I 
109TH CONGRESS 
2D SESSION 
H. R. 5878 
To establish a 2-year pilot program to develop a curriculum at historically 
Black colleges and universities, Tribal colleges and universities, and His-
panic-serving institutions to foster entrepreneurship and business develop-
ment in underserved minority communities. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2006 
Mr. 
CUMMINGS
(for 
himself, 
Mr. 
THOMPSON
of 
Mississippi, 
Mrs. 
NAPOLITANO, Mr. BISHOP of Georgia, Mr. WYNN, Ms. WASSERMAN 
SCHULTZ, Mr. SCOTT of Virginia, Mr. OWENS, Mr. CARDIN, Mr. AL 
GREEN of Texas, Mr. MEEKS of New York, Mr. RUSH, Ms. MILLENDER- 
MCDONALD, Mr. GRIJALVA, Mr. CONYERS, Mr. BUTTERFIELD, Mr. 
BOYD, Mr. ROSS, Mr. DAVIS of Illinois, Mrs. JONES of Ohio, Ms. LINDA 
T. SA´NCHEZ of California, Ms. NORTON, Ms. KILPATRICK of Michigan, 
Mr. BACA, Mr. SCOTT of Georgia, Mr. VAN HOLLEN, Ms. SOLIS, Mr. 
PAYNE, Ms. LEE, Mr. RUPPERSBERGER, Mr. FARR, Mr. CLYBURN, Mr. 
CLAY, and Mr. CLEAVER) introduced the following bill; which was re-
ferred to the Committee on Education and the Workforce, and in addition 
to the Committee on Small Business, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To establish a 2-year pilot program to develop a curriculum 
at historically Black colleges and universities, Tribal col-
leges and universities, and Hispanic-serving institutions 
to foster entrepreneurship and business development in 
underserved minority communities. 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6652
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
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 and Innovation Pilot Program of 2006’’. 
SEC. 2. FINDINGS. 
Congress finds— 
(1) the 2005 ‘‘State of Black America Report’’ 
issued by the National Urban League finds a signifi-
cant level of ‘‘equality gaps’’ between African Ameri-
cans and Whites, with the median net worth of an 
African-American family is $6,100, compared with 
$67,000 for a white family; 
(2) the American Community Survey of Median 
Income conducted by the Bureau of the Census in 
2004 indicates that— 
(A) African Americans have a median 
household income that is 62 percent of that of 
Whites; 
(B) Native Americans have a median 
household income that is 65 percent of that of 
Whites; and 
(C) Hispanic Americans have a median 
household income that is 74 percent of that of 
Whites; 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
(3) in 2005, the African American unemploy-
ment rate was 9.5 percent and the Hispanic unem-
ployment rate was 6 percent, well above the national 
average of 4.7 percent; 
(4) African Americans account for 12.3 percent 
of the United States population and only 4 percent 
of all United States businesses, Hispanic Americans 
represent 12.5 percent of the United States popu-
lation and approximately 6 percent of all United 
States businesses, Native Americans account for ap-
proximately 1 percent of the United States popu-
lation 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) fostering minority owned businesses is a key 
ingredient for economic development in the minority 
community, an effective tool for creating lasting and 
higher-paying jobs, and a source of creating wealth 
in the minority community; and 
(7) between 1987 and 1997, revenue from mi-
nority owned businesses rose by 22.5 percent, an in-
crease equivalent to an annual growth rate of 10 
percent, and employment opportunities within mi-
nority owned firms increased by 23 percent. 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
SEC. 3. DEFINITIONS. 
