’’ containing

administrative requirements;

4. OMB Circular A–122, ‘‘Cost

Principles for Non-Profit

Organizations,’’ containing cost

principles for non-profits; and

5. OMB Circular A–133, ‘‘Audits of

States, Local Governments, and NonProfit Organizations,’’ concerning

audits.

Current versions of OMB Circulars are

available from the Office of Management

and Budget’s website. The address is:

www.whitehouse.gov/WH/EOP/OMB/

html/circular.html.

VIII. Proposal Instructions and

Evaluation Criteria

The technical and cost proposals must

be bound separately. The technical

proposal must be single-spaced and not

exceed 45 pages, excluding exhibits and

appendices. Prepare your proposal

using the following outline.

1. Application Format

A. Technical Proposal

Section 1. Eligibility Requirements (not

to exceed 5 pages)

In this section the applicant must

prove that it falls within one of the four

categories of qualified organizations.

(See Section IV) Applicants are

reminded to include documentation of

the mandatory eligibility requirements

in their technical narrative. Failure to

provide the mandatory eligibility

documentation will result in

disqualification of the application, and

the application will not be evaluated. In

addition, incomplete or illegible (in

whole or in part) applications will not

be evaluated.

Section 2. Applicant Experience (not to

exceed 15 pages)

Applicant experience includes

information regarding current and past

performance in conducting research and

development activities particularly as

such activities relate to the

improvement of technical assistance to

disadvantaged entrepreneurs (as defined

in this document). Previous work in the

development of best practices in the

field of microenterprise development

should be noted in discussions of

experience.

In this section, the applicant should

discuss the items delineated below. To

the extent possible, the applicant should

provide internal statistical data to

document its past experience and

illustrate current activities.

1. Illustrate an understanding of the

microenterprise industry, the

microentrepreneurial community, the

perceived needs of disadvantaged

entrepreneurs.

2. Enumerate and summarize your

organization’s current and historical

research and development activity as it

relates to microenterprise development

and provision of technical assistance

(particularly to disadvantaged

entrepreneurs).

3. Provide a list of grants and or

contracts similar in scope to the grant

for which you are applying. Specifically

provide the name, if any, of any Federal

or non-Federal, agency (ies) or private

sector foundations or organizations

providing funding, the grant or contract

number, a short summary of services

provided under each grant, and the

period(s) of performance. Include in

each summary the name and contact

information (phone number and E-mail

address) of the person providing

oversight on each grant or contract. Also

include abstracts of research and

development activities conducted

during the past five years, particularly

in the field of microenterprise

development and/or training and

technical assistance to disadvantaged

entrepreneurs. The abstracts should

clearly illustrate the nature and scope of

the research conducted. (Limit to 8

pages)

Section 3. Institutional Capacity (not to

exceed 5 pages)

This section should include the

following:

1. Personnel Qualifications and Internal

Structure

• Applicants must have, or

demonstrate the ability to obtain,

personnel who are qualified to meet the

goals of providing research and

development under this grant. Provide

resumes of personnel key to your

organization’s participation in the

PRIME Program. The resumes should

clearly present personnel’s

qualifications relative to this particular

work. Special mention should be made

of relevant experience. Personnel

indicated must demonstrate knowledge

of research and development

methodologies and strategies

particularly as they relate to

microenterprise development issues.

• Provide an organizational chart for

all proposed full-time and part-time

project staff and the amount of time

each will devote to the project. The

Project Director should be a full time

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60287

employee; however, the Project Director

does not have to be dedicated solely to

this activity. The project director (and

other federally funded staff positions)

must not engage in fundraising activities

using Federal funds provided under this

grant.

• A description of the role of

subcontractors, subgrantees and/or

outside consultants, that may be called

upon to provide assistance with the

completion of activity to be funded

under this grant.

• Delineate how the organization will

manage data collection and electronic

reporting to SBA and the position of the

person within the organization that will

be responsible for financial record

keeping pertaining to the receipt and

expenditure of PRIME program funding.

2. Data Collection and Statistical

Information Tracking

• Describe your organizations current

data collection and management

systems. If applying as a group or

collaborative, describe how data

management systems will be integrated

for an inter-organizational uniform

approach to data gathering for reporting

as well as production of a final product.

