I 

111TH CONGRESS 

2D SESSION H. R. 4929 

To amend the Small Business Act to ensure that certain Federal contracts 

are set aside for small businesses, to enhance services to small businesses 

that are disadvantaged, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 24, 2010 

Mr. RUSH introduced the following bill; which was referred to the Committee 

on Small Business, and in addition to the Committees on Financial Services, Oversight and Government Reform, and Ways and Means, 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 amend the Small Business Act to ensure that certain 

Federal contracts are set aside for small businesses, to 

enhance services to small businesses that are disadvantaged, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Expanding Opportunities for Main Street Act of 2010’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

DIVISION A—SMALL BUSINESS ADMINISTRATION PROVISIONS 

TITLE I—CONTRACT OPPORTUNITIES FOR SMALL BUSINESS 

CONCERNS 

Sec. 101. Contract opportunities for small business concerns. 

TITLE II—MINORITY SMALL BUSINESS ENHANCEMENT 

Sec. 201. Enhancement of services to small businesses that are disadvantaged. 

Sec. 202. Surety bond guarantees. 

Sec. 203. Bundled contracts. 

Sec. 204. Federal contracting goals. 

Sec. 205. Implementation of subcontracting plans. 

Sec. 206. Requirement to consider use of small business concerns owned and 

controlled by socially and economically disadvantaged individuals when considering past compliance with subcontracting 

plans. 

TITLE III—EXTENSION OF BUSINESS STABILIZATION LOANS 

Sec. 301. Extension of business stabilization loans. 

DIVISION B—MINORITY BUSINESS DEVELOPMENT AGENCY 

PROVISIONS 

TITLE I—MINORITY BUSINESS DEVELOPMENT IMPROVEMENTS 

Sec. 101. Minority Business Development Program. 

Sec. 102. Qualified minority business. 

Sec. 103. Technical assistance. 

Sec. 104. Loan guarantees. 

Sec. 105. Set-aside contracting opportunities. 

Sec. 106. Termination from the Program. 

Sec. 107. Reports. 

Sec. 108. Definitions. 

TITLE II—MINORITY BUSINESS DEVELOPMENT AGENCY 

DATABASE 

Sec. 201. Minority Business Development Agency database. 

DIVISION C—COMMUNITY ECONOMIC DEVELOPMENT PROVISIONS 

TITLE I—ENSURING JOB QUALITY AND ACCESS IN THE 

CONSTRUCTION SECTOR 

Sec. 101. Targeted hiring requirement for certain construction jobs. 

TITLE II—2-YEAR EXTENSION OF NEW MARKETS TAX CREDIT 

NATIONAL LIMITATION 

Sec. 201. 2-year extension of new markets tax credit national limitation. 


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TITLE III—EXTENSION OF EMPOWERMENT ZONE DESIGNATION 

Sec. 301. Extension of empowerment zone designation. 

1 DIVISION A—SMALL BUSINESS 

2 ADMINISTRATION PROVISIONS 

3 TITLE I—CONTRACT OPPORTU4 NITIES FOR SMALL BUSINESS 

5 CONCERNS 

6 SEC. 101. CONTRACT OPPORTUNITIES FOR SMALL BUSI7 NESS CONCERNS. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, a Federal department or agency shall, to the 

10 extent practicable, award to a small business concern each 

11 eligible contract of such department or agency. 

12 (b) SOLE SOURCE CONTRACTS.—A Federal depart13 ment or agency may award an eligible contract to a small 

14 business concern if at least one small business concern 

15 submits an offer with respect to such contract. 

16 (c) AWARD TO SMALL BUSINESS NOT PRAC17 TICABLE.— 

18 (1) IN GENERAL.—If a contracting officer of a 

19 Federal department or agency determines that 

20 awarding an eligible contract to a small business 

21 concern under subsection (a) is not practicable, such 

22 contracting officer shall make available to the Ad23 ministrator of the Small Business Administration 

24 and the public the following: 


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1 (A) The determination and reasoning of 

2 such officer with respect to such eligible con3 tract. 

4 (B) The names of each small business con5 cern that submitted an offer with respect to 

6 such eligible contract. 

7 (2) REVIEW.—The Administrator of the Small 

8 Business Administration may review each determina9 tion under paragraph (1) and, if the Administrator 

10 determines it appropriate, may open such contract 

11 opportunity for the submission of additional offers. 

12 (d) DEFINITIONS.—In this Act: 

13 (1) ELIGIBLE CONTRACT.—The term ‘‘eligible 

14 contract’’ means any contract for the acquisition of 

15 goods or services that is in an amount (including op16 tions) of more than $3,000 and less than $500,000. 

