[Federal Register Volume 62, Number 70 (Friday, April 11, 1997)]
[Notices]
[Pages 17863-17870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9190]



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DEPARTMENT OF LABOR

Employment and Training Administration


Job Training Partnership Act: Microenterprise Grants Program

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice of availability of funds and solicitation for grant 
application (SGA).

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SUMMARY: All the information needed to submit a proposal by eligible 
applicants is included in this announcement. The U.S. Department of 
Labor, Employment and Training Administration (DOL/ETA), announces the 
availability of funds to implement and enhance community based 
microenterprise activities. Microenterprise activities are authorized 
under Title IV, Part I of the Job Training Partnership Act. This 
program will be funded by the Job Training Partnership Act. Section 324 
of the Job Training Partnership Act authorizes the use of funds 
reserved under Title III, Part B, for demonstration programs of up to 
three years in length, including programs dealing with self-employment 
opportunity. The grants will provide training, technical assistance and 
support to microenterprise owners or potential owners. It is 
anticipated that approximately $1.4 Million will be disbursed. Up to 
six (6) awards will be made in the range of $225,000 to $300,000 per 
grant. Applications that exceed $300,000 will not be considered. Awards 
will be made on a competitive basis. The duration of the Grants will be 
for fifteen (15) months with a one (1) year option. A 100 percent match 
is required for this program. In addition, no funds under this program 
shall be used for investment in revolving loan activities. This notice 
includes the detailed Government requirement and the process that 
eligible applicants must use to apply for these funds.

DATES: The closing date for receipt of applications shall be May 12, 
1997, at 2:00 p.m. (Eastern Time) at the address below.

ADDRESSES: Applications shall be mailed to the Division of Acquisition 
and Assistance, Attention: Denise Roach, Reference: SGA/DAA 97-012, 
Employment and Training Administration, U.S. Department of Labor, Room 
S-4203, 200 Constitution Avenue, NW, Washington, D.C. 20210.

FOR FURTHER INFORMATION CONTACT:
Denise Roach at (202) 219-8694. (This is not a toll free number). This 
solicitation will also be announced on the Internet at ``<a href="http//
www.doleta.gov">http//
www.doleta.gov</a>''

SUPPLEMENTARY INFORMATION: U.S. Department of Labor, Employment and 
Training Administration is soliciting proposals on a competitive basis 
for the conduct of projects to implement and enhance community based 
microenterprise activities. The intent of these grants will be to 
develop the capacity to provide effective business-related training to 
persons developing a microenterprise, and provide technical assistance 
and support to owners or potential owners of a microenterprise. This 
announcement consists of three parts. Part I discusses the procedures 
for eligible applicants who wish to apply for these funds. Part II 
provides the detailed Government's Requirement/Statement of Work/
Reporting Requirements. Part III describes the selection process/
criteria for award.

Part I. Application Process

A. Eligible Applicants

    Awards under this Solicitation will be made to States. For the 
purpose of this Solicitation, the term ``State'' includes, in addition 
to those entities contained in the definition in Section 4(22) of JTPA:

--Grantees designated under subsection (c) or (d) of subsection 401 to 
provide services to Indian Reservations or Alaska Native Villages, or a 
consortium of such grantees and the State; and
--Grantees designated under section 402(c) to provide services to 
migrant seasonal farmworkers, or a consortium of such grantees and the 
State.

    An application shall be submitted by the Governor or, in the 
instance of a grantee designated under section 401 and 402, by the 
grantee. In the instance of a consortium between the State and section 
401 and 402 grantees, the application shall be accompanied by a letter 
from the Governor ratifying such an arrangement and specifying the 
agency primarily responsible for the conduct of the project.
    When the Governor submits an application on behalf of the State, he 
or she shall designate the agency that shall be responsible for 
conducting the project. No more than two applications may be submitted 
per eligible applicant. A state may specify a political subdivision 
(county, city, town, township, parish village etc.) or economic 
division such as a Service Delivery Area, an Enterprise Community or an 
Empowerment Zone as the focus of training activity in its proposal.
    States currently administering a grant under the previous 
competition held under this authority will be eligible to apply for an 
award under this Solicitation; provided, a completely new approach to 
microenterprise activities is taken from that being conducted under 
their current grant. Proposals submitted by those current grantees will 
be subject to pre-screening to assure that they propose an approach 
that is clearly innovative and different from the activity that was 
implemented under the previous award. Current grantees shall include as 
apart of their application, a one (1) page description of how proposed 
project differs from current project.
    Entities described in Section 501(c)(4) of the Internal Revenue 
Code who engage in lobbying activities are not eligible to receive 
funds under this SGA. The Lobbying Disclosure Act of 1995, Public Law 
No. 104-65, 109 State. 691, which became effective January 1, 1996, 
prohibits the award of federal funds to these entities if they engage 
in lobbying activities. Applicants shall include their IRS Status on 
Standard Form 424.

