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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4343 Introduced in House (IH)]

<DOC>

111th CONGRESS
  1st Session
                                H. R. 4343

   To establish in the Department of Commerce the Minority Business 
   Development Program to provide qualified minority businesses with 
 technical assistance, loan guarantees, and contracting opportunities, 
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2009

   Mr. Rush introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
   To establish in the Department of Commerce the Minority Business 
   Development Program to provide qualified minority businesses with 
 technical assistance, loan guarantees, and contracting opportunities, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Minority Business Development 
Improvements Act of 2009''.

SEC. 2. MINORITY BUSINESS DEVELOPMENT PROGRAM.

    The Director of the Minority Business Development Agency shall 
establish the Minority Business Development Program (hereinafter in 
this Act referred to as the ``Program'') to assist qualified minority 
businesses. The Program shall provide to such businesses the following:
            (1) Technical assistance.
            (2) Loan guarantees.
            (3) Contract procurement assistance.

SEC. 3. QUALIFIED MINORITY BUSINESS.

    (a) Certification.--For purposes of the Program, the Director may 
certify as a qualified minority business any entity that satisfies each 
of the following:
            (1) Not less than 51 percent of the entity is directly and 
        unconditionally owned or controlled by historically 
        disadvantaged individuals.
            (2) Each officer or other individual who exercises control 
        over the regular operations of the entity is a historically 
        disadvantaged individual.
            (3) The net worth of each principal of the entity is not 
        greater than $2,000,000. (The equity of a disadvantaged owner 
        in a primary personal residence shall be considered in this 
        calculation.)
            (4) The principal place of business of the entity is in the 
        United States.
            (5) Each principal of the entity maintains good character 
        in the determination of the Director.
            (6) The entity engages in competitive and bona fide 
        commercial business operations in not less than one sector of 
        industry that has a North American Industry Classification 
        System code.
            (7) The entity submits reports to the Director at such 
        time, in such form, and containing such information as the 
        Director may require.
            (8) Any additional requirements that the Director 
        determines appropriate.
    (b) Term of Certification.--A certification under this section 
shall be for a term of 5 years and may not be renewed.

SEC. 4. TECHNICAL ASSISTANCE.

    (a) In General.--In carrying out the Program, the Director may 
provide to qualified minority businesses technical assistance with 
regard to the following:
            (1) Writing business plans.
            (2) Marketing.
            (3) Management.
            (4) Securing sufficient financing for business operations.
    (b) Contract Authority.--The Director may enter into agreements 
with persons to provide technical assistance under this section.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated $200,000,000 to the Director to carry out this section. 
Such sums shall remain available until expended.

SEC. 5. LOAN GUARANTEES.