17 (2) SMALL BUSINESS CONCERN.—The term 

18 ‘‘small business concern’’ has the meaning given 

19 such term under section 3(a) of the Small Business 

20 Act (15 U.S.C. 632(a)). 


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1 TITLE II—MINORITY SMALL 

2 BUSINESS ENHANCEMENT 

3 SEC. 201. ENHANCEMENT OF SERVICES TO SMALL BUSI4 NESSES THAT ARE DISADVANTAGED. 

5 (a) NET WORTH.—Section 8(a)(6)(A) of the Small 

6 Business Act (15 U.S.C. 637(a)(6)(A)) is amended by in7 serting after ‘‘disadvantaged individual.’’ the following: 

8 ‘‘For purposes of eligibility for admission as a Program 

9 Participant and for continued eligibility after admission, 

10 the net worth of such individual may be any amount less 

11 than $1,500,000.’’. 

12 (b) TIME LIMIT ON PARTICIPATION.—Section 

13 7(j)(15) of the Small Business Act (15 U.S.C. 636(j)(15)) 

14 is amended— 

15 (1) by redesignating subparagraphs (A) and 

16 (B) as clauses (i) and (ii), respectively; 

17 (2) by inserting ‘‘(A)’’ after ‘‘(15)’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(B) No time limitation relating to the period that 

20 a small business concern may receive developmental assist21 ance under the Program and contracts under section 8(a) 

22 shall apply to a small business concern that has not com23 pleted a contract under section 8(a).’’. 


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1 SEC. 202. SURETY BOND GUARANTEES. 

2 Section 508(f) of title V of division A of the American 

3 Recovery and Reinvestment Act of 2009 (Public Law 111– 

4 5; 123 Stat. 159) is amended by striking ‘‘amendments 

5 made by this section’’ and inserting ‘‘amendment made 

6 by subsection (c)’’. 

7 SEC. 203. BUNDLED CONTRACTS. 

8 (a) DEFINITION.—Section 3(o) of the Small Business 

9 Act (15 U.S.C. 632(o)) is amended to read as follows: 

10 ‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE11 QUIREMENTS AND RELATED TERMS.—For purposes of 

12 this Act: 

13 ‘‘(1) BUNDLED CONTRACT.— 

14 ‘‘(A) IN GENERAL.—The term ‘bundled 

15 contract’ means a contract or order that is en16 tered into to meet procurement requirements 

17 that are consolidated in a bundling of contract 

18 requirements, without regard to its designation 

19 by the procuring agency or whether a study of 

20 the effects of the solicitation on civilian or mili21 tary personnel has been made. 

22 ‘‘(B) EXCEPTIONS.—The term does not in23 clude— 

24 ‘‘(i) a contract or order with an aggre25 gate dollar value below the dollar threshold 

26 specified in paragraph (5); or 


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1 ‘‘(ii) a contract or order that is en2 tered into to meet procurement require3 ments, all of which are exempted require4 ments under paragraph (6). 

5 ‘‘(2) BUNDLING OF CONTRACT REQUIRE6 MENTS.— 

7 ‘‘(A) IN GENERAL.—The term ‘bundling of 

8 contract requirements’ means the use of any 

9 bundling methodology to satisfy 2 or more pro10 curement requirements for goods or services 

11 previously supplied or performed under separate 

12 smaller contracts or orders, or to satisfy 2 or 

13 more procurement requirements for construc14 tion services of a type historically performed 

15 under separate smaller contracts or orders, that 

16 is likely to be unsuitable for award to a small 

17 business concern due to— 

18 ‘‘(i) the diversity, size, or specialized 

19 nature of the elements of the performance 

20 specified; 

21 ‘‘(ii) the aggregate dollar value of the 

22 anticipated award; 

23 ‘‘(iii) the geographical dispersion of 

24 the contract or order performance sites; or 


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1 ‘‘(iv) any combination of the factors 

2 described in clauses (i), (ii), and (iii). 

3 ‘‘(B) INCLUSION OF NEW FEATURES OR

4 FUNCTIONS.—A combination of contract re5 quirements that would meet the definition of a 

6 bundling of contract requirements but for the 

7 addition of a procurement requirement with at 

8 least one new good or service shall be consid9 ered to be a bundling of contract requirements 

10 unless the new features or functions substan11 tially transform the goods or services and will 

12 provide measurably substantial benefits to the 

13 government in terms of quality, performance, or 

14 price. 

15 ‘‘(C) EXCEPTIONS.—The term does not in16 clude— 

17 ‘‘(i) the use of a bundling method18 ology for an anticipated award with an ag19 gregate dollar value below the dollar 

20 threshold specified in paragraph (5); or 

21 ‘‘(ii) the use of a bundling method22 ology to meet procurement requirements, 

23 all of which are exempted requirements 

24 under paragraph (6). 


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1 ‘‘(3) BUNDLING METHODOLOGY.—The term 

2 ‘bundling methodology’ means— 

3 ‘‘(A) a solicitation to obtain offers for a 

4 single contract or order, or a multiple award 

5 contract or order; or 

6 ‘‘(B) a solicitation of offers for the 

7 issuance of a task or a delivery order under an 

8 existing single or multiple award contract or 

9 order. 

