I 
110TH CONGRESS 
1ST SESSION H. R. 1985 
To foster the development of minority-owned small businesses. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 20, 2007 
Mr. CUMMINGS introduced the following bill; which was referred to the Com-
mittee on Small Business, 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 with-
in the jurisdiction of the committee concerned 
A BILL 
To foster the development of minority-owned small 
businesses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Minority Entrepre-
neurship Development Act of 2007’’. 
SEC. 2. FINDINGS. 
Congress finds that— 
(1) in 2005, the African American unemploy-
ment rate was 9.5 percent and the Hispanic Amer-
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ican unemployment rate was 6 percent, well above 
the national average of 4.7 percent; 
(2) Hispanics Americans represent 12.5 percent 
of the United States population and approximately 
6 percent of all United States businesses; 
(3) African Americans account for 12.3 percent 
of the population and only 4 percent of all United 
States businesses; 
(4) Native Americans account for approximately 
1 percent of the population and .9 percent of all 
United States businesses; 
(5) entrepreneurship has proven to be an effec-
tive tool for economic growth and viability of all 
communities; 
(6) minority-owned businesses are a key ingre-
dient for economic development in the community, 
an effective tool for creating lasting and higher-pay-
ing jobs, and a source of wealth in the minority com-
munity; and 
(7) between 1987 and 1997, revenue from mi-
nority-owned firms rose by 22.5 percent, an increase 
equivalent to an annual growth rate of 10 percent, 
and employment opportunities within minority- 
owned firms increased by 23 percent. 
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SEC. 3. DEFINITIONS. 
In this Act— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration 
and the Administrator thereof, respectively; 
(2) the term ‘‘eligible association or organiza-
tion’’ means an association or organization that— 
(A) is— 
(i) a national minority business asso-
ciation organized in accordance with sec-
tion 501(c)(6) of the Internal Revenue 
Code of 1986; or 
(ii) a foundation of national minority 
business associations organized in accord-
ance with section 501(c)(3) of the Internal 
Revenue Code of 1986; 
(B) has a well established national network 
of local chapters, or a proven national member-
ship; and 
(C) has been in existence for at least the 
10-year period before the date of awarding a 
grant under section 6; 
(3) the term ‘‘eligible educational institution’’ 
means an institution that is— 
(A) a public or private institution of higher 
education (including any land-grant college or 
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university, any college or school of business, en-
gineering, commerce, or agriculture, or commu-
nity college or junior college) or any entity 
formed by 2 or more institutions of higher edu-
cation; and 
(B) a— 
(i) historically Black college; 
(ii) Hispanic-serving institution; or 
(iii) tribal college; 
(4) the term ‘‘historically Black college’’ means 
a part B institution, as that term is defined in sec-
tion 322 of the Higher Education Act of 1965 (20 
U.S.C. 1061); 
(5) the term ‘‘Hispanic-serving institution’’ has 
the meaning given that term in section 502 of the 
Higher Education Act of 1965 (20 U.S.C. 1101a); 
(6) the term ‘‘institution of higher education’’ 
has the meaning given that term in section 101 of 
the Higher Education Act of 1965 (20 U.S.C. 
1101); 
(7) the term ‘‘small business concern’’ has the 
meaning given that term in section 3 of the Small 
Business Act (15 U.S.C. 532); 
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(8) the term ‘‘small business development cen-
ter’’ has the meaning given that term in section 21 
of the Small Business Act (15 U.S.C. 648); and 
(9) the term ‘‘tribal college’’ has the same 
meaning as the term ‘‘tribally controlled college or 
university’’ under section 2(a)(4) of the Tribally 
Controlled Community College Assistance Act of 
1978 (25 U.S.C. 1801(a)(4)). 
SEC. 4. MINORITY SMALL BUSINESS DEVELOPMENT. 
(a) IN GENERAL.—The Small Business Act (15 
U.S.C. 631 et seq.) is amended— 
(1) by redesignating section 37 as section 38; 
and 
(2) by inserting after section 36 the following: 
‘‘SEC. 37. MINORITY SMALL BUSINESS DEVELOPMENT. 
‘‘(a) OFFICE OF MINORITY SMALL BUSINESS DE-
VELOPMENT.—There is established in the Administration 
an Office of Minority Small Business Development, which 
shall be administered by the Associate Administrator for 
Minority Small Business Development appointed under 
section 4(b)(1) (in this section referred to as the ‘Asso-
ciate Administrator’). 
‘‘(b) ASSOCIATE ADMINISTRATOR
FOR MINORITY 
SMALL BUSINESS DEVELOPMENT.—The Associate Ad-
ministrator shall— 
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‘‘(1) be— 
‘‘(A) an appointee in the Senior Executive 
Service who is a career appointee; or 
‘‘(B) an employee in the competitive serv-
ice; 
‘‘(2) be responsible for the formulation, execu-
tion, and promotion of policies and programs of the 
Administration that provide assistance to small busi-
ness concerns owned and controlled by minorities; 
‘‘(3) act as an ombudsman for full consider-
ation of minorities in all programs of the Adminis-
tration (including those under section 7(j) and 8(a)); 
‘‘(4) work with the Associate Deputy Adminis-
trator for Capital Access of the Administration to 
increase the proportion of loans and loan dollars, 
and investments and investment dollars, going to mi-
norities through the finance programs under this 
Act and the Small Business Investment Act of 1958 
(including subsections (a), (b), and (m) of section 7 
of this Act and the programs under title V and parts 
A and B of title III of the Small Business Invest-
ment Act of 1958); 
‘‘(5) work with the Associate Deputy Adminis-
trator for Entrepreneurial Development of the Ad-
ministration to increase the proportion of counseling 
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and training that goes to minorities through the en-
trepreneurial development programs of the Adminis-
tration; 
‘‘(6) work with the Associate Deputy Adminis-
trator for Government Contracting and Minority En-
terprise Development of the Administration to in-
crease the proportion of contracts, including through 
the Small Business Innovation Research Program 
and the Small Business Technology Transfer Pro-
gram, to minorities; 
‘‘(7) work with the partners of the Administra-
tion, trade associations, and business groups to iden-
tify and carry out policies and procedures to more 
effectively market the resources of the Administra-
tion to minorities; 
‘‘(8) work with the Office of Field Operations 
of the Administration to ensure that district offices 
and regional offices have adequate staff, funding, 
and other resources to market the programs of the 
Administration to meet the objectives described in 
paragraphs (4) through (7); and 
‘‘(9) report to and be responsible directly to the 
Administrator. 