• Describe your organization’s

computer capacities, if any, and the

software used. Indicate whether or not

your organization is connected to the

Internet and, if not, delineate plans to

become connected. The applicant

should indicate its level of willingness/

capability to report data via the Internet.

• Describe your organization’s

internal systems of checks and balances

in terms of financial, data collection,

and reporting systems. If applying as a

group or collaborative, also describe the

plan for inter-organizational checks and

balances in terms of those systems. Also

indicate which member of the group or

collaborative will be responsible for

coordination and submission of data

and reports, and how the collaborative

will ensure that this responsibility will

be fully implemented.

Section 4. Program Narrative (not to

exceed 15 pages)

Research and Development projects

are sought in several areas of

microenterprise industry development.

In a broad sense, several projects are

suggested below. However, proposals

for projects not suggested, but inside the

scope of the goals of the Act, will be

accepted for consideration. In general,

research should concentrate on the

forward movement of the disadvantaged

microenterprise development industry.

The research should also focus on the

development, replicability, and

transferability to disadvantaged

microenterprise development service

providers. The underlying theme of any

activities should be how the final

product will enhance provision of

microenterprise services to

disadvantaged entrepreneurs.

Each applicant must provide the

following:

1. A research proposal indicating the

thesis, method(s) scope, duration, and

implementation plans (if appropriate)

for the final product.

2. A discussion of how the proposed

research will aid in the development of

best practices and what enhancements

are anticipated, as a result of the

proposed activity, to the delivery of

microenterprise services to

disadvantaged microentrepreneurs.

While not limiting the scope of

proposals, SBA is interested in

developing several products for general

use by industry participants as follows,

to meet the ultimate goal of enhancing

delivery of services to disadvantaged

microentrepreneurs:

• A generally accepted baseline for

minimum performance as a

microenterprise development

organization (MDO) and a standardized

method by which neophyte, or underperforming, organizations can meet that

baseline performance.

• A generally accepted glossary of

terms for use in the domestic

microenterprise industry which should

be broad based enough to avoid succinct

standardization, but specific enough to

provide clarity of purpose and a

common language within which

industry participants can communicate.

• A start-up kit for organizations

considering entry into the

microenterprise development field.

• A case study oriented ‘‘best

practices’’ training manual for use by

industry participants.

• Comparative studies of service

delivery issues in terms of geography,

population density, economic

stratification, gender, or other relevant

issues.

Section 5. Timeline/Milestones (not to

exceed 5 pages)

In this section the applicant must

include a timeline with milestones

covering the 12-month grant period.

Milestones should clearly illustrate the

applicant’s goals for completion of the

proposed project and the projected use

of funds.

Section 6. Supporting Documentation

In this section the applicant should

provide any necessary documentation to

support its proposal, including but not

limited to the following documents:

1. A statement signed by your

Executive Director (or an equivalent

duly authorized person), authorizing

SBA to make inquiries to other Federal

Agencies as to the performance

capabilities of your organization.

2. A copy of your organization’s IRS

tax exempt certificate including the IRS

code under which your organization is

considered non-profit.

3. Certification by your Secretary of

State that your organization is legally

allowed to do business in the State and

a copy of your organization’s articles of

incorporation and by-laws.

4. A copy of your organization’s

financial statements for the last 3 years.

5. Re ́sume ́s and reference information

for personnel key to the delivery of

technical assistance services to date.

6. An organizational chart, if you are

applying as a group, or plan to use subcontractors, include a second

organizational chart that shows how the

members of the group will interact and

collaborate and/or how the subcontractors will fit into the work flow

plan.

B. Cost Proposal

The cost proposal must include the

application cover sheet (SF 424), budget

information, and assurances and

certifications. Additional information

on how to organize the proposal is

provided on page 20, ‘‘Preparing Your

Budget.’’

2. Evaluation Factors

Applications will generally be

reviewed for technical merit as follows:

1. SBA will evaluate organizational

structure, financial stability, financial

management systems, personnel

capacity, and electronic communication

capabilities (or potential for same).

Additional evaluations will be made on

the data collection capabilities,

reporting capacities, and ability to

account for performance.

2. SBA will evaluate how the research

potentially will enhance

microenterprise oriented technical

assistance services to disadvantaged

entrepreneurs. Applicants must show

the method(s), scope, duration, and

implementation plans of the proposed

research.