10 ‘‘(4) SEPARATE SMALLER CONTRACT.—The 

11 term ‘separate smaller contract’, with respect to 

12 bundling of contract requirements, means a contract 

13 or order that has been performed by 1 or more small 

14 business concerns or was suitable for award to 1 or 

15 more small business concerns. 

16 ‘‘(5) DOLLAR THRESHOLD.—The term ‘dollar 

17 threshold’ means $65,000,000, if solely for construc18 tion services, and $5,000,000 with respect to all 

19 other circumstances. 

20 ‘‘(6) EXEMPTED REQUIREMENTS.—The term 

21 ‘exempted requirement’ means a procurement re22 quirement solely for items that are not commercial 

23 items (as the term ‘commercial item’ is defined in 

24 section 4(12) of the Office of Federal Procurement 

25 Policy Act (41 U.S.C. 403(12))). 


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1 ‘‘(7) PROCUREMENT REQUIREMENT.—The term 

2 ‘procurement requirement’ means a determination 

3 by an agency that a specified good or service is 

4 needed to satisfy the mission of the agency.’’. 

5 (b) PROPOSED PROCUREMENT REQUIREMENTS.— 

6 Section 15(a) of the Small Business Act (15 U.S.C. 

7 644(a)) is amended— 

8 (1) by striking ‘‘necessary and justified.’’ and 

9 inserting ‘‘necessary and justified, as well as identi10 fying information on the incumbent contract holders, 

11 a description of the industries which might be inter12 ested in bidding on the contract requirements, and 

13 the number of small businesses listed in the industry 

14 categories that could be excluded from future bid15 ding if the contract is combined or packaged.’’; and 

16 (2) by striking the sentence beginning ‘‘When17 ever the Administration and the contracting procure18 ment agency fail to agree,’’ and inserting the fol19 lowing: ‘‘Whenever the Administration and the con20 tracting procurement agency fail to agree, the Ad21 ministrator may review the proposed procurement, 

22 may delay the solicitation process for not more than 

23 10 days to make recommendations, and the matter 

24 shall be submitted to the Director of the Office of 


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1 Management and Budget to mediate the disagree2 ment.’’. 

3 SEC. 204. FEDERAL CONTRACTING GOALS. 

4 (a) INCREASE IN CERTAIN GOALS.—Section 15(g)(1) 

5 of the Small Business Act (15 U.S.C. 644(g)(1)) is 

6 amended— 

7 (1) by striking ‘‘not less than 23 percent’’ and 

8 inserting ‘‘not less than 25 percent’’; and 

9 (2) by striking ‘‘not less than 5 percent’’ each 

10 place it appears and inserting ‘‘not less than 10 per11 cent’’. 

12 (b) LIMITATION ON NUMBER OF CATEGORIES FOR

13 WHICH A BUSINESS MAY QUALIFY.—Section 15(g) of the 

14 Small Business Act (15 U.S.C. 644(g)) is amended by 

15 adding at the end the following: 

16 ‘‘(3) For purposes of this subsection and subsection 

17 (h), with respect to each procurement contract a small 

18 business concern may not qualify as more than 2 specified 

19 categories, regardless of whether such small business con20 cern satisfies the definition of more than 2 specified cat21 egories. The specified categories are small business con22 cerns, small business concerns owned and controlled by 

23 service-disabled veterans, qualified HUBZone small busi24 ness concerns, small business concerns owned and con25 trolled by socially and economically disadvantaged individVerDate Nov 24 2008 01:19 Mar 25, 2010 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4929.IH H4929

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1 uals, and small business concerns owned and controlled 

2 by women.’’. 

3 SEC. 205. IMPLEMENTATION OF SUBCONTRACTING PLANS. 

4 Section 8(d) of the Small Business Act (15 U.S.C. 

5 637(d)) is amended by adding at the end the following: 

6 ‘‘(12) In the case of any contract containing a sub7 contracting plan included pursuant to paragraph (4) or 

8 (5), the following apply: 

9 ‘‘(A) The Federal agency awarding the contract 

10 shall include in the contract a clause providing for 

11 the withholding of not less than (i) $5,000 in the 

12 case of a contract in the amount of $100,000 or 

13 less, (ii) 3 percent of the contract amount in the 

14 case of a contract in an amount of more than 

15 $100,000 and less than $5,000,000, and (iii) 5 per16 cent of the contract amount in the case of a contract 

17 in an amount of $5,000,000 or more, if the con18 tractor does not achieve the percentage goal for the 

19 utilization of small business concerns owned and 

20 controlled by socially and economically disadvan21 taged individuals as set forth in the subcontracting 

22 plan. 

