I 
112TH CONGRESS 
1ST SESSION H. R. 2424 
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 
JULY 6, 2011 
Mr. RUSH introduced the following bill; which was referred to the Committee 
on Small Business, and in addition to the Committees on Financial Serv-
ices, Oversight and Government Reform, and Ways and Means, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee 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 disadvan-
taged, and for other purposes. 
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 ‘‘Expanding Opportuni-
ties for Main Street Act of 2011’’. 
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TITLE I—SMALL BUSINESS 
ADMINISTRATION 
SEC. 101. CONTRACT OPPORTUNITIES FOR SMALL BUSI-
NESS CONCERNS. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘eligible contract’’ means any con-
tract for the acquisition of goods or services that is 
in an amount (including options) of more than 
$3,000 and less than $500,000; and 
(2) the term ‘‘small business concern’’ has the 
meaning given that term under section 3(a) of the 
Small Business Act (15 U.S.C. 632(a)). 
(b) IN GENERAL.—Notwithstanding any other provi-
sion of law, a Federal department or agency shall, to the 
extent practicable, award to a small business concern each 
eligible contract let by the department or agency. 
(c) SOLE SOURCE CONTRACTS.—A Federal depart-
ment or agency may award an eligible contract as a sole 
source contract to a small business concern if at least 1 
small business concern submits an offer with respect to 
the eligible contract. 
(d) AWARD
TO
SMALL
BUSINESS
NOT
PRAC-
TICABLE.— 
(1) IN GENERAL.—If a contracting officer of a 
Federal department or agency determines that 
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awarding an eligible contract to a small business 
concern under subsection (b) is not practicable, the 
contracting officer shall make available to the Ad-
ministrator of the Small Business Administration 
and the public— 
(A) the determination and reasoning of 
such officer with respect to the eligible contract; 
and 
(B) the name of each small business con-
cern that submitted an offer with respect to the 
eligible contract. 
(2) REVIEW.—The Administrator of the Small 
Business Administration shall— 
(A) review a determination under para-
graph (1); and 
(B) if the Administrator determines it is 
appropriate, open the eligible contract oppor-
tunity for the submission of additional offers 
and award the contract. 
SEC. 102. ENHANCEMENT OF SERVICES TO SMALL BUSI-
NESSES THAT ARE DISADVANTAGED. 
(a) NET WORTH.—Section 8(a)(6)(A) of the Small 
Business Act (15 U.S.C. 637(a)(6)(A)) is amended by in-
serting after ‘‘disadvantaged individual.’’ the following: 
‘‘For purposes of this section, an individual having a net 
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worth of more than $1,500,000 is not economically dis-
advantaged.’’. 
(b) 
TIME
LIMIT
ON
PARTICIPATION.—Section 
7(j)(15) of the Small Business Act (15 U.S.C. 636(j)(15)) 
is amended— 
(1) by redesignating subparagraphs (A) and 
(B) as clauses (i) and (ii), respectively; 
(2) by inserting ‘‘(A)’’ after ‘‘(15)’’; and 
(3) by adding at the end the following: 
‘‘(B) No time limitation relating to the period that 
a small business concern may receive developmental assist-
ance under the Program and contracts under section 8(a) 
shall apply to a small business concern that has not com-
pleted a contract under section 8(a).’’. 
SEC. 103. SURETY BOND GUARANTEES. 
(a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of 
the Small Business Investment Act of 1958 (15 U.S.C. 
694b(a)(1)) is amended by striking ‘‘(1)’’ and all that fol-
lows and inserting the following: ‘‘(1)(A) The Administra-
tion may, upon such terms and conditions as it may pre-
scribe, guarantee and enter into commitments to guar-
antee any surety against loss resulting from a breach of 
the terms of a bid bond, payment bond, performance bond, 
or bonds ancillary thereto, by a principal on any total work 
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order or contract amount at the time of bond execution 
that does not exceed $5,000,000. 
‘‘(B) The Administrator may guarantee a surety 
under subparagraph (A) for a total work order or contract 
amount that does not exceed $10,000,000, if a contracting 
officer of a Federal agency certifies that such a guarantee 
is necessary.’’. 