B. Submission of Proposals

    An original and three (3) copies of the proposal shall be 
submitted. The proposal shall consist of two (2) separate and distinct 
parts.
    Part I shall contain the Standard Form (SF) 424, ``Application for 
Federal Assistance'' (Appendix No. 1) and ``Budget Information Sheet'' 
(Appendix No. 2). Also, the budget shall include on a separate Page(s) 
a detailed enumeration of how the matching requirement will be 
fulfilled. The individual signing the SF 424 on behalf of the State 
shall represent the responsible financial and administrative entity for 
the grant should that application result in an award.
    Part II shall contain a technical proposal that demonstrates the 
offeror's capabilities in accordance with the Statement of Work contain 
in this announcement. The technical proposal should be limited to 25 
pages in length of single spaced text. Appendices shall not exceed ten 
(10) pages. Current grantees shall include as a part of their technical 
proposal, a One (1) Page description of the current and proposed 
projects and how the proposed activities and/or approach differs from 
those currently being provided. No cost data or reference to price 
shall be included in the technical proposal. In order to assist 
offerors in the preparation of their proposals and to facilitate the 
expeditious evaluation by the review panel, proposals should be 
organized and presented in the same sequential

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order as the Rating Criteria in Part III of this announcement.

C. Hand Delivered Proposals

    Proposals must be mailed at least five (5) days prior to the 
closing date. However, if proposals are hand delivered, they must be 
received at the designated place by 2:00 p.m., Eastern Time by May 12, 
1997. All overnight mail will be considered to be hand delivered and 
must be received at the designated place by the specified closing date. 
Telegraphed and/or faxed proposals will not be honored. Failure to 
adhere to the above instructions will be a basis for a determination of 
nonresponsiveness.

D. Late Proposals

    Proposals received at the Office designated in the Solicitation 
after the exact time specified for receipt will not be considered 
unless it is received before award is made and it--
    (1) Was sent by registered or certified mail not later than the 
fifth calendar day before the date specified for receipt of 
applications (e.g. an offer submitted in response to a solicitation 
requiring receipt of applications by the 20th of the month must be 
mailed by the 15th);
    (2) Was sent by U.S. Postal Service Express Mail Next Day Service, 
Post Office to addressee, not later than 5 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.
    The term ``post marked'' means a printed, stamped, or otherwise 
placed impression (exclusive of a postage meter machine impression) 
that is readily identifiable without further action as having been 
supplied or affixed on the date of mailing by employees of the U.S. 
Postal Service.

E. Withdrawal of Proposals

    Proposals may be withdrawn by written notice or telegram (including 
mailgram) received at any time before award. Proposals may be withdrawn 
in person by an applicant or an authorized representative thereof, if 
the representative's identity is made known and the representative 
signs a receipt for the proposal before award.

F. Period of Performance

    The Period of Performance will be fifteen (15) months from the date 
of execution.

G. Option To Extend

    Based on the availability of funds, effective program operation and 
the needs of the Department, the grant(s) may be extended for one (1) 
additional year.

H. Definitions

    (1) Microenterprise means a commercial enterprise with five (5) or 
fewer employees, one (1) or more of whom owns the enterprise; and each 
of the owners of the enterprise is economically disadvantaged, as 
defined in Section 4(8) of JTPA.
    (2) States for the purposes of this solicitation also includes 
those grantees described under Part I.A. ``Eligible Applicant.''
    (3) For the purpose of this solicitation, eligible participants 
shall be economically disadvantaged persons who are dislocated workers 
as defined by Section 301(a) of JTPA. This can include long-term 
unemployed who ``have limited opportunities for employment or 
reemployment in the same or similar occupations'' and the self-employed 
who are ``unemployed as a result of general economic conditions in the 
community in which they reside or because of national disasters''. 
Applicants may refer to the JTPA regulation at 20 CFR 631.3(e) for 
further guidance on self-employed in the process of going out of 
business. The applicant shall describe the process by which it will 
identify individuals eligible for assistance under this program.

I. Matching Requirement

    No State shall receive an award under this solicitation unless the 
State agrees to provide non-Federal contributions in an amount equal to 
100 percent of Federal funds provided to carry out the microenterprise 
program.

