I 
116TH CONGRESS 
2D SESSION 
H. R. 6869 
To establish the Minority Business Development Agency of the Department 
of Commerce and to support the economic resilience of minority business 
enterprises during and after the COVID–19 outbreak. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2020 
Mr. GREEN of Texas introduced the following bill; which was referred to the 
Committee on Financial Services, and in addition to the Committees on 
the Budget, and Small Business, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To establish the Minority Business Development Agency of 
the Department of Commerce and to support the eco-
nomic resilience of minority business enterprises during 
and after the COVID–19 outbreak. 
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 Business Re-
siliency Act of 2020’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
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(1) AGENCY.—The term ‘‘Agency’’ means the 
Minority Business Development Agency of the De-
partment of Commerce. 
(2) ASSISTANT SECRETARY.—The term ‘‘Assist-
ant Secretary’’ means the Assistant Secretary of 
Commerce for Minority Business Development. 
(3) COVERED ENTITY.—The term ‘‘covered en-
tity’’ means a private nonprofit organization that— 
(A) is described in section 501(c)(3) of the 
Internal Revenue Code of 1986 and exempt 
from tax under section 501(a) of such Code; 
(B) can demonstrate to the Agency that— 
(i) the primary mission of the organi-
zation is to provide services to minority 
business enterprises, whether through edu-
cation, making grants, or other similar ac-
tivities; and 
(ii) the organization is unable to pay 
financial obligations incurred by the orga-
nization, including payroll obligations; and 
(C) due to the effects of COVID–19, is un-
able to engage in the same level of fundraising 
in the year in which this Act is enacted, as 
compared with the year preceding the year in 
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which this Act is enacted, including through 
events or the collection of fees. 
(4) MINORITY BUSINESS DEVELOPMENT CEN-
TER.—The term ‘‘minority business development 
center’’ means a Business Center of the Agency, in-
cluding its Specialty Center Program. 
(5) MINORITY
BUSINESS
ENTERPRISE.—The 
term ‘‘minority business enterprise’’ means a for- 
profit business enterprise— 
(A) that is not less than 51 percent-owned 
by 1 or more socially disadvantaged individuals; 
and 
(B) the management and daily business 
operations of which are controlled by 1 or more 
socially disadvantaged individuals. 
(6) SOCIALLY DISADVANTAGED INDIVIDUAL.— 
(A) IN GENERAL.—The term ‘‘socially dis-
advantaged individual’’ means an individual 
who has been subjected to racial or ethnic prej-
udice or cultural bias because of the identity of 
the individual as a member of a group, without 
regard to any individual quality of the indi-
vidual that is unrelated to that identity. 
(B) PRESUMPTION.—In carrying out this 
Act, the Agency shall presume that the term 
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‘‘socially disadvantaged individual’’ includes any 
individual who is— 
(i) Black or African American; 
(ii) Hispanic or Latino; 
(iii) American Indian or Alaska Na-
tive; 
(iv) Asian; 
(v) Native Hawaiian or other Pacific 
Islander; or 
(vi) a member of a group that the 
Agency determines under part 1400 of title 
15, Code of Federal Regulations, as in ef-
fect on November 23, 1984, is a socially 
disadvantaged group eligible to receive as-
sistance. 
SEC. 3. MINORITY BUSINESS DEVELOPMENT AGENCY. 
(a) ESTABLISHMENT.—The Minority Business Devel-
opment Agency in the Department of Commerce is hereby 
established. 
(b) ASSISTANT SECRETARY.— 
(1) APPOINTMENT AND DUTIES.—The Agency 
shall be headed by an Assistant Secretary of Com-
merce for Minority Business Development, who shall 
be— 
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(A) appointed by the President, by and 
with the advice and consent of the Senate; and 
(B) except as otherwise expressly provided, 
responsible for the administration of this Act. 
(2) COMPENSATION.—The Assistant Secretary 
shall be compensated at an annual rate of basic pay 
prescribed for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code. 
(c) REPORT TO CONGRESS.—Not later than 120 days 
after the date of enactment of this Act, the Secretary shall 
submit to Congress a report that describes— 
(1) the organizational structure of the Agency; 
(2) the organizational position of the Agency in 
the Department of Commerce; and 
(3) a description of how the Agency shall func-
tion in relation to the operations carried out by each 
other component of the Department of Commerce. 