(b) DENIAL OF LIABILITY.—Section 411 of the Small 
Business Investment Act of 1958 (15 U.S.C. 694b) is 
amended— 
(1) by striking subsection (e) and inserting the 
following: 
‘‘(e) REIMBURSEMENT OF SURETY; CONDITIONS.— 
Pursuant to any such guarantee or agreement, the Admin-
istration shall reimburse the surety, as provided in sub-
section (c) of this section, except that the Administration 
shall be relieved of liability (in whole or in part within 
the discretion of the Administration) if— 
‘‘(1) the surety obtained such guarantee or 
agreement, or applied for such reimbursement, by 
fraud or material misrepresentation; 
‘‘(2) the total contract amount at the time of 
execution of the bond or bonds exceeds $5,000,000; 
‘‘(3) the surety has breached a material term or 
condition of such guarantee agreement; or 
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‘‘(4) the surety has substantially violated the 
regulations promulgated by the Administration pur-
suant to subsection (d).’’; 
(2) by striking subsection (k); and 
(3) by adding after subsection (i) the following: 
‘‘(j) DENIAL OF LIABILITY.—For bonds made or exe-
cuted with the prior approval of the Administration, the 
Administration shall not deny liability to a surety based 
upon material information that was provided as part of 
the guaranty application.’’. 
SEC. 104. BUNDLED CONTRACTS. 
(a) DEFINITIONS.—Section 3(o) of the Small Busi-
ness Act (15 U.S.C. 632(o)) is amended to read as follows: 
‘‘(o) DEFINITIONS OF BUNDLING OF CONTRACT RE-
QUIREMENTS AND RELATED TERMS.—In this Act: 
‘‘(1) BUNDLED CONTRACT.— 
‘‘(A) IN
GENERAL.—The term ‘bundled 
contract’ means a contract or order that is en-
tered into to meet procurement requirements 
that are consolidated in a bundling of contract 
requirements, without regard to how the pro-
curing agency has designated the contract or 
order or whether a study of the effects of the 
solicitation on civilian or military personnel has 
been made. 
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‘‘(B) EXCEPTIONS.—The term does not in-
clude— 
‘‘(i) a contract or order with an aggre-
gate dollar value below the dollar thresh-
old; or 
‘‘(ii) a contract or order that is en-
tered into to meet an exempted require-
ment. 
‘‘(2) 
BUNDLING
OF
CONTRACT
REQUIRE-
MENTS.— 
‘‘(A) IN GENERAL.—The term ‘bundling of 
contract requirements’ means the use of any 
bundling methodology to satisfy 2 or more pro-
curement requirements for goods or services 
previously supplied or performed under separate 
smaller contracts or orders, or to satisfy 2 or 
more procurement requirements for construc-
tion services of a type historically performed 
under separate smaller contracts or orders, that 
is likely to be unsuitable for award to a small 
business concern due to— 
‘‘(i) the diversity, size, or specialized 
nature of the elements of the performance 
specified; 
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‘‘(ii) the aggregate dollar value of the 
anticipated award; 
‘‘(iii) the geographical dispersion of 
the contract or order performance sites; or 
‘‘(iv) any combination of the factors 
described in clauses (i), (ii), and (iii). 
‘‘(B) INCLUSION
OF
NEW
FEATURES
OR 
FUNCTIONS.—A combination of contract re-
quirements that would meet the definition of a 
bundling of contract requirements but for the 
addition of a procurement requirement with at 
least 1 new good or service shall be considered 
to be a bundling of contract requirements un-
less the new features or functions substantially 
transform the goods or services and will provide 
measurably substantial benefits to the Federal 
Government in terms of quality, performance, 
or price. 
‘‘(C) EXCEPTIONS.—The term ‘bundling of 
contract requirements’ does not include— 
‘‘(i) the use of a bundling method-
ology for an anticipated award with an ag-
gregate dollar value below the dollar 
threshold; or 
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‘‘(ii) the use of a bundling method-
ology to meet an exempted requirement. 