23 ‘‘(B) The Federal agency awarding the contract 

24 shall require the contractor to provide written jus25 tification to the agency whenever the contractor, in 


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1 performing the contract, does not enter into a sub2 contract with, or substitutes another subcontractor 

3 for, a specific small business concern identified in 

4 the subcontracting plan. 

5 ‘‘(13) The Administration shall establish a telephone 

6 line or other electronic means of communication through 

7 which any small business concern identified in a subcon8 tracting plan by an offeror or bidder may communicate 

9 to the Administration any concerns regarding major devi10 ations by prime contractors from the use of small business 

11 concerns as subcontractors under the prime contract as 

12 described in subcontracting plans.’’. 

13 SEC. 206. REQUIREMENT TO CONSIDER USE OF SMALL 

14 BUSINESS CONCERNS OWNED AND CON15 TROLLED BY SOCIALLY AND ECONOMICALLY 

16 DISADVANTAGED INDIVIDUALS WHEN CON17 SIDERING PAST COMPLIANCE WITH SUBCON18 TRACTING PLANS. 

19 Paragraphs (4)(C) and (5)(B) of section 8(d) of the 

20 Small Business Act (15 U.S.C. 637(d)) are each amended 

21 in the second sentence by inserting ‘‘, especially compli22 ance with the goal set forth in such plans for the utiliza23 tion of small business concerns owned and controlled by 

24 socially and economically disadvantaged individuals,’’ after 

25 ‘‘other such subcontracting plans’’. 


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1 TITLE III—EXTENSION OF BUSI2 NESS STABILIZATION LOANS 

3 SEC. 301. EXTENSION OF BUSINESS STABILIZATION LOANS. 

4 Section 506(j) of title V of division A of the American 

5 Recovery and Reinvestment Act of 2009 (Public Law 111– 

6 5; 123 Stat. 157) is amended by striking ‘‘September 30, 

7 2010’’ and inserting ‘‘September 30, 2011’’. 

8 DIVISION B—MINORITY BUSI9 NESS DEVELOPMENT AGENCY 

10 PROVISIONS 

11 TITLE I—MINORITY BUSINESS 

12 DEVELOPMENT IMPROVEMENTS 

13 SEC. 101. MINORITY BUSINESS DEVELOPMENT PROGRAM. 

14 The Director of the Minority Business Development 

15 Agency shall establish the Minority Business Development 

16 Program (in this title referred to as the ‘‘Program’’) to 

17 assist qualified minority businesses. The Program shall 

18 provide to such businesses the following: 

19 (1) Technical assistance. 

20 (2) Loan guarantees. 

21 (3) Contract procurement assistance. 

22 SEC. 102. QUALIFIED MINORITY BUSINESS. 

23 (a) CERTIFICATION.—For purposes of the Program, 

24 the Director may certify as a qualified minority business 

25 any entity that satisfies each of the following: 


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1 (1) Not less than 51 percent of the entity is di2 rectly and unconditionally owned or controlled by 

3 historically disadvantaged individuals. 

4 (2) Each officer or other individual who exer5 cises control over the regular operations of the entity 

6 is a historically disadvantaged individual. 

7 (3) The net worth of each principal of the enti8 ty is not greater than $2,000,000. (The equity of a 

9 disadvantaged owner in a primary personal residence 

10 shall be considered in this calculation.) 

11 (4) The principal place of business of the entity 

12 is in the United States. 

13 (5) Each principal of the entity maintains good 

14 character in the determination of the Director. 

15 (6) The entity engages in competitive and bona 

16 fide commercial business operations in not less than 

17 one sector of industry that has a North American 

18 Industry Classification System code. 

19 (7) The entity submits reports to the Director 

20 at such time, in such form, and containing such in21 formation as the Director may require. 

22 (8) Any additional requirements that the Direc23 tor determines appropriate. 


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1 (b) TERM OF CERTIFICATION.—A certification under 

2 this section shall be for a term of 5 years and may not 

3 be renewed. 

4 SEC. 103. TECHNICAL ASSISTANCE. 

5 (a) IN GENERAL.—In carrying out the Program, the 

6 Director may provide to qualified minority businesses 

7 technical assistance with regard to the following: 

8 (1) Writing business plans. 

9 (2) Marketing. 

10 (3) Management. 

11 (4) Securing sufficient financing for business 

12 operations. 

13 (b) CONTRACT AUTHORITY.—The Director may enter 

14 into agreements with persons to provide technical assist15 ance under this section. 

16 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated $200,000,000 to the Di18 rector to carry out this section. Such sums shall remain 

19 available until expended. 

20 SEC. 104. LOAN GUARANTEES. 

21 (a) IN GENERAL.—Subject to subsection (b), the Di22 rector may guarantee up to 90 percent of the amount of 

23 a loan made to a qualified minority business to be used 

24 for business purposes, including the following: 

25 (1) Purchasing essential equipment. 


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1 (2) Payroll expenses. 

2 (3) Purchasing facilities. 

