IDEA Act of 2021
Bill: H.R.5006 | Sponsor: Rep. Stevens, Haley M. (D-MI)
Policy area: Commerce

Summary:
Increasing and Developing Entrepreneurship Access Act of 2021 or the IDEA Act of 2021
This bill requires the Minority Business Development Agency (MBDA) to establish a grant program to provide entrepreneurship opportunities for minority businesses.
These grants shall be awarded to business accelerators for providing (1) capital to minority businesses, (2) networking programs that connect such businesses to sources of capital and innovation, and (3) other appropriate assistance.
The MBDA must submit an annual report on the program that includes the number of grants provided, the number of minority businesses that have received assistance from grant recipients, and a description of any noncompliance by grant recipients.
The bill also establishes penalties (a fine or imprisonment) for a grant recipient that knowingly uses award amounts for any purpose not permitted under the program.

To establish a grant program to provide minority business enterprises 
   access to entrepreneurship opportunities, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Increasing and Developing 
Entrepreneurship Access Act of 2021'' or the ``IDEA Act of 2021''.

SEC. 2. GRANTS TO PROVIDE MINORITY BUSINESS ENTERPRISES ACCESS TO 
              ENTREPRENEURSHIP OPPORTUNITIES.

    (a) Establishment.--Not later than 180 days after the date of the 
enactment of this section, the National Director of the Minority 
Business Development Agency of the Department of Commerce shall 
establish a program to provide grants to business accelerator entities 
to provide entrepreneurship opportunities to minority business 
enterprises.
    (b) Application.--The National Director may provide a grant under 
this section to a business accelerator entity only if the entity 
submits to the National Director an application at such time, in such 
manner, and containing such information as the National Director may 
reasonably require.
    (c) Amount and Duration.--The amount of a grant provided under this 
section shall be $1,000,000 each year for five consecutive years.
    (d) Federal Share.--The Federal share of a grant provided this 
section to a business accelerator entity may not exceed 75 percent of 
the total amount of funds provided by the entity to carry out 
activities using grant funds.
    (e) Use of Funds.--
            (1) In general.--A grant provided under this section shall 
        be used by a business accelerator entity to provide--
                    (A) capital, including direct cash transfers of 
                grant funds, to minority business enterprises in the 
                region;
                    (B) networking programs that connect minority 
                business enterprises to sources of capital and 
                innovation in the region; and
                    (C) any other assistance that the National Director 
                determines to be appropriate for minority business 
                enterprises in the region.
            (2) Region described.--A region described in this 
        subsection is a region in which not less than 15 minority 
        business enterprises with revenues not less than $250,000 are 
        located.
    (f) Report.--The National Director shall submit to Congress, for 
each fiscal year in which the Director provides grants under this 
section, a report on the program established under this section, 
including--
            (1) an identification of the number of grants provided in 
        such fiscal year and the total amount of such grants;
            (2) an identification of the number of minority business 
        enterprises that have received assistance from such entities in 
        such fiscal year; and
            (3) a description of any noncompliance by any business 
        accelerator entity and the amount of funds such entity has 
        received.
    (g) Misdemeanor.--A business accelerator entity that receives a 
grant under this section that knowingly uses amounts under the grant 
for any purpose not otherwise permitted under the program established 
by this section or who knowingly attempts to do so, shall be fined as 
provided in title 18, United States Code, or imprisoned for not more 
than one year, or both.
    (h) Definitions.--In this section:
            (1) Business accelerator entity.--The term ``business 
        accelerator entity'' means an entity that--
                    (A) engages in a partnership with public or private 
                organizations that target minority business 
                enterprises;
                    (B) provides opportunities to scale minority owned 
                business enterprises through seed investment or 
                networking opportunities; or
                    (C) offers start-up capital or opportunities to 
                raise capital from outside investors for minority 
                business enterprises.
            (2) Minority business enterprise.--The term ``minority 
        business enterprise'' has the meaning given such term in 
        section 1108(a) of the CARES Act (15 U.S.C. 9007(a)).
            (3) National director.--The term ``National Director'' 
        means the National Director of the Minority Business 
        Development Agency of the Department of Commerce.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $25,000,000 for each of the 
fiscal years 2022 through 2026.
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