Part II--Government's Requirement/Statement of Work/Reporting 
Requirements

    Section 499 of JTPA requires that the Secretary of Labor make 
grants to States to implement and enhance community-based 
microenterprise activities for the benefit of economically 
disadvantaged persons.
    A. ETA intends to allocate approximately $1.4 million of JTPA Title 
III funds to States to implement and enhance community-based 
microenterprise activities. These funds shall be used to:
    (1) train program staff in such entrepreneurial activities as 
business plan development, business management, resource inventory 
design, and marketing approaches, and other activities necessary to 
provide effective training to persons developing a microenterprise;
    (2) provide to owners or potential owners of a microenterprise such 
technical assistance (including technical assistance with respect to 
business planning, securing funding, marketing, and production of 
marketing materials) and other assistance as may be necessary to 
develop microenterprise activities; and
    (3) provide other microenterprise support (such as peer support 
program and counseling).
    In accordance with the restriction at Section 141(q), these funds 
shall not be used to invest in revolving loan funds; capitalization of 
business; investment in contract bidding resource centers and similar 
activities; or for foreign travel.
    B. While it is not the intent of this Solicitation to prescribe 
particular proportions or emphasis that a proposal should contain 
between the three activities listed immediately above, several guiding 
principles should be noted:
    (1) The primary goal of this initiative is to implement and enhance 
community-based microenterprise activities, i.e., assist disadvantaged 
people who are dislocated workers--as defined by Section 301(a) of JTPA 
and described in Section H of this solicitation--in establishing and 
maintaining commercial enterprises employing five or fewer people.
    (2) The staff development provided should create new capacity in 
the States to focus on the entrepreneurial training needs of 
disadvantaged people. The Department is aware that most States already 
possess some organizational capacity to assist generally in the 
formation and development of small business activity, most notably 
through the Small Business Development Centers described in the next 
segment. Proposals should not attempt simply to add to that existing 
capacity. It must be clearly demonstrated in the proposal how such 
staff training is necessary and how it will assist in achieving the 
primary goal stated in the preceding paragraph.
    (3) The proposal should present a clear discussion of what 
activities related to microenterprise and economic development are 
already functioning within the State and how this new initiative will 
link those activities and add a new dimension to them. Examples of such 
activities include:
    (a) Empowerment Zones and Enterprise Communities as authorized by 
Title XIII of the Omnibus Budget Reconciliation Act of 1993. Their 
mission is to provide favorable Federal income tax treatment and other 
incentives to encourage the conduct of trades or businesses and general

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economic development within designated areas.
    (b) Small Business Development Centers (SBDC) as authorized by the 
Small Business Act of 1953 as amended. Their stated mission is to 
provide management assistance to prospective and small business owners 
through one-on-one counseling and specialized training efforts.
    (c) Economic Development Districts (EDD) as authorized by the 
Public Works and Economic Development Act of 1965, as amended. EDDs 
serve as the structural entities for formulating and implementing 
economic development plans and activities within boundaries.
    These examples represent some of the types of existing activities 
and resources that should be considered in developing a proposal under 
this solicitation. Applicants are strongly encouraged to be exhaustive 
in examining available related resources and ongoing activities in 
order to maximize the potential impact of a microenterprise. The 
proposal should also indicate what linkages there will be to the JTPA 
system.
    The resources that the State will provide to meet the 100 percent 
matching requirement should be discussed in some detail providing a 
clear understanding of what is to be provided and what the relevance/
linkage of these resources is to the activities proposed and to 
successfully meeting the primary goal of the project.
    C. Examples of key services and techniques that might be included 
in a proposal are:
    (1) Recruitment and screening. This is an important element both in 
identifying program staff to be trained as trainers and in identifying 
and selecting individuals who show potential for owning a 
microenterprise.
    (2) Case management. This would involve assigning an individual who 
provides guidance in all aspects of program participation and other 
services to microenterprise owners.
    (3) Follow-up. Enrollment in and successful completion of a 
microenterprise training program may well be only the initial 
challenges facing the entrepreneur. A structured follow-up program 
involving such counseling and supportive services as deemed appropriate 
is a critical aspect of the program.
    (4) Mentoring. This could involve assigning a volunteer 
businessperson from the community to serve in a one-on-one relationship 
with the new enterpreneur. Such volunteer service may not be considered 
for meeting the 100 percent matching requirement.
    D. Reporting requirements. The Grantee is required to provide 
reports and documents listed below:
    (1) Quarterly Financial Reports. The grantee shall submit to the 
Grant Officer's Technical Representative (GOT) within 30 days following 
the end of each quarter, three (3) copies of a quarterly Financial 
Status Report (SF 269) until such time as all funds have been expended 
or the period of availability has expired.
    (2) Quarterly Progress Reports. The grantee shall submit to the GOT 
within 30 days following the end of each quarter, three (3) copies of a 
quarterly progress report which provides a detailed account of services 
provided during each quarter of grant performance. Reports shall 
include the following in brief narrative form:
    (a) A description of overall progress of work activities 
accomplished during the reported period.
    (b) An indication of current problems, if any, which may delay 
performance and any proposed corrective action.
    (c) Program status and financial data/information relative to 
expenditure rate versus budget, anticipated staff changes, etc.
    (3) Annual/Final Report. Each State that is a grant recipient 
shall, for each program year for which funds are received, submit a 
report that includes at a minimum a description of:
    (a) The programs that have been established and developed with such 
funds, including a description of the persons participating and the 
microenterprise developed;
    (b) The quantitative and qualitative benefits of such programs;
    (c) The contributions of such programs to economic self-sufficiency 
and economic development;
    (d) The types of services provided and an assessment of how well 
they worked in assisting participants to establish their own 
microenterprises;
    (e) The characteristics of the individual participants served;
    (f) Measures of pre- and post-program income (e.g., wage rates, 
business income, total income, etc.); and'
    (g) The key lessons learned, including significant impediments, 
barriers or other problems experienced, and the measures used to 
address and/or overcome them.
    These reports shall be due in draft no later than 45 days prior to 
the conclusion of the grant period for which it is being submitted.
    Three (3) copies of the final report shall be due no later than the 
conclusion of the grant period.