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‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this sec-
tion— 
‘‘(1) $5,000,000 for fiscal year 2007; 
‘‘(2) $5,000,000 for fiscal year 2008; and 
‘‘(3) $5,000,000 for fiscal year 2009.’’. 
(b) CONFORMING AMENDMENTS.—Section 4(b)(1) of 
the Small Business Act (15 U.S.C. 633(b)(1)) is amended 
in the sixth sentence, by striking ‘‘Minority Small Busi-
ness and Capital Ownership Development’’ and all that 
follows through the end of the sentence and inserting ‘‘Mi-
nority Small Business Development.’’. 
SEC. 5. MINORITY ENTREPRENEURSHIP AND INNOVATION 
PILOT PROGRAM OF 2007. 
(a) IN GENERAL.—The Administrator may make 
grants to eligible educational institutions— 
(1) to assist in establishing an entrepreneurship 
curriculum for undergraduate or graduate studies; 
and 
(2) for placement of a small business develop-
ment center on the physical campus of the institu-
tion. 
(b) USE OF FUNDS.— 
(1) CURRICULUM REQUIREMENT.— 
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(A) IN GENERAL.—An eligible educational 
institution receiving a grant under this section 
shall develop a curriculum that includes train-
ing in various skill sets needed by successful en-
trepreneurs, including— 
(i) business management and mar-
keting, financial management and account-
ing, market analysis and competitive anal-
ysis, and innovation and strategic plan-
ning; and 
(ii) additional entrepreneurial skill 
sets specific to the needs of the student 
population and the surrounding commu-
nity, as determined by the institution. 
(B) FOCUS.—The focus of the curriculum 
developed under this paragraph shall be to help 
students in non-business majors develop the 
tools necessary to use their area of expertise as 
entrepreneurs. 
(2) SMALL BUSINESS DEVELOPMENT CENTER 
REQUIREMENT.—Each eligible educational institu-
tion receiving a grant under this section shall open 
a small business development center that— 
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(A) performs studies, research, and coun-
seling concerning the managing, financing, and 
operation of small business concerns; 
(B) performs management training and 
provides technical assistance regarding small 
business concern participation in international 
markets, export promotion and technology 
transfer, and the delivery or distribution of 
such services and information; 
(C) offers referral services for entre-
preneurs and small business concerns to busi-
ness development, financing, and legal experts; 
and 
(D) promotes market-specific innovation, 
niche 
marketing, 
capacity 
building, 
inter-
national trade, and strategic planning as keys 
to long term growth for its small business con-
cern and entrepreneur clients. 
(c) GRANT AWARDS.— 
(1) IN GENERAL.—The Administrator may not 
award a grant under this section to a single eligible 
educational institution— 
(A) in excess of $1,000,000 in any fiscal 
year; or 
(B) for a term of more than 2 years. 
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(2) LIMITATION
ON
USE
OF
FUNDS.—Funds 
made available under this section may not be used 
for— 
(A) any purpose other than those associ-
ated with the direct costs incurred by the eligi-
ble educational institution to— 
(i) develop and implement the cur-
riculum described in subsection (b)(1); or 
(ii) organize and operate a small busi-
ness development center, as described in 
subsection (b)(2); or 
(B) building expenses, administrative trav-
el budgets, or other expenses not directly re-
lated to the costs described in subparagraph 
(A). 
(d) MATCHING NOT REQUIRED.—Subparagraphs (A) 
and (B) of section 21(a)(4) of the Small Business Act (15 
U.S.C. 648(a)(4)) shall not apply to a grant made under 
this section. 
(e) REPORT.— 
(1) IN GENERAL.—Not later than November 1 
of each year in which funds are made available for 
grants under this section, the Associate Adminis-
trator of Entrepreneurial Development of the Ad-
ministration shall submit to the Committee on Small 
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Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of 
Representatives, a report evaluating the success of 
the program under this section during the preceding 
fiscal year. 
(2) CONTENTS.—Each report under paragraph 
(1) shall include— 
(A) a description of each entrepreneurship 
program developed with grant funds, the date 
of the award, and the number of participants in 
each such program; 
(B) the number of small business assisted 
through the small business development center 
with grant funds; and 
(C) data regarding the economic impact of 
the small business development center coun-
seling provided with grant funds. 
(f) AUTHORIZATION OF APPROPRIATION.—There are 
authorized to be appropriated to carry out this section 
$24,000,000 for each of fiscal years 2007 through 2009, 
to remain available until expended. 
(g) LIMITATION ON USE OF OTHER FUNDS.—The 
Administrator shall carry out this section only with 
amounts appropriated in advance specifically to carry out 
this section. 
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