3 (4) Renovating facilities. 

4 (b) TERMS AND CONDITIONS.— 

5 (1) IN GENERAL.—The Director may make 

6 guarantees under this section for projects on such 

7 terms and conditions as the Director determines ap8 propriate, after consultation with the Secretary of 

9 the Treasury, in accordance with this section. 

10 (2) REPAYMENT.—No guarantee shall be made 

11 under this section unless the Director determines 

12 that there is reasonable prospect of repayment of the 

13 principal and interest on the obligation by the bor14 rower. 

15 (3) DEFAULTS.— 

16 (A) PAYMENT BY DIRECTOR.— 

17 (i) IN GENERAL.—If a borrower de18 faults on the obligation (as defined in reg19 ulations promulgated by the Director and 

20 specified in the guarantee contract), the 

21 holder of the guarantee shall have the 

22 right to demand payment of the unpaid 

23 amount from the Director. 

24 (ii) PAYMENT REQUIRED.—Within 

25 such period as may be specified in the 


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1 guarantee or related agreements, the Di2 rector shall pay to the holder of the guar3 antee the unpaid interest on, and unpaid 

4 principal of the obligation as to which the 

5 borrower has defaulted, unless the Director 

6 finds that there was no default by the bor7 rower in the payment of interest or prin8 cipal or that the default has been rem9 edied. 

10 (iii) FORBEARANCE.—Nothing in this 

11 paragraph precludes any forbearance by 

12 the holder of the obligation for the benefit 

13 of the borrower which may be agreed upon 

14 by the parties to the obligation and ap15 proved by the Director. 

16 (B) SUBROGATION.— 

17 (i) IN GENERAL.—If the Director 

18 makes a payment under subparagraph (A), 

19 the Director shall be subrogated to the 

20 rights of the recipient of the payment as 

21 specified in the guarantee or related agree22 ments including, where appropriate, the 

23 authority (notwithstanding any other pro24 vision of law) to— 


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1 (I) complete, maintain, operate, 

2 lease, or otherwise dispose of any 

3 property acquired pursuant to such 

4 guarantee or related agreements; or 

5 (II) permit the borrower, pursu6 ant to an agreement with the Direc7 tor, to continue to pursue the pur8 poses of the project if the Director de9 termines this to be in the public inter10 est. 

11 (ii) SUPERIORITY OF RIGHTS.—The 

12 rights of the Director, with respect to any 

13 property acquired pursuant to a guarantee 

14 or related agreements, shall be superior to 

15 the rights of any other person with respect 

16 to the property. 

17 (iii) TERMS AND CONDITIONS.—A 

18 guarantee agreement shall include such de19 tailed terms and conditions as the Director 

20 determines appropriate to— 

21 (I) protect the interests of the 

22 United States in the case of default; 

23 and 

24 (II) have available all the patents 

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1 son selected, including the Director, to 

2 complete and operate the project. 

3 (C) PAYMENT OF PRINCIPAL AND INTER4 EST BY DIRECTOR.—With respect to any obliga5 tion guaranteed under this section, the Director 

6 may enter into a contract to pay, and pay, hold7 ers of the obligation, for and on behalf of the 

8 borrower, from funds appropriated for that pur9 pose, the principal and interest payments which 

10 become due and payable on the unpaid balance 

11 of the obligation if the Director finds that— 

12 (i)(I) the borrower is unable to meet 

13 the payments and is not in default; 

14 (II) it is in the public interest to per15 mit the borrower to continue to pursue the 

16 purposes of the project; and 

17 (III) the probable net benefit to the 

18 Federal Government in paying the prin19 cipal and interest will be greater than that 

20 which would result in the event of a de21 fault; 

22 (ii) the amount of the payment that 

23 the Director is authorized to pay shall be 

24 no greater than the amount of principal 

25 and interest that the borrower is obligated 


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1 to pay under the agreement being guaran2 teed; and 

3 (iii) the borrower agrees to reimburse 

4 the Director for the payment (including in5 terest) on terms and conditions that are 

6 satisfactory to the Director. 

7 (D) ACTION BY ATTORNEY GENERAL.— 

8 (i) NOTIFICATION.—If the borrower 

9 defaults on an obligation, the Director 

10 shall notify the Attorney General of the de11 fault. 

12 (ii) RECOVERY.—On notification, the 

13 Attorney General shall take such action as 

14 is appropriate to recover the unpaid prin15 cipal and interest due from— 

16 (I) such assets of the defaulting 

17 borrower as are associated with the 

18 obligation; or 

19 (II) any other security pledged to 

20 secure the obligation. 

21 (4) FEES.— 

22 (A) IN GENERAL.—The Director shall 

23 charge and collect fees for guarantees in 

24 amounts the Director determines are sufficient 


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1 to cover applicable administrative expenses, not 

2 to exceed 1 percent of the amount guaranteed. 