‘‘(3) BUNDLING
METHODOLOGY.—The term 
‘bundling methodology’ means— 
‘‘(A) a solicitation to obtain offers for a 
single contract or order, or a multiple award 
contract or order; or 
‘‘(B) a solicitation of offers for the 
issuance of a task or a delivery order under an 
existing single or multiple award contract or 
order. 
‘‘(4) SEPARATE
SMALLER
CONTRACT.—The 
term ‘separate smaller contract’, with respect to 
bundling of contract requirements, means a contract 
or order that has been performed by 1 or more small 
business concerns or was suitable for award to 1 or 
more small business concerns. 
‘‘(5) DOLLAR THRESHOLD.—The term ‘dollar 
threshold’ means— 
‘‘(A) $65,000,000, in the case of a con-
tract or order that is solely for construction 
services; and 
‘‘(B) $5,000,000 for a contract or order 
not described in subparagraph (A). 
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‘‘(6) EXEMPTED
REQUIREMENT.—The term 
‘exempted requirement’ means a procurement re-
quirement solely for items that are not commercial 
items (as the term ‘commercial item’ is defined in 
section 103 of title 41, United States Code). 
‘‘(7) PROCUREMENT REQUIREMENT.—The term 
‘procurement requirement’ means a determination 
by a Federal agency that a specified good or service 
is needed to satisfy the mission of the Federal agen-
cy.’’. 
(b) PROPOSED PROCUREMENT REQUIREMENTS.— 
Section 15(a) of the Small Business Act (15 U.S.C. 
644(a)) is amended— 
(1) in the third sentence, by striking ‘‘necessary 
and justified’’ and inserting ‘‘necessary and justified, 
and identifying information on the incumbent con-
tract holders, a description of the industries that 
might be interested in bidding on the contract re-
quirements, and the number of small businesses list-
ed in the industry categories that could be excluded 
from future bidding if the contract is combined or 
packaged’’; and 
(2) by striking the sixth sentence and inserting 
the following: ‘‘Whenever the Administration and the 
contracting procurement agency fail to agree, the 
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Administrator may review the proposed procurement 
or delay the solicitation process for not more than 
10 days to make recommendations, and the matter 
shall be submitted to the Director of the Office of 
Management and Budget to mediate the disagree-
ment.’’. 
SEC. 105. FEDERAL CONTRACTING GOALS. 
(a) INCREASE IN CERTAIN GOALS.—Section 15(g)(1) 
of the Small Business Act (15 U.S.C. 644(g)(1)) is 
amended— 
(1) by striking ‘‘not less than 23 percent’’ and 
inserting ‘‘not less than 25 percent’’; and 
(2) by striking ‘‘not less than 5 percent’’ each 
place it appears and inserting ‘‘not less than 10 per-
cent’’. 
(b) LIMITATION ON NUMBER OF CATEGORIES FOR 
WHICH A BUSINESS MAY QUALIFY.—Section 15(g) of the 
Small Business Act (15 U.S.C. 644(g)) is amended by 
adding at the end the following: 
‘‘(3) A Federal agency may not include a business 
concern in more than 2 specified categories for purposes 
of determining whether the Federal agency has met the 
Government-wide goals under this subsection for the 
award of contracts to business concerns in specified cat-
egories. In this paragraph, the term ‘specified category’ 
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means small business concerns, small business concerns 
owned and controlled by service-disabled veterans, quali-
fied HUBZone small business concerns, small business 
concerns owned and controlled by socially and economi-
cally disadvantaged individuals, and small business con-
cerns owned and controlled by women.’’. 