    (a) In General.--Subject to subsection (b), the Director may 
guarantee up to 90 percent of the amount of a loan made to a qualified 
minority business to be used for business purposes, including the 
following:
            (1) Purchasing essential equipment.
            (2) Payroll expenses.
            (3) Purchasing facilities.
            (4) Renovating facilities.
    (b) Terms and Conditions.--
            (1) In general.--The Director may make guarantees under 
        this section for projects on such terms and conditions as the 
        Director determines appropriate, after consultation with the 
        Secretary of the Treasury, in accordance with this section.
            (2) Repayment.--No guarantee shall be made under this 
        section unless the Director determines that there is reasonable 
        prospect of repayment of the principal and interest on the 
        obligation by the borrower.
            (3) Defaults.--
                    (A) Payment by director.--
                            (i) In general.--If a borrower defaults on 
                        the obligation (as defined in regulations 
                        promulgated by the Director and specified in 
                        the guarantee contract), the holder of the 
                        guarantee shall have the right to demand 
                        payment of the unpaid amount from the Director.
                            (ii) Payment required.--Within such period 
                        as may be specified in the guarantee or related 
                        agreements, the Director shall pay to the 
                        holder of the guarantee the unpaid interest on, 
                        and unpaid principal of the obligation as to 
                        which the borrower has defaulted, unless the 
                        Director finds that there was no default by the 
                        borrower in the payment of interest or 
                        principal or that the default has been 
                        remedied.
                            (iii) Forbearance.--Nothing in this 
                        paragraph precludes any forbearance by the 
                        holder of the obligation for the benefit of the 
                        borrower which may be agreed upon by the 
                        parties to the obligation and approved by the 
                        Director.
                    (B) Subrogation.--
                            (i) In general.--If the Director makes a 
                        payment under subparagraph (A), the Director 
                        shall be subrogated to the rights of the 
                        recipient of the payment as specified in the 
                        guarantee or related agreements including, 
                        where appropriate, the authority 
                        (notwithstanding any other provision of law) 
                        to--
                                    (I) complete, maintain, operate, 
                                lease, or otherwise dispose of any 
                                property acquired pursuant to such 
                                guarantee or related agreements; or
                                    (II) permit the borrower, pursuant 
                                to an agreement with the Director, to 
                                continue to pursue the purposes of the 
                                project if the Director determines this 
                                to be in the public interest.
                            (ii) Superiority of rights.--The rights of 
                        the Director, with respect to any property 
                        acquired pursuant to a guarantee or related 
                        agreements, shall be superior to the rights of 
                        any other person with respect to the property.
                            (iii) Terms and conditions.--A guarantee 
                        agreement shall include such detailed terms and 
                        conditions as the Director determines 
                        appropriate to--
                                    (I) protect the interests of the 
                                United States in the case of default; 
                                and
                                    (II) have available all the patents 
                                and technology necessary for any person 
                                selected, including the Director, to 
                                complete and operate the project.
                    (C) Payment of principal and interest by 
                director.--With respect to any obligation guaranteed 
                under this section, the Director may enter into a 
                contract to pay, and pay, holders of the obligation, 
                for and on behalf of the borrower, from funds 
                appropriated for that purpose, the principal and 
                interest payments which become due and payable on the 
                unpaid balance of the obligation if the Director finds 
                that--
                            (i)(I) the borrower is unable to meet the 
                        payments and is not in default;
                                    (II) it is in the public interest 
                                to permit the borrower to continue to 
                                pursue the purposes of the project; and
                                    (III) the probable net benefit to 
                                the Federal Government in paying the 
                                principal and interest will be greater 
                                than that which would result in the 
                                event of a default;
                            (ii) the amount of the payment that the 
                        Director is authorized to pay shall be no 
                        greater than the amount of principal and 
                        interest that the borrower is obligated to pay 
                        under the agreement being guaranteed; and
                            (iii) the borrower agrees to reimburse the 
                        Director for the payment (including interest) 
                        on terms and conditions that are satisfactory 
                        to the Director.
                    (D) Action by attorney general.--
                            (i) Notification.--If the borrower defaults 
                        on an obligation, the Director shall notify the 
                        Attorney General of the default.
                            (ii) Recovery.--On notification, the 
                        Attorney General shall take such action as is 
                        appropriate to recover the unpaid principal and 
                        interest due from--
                                    (I) such assets of the defaulting 
                                borrower as are associated with the 
                                obligation; or
                                    (II) any other security pledged to 
                                secure the obligation.
            (4) Fees.--
                    (A) In general.--The Director shall charge and 
                collect fees for guarantees in amounts the Director 
                determines are sufficient to cover applicable 
                administrative expenses, not to exceed 1 percent of the 
                amount guaranteed.
                    (B) Availability.--Fees collected under this 
                paragraph shall--
                            (i) be deposited by the Director into the 
                        Treasury; and
                            (ii) remain available until expended, 
                        subject to such other conditions as are 
                        contained in annual appropriations Acts.
    (c) Credit Requirements.--To receive a loan guaranteed under this 
section a qualified minority business shall--
            (1) be in good standing with regard to the credit of that 
        business in the determination of the Director;
            (2) have received technical assistance under section 4; and
            (3) submit reports, at such time, in such form, and 
        containing such information as the Director may require 
        regarding the credit of the business.
    (d) Limits on Guarantee Amounts.--
            (1) Maximum amount of guarantee.--The Director may 
        guarantee not more than $450,000 of any loan under this 
        section.
            (2) Maximum gross loan amount.--A loan guaranteed under 
        this section may not be for a gross loan amount in excess of 
        $500,000.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Director not more than $500,000,000 to carry out 
this section during fiscal years 2011 through 2016.

SEC. 6. SET-ASIDE CONTRACTING OPPORTUNITIES.

    (a) In General.--The Director may enter into agreements with the 
United States Government and any department, agency, or officer thereof 
having procurement powers for purposes of providing for the fulfillment 
of procurement contracts and providing opportunities for qualified 
minority businesses with regard to such contracts.
    (b) Qualifications on Participation.--The Director shall by rule 
establish requirements for participation under this section by a 
qualified minority business in a contract.
    (c) Annual Limit on Number of Contracts Per Qualified Minority 
Business.--A qualified minority business may not participate under this 
section in contracts in an amount that exceeds $10,000,000 for goods 
and services each fiscal year.
    (d) Limits on Contract Amounts.--
            (1) Goods and services.--Except as provided in paragraph 
        (2), a contract for goods and services under this section may 
        not exceed $6,000,000.
            (2) Manufacturing and construction.--A contract for 
        manufacturing and construction services under this section may 
        not exceed $10,000,000.

SEC. 7. TERMINATION FROM THE PROGRAM.

    The Director may terminate a qualified minority business from the 
Program for any violation of a requirement of sections 3 through 6 of 
this Act by that qualified minority business, including the following:
            (1) Conduct by a principal of the qualified minority 
        business that indicates a lack of business integrity.
            (2) Willful failure to comply with applicable labor 
        standards and obligations.
            (3) Consistent failure to tender adequate performance with 
        regard to contracts under the Program.
            (4) Failure to obtain and maintain relevant certifications.
            (5) Failure to pay outstanding obligations owed to the 
        Federal Government.

SEC. 8. REPORTS.

    (a) Report of the Director.--Not later than October 1, 2011, and 
annually thereafter, the Director shall submit to the Committee on 
Energy and Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate a report 
describing the activities of the Director during the preceding year 
with respect to the Program.
    (b) Report of the Secretary of Commerce.--Not later than October 1, 
2011, and annually thereafter, the Secretary of Commerce shall submit 
to the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of the 
Senate a report describing the activities the Secretary engaged in 
during the preceding year to build wealth among historically 
disadvantaged individuals.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) The term ``historically disadvantaged individual'' 
        means any individual who is a member of a group that is 
        designated as eligible to receive assistance under section 
        1400.1 of title 15 of the Code of Federal Regulations, as in 
        effect on January 1, 2009.
            (2) The term ``principal'' means any person that the 
        Director determines to exercise significant control over the 
        regular operations of a business entity.
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