3. SBA will evaluate the applicant’s

plan of action incorporating original and

secondary research. Applicants must

show impact on improved access to

microenterprise development services

for disadvantaged entrepreneurs, and

the expected replication/transferability

of the finished product to the field.

Research and development awards

will be competed from a single pool of

applicants. Specifically, areas of

60288 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

evaluation and the maximum number of

points attainable under each are as

follows:

A. Institutional Capability (total of 90

points)

The following factors are considered

under this criteria:

(1) Organizational structure, financial

stability, and financial management

systems (20)

(2) Personnel (30)

(3) Electronic communication or

potential for same (20)

(4) Data collection and reporting

capability (20)

B. Past performance and history of

conducting similar research and

development, especially related to

disadvantaged microentrepreneurs (20

points)

C. Management Plan for Proposed

Research and Development including

transferability and replication (total of

110 points)

The following factors are considered

under this criteria:

(1) Proposal’s potential for

enhancement of microenterprise

oriented technical assistance to

disadvantaged entrepreneurs (30)

(2) Methods and scope of research

(20)

(3) Plan of action incorporating

original and secondary research (30)

(4) Transferability and replication of

the finished product (30)

The total number of points an

applicant may attain under this

evaluation system is 220.

IX. Option Year Funding

Applicants shall prepare application

cover sheets (SF Form 424) and budgets

for each of the 5 budget periods

consisting of 12 months each.

Applicants are advised that the

performance period for specific awards

made under this announcement may

consist of one base year with up to 4

twelve-month option years. The project

periods may consist of up to 5 twelvemonth budget periods. Each additional

twelve-month budget period beyond the

original base year may be exercised at

the discretion of the Government.

Among the factors involved in deciding

whether to exercise an option are the

availability of funds, continuing

program authorization, satisfactory

performance of the applicant, and the

determination that continued funding

would be in the best interest of the

Government.

After the initial grant, grant awards

for the option years will be made in

declining amounts, declining by 20

percent of the initial grant amount in

each successive year.

X. Preparing Your Budget

INSTRUCTIONS FOR STANDARD

FORM 424 (APPLICATION FOR

FEDERAL ASSISTANCE)

Standard Form 424, Application of

Federal Assistance, will be found

beginning at page A–1 of this

announcement. This guidance

supplements that contained on the

reverse side of the form.

Item 1. Self-explanatory

Item 2. Refer to instructions on reverse

of form

Item 3. Refer to instructions on reverse

of form

Item 4. Leave Blank

Item 5. Refer to instructions on reverse

of form

Item 6. Refer to instructions on reverse

of form

Item 7. Refer to instructions on reverse

of form

Item 8. Enter: ‘‘new’

Item 9. Enter: ‘‘U.S. Small Business

Administration’’

Item 10. Enter: 59.049 Program for

Investment for Microentrepreneurs

(PRIME)

Item 11. Refer to instructions on reverse

of form

Item 12. Refer to instructions on reverse

of form

Item 13. Refer to instructions on reverse

of form

Item 14. Refer to instructions on reverse

of form

Item 15. Refer to instructions on reverse

of form

Item 16. Enter: Check ‘‘b.’’ This program

is not covered by E.O. 12372.

Item 17. Refer to instructions on reverse

of form

Item 18. Refer to instructions on reverse

of form

INSTRUCTIONS FOR STANDARD

FORM 424A (BUDGET INFORMATION)

Budget information is found on pages

A–1 through A–11

The budget is the applicant’s estimate

of the total cost of performing the

project or activity for which grant

support is requested. The budget is to be

based upon the cost of performing the

project, including Federal and private

sources. All proposed costs reflected in

the budget must be necessary to the

project, reasonable and otherwise

allowable under applicable cost

principles and Agency policies. All

costs must be justified and itemized by

unit cost on the Budget Worksheets (p.

A–3).

Section A—Budget Summary

Column (A): Enter ‘‘PRIME 01–3’’

Column (B): Enter the Catalog of Federal

Domestic Assistance Number 59.049

Section B—Budget Categories

Amounts entered by budget category

in this section are for summary

purposes only. Itemization and

justification of specific needs by budget

category are to be shown under line 21,

Section F.

Line 6.a.–6.h. The budget amounts

must reflect the total requirements for

funds regardless of the source of funds.