In this Act— 
(1) the term ‘‘Administrator’’ means the Ad-
ministrator of the Small Business Administration; 
(2) the term ‘‘Hispanic-serving institutions’’ 
means the institutions that are within the definition 
given the term ‘‘Hispanic-serving institution’’ in sec-
tion 502 of the Higher Education Act of 1965 (20 
U.S.C. 1101a); 
(3) the term ‘‘historically Black colleges and 
universities’’ means the institutions that are within 
the definition given the term ‘‘part B institution’’ in 
section 322 of the Higher Education Act of 1965 
(20 U.S.C. 1061); 
(4) the term ‘‘small business concern’’ has the 
same meaning as in section 3 of the Small Business 
Act (15 U.S.C. 632); 
(5) the term ‘‘small business development cen-
ter’’ has the same meaning as in section 21 of the 
Small Business Act (15 U.S.C. 648); and 
(6) the term ‘‘Tribal colleges and universities’’ 
means the institutions that are within the definition 
given the term ‘‘Tribal College or University’’ in sec-
tion 316(b)(3) of the Higher Education Act of 1965 
(20 U.S.C. 1059c) 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
SEC. 4. MINORITY ENTREPRENEURSHIP AND INNOVATION 
GRANTS. 
(a) IN GENERAL.—The Administrator shall make 
grants to historically Black colleges and universities, Trib-
al colleges and universities, and Hispanic-serving institu-
tions, or to any entity formed by a combination of such 
institutions— 
(1) to assist in establishing an entrepreneurship 
curriculum for undergraduate or graduate studies; 
and 
(2) for placement of small business development 
centers on the physical campus of the institution. 
(b) CURRICULUM REQUIREMENT.—An institution of 
higher education receiving a grant under this section shall 
develop a curriculum that includes training in various skill 
sets needed by successful entrepreneurs, including— 
(1) business management and marketing, finan-
cial management and accounting, market analysis 
and competitive analysis, innovation and strategic 
planning; and 
(2) additional entrepreneurial skill sets specific 
to the needs of the student population and the sur-
rounding community, as determined by the institu-
tion. 
(c) SMALL BUSINESS DEVELOPMENT CENTER RE-
QUIREMENT.—Each institution receiving a grant under 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
this section shall open a small business development center 
that— 
(1) performs studies, research, and counseling 
concerning the management, financing, and oper-
ation of small business concerns; 
(2) performs management training and tech-
nical assistance regarding the participation of small 
business concerns in international markets, export 
promotion and technology transfer, and the delivery 
or distribution of such services and information; 
(3) offers referral services for entrepreneurs 
and small business concerns to business develop-
ment, financing, and legal experts; and 
(4) promotes market-specific innovation, niche 
marketing, capacity building, international trade, 
and strategic planning as keys to long-term growth 
for its small business concern and entrepreneur cli-
ents. 
(d) GRANT LIMITATIONS.—A grant under this sub-
section— 
(1) may not exceed $1,000,000 per fiscal year 
for any 1 institution of higher education; 
(2) may not be used for any purpose other than 
those associated with the direct costs incurred to de-
velop and implement a curriculum that fosters entre-
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
preneurship and the costs incurred to organize and 
run a small business development center on the 
grounds of the institution; and 
(3) may not be used for building expenses, ad-
ministrative travel budgets, or other expenses not di-
rectly related to the implementation of the cur-
riculum or activities authorized by this Act. 
(e) EXCEPTION FROM SMALL BUSINESS ACT RE-
QUIREMENT.—Subparagraphs (A) and (B) of section 
21(a)(4) of the Small Business Act (15 U.S.C. 648(a)(4)) 
do not apply to assistance made available under this sec-
tion. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$24,000,000, to remain available until expended, for each 
of fiscal years 2007 and 2008. 
(g) REPORT.—Not later than November 1 of each 
year, the Associate Administrator of Entrepreneurial De-
velopment of the Small Business Administration shall sub-
mit to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small Busi-
ness of the House of Representatives, a report evaluating 
the award and use of grants under this section during the 
preceding fiscal year, which shall include— 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS
(1) a description of each entrepreneurship pro-
gram developed with grant funds, the date of the 
award of such grant, and the number of participants 
in each such program; 
(2) the number of small business concerns as-
sisted by each small business development center es-
tablished with a grant under this section; and 
(3) data regarding the economic impact of the 
small business development center counseling pro-
vided under a grant under this section. 
(h) 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. 
Æ 
VerDate Aug 31 2005 
23:51 Jul 26, 2006
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H5878.IH
H5878
hmoore on PROD1PC68 with HMBILLS