Part III. Rating Criteria for Award/Selection Process

    Prospective offerors are advised that the selection of grantees for 
award is to be made after careful evaluation of proposals by a panel of 
specialists within DOL. The panelists will evaluate the proposals for 
acceptability, with emphasis on factors enumerated below. The panel 
results are advisory in nature and not binding on the Grant Officer.

A. Evidence of Ability To Conduct and Monitor the Microenterprise 
Activities: (45 Points)

    (1) The application must describe in specific terms the service 
delivery strategy that the applicant would utilize to implement its 
ideas. (30 points)
    (2) The application should also contain a clear statement of the 
need for such a project, including the degree to which the service 
delivery strategy will assist in meeting that need. (15 points)
    This overall discussion will be the measure for determining the 
ability to conduct and monitor such activities.

B. Evidence of State Commitment as Shown Through Existing or Proposed 
Related Programs and Support: (25 Points)

    This section should include a detailed discussion of the 
coordination and linkages between programs and community organizations, 
as well as a discussion of the organizational capacity that the State 
intends to devote to this project. The emphasis under this criterion 
will be on programmatic resources which might enhance the training 
aspects of a project.
    As noted earlier, it is recognized that most States have some form 
of economic development capacity already in place. The applicant must 
clearly state, particularly when discussing staff training for 
implementation of proposed microenterprise activities, how this 
activity will create a new capacity for the State to conduct such 
training. The proposal must provide assurances that resources under 
this grant will not be used to substitute for an ongoing State 
commitment to maintain an economic development capacity.

C. Evidence of Linkage(s) to Private, Community-Based Credit and 
Technical Assistance Providers: (15 Points)

    Discussion of what financial resources are available to provide new 
entrepreneurs with start-up capital, such as a consortium of banks that 
has pledged to assist in this process. The primary emphasis under this 
criterion will be on linkages to financial resources.

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D. Cost, To Include a Statement About the Size and Nature of The Non-
Federal Match: (15 Points)

    The cost effectiveness of the project as indicated by cost per 
participant and cost per activity in relation to services provided and 
outcomes anticipated. This section MUST contain a detailed discussion 
of the size, nature, and quality of the non-Federal match. Proposals 
not presenting a detailed discussion of the non-Federal match or not 
meeting the requirement of a 100 percent match will be considered 
nonresponsive.
    Offerors are advised that discussions may be necessary in order to 
clarify any inconsistencies in their applications. The reviewers 
evaluations are only advisory to the Grant Officer. The final decisions 
for grant award will be made by the ETA Grant Officer, after 
considering the panelists scoring decisions. The Grant Officer's 
decisions will be based on what he or she determines is most 
advantageous to the Federal Government in terms of technical quality 
and other factors.
    Announcement of Awards: Winners of this competition will be 
announced via the Internet at http://www/doleta.gov/.

    Signed at Washington, D.C., this 4th day of April, 1997.
Janice E. Perry,
Grant Officer, Employment and Training Administration.

Appendices

A. SF 424, Application for Federal Assistance
B. Budget Information Sheet

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[FR Doc. 97-9190 Filed 4-10-97; 8:45 am]
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