All amounts entered in this section are

to be expressed in terms of whole

dollars only after completing the

requirements of Section F.

Line 6.j. Indirect costs are those costs

related to the project that are not

included as direct costs in a. through h.

Section C—Non-Federal Resources

Refer to instructions on reverse of

form.

Section D—Forecasted Cash Needs

Refer to instructions on reverse of

form.

Section E—Budget Estimates of Federal

Funds Needed for Balance of the Project

Refer to instructions on reverse of

form.

Section F—Other Budget Information

Line 21, Direct Charges: Identify and

explain all items or categories under

Section B in accordance with the

instructions set forth below. The

itemization must reflect the total

requirements for funding from Federal

and non-Federal sources. In most

instances, Line 21 does not provide

sufficient space to reflect all of the

necessary information. Budget

Worksheets are enclosed for your

convenience. You may use these

worksheets for the detailed budget

information listed below or a reasonable

facsimile; BUT each budget line item

pertinent to your submission MUST

ALSO be completed on the application.

Please show a complete breakdown of

all cost elements summarized in Section

B on a separate sheet. Do not list on

Line 21 any items included in the

indirect expenses entered on Line 22

below.

a. Personnel: List the name, title,

salary and estimated amount of time for

each employee who will be assigned to

this project. Note that fees, expenses,

and estimated amount of time for

outside consultants should be included

in f., Contractual. The estimated

performance time for outside

consultants is not to exceed 50 percent

of the total amount of the PRIME grant.

Resumes of all personnel assigned to

this effort must be included in the

application.

Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules 60289

b. Fringe Benefits: Leave blank if

fringe benefits applicable to direct

salaries and wages are treated as part of

indirect costs in the indirect cost rate

negotiation agreement. If your

organization does not have a federally

negotiated fringe benefit package, list

each component included as a fringe

benefit.

c. Travel: Reimbursement will be

made based on incurred cost. Estimates

should be based on knowledge of the

geographical area of small business

locations. Reimbursement to contractors

or volunteers will not be made for time

in travel to and from the client’s

location. Supporting data should

include numbers of trips anticipated,

costs per trip per person, destinations

proposed, modes of transportation, and

related subsistence expenses.

Line 22 Indirect Charges:

(Attach Budget Worksheets or

reasonable facsimile if sufficient space

is not provided.)

Enter the indirect cost rate, date, and

agency that issued rate.

If an indirect cost rate is not

established, itemize elements and costs

of overhead and G&A (General and

Administrative) expense categories

relative to the performance of this

project.

XI. Assembly and Mailing Instructions

1. Please indicate the following

information on the front of your return

envelope:

a. Your organization’s name and

return address including zip code in the

upper left-hand corner of the return

envelope.

b. Place the following notation in the

lower left-hand corner of the sealed

envelope.

THIS IS A SEALED OFFER. DO NOT

OPEN. STAMP THE DATE AND TIME

RECEIVED ON THE ENVELOPE. THIS

PROPOSAL IS IN RESPONSE TO

PROGRAM ANNOUNCEMENT

NUMBER, llllll DUE

llllll, 2000, AT 4:00 P.M.,

EASTERN STANDARD TIME, AT THE

U.S. SMALL BUSINESS

ADMINISTRATION, OFFICE OF

PROCUREMENT & GRANTS

MANAGEMENT, 409 3RD STREET, SW,

5TH FLOOR, WASHINGTON, DC

20416, ATTENTION: MINA

BOOKHARD.

2. Application. Please submit an

original and 2 copies of the pages

described below in items a and b. They

are part of the Announcement and

should be completed and submitted

with an original and 2 copies of your

proposal:

a. The Federal Assistance Application

(Standard Form 424), including the cost

and technical proposals, and related

budgetary data.

b. Appendix B, Assurances and

Certifications (with appropriate

signature).

3. To facilitate review and processing

of the proposals, your submission must

be arranged, as follows, in two

separately bound parts:

a. Part I: COST PROPOSAL—This part

is to be comprised of the Application,

the Budget Information, and the

Assurances and Certifications. The

material identified as Part I must be

bound separately from the Technical

Proposal. DO NOT include any

technical information in Part I, The Cost

Proposal.

b. Part II: TECHNICAL PROPOSAL—

This part is comprised of the Program

Narrative. The proposal should be

completed with a table of contents and

must be responsive to the evaluation

criteria set forth on the pages 19–20.