3 (B) AVAILABILITY.—Fees collected under 

4 this paragraph shall— 

5 (i) be deposited by the Director into 

6 the Treasury; and 

7 (ii) remain available until expended, 

8 subject to such other conditions as are con9 tained in annual appropriations Acts. 

10 (c) CREDIT REQUIREMENTS.—To receive a loan 

11 guaranteed under this section a qualified minority busi12 ness shall— 

13 (1) be in good standing with regard to the cred14 it of that business in the determination of the Direc15 tor; 

16 (2) have received technical assistance under sec17 tion 103; and 

18 (3) submit reports, at such time, in such form, 

19 and containing such information as the Director 

20 may require regarding the credit of the business. 

21 (d) LIMITS ON GUARANTEE AMOUNTS.— 

22 (1) MAXIMUM AMOUNT OF GUARANTEE.—The 

23 Director may not guarantee more than $450,000 of 

24 any loan under this section. 


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1 (2) MAXIMUM GROSS LOAN AMOUNT.—A loan 

2 guaranteed under this section may not be for a gross 

3 loan amount in excess of $500,000. 

4 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to the Director not more 

6 than $500,000,000 to carry out this section during fiscal 

7 years 2011 through 2016. 

8 SEC. 105. SET-ASIDE CONTRACTING OPPORTUNITIES. 

9 (a) IN GENERAL.—The Director may enter into 

10 agreements with the United States Government and any 

11 department, agency, or officer thereof having procurement 

12 powers for purposes of providing for the fulfillment of pro13 curement contracts and providing opportunities for quali14 fied minority businesses with regard to such contracts. 

15 (b) QUALIFICATIONS ON PARTICIPATION.—The Di16 rector shall by rule establish requirements for participa17 tion under this section by a qualified minority business 

18 in a contract. 

19 (c) ANNUAL LIMIT ON NUMBER OF CONTRACTS PER

20 QUALIFIED MINORITY BUSINESS.—A qualified minority 

21 business may not participate under this section in con22 tracts in an amount that exceeds $10,000,000 for goods 

23 and services each fiscal year. 

24 (d) LIMITS ON CONTRACT AMOUNTS.— 


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1 (1) GOODS AND SERVICES.—Except as provided 

2 in paragraph (2), a contract for goods and services 

3 under this section may not exceed $6,000,000. 

4 (2) MANUFACTURING AND CONSTRUCTION.—A 

5 contract for manufacturing and construction services 

6 under this section may not exceed $10,000,000. 

7 SEC. 106. TERMINATION FROM THE PROGRAM. 

8 The Director may terminate a qualified minority 

9 business from the Program for any violation of a require10 ment of sections 102 through 105 of this Act by that 

11 qualified minority business, including the following: 

12 (1) Conduct by a principal of the qualified mi13 nority business that indicates a lack of business in14 tegrity. 

15 (2) Willful failure to comply with applicable 

16 labor standards and obligations. 

17 (3) Consistent failure to tender adequate per18 formance with regard to contracts under the Pro19 gram. 

20 (4) Failure to obtain and maintain relevant cer21 tifications. 

22 (5) Failure to pay outstanding obligations owed 

23 to the Federal Government. 


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1 SEC. 107. REPORTS. 

2 (a) REPORT OF THE DIRECTOR.—Not later than Oc3 tober 1, 2011, and annually thereafter, the Director shall 

4 submit to the Committee on Energy and Commerce of the 

5 House of Representatives and the Committee on Com6 merce, Science, and Transportation of the Senate a report 

7 describing the activities of the Director during the pre8 ceding year with respect to the Program. 

9 (b) REPORT OF THE SECRETARY OF COMMERCE.— 

10 Not later than October 1, 2011, and annually thereafter, 

11 the Secretary of Commerce shall submit to the Committee 

12 on Energy and Commerce of the House of Representatives 

13 and the Committee on Commerce, Science, and Transpor14 tation of the Senate a report describing the activities the 

15 Secretary engaged in during the preceding year to build 

16 wealth among historically disadvantaged individuals. 

17 SEC. 108. DEFINITIONS. 

18 In this Act: 

19 (1) The term ‘‘historically disadvantaged indi20 vidual’’ means any individual who is a member of a 

21 group that is designated as eligible to receive assist22 ance under section 1400.1 of title 15, Code of Fed23 eral Regulations, as in effect on January 1, 2009. 

24 (2) The term ‘‘principal’’ means any person 

25 that the Director determines to exercise significant 


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1 control over the regular operations of a business en2 tity. 

3 TITLE II—MINORITY BUSINESS 

4 DEVELOPMENT AGENCY 

5 DATABASE 

6 SEC. 201. MINORITY BUSINESS DEVELOPMENT AGENCY 

7 DATABASE. 

8 Not later than 90 days after the date of enactment 

9 of this Act, the National Director of the Minority Business 

10 Development Agency shall establish a database to assist 

11 prime contractors in identifying historically disadvantaged 

12 firms for subcontracting. 