(d) ADMINISTRATIVE POWERS AND OTHER POWERS 
OF THE AGENCY; MISCELLANEOUS PROVISIONS.— 
(1) IN GENERAL.—In carrying out the duties 
and the responsibilities of the Agency, the Assistant 
Secretary may— 
(A) adopt and use a seal for the Agency, 
which shall be judicially noticed; 
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(B) hold hearings, sit and act, and take 
testimony as the Assistant Secretary may deter-
mine to be necessary or appropriate; 
(C) acquire, in any lawful manner, any 
property that the Assistant Secretary may de-
termine to be necessary or appropriate; 
(D) make advance payments under grants, 
contracts, and cooperative agreements awarded 
by the Agency; 
(E) enter into agreements with other Fed-
eral agencies; 
(F) coordinate with the heads of the Of-
fices of Small and Disadvantaged Business Uti-
lization of Federal agencies; 
(G) require a coordinated review of all 
training and technical assistance activities that 
are proposed to be carried out by Federal agen-
cies in direct support of the development of mi-
nority business enterprises to— 
(i) assure consistency with the pur-
poses of this Act; and 
(ii) avoid duplication of existing ef-
forts; and 
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(H) prescribe such rules, regulations, and 
procedures as the Agency may determine to be 
necessary or appropriate. 
(2) EMPLOYMENT OF CERTAIN EXPERTS AND 
CONSULTANTS.— 
(A) IN
GENERAL.—The Assistant Sec-
retary may employ experts and consultants or 
organizations that are composed of experts or 
consultants, as authorized under section 3109 
of title 5, United States Code. 
(B) RENEWAL OF CONTRACTS.—The As-
sistant Secretary may annually renew a con-
tract for employment of an individual employed 
under subparagraph (A). 
(3) DONATION OF PROPERTY.— 
(A) IN
GENERAL.—Subject to subpara-
graph (B), the Assistant Secretary may, with-
out cost (except for costs of care and handling), 
donate for use by any public sector entity, or by 
any recipient nonprofit organization, for the 
purpose of the development of minority business 
enterprises, any real or tangible personal prop-
erty acquired by the Agency. 
(B) TERMS, CONDITIONS, RESERVATIONS, 
AND RESTRICTIONS.—The Assistant Secretary 
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may impose reasonable terms, conditions, res-
ervations, and restrictions upon the use of any 
property donated under subparagraph (A). 
SEC. 4. EMERGENCY GRANTS TO NONPROFITS THAT SUP-
PORT MINORITY BUSINESS ENTERPRISES. 
(a) PURPOSE.—The purpose of this section is to 
make grants to covered entities in order to help those cov-
ered entities continue the necessary work of supporting 
minority business enterprises. 
(b) ESTABLISHMENT.—Not later than 15 days after 
the date of enactment of this Act, the Agency shall estab-
lish a grant program for covered entities in accordance 
with the requirements of this section, under which the 
Agency shall make grants to covered entities as expedi-
tiously as possible. 
(c) APPLICATION.— 
(1) IN GENERAL.—A covered entity desiring a 
grant under this section shall submit to the Agency 
an application at such time, in such manner, and 
containing such information as the Agency may re-
quire. 
(2) PRIORITY.—The Agency shall— 
(A) establish selection criteria to ensure 
that, if the amounts made available to carry out 
this section are not sufficient to make a grant 
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under this section to every covered entity that 
submits an application under paragraph (1), 
the covered entities that are the most severely 
affected by the effects of COVID–19 receive 
priority with respect to those grants; and 
(B) give priority with respect to the grants 
made under this section to a covered entity that 
proposes to use the grant funds for— 
(i) providing paid sick leave to em-
ployees of the covered entity who are un-
able to work due to the direct effects of 
COVID–19; 
(ii) continuing to make payroll pay-
ments in order to retain employees of the 
covered entity during an economic disrup-
tion with respect to COVID–19; 
(iii) making rent or mortgage pay-
ments with respect to obligations of the 
covered entity; or 
(iv) repaying non-Federal obligations 
that the covered entity cannot satisfy be-
cause of revenue losses that are attrib-
utable to the effects of COVID–19. 
(d) AMOUNT OF GRANT.— 
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(1) IN GENERAL.—A grant made under this 
section shall be in an amount that is not more than 
$300,000. 
(2) SINGLE AWARD.—No covered entity may re-
ceive, or directly benefit from, more than 1 grant 
made under this section. 
(e) USE OF FUNDS.—A covered entity that receives 
a grant under this section may use the grant funds to ad-
dress the effects of COVID–19 on the covered entity, in-
cluding by making payroll payments, making a transition 
to the provision of online services, and addressing issues 
raised by an inability to raise funds. 
(f) PROCEDURES.—The Agency shall establish proce-
dures to discourage and prevent waste, fraud, and abuse 
by applicants for, and recipients of, grants made under 
this section. 