SEC. 106. IMPLEMENTATION OF SUBCONTRACTING PLANS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by adding at the end the following: 
‘‘(13) In the case of any contract containing a sub-
contracting plan included pursuant to paragraph (4) or 
(5)— 
‘‘(A) the Federal agency awarding the contract 
shall include in the contract a clause providing that, 
if the contractor does not achieve the percentage 
goal for the utilization of small business concerns 
owned and controlled by socially and economically 
disadvantaged individuals as set forth in the subcon-
tracting plan, the Federal agency shall withhold not 
less than— 
‘‘(i) $5,000, if the contract amount is not 
more than $100,000; 
‘‘(ii) 3 percent of the contract amount, if 
the contract amount is more than $100,000 
and not more than $5,000,000; and 
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‘‘(iii) 5 percent of the contract amount, if 
the contract amount is more than $5,000,000; 
and 
‘‘(B) the Federal agency awarding the contract 
shall require the contractor to provide written jus-
tification to the agency whenever the contractor, in 
performing the contract, does not enter into a sub-
contract with, or substitutes another subcontractor 
for, a specific small business concern identified in 
the subcontracting plan. 
‘‘(14) The Administration shall establish a telephone 
line or other electronic means of communication through 
which a small business concern identified in a subcon-
tracting plan by an offeror or bidder may communicate 
to the Administration any concerns regarding major devi-
ations by prime contractors from the use of small business 
concerns as subcontractors under the prime contract as 
described in the subcontracting plan.’’. 
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SEC. 107. REQUIREMENT TO CONSIDER USE OF SMALL 
BUSINESS 
CONCERNS 
OWNED 
AND 
CON-
TROLLED BY SOCIALLY AND ECONOMICALLY 
DISADVANTAGED INDIVIDUALS WHEN CON-
SIDERING PAST COMPLIANCE WITH SUBCON-
TRACTING PLANS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended— 
(1) in paragraph (4)(C), in the second sentence, 
by inserting ‘‘, especially compliance with the goal 
set forth in such plans for the utilization of small 
business concerns owned and controlled by socially 
and economically disadvantaged individuals,’’ after 
‘‘other such subcontracting plans’’; and 
(2) in paragraph (5)(B), in the second sentence, 
by inserting ‘‘, especially compliance with the goal 
set forth in such plans for the utilization of small 
business concerns owned and controlled by socially 
and economically disadvantaged individuals,’’ after 
‘‘other such subcontracting plans’’. 
TITLE II—MINORITY BUSINESS 
DEVELOPMENT AGENCY 
SEC. 201. DEFINITIONS. 
In this title: 
(1) 
HISTORICALLY
DISADVANTAGED
INDI-
VIDUAL.—The term ‘‘historically disadvantaged indi-
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vidual’’ means any individual who is a member of a 
group that is designated as eligible to receive assist-
ance under section 1400.1 of title 15, Code of Fed-
eral Regulations, as in effect on January 1, 2009. 
(2) PRINCIPAL.—The term ‘‘principal’’ means 
any person that the Director determines to exercise 
significant control over the regular operations of a 
business entity. 
(3) PROGRAM.—The term ‘‘Program’’ means 
the Minority Business Development Program estab-
lished under section 202. 
SEC. 202. MINORITY BUSINESS DEVELOPMENT PROGRAM. 
The National Director of the Minority Business De-
velopment Agency shall establish the Minority Business 
Development Program to assist qualified minority busi-
nesses. The Program shall provide to such businesses the 
following: 
(1) Technical assistance under section 204. 
(2) Loan guarantees under section 205. 
(3) Contract procurement assistance under sec-
tion 206. 
SEC. 203. QUALIFIED MINORITY BUSINESS. 
(a) CERTIFICATION.—For purposes of the Program, 
the National Director of the Minority Business Develop-
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ment Agency 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 di-
rectly and unconditionally owned or controlled by 
historically disadvantaged individuals. 
(2) Each officer or other individual who exer-
cises control over the regular operations of the entity 
is a historically disadvantaged individual. 
(3) The net worth of each principal of the enti-
ty is not greater than $2,000,000. (The equity of a 
disadvantaged owner in a primary personal residence 
shall not 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 National Di-
rector. 
(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 National 
Director at such time, in such form, and containing 
such information as the National Director may re-
quire. 
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(8) Such other requirements as the National 
Director considers appropriate. 
(b) TERM OF CERTIFICATION.—A certification under 
this section shall be for a term of 5 years and may not 
be renewed. 
SEC. 204. TECHNICAL ASSISTANCE. 