13 DIVISION C—COMMUNITY ECO14 NOMIC DEVELOPMENT PRO15 VISIONS 

16 TITLE I—ENSURING JOB QUAL17 ITY AND ACCESS IN THE CON18 STRUCTION SECTOR 

19 SEC. 101. TARGETED HIRING REQUIREMENT FOR CERTAIN 

20 CONSTRUCTION JOBS. 

21 (a) CONTRACTS SUBJECT TO THIS SECTION.—The 

22 requirements of this section shall apply to all contracts 

23 for construction and rehabilitation of facilities and infra24 structure funded directly by or assisted in whole or in part 

25 by or through the Federal Government in fiscal year 2011. 


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1 (b) EMPLOYMENT OF TARGETED WORKERS.— 

2 (1) PROJECT WORK HOURS REQUIREMENT.— 

3 The Secretary of Labor shall establish a minimum 

4 percentage of construction work hours to be per5 formed by targeted workers for each contract subject 

6 to this section in each labor market area. 

7 (2) UTILIZATION OF APPRENTICESHIP PRO8 GRAMS.— 

9 (A) CONTRACTOR PARTICIPATION RE10 QUIREMENTS.—Each contractor and subcon11 tractor that seeks to provide construction serv12 ices on contracts subject to this section shall 

13 submit adequate assurances with its bid or pro14 posal that it participates in a qualified appren15 ticeship program, with a written arrangement 

16 with a qualified pre-apprenticeship program, as 

17 defined by the Secretary of Labor, for each 

18 craft or trade classification of worker that the 

19 contractor or subcontractor intends to employ 

20 to perform work on the project. 

21 (B) CERTIFICATION OF OTHER PROGRAMS

22 IN CERTAIN LOCALITIES.—In the event that the 

23 Secretary of Labor certifies that a qualified ap24 prenticeship program (as defined in subpara25 graph (A)) for a craft or trade classification 


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1 that a prospective contractor or subcontractor 

2 intends to employ, is not operated in the local3 ity where the contract or subcontract will be 

4 performed, an apprenticeship or other training 

5 program that is not an employee welfare benefit 

6 plan (as defined in such section) may be cer7 tified by the Secretary as a qualified appren8 ticeship or other training program provided it is 

9 registered with the Department of Labor, Office 

10 of Apprenticeship, or a State apprenticeship 

11 agency recognized by the Office of Apprentice12 ship for Federal purposes. 

13 (C) APPRENTICE UTILIZATION.—Each con14 tractor and subcontractor performing work on 

15 contracts subject to this section shall employ 

16 apprentices or trainees enrolled in qualified ap17 prenticeship programs to the maximum extent 

18 permitted in the program’s written standards, 

19 and shall submit adequate assurances that it is 

20 not party to contractual agreements that pre21 clude its ability to meet the targeted hiring re22 quirements set forth in paragraph (1). 

23 (3) DEFINITIONS.—For purposes of this sec24 tion— 


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1 (A) the term ‘‘labor market area’’ has the 

2 meaning given such term in section 101(18) of 

3 the Workforce Investment Act of 1998 (29 

4 U.S.C. 2801(18)); 

5 (B) the term ‘‘qualified apprenticeship pro6 gram’’ means an apprenticeship or other train7 ing program that qualifies as an ‘‘employee wel8 fare benefit plan’’ as defined in section 3(1) of 

9 the Employee Retirement Income Security Act 

10 of 1974 (29 U.S.C. 1002(1)); and 

11 (C) the term ‘‘targeted workers’’ means in12 dividuals who reside in the same labor market 

13 area as the applicable project and who— 

14 (i)(I) are members of families that re15 ceived a total income, that during the 2- 

16 year period prior to employment on the 

17 project or admission to the pre-apprentice18 ship program, did not exceed 200 percent 

19 of the Federal poverty guidelines (exclusive 

20 of unemployment compensation, child sup21 port payments, payments described in 29 

22 United States Code section 2801(25)(A), 

23 and old-age and survivors insurance bene24 fits received under section 202 of the So25 cial Security Act (42 U.S.C. 402); and 


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1 (II) reside in a census tract in which 

2 not less than 20 percent of the households 

3 have income below the Federal poverty 

4 guidelines; 

5 (ii) are members of a targeted group, 

6 within the meaning of section 51 of the In7 ternal Revenue Code of 1986; or 

8 (iii) qualify as ‘‘displaced home9 makers’’ as such term is defined in section 

10 3(10) of the Carl D. Perkins Career and 

11 Technical Education Act of 2006 (20 

12 U.S.C. 2302(10)). 

13 (c) FACILITATING COMPLIANCE AND PROJECT EFFI14 CIENCY.—In order to achieve the purposes of this section 

15 and to promote prompt completion of construction projects 

16 undertaken pursuant to this Act, the Secretary of Labor 

17 may require that contractors and subcontractors per18 forming construction work under a contract subject to this 

19 section enter into an agreement consistent with the stand20 ards set forth in section 4 of Executive Order 13502 and 

21 the requirements of subsection (b)(1) of this section. 