(g) PENALTIES FOR FRAUD AND MISAPPLICATION OF 
FUNDS.—An applicant for, or recipient of, a grant made 
under this section shall be subject to all applicable provi-
sions of Federal law, including section 1001 of title 18, 
United States Code. 
(h) NON-DUPLICATION.—The Agency shall ensure 
that covered entities do not receive grants under both this 
section and section 1108 of the Coronavirus Aid, Relief, 
and Economic Security Act. 
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(i) INSPECTOR GENERAL AUDIT.—Not later than 
180 days after the date on which the Agency begins mak-
ing grants under this section, the Inspector General of the 
Department of Commerce shall— 
(1) conduct an audit of grants made under this 
section, which shall seek to identify any discrep-
ancies or irregularities with respect to the grants; 
and 
(2) submit to Congress a report regarding the 
audit conducted under paragraph (1). 
(j) UPDATES TO CONGRESS.—Not later than 30 days 
after the date of enactment of this Act, and once every 
30 days thereafter until the date described in subsection 
(k), the Agency shall submit to Congress a report that 
contains— 
(1) the number of grants made under this sec-
tion during the period covered by the report; and 
(2) with respect to the grants described in para-
graph (1), the geographic distribution of those 
grants by State and county. 
(k) TERMINATION.—The authority to make grants 
under this section shall terminate on September 30, 2021. 
SEC. 5. OUTREACH TO BUSINESS CENTERS. 
(a) IN GENERAL.—Not later than 10 days after the 
date of enactment of this Act, the Agency shall conduct 
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outreach to the business center network of the Agency to 
provide guidance to those centers regarding other Federal 
programs that are available to provide support to minority 
business enterprises, including programs at the Depart-
ment of the Treasury, the Small Business Administration, 
and the Economic Development Administration of the De-
partment of Commerce. 
(b) ADDITIONAL STAFF.—The Agency may hire addi-
tional staff to carry out the responsibilities of the Agency 
under subsection (a). 
(c) OUTREACH TO NATIVE COMMUNITIES.— 
(1) IN GENERAL.—In carrying out this section, 
the Agency shall ensure that outreach is conducted 
in American Indian, Alaska Native, and Native Ha-
waiian communities. 
(2) DIRECT OUTREACH TO CERTAIN MINORITY 
BUSINESS ENTERPRISES.—If the Assistant Secretary 
determines that a particular American Indian, Alas-
ka Native, or Native Hawaiian community does not 
receive sufficient grant amounts under section 4 of 
this Act or section 1108 of the CARES Act, the As-
sistant Secretary shall carry out additional outreach 
directly to minority business enterprises located in 
that community to provide guidance regarding Fed-
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eral programs that are available to provide support 
to minority business enterprises. 
(d) USE OF APPROPRIATED FUNDS.—If, after car-
rying out this section, there are remaining funds made 
available to carry out this section from the amount appro-
priated under section 6, the Agency may use those remain-
ing funds to carry out other responsibilities of the Agency 
under section 4. 
SEC. 6. DIRECT APPROPRIATION. 
(a) IN GENERAL.—There is appropriated to the 
Agency, in additional to any other amounts previously ap-
propriated for the Agency and out of amounts in the 
Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2020, to remain available until Sep-
tember 30, 2021, $60,000,000, of which— 
(1) $10,000,000 shall be for carrying out sec-
tion 4 of this Act; 
(2) $5,000,000 shall be for carrying out section 
5 of this Act; and 
(3) $10,000,000 shall be allocated to the White 
House Initiative on Asian Americans and Pacific Is-
landers. 
(b) EMERGENCY DESIGNATION.— 
(1) IN
GENERAL.—The amounts provided by 
this Act are designated as an emergency require-
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ment pursuant to section 4(g) of the Statutory Pay- 
As-You-Go Act of 2010 (2 U.S.C. 933(g)). 
(2) DESIGNATION IN SENATE.—In the Senate, 
this Act is designated as an emergency requirement 
pursuant to section 4112(a) of H. Con. Res. 71 
(115th Congress), the concurrent resolution on the 
budget for fiscal year 2018. 
SEC. 7. AUDITS. 
(a) RECORDKEEPING REQUIREMENT.—Each recipi-
ent of assistance under this Act shall keep such records 
as the Assistant Secretary shall prescribe, including 
records that fully disclose, with respect to the assistance 
received by the recipient under this Act— 
(1) the amount and nature of that assistance; 
(2) the disposition by the recipient of the pro-
ceeds of that assistance; 
(3) the total cost of the undertaking for which 
the assistance is given or used; 
(4) the amount and nature of the portion of the 
cost of the undertaking described in paragraph (3) 
that is supplied by a source other than the Agency; 
and 
(5) any other records that will facilitate an ef-
fective audit of the assistance. 
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