The Technical Proposal must be bound

separately from Section I and must not

exceed 45 pages. DO NOT include any

cost information in Part II, The

Technical Proposal.

4. Your application should be

submitted in original and 2 copies to:

U.S. Small Business Administration,

Office of Procurement and Grants

Management, 409 Third Street, SW, 5th

Floor, Washington, DC 20416, ATTN:

Mina Bookhard.

XII. Late Submission, Revisions and

Withdrawals

1. Any Application received at the

Office of Procurement and Grants

Management after the exact time

specified for receipt will not be

considered unless it is received before

award is made, AND:

a. It was sent by registered or certified

U.S. mail not later than the fifth

calendar day before the date specified

for receipt of offers (e.g., an offer

submitted in response to a solicitation

requiring receipt of offers by the 20th of

the month must have been mailed by

the 15th);

b. It was sent by U.S. mail or handcarried (including delivery by a

commercial carrier) if it is determined

by the Government that the late receipt

was due primarily to Government

mishandling after receipt at the

Government installation;

c. It was sent by U.S. Postal Service

Express Mail Next Day Service-Post

Office to Addressee, not later than 5:00

p.m. at the place of mailing two working

days prior to the date specified for

receipt of proposals. The term ‘‘working

days’’ excludes weekends and U.S.

Federal holidays;

d. There is acceptable evidence to

establish that it was received at OPGM

and was under the Government’s

control prior to the time set for receipt

of offers, and the Grants Management

Officer determines that accepting the

late offer would not unduly delay the

grant review process; or

e. It is the only proposal received.

XIII. Unsuccessful Applicants

After a decision has been reached and

if your proposal is not successful, you

will receive written notification. This

written notice will be SBA’s final

response to this program

announcement. SBA will not provide

debriefing sessions if your proposal was

not successful.

XIV. Cancellation

SBA reserves the right to cancel this

announcement in whole or in part at the

Agency’s discretion.

XV. Glossary of Terms

• ADMINISTRATION: Means the U.S.

Small Business Administration (SBA);

• ADMINISTRATOR: Means the

Administrator of the Small Business

Administration;

• CAPACITY BUILDING SERVICES:

means services provided to an

organization or program that is, or is

developing as, a microenterprise

development organization or program,

for the purpose of enhancing its ability

to provide training and services to

disadvantaged entrepreneurs;

• COLLABORATIVE: means two or

more nonprofit entities that agree to act

jointly as a qualified organization under

this part;

• DISADVANTAGED

ENTREPRENEUR, or

DISADVANTAGED

MICROENTREPRENEUR: means the

owner, majority owner, or developer of

a microenterprise who is also—

1. a low-income person

2. a very low-income person; or

3. an entrepreneur who lacks

adequate access to capital or other

resources essential for business success,

or, is economically disadvantaged as

determined by the Administrator.

• EMERGING MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

which has a microenterprise capacity

building services component, but has

had such a component for less than 4

years at the date of its application for a

PRIME grant.

• GRANTEE: means a recipient of a

grant under the Act.

• GROUP: has the same meaning as

‘‘collaborative’’ defined above.

60290 Federal Register / Vol. 65, No. 196 / Tuesday, October 10, 2000 / Proposed Rules

• INDIAN TRIBE: means any Indian

tribe, band, pueblo, nation, or other

organized group or community,

including any Alaska Native village or

regional or village corporation, as

defined in or established pursuant to the

Alaska Native Claims Settlement Act,

which is recognized as eligible for the

special programs and services the

United States provides to Indians

because of their status as Indians.

• INDIAN TRIBE JURISDICTION:

means Indian country, as defined in 18

U.S.C. 1151, and any other lands, title

to which is either held by the United

States in trust for the benefit of any

Indian tribe or individual or held by any

tribe or individual subject to a

restriction by the United States against

alienation, and any land held by Alaska

Native groups, regional corporations,

and village corporations, as defined in

or established under the Alaska Native

Claims Settlement Act, public domain

Indian allotments, and former Indian

reservations in the State of Oklahoma.