22 (d) IMPLEMENTATION.— 

23 (1) IN GENERAL.—No law or regulation gov24 erning the operations or activities of any agency re25 sponsible for implementing provisions of this section 


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1 shall be interpreted to prohibit Federal agencies, 

2 funding recipients, contractors, or subcontractors, 

3 from advancing the purposes of this section through 

4 additional project requirements or actions. The Sec5 retary of Labor shall be responsible for ensuring the 

6 implementation and enforcement of this section, in7 cluding investigating noncompliance, and shall, not 

8 later than 180 days after the date of enactment of 

9 this Act, adopt such rules, regulations, and guid10 ance, and issue such orders as the Secretary deter11 mines necessary and appropriate to achieve the pur12 poses of this section. 

13 (2) COMPLIANCE.—In the event of material 

14 noncompliance with this section by a recipient, con15 tractor, or subcontractor, the Secretary of Labor 

16 shall have the authority to assess and collect pen17 alties from such recipient, contractor, or subcon18 tractor of not more than 5 percent of the contract 

19 amount. The Secretary shall allow for reduction or 

20 avoidance of penalty assessments for non-compliance 

21 with the targeted hiring requirements of subsection 

22 (b)(1) only where the entity in question dem23 onstrates that— 


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1 (A) compliance was impossible because of a 

2 shortage of targeted workers in the local labor 

3 market; and 

4 (B) the employer utilized all specified 

5 measures to obtain targeted workers. 

6 The Secretary may specify measures required to be 

7 taken to obtain targeted workers. 

8 (e) DEDICATED RESOURCES FOR TRAINING AND RE9 CRUITMENT.—In order to facilitate the objectives of this 

10 section, not less than 1 percent of any funds authorized 

11 and appropriated or otherwise allocated for construction 

12 for fiscal year 2011 shall be set aside to— 

13 (1) provide pre-apprenticeship training and 

14 other support services through programs that have 

15 strong track records of placing targeted workers into 

16 sustained employment in the construction trades and 

17 that have written agreements with qualified appren18 ticeship programs; 

19 (2) provide support to community-based organi20 zations that have written agreements with programs 

21 described in subsection (b)(2) to participate in such 

22 programs by recruiting targeted workers; or 

23 (3) provide support to contractors either— 

24 (A) that are community-based nonprofit 

25 organizations that both— 


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1 (i) have a governing body in which a 

2 majority the members qualify as targeted 

3 workers; and 

4 (ii) have less than one million dollars 

5 in annual revenue from construction work 

6 of any type, or 

7 (B) in which such a community-based non8 profit organization has a 100 percent control9 ling interest for work relating to such Act to 

10 meet the cost of participating in apprenticeship 

11 programs. 

12 (f) SENSE OF CONGRESS REGARDING PARTICIPATION

13 OF SOCIALLY AND ECONOMICALLY DISADVANTAGED

14 BUSINESSES.—It is the sense of Congress that each agen15 cy responsible for implementing provisions relating to con16 struction contracting and subcontracting in fiscal year 

17 2011 should ensure that any regulation, policy, or funding 

18 disbursement made provides for the inclusive participation 

19 by socially and economically disadvantaged small business 

20 concerns, as defined under section 8(a) of the Small Busi21 ness Act (15 U.S.C. 637(a)), including through bidding 

22 credits, program eligibility standards, and other means. 


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1 TITLE II—2-YEAR EXTENSION OF 

2 NEW MARKETS TAX CREDIT 

3 NATIONAL LIMITATION 

4 SEC. 201. 2-YEAR EXTENSION OF NEW MARKETS TAX CRED5 IT NATIONAL LIMITATION. 

6 (a) IN GENERAL.—Subparagraph (F) of section 

7 45D(f)(1) of the Internal Revenue Code of 1986 is amend8 ed by striking ‘‘2009’’ and inserting ‘‘2009, 2010, and 

9 2011’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to investments made after Decem12 ber 31, 2009. 

13 TITLE III—EXTENSION OF EM14 POWERMENT ZONE DESIGNA15 TION 

16 SEC. 301. EXTENSION OF EMPOWERMENT ZONE DESIGNA17 TION. 

18 (a) IN GENERAL.—Clause (i) of section 

19 1391(d)(1)(A) of the Internal Revenue Code of 1986 is 

20 amended by striking ‘‘December 31, 2009’’ and inserting 

21 ‘‘December 31, 2011’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to areas with respect to which a 


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1 designation under section 1391 of such Code is in effect 

2 on December 31, 2009. 

Æ 


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