(a) IN GENERAL.—In carrying out the Program, the 
National Director of the Minority Business Development 
Agency may provide to qualified minority businesses tech-
nical 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 National Director 
may enter into agreements with persons to provide tech-
nical assistance under this section. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $200,000,000 to the 
National Director to carry out this section. Such sums 
shall remain available until expended. 
SEC. 205. LOAN GUARANTEES. 
(a) IN GENERAL.—Subject to subsection (b), the Na-
tional Director of the Minority Business Development 
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Agency 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 National Director may 
make guarantees under this section for projects on 
such terms and conditions as the National 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 National Director de-
termines that there is reasonable prospect of repay-
ment of the principal and interest on the obligation 
by the borrower. 
(3) DEFAULTS.— 
(A) PAYMENT BY NATIONAL DIRECTOR.— 
(i) IN GENERAL.—If a borrower de-
faults on the obligation (as defined in reg-
ulations promulgated by the National Di-
rector and specified in the guarantee con-
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tract), the holder of the guarantee shall 
have the right to demand payment of the 
unpaid amount from the National Direc-
tor. 
(ii) 
PAYMENT
REQUIRED.—Within 
such period as may be specified in the 
guarantee or related agreements, the Na-
tional 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 National 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 ap-
proved by the Director. 
(B) SUBROGATION.— 
(i) IN GENERAL.—If the National Di-
rector makes a payment under subpara-
graph (A), the National Director shall be 
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subrogated to the rights of the recipient of 
the payment as specified in the guarantee 
or related agreements including, where ap-
propriate, 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, pursu-
ant to an agreement with the National 
Director, to continue to pursue the 
purposes of the project if the National 
Director determines this to be in the 
public interest. 
(ii) SUPERIORITY
OF
RIGHTS.—The 
rights of the National Director, with re-
spect 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 de-
tailed terms and conditions as the National 
Director determines appropriate to— 
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(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 per-
son selected, including the National 
Director, to complete and operate the 
project. 
(C) PAYMENT OF PRINCIPAL AND INTER-
EST BY NATIONAL DIRECTOR.—With respect to 
any obligation guaranteed under this section, 
the National Director may enter into a contract 
to pay, and pay, holders of the obligation, for 
and on behalf of the borrower, from funds ap-
propriated for that purpose, the principal and 
interest payments which become due and pay-
able on the unpaid balance of the obligation if 
the National 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 per-
mit the borrower to continue to pursue the 
purposes of the project; and 
(III) the probable net benefit to the 
Federal Government in paying the prin-
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cipal and interest will be greater than that 
which would result in the event of a de-
fault; 
(ii) the amount of the payment that 
the National 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 National Director for the payment (in-
cluding interest) on terms and conditions 
that are satisfactory to the National Direc-
tor. 
(D) ACTION BY ATTORNEY GENERAL.— 
(i) NOTIFICATION.—If the borrower 
defaults on an obligation, the National Di-
rector 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 prin-
cipal and interest due from— 
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(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 National Director 
shall charge and collect fees for guarantees in 
amounts the National Director determines are 
sufficient to cover applicable administrative ex-
penses, not to exceed 1 percent of the amount 
guaranteed. 
(B) AVAILABILITY.—Fees collected under 
this paragraph shall— 
(i) be deposited by the National Di-
rector into the Treasury; and 
(ii) remain available until expended, 
subject to such other conditions as are con-
tained in annual appropriations Acts. 
(c) CREDIT REQUIREMENTS.—To receive a loan 
guaranteed under this section a qualified minority busi-
ness shall— 
(1) be in good standing with regard to the cred-
it of that business in the determination of the Na-
tional Director; 
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(2) have received technical assistance under sec-
tion 104; and 
(3) submit reports, at such time, in such form, 
and containing such information as the National Di-
rector may require regarding the credit of the busi-
ness. 
(d) LIMITS ON GUARANTEE AMOUNTS.— 
(1) MAXIMUM AMOUNT OF GUARANTEE.—The 
National Director may not guarantee 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 National Director 
not more than $500,000,000 to carry out this section dur-
ing fiscal years 2012 through 2016. 