• INTERMEDIARY: means a private,

nonprofit entity that seeks to serve

qualified microenterprise development

organizations and programs;

• LARGE MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

with 10 or more full time employees or

equivalents, including its executive

director, as of the date it files its

application with SBA for a PRIME grant.

• LOCAL COMMUNITY: means an

identifiable area and population

constituting a political subdivision of a

state.

• LOW-INCOME PERSON: means a

person having an income, adjusted for

family size, of not more than—

(1) for metropolitan areas, the greater

of 80 percent of the median income; and

(2) for non-metropolitan areas, the

greater of—

(a) 80 percent of the area median

income; or

(b) 80 percent of the statewide nonmetropolitan area median income;

• MICROENTREPRENEUR: means the

owner or developer of a

microenterprise;

• MICROENTERPRISE: means a sole

proprietorship, partnership, limited

liability corporation or corporation that

has fewer than 5 employees, including

the owner, and generally lacks access to

conventional loans, equity, or other

banking services.

• MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a nonprofit entity, or

a program administered by such an

entity, including community

development corporations or other

nonprofit development organizations

and social service organizations, that

provides services to disadvantaged

entrepreneurs.

• QUALIFIED ORGANIZATION:

means an organization eligible for a

PRIME grant that is—

1. A microenterprise development

organization or program as defined

above (or a group or collaborative

thereof) that has demonstrated a record

of delivering microenterprise services to

disadvantaged microentrepreneurs;

2. An intermediary, as defined above;

3. A microenterprise development

organization or program as defined

above that is accountable to a local

community, working with a State or

local government or Indian tribe; or

4. An Indian tribe acting on its own,

if the Indian tribe can certify that no

private organization referred to in this

definition exists within its jurisdiction.

• SEVERE CONSTRAINTS ON

AVAILABLE SOURCES OF MATCHING

FUNDS: means the documented

inability of a qualified organization

applying for a PRIME grant to raise

matching funds or in-kind resources

from non-Federal sources during the 2

years immediately prior to the date of its

application because of a lack of or

increased scarcity of monetary or inkind resources from potential nonFederal sources.

• SMALL MICROENTERPRISE

DEVELOPMENT ORGANIZATION OR

PROGRAM: means a microenterprise

development organization or program

with less than 10 full time employees or

equivalents, including its executive

director, as of the date it files its

application with SBA for a PRIME grant.

• TRAINING AND TECHNICAL

ASSISTANCE: means services and

support provided to disadvantaged

entrepreneurs, such as assistance for the

purpose of enhancing business

planning, marketing, management,

financial management skills, and

assistance for the purpose of accessing

financial services.

• VERY LOW INCOME PERSON:

means having an income adjusted for

family size of not more than 150 percent

of the poverty line (as defined in

§ 673(2) of the Community Services

Block Grant Act (42 U.S.C. § 9902(2),

including any revision required by that

section).

XVI. Paperwork Reduction Act (44

U.S.C. Ch. 35)

The information being requested in

this Program Announcement is needed

to evaluate applicants and ensure that

awards are made in furtherance of the

PRIME program’s objectives. The

information will be used to grant awards

to provide training and technical

assistance to disadvantaged

microentrepreneurs. Applicants’

responses to the data collection

requirements are necessary for them to

receive a benefit under the Prime

Program. The information provided by

applicants will be kept confidential to

the extent required by law. Applicants

are not required to respond to the

Program Announcement unless it

displays a currently valid OMB number.

SBA estimates it will take applicants 80

hours to respond.

XVII. Privacy Act (5 U.S.C. 552a)

Any person can request to see or get

copies of any personal information that

SBA has in the requestor’s file, when

that file is retrieved by individual

identifiers, such as name or social

security number. Requests for

information about another party may be

denied unless SBA has the written

permission of the individual to release

the information to the requestor or

unless the information is subject to

disclosure under the Freedom of

Information Act (FOIA).

Note: Any person concerned with the

collection, use and disclosure of information,

under the Privacy Act may contact the Chief,

Freedom of Information/Privacy Act Office,

U.S. Small Business Administration, Suite

5900, 409 Third Street, SW, Washington, DC

20416, for information about the Agency’s

procedures relating to the Privacy Act and

FOIA.

[FR Doc. 00–25428 Filed 10–6–00; 8:45 am]

BILLING CODE 8025–01–P