Title: Parren Mitchell Minority Business Education and Empowerment Act of 2019
Policy area: Education

Summary:
Parren Mitchell Minority Business Education and Empowerment Act of 2019
This bill requires the Small Business Administration to award grants through FY2022 to historically black colleges and universities to (1) establish entrepreneurship curricula for undergraduate or graduate studies, and (2) place small business development centers on the physical campuses of such institutions.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2981 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 2981

To establish a pilot program at the Small Business Administration that 
     grants awards to historically Black colleges and universities 
 establishing an entrepreneurship curriculum and placement of a Small 
Business Development Center on the physical campus of the institution, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2019

 Mr. Cummings introduced the following bill; which was referred to the 
 Committee on Education and Labor, and in addition to the Committee on 
   Small Business, for a period to be subsequently determined 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 pilot program at the Small Business Administration that 
     grants awards to historically Black colleges and universities 
 establishing an entrepreneurship curriculum and placement of a Small 
Business Development Center on the physical campus of the institution, 
                        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 ``Parren Mitchell Minority Business 
Education and Empowerment Act of 2019''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) As many colleges and universities across the country 
        kept their doors closed to African-American applicants, 
        historically Black colleges and universities (referred to in 
        this section as ``HBCUs'') played a central role in ensuring 
        that African Americans could attain an excellent education.
            (2) In 1970, Congressman Parren Mitchell became the first 
        African American from Maryland to be elected to the House of 
        Representatives. During his time in Congress, Congressman 
        Mitchell served as the Chairman of the Small Business 
        Committee, was a founding member of the Congressional Black 
        Caucus, and served as a senior member of the then-House 
        Banking, Finance, and Urban Affairs Committee. In these roles, 
        Congressman Mitchell vigorously supported economic empowerment 
        for minority businesses and education as a vehicle for social 
        mobility.
            (3) The Bureau of the Census in 2017 indicated that African 
        Americans have a median household income that is 63 percent of 
        the median household income of Whites.
            (4) In the first quarter of 2019, the African-American 
        unemployment rate was 7.1 percent, well above the national 
        average of 4.1 percent.
            (5) According to the Minority Business Development Agency--
                    (A) minority firms are more likely to be denied 
                loans at a rate of nearly three times higher than 
                nonminority firms;
                    (B) minority firms are likely to pay higher 
                interest rates, on average 7.8 percent, while 
                nonminority firms pay on average 6.4 percent;
                    (C) minority firms are less likely to receive loans 
                and, when approved, receive lower loan amounts;
                    (D) minority firms secure a lower number and dollar 
                amount of contracts in proportion to the number of 
                available minority firms in the relevant market; and
                    (E) minority business enterprises represent 29 
                percent of all firms but only 11 percent have paid 
                employees.
            (6) If minority business enterprises were to obtain 
        entrepreneurial parity, the United States economy would realize 
        13 million more jobs.
            (7) Minority-owned businesses are nearly twice as likely to 
        export their products and services as nonminority owned 
        businesses. Minority-owned businesses are three times more 
        likely to generate 100 percent of their revenues from exporting 
        than nonminority owned firms.
            (8) Minority-owned businesses expand and diversify the tax 
        base, creating sustainable communities with a steady rate of 
        economic growth.
            (9) A 2019 GAO report found that only 18 out of 101 HBCUs 
        are in the Small Business Development Center (SBDC) network, 
        and only 2 serve as ``lead'' (host organization) SBDCs.
            (10) Currently, to be a SBDC host organization, an HBCU 
        must provide matching funds, which has led to only 2 such sites 
        in the history of the program.
            (11) The 2019 GAO report stated that, while the Small 
        Business Administration (SBA) is required by Executive order to 
        submit an agency plan on an annual basis to the White House 
        Initiative on HBCUs, GAO was only able to obtain the 2018 
        agency plan from the 2008-2018 time period and was unable to 
        determine if the SBA had met its goals related to supporting 
        HBCUs.
            (12) The 2018 SBA agency plan stated that the SBA would 
        encourage the formation of strategic alliance memorandums 
        between SBA district offices and HBCUs to promote 
        entrepreneurship in underserved markets.
            (13) The 2019 GAO report found that, according to SBA 
        officials, strategic alliance memorandums with HBCUs are 
        largely symbolic in nature.

SEC. 3. DEFINITIONS.

    In this Act--
            (1) the term ``Administrator'' means the Administrator of 
        the Small Business Administration;
            (2) 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);
            (3) the term ``small business concern'' has the same 
        meaning as in section 3 of the Small Business Act (15 U.S.C. 
        632); and
            (4) the term ``small business development center'' has the 
        same meaning as in section 21 of the Small Business Act (15 
        U.S.C. 648).

SEC. 4. MINORITY ENTREPRENEURSHIP AND INNOVATION GRANTS.

    (a) In General.--The Administrator shall make grants to 
historically Black colleges and universities--
            (1) to assist in establishing an entrepreneurship 
        curriculum for undergraduate or graduate studies; and
            (2) for placement of a small business development center 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, financial 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 surrounding community, 
        as determined by the institution.
    (c) Small Business Development Center Requirement.--Each 
institution receiving a grant under this section shall open a small 
business development center that--
            (1) performs studies, research, and counseling concerning 
        the management, financing, and operation of small business 
        concerns;
            (2) performs management training and technical 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 development, financing, and legal 
        experts;
            (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 clients; and
            (5) provides free counseling concerning the management, 
        financing, and operation of small business concerns, with an 
        emphasis on providing assistance to student entrepreneurs.
    (d) Grant Limitations.--A grant under this section--
            (1) may not exceed $1,000,000 per fiscal year for any 1 
        historically Black college or university;
            (2) may not be used for any purpose other than those 
        associated with the direct costs incurred to develop and 
        implement a curriculum that fosters entrepreneurship 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, administrative 
        travel budgets, or other expenses not directly related to the 
        implementation of the curriculum or activities authorized by 
        this Act.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $8,000,000, to remain available 
until expended, for each of fiscal years 2020, 2021, and 2022.
    (f) Report.--Not later than November 1 of each year, the Associate 
Administrator of Entrepreneurial Development of the Small Business 
Administration shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business 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--
            (1) a description of each entrepreneurship program 
        developed with grant funds, the date of the award of such 
        grant, and the number of participants, specifically students, 
        in each such program;
            (2) a description of the curriculum developed and how it 
        has been implemented;
            (3) data regarding the economic impact of the small 
        business development center counseling provided under a grant 
        under this section; and
            (4) the number of small business concerns assisted by each 
        small business development center established with a grant 
        under this section.
    (g) Sunset.--The Administrator may not make any grants under this 
section after the end of fiscal year 2022.
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