SEC. 206. SET-ASIDE CONTRACTING OPPORTUNITIES. 
(a) IN GENERAL.—The National Director of the Mi-
nority Business Development Agency 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 pro-
curement contracts and providing opportunities for quali-
fied minority businesses with regard to such contracts. 
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(b) QUALIFICATIONS ON PARTICIPATION.—The Na-
tional 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 con-
tracts 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. 207. TERMINATION FROM PROGRAM. 
The National Director of the Minority Business De-
velopment Agency may terminate a qualified minority 
business from the Program for any violation of a require-
ment of sections 203 through 206 by that qualified minor-
ity business, including the following: 
(1) Conduct by a principal of the qualified mi-
nority business that indicates a lack of business in-
tegrity. 
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(2) Willful failure to comply with applicable 
labor standards and obligations. 
(3) Consistent failure to tender adequate per-
formance with regard to contracts under the Pro-
gram. 
(4) Failure to obtain and maintain relevant cer-
tifications. 
(5) Failure to pay outstanding obligations owed 
to the Federal Government. 
SEC. 208. REPORTS. 
(a) REPORT OF THE DIRECTOR.—Not later than Oc-
tober 1, 2012, and annually thereafter, the National Di-
rector of the Minority Business Development Agency shall 
submit to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on En-
ergy and Commerce of the House of Representatives a re-
port describing the activities of the National Director dur-
ing the preceding year with respect to the Program. 
(b) REPORT OF THE SECRETARY OF COMMERCE.— 
Not later than October 1, 2012, and annually thereafter, 
the Secretary of Commerce shall submit to the Committee 
on Commerce, Science, and Transportation of the Senate 
and the Committee on Energy and Commerce of the 
House of Representatives a report describing the activities 
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the Secretary engaged in during the preceding year to 
build wealth among historically disadvantaged individuals. 
SEC. 209. MINORITY BUSINESS DEVELOPMENT AGENCY 
DATABASE. 
Not later than 90 days after the date of the enact-
ment of this Act, the National Director of the Minority 
Business Development Agency shall establish a database 
to assist prime contractors in identifying historically dis-
advantaged firms for subcontracting. 
TITLE 
III—COMMUNITY 
ECO-
NOMIC DEVELOPMENT PRO-
VISIONS 
SEC. 301. TARGETED HIRING REQUIREMENT FOR CERTAIN 
CONSTRUCTION JOBS. 
(a) CONTRACTS SUBJECT TO THIS SECTION.—The 
requirements of this section shall apply to all contracts 
for construction and rehabilitation of facilities and infra-
structure funded directly by or assisted in whole or in part 
by or through the Federal Government in fiscal year 2012. 
(b) EMPLOYMENT OF TARGETED WORKERS.— 
(1) PROJECT
WORK
HOURS
REQUIREMENT.— 
The Secretary of Labor shall establish a minimum 
percentage of construction work hours to be per-
formed by targeted workers for each contract subject 
to this section in each labor market area. 
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(2) UTILIZATION
OF
APPRENTICESHIP
PRO-
GRAMS.— 
(A) 
CONTRACTOR
PARTICIPATION
RE-
QUIREMENTS.—Each contractor and subcon-
tractor that seeks to provide construction serv-
ices on contracts subject to this section shall 
submit adequate assurances with its bid or pro-
posal that it participates in a qualified appren-
ticeship program, with a written arrangement 
with a qualified pre-apprenticeship program, as 
defined by the Secretary of Labor, for each 
craft or trade classification of worker that the 
contractor or subcontractor intends to employ 
to perform work on the project. 
(B) CERTIFICATION OF OTHER PROGRAMS 
IN CERTAIN LOCALITIES.—In the event that the 
Secretary of Labor certifies that a qualified ap-
prenticeship program (as defined in subpara-
graph (A)) for a craft or trade classification 
that a prospective contractor or subcontractor 
intends to employ, is not operated in the local-
ity where the contract or subcontract will be 
performed, an apprenticeship or other training 
program that is not an employee welfare benefit 
plan (as defined in such section) may be cer-
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