65FR36411A Solicitation of Applications for the Minority Business Capital Access Policy Institute
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Posting-number: Volume 65, Issue 111, Page 36411A
[Federal Register: June 8, 2000 (Volume 65, Number 111)]
[Notices]
[Page 36411-36416]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jn00-49]
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DEPARTMENT OF COMMERCE
Minority Business Development Agency
[Docket No. 000322079-0079-01]
RIN 0640-ZA06
Solicitation of Applications for the Minority Business Capital
Access Policy Institute
AGENCY: Minority Business Development Agency, U.S. Department of
Commerce.
ACTION: Notice.
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SUMMARY: In accordance with Executive Order 11625 and 15 U.S.C. 1512,
the Minority Business Development Agency (MBDA) is soliciting
competitive applications from organizations seeking to establish a
Minority Business Capital Access Policy Institute. All information
required for submission of a grant application by eligible applicants
is contained in this announcement.
The MBDA provides business development services to minority
entrepreneurs through different types of programs. Each program is
designed to focus on the unique business problems of a specific market.
MBDA's programs form a national business delivery network that
addresses the needs of minority entrepreneurs throughout the United
States. Currently, there is very limited information on the minority
business community, especially with respect to capital demand and
usage. To support the development of minority businesses and encourage
informed decision-making by both the public and private sectors, it is
critical to collect and analyze quantitative information on the capital
needs of these businesses. MBDA will therefore provide seed funding for
the planning, development and establishment of the Minority Business
Capital Access Policy Institute (``MBCAPI'' or ``Institute''), a
research and advocacy institute focused on
[[Page 36412]]
issues of capital access for minority businesses. For profit and non-
profit organizations, state or local government entities, American
Indian Tribes, colleges and universities are eligible to operate the
MBCAPI.
DATES: Completed applications for the MBCAPI program must be: (1)
Postmarked by the USPS by July 10, 2000; or (2) received by MBDA at the
address below no later than 5 p.m. Eastern Daylight Time on July 10,
2000. Applications postmarked later than the closing date or received
after the closing date will not be considered. The anticipated time for
processing of applications is 90 days.
ADDRESSES: Applicants must submit one signed original plus two (2)
copies of the application. Completed application packages must be
submitted to: Office of Financial Access, Room 5600, Minority Business
Development Agency, U.S. Department of Commerce, 14th & Constitution
Avenues, NW, Washington, DC 20230.
If the application is hand-delivered by the applicant or its
representative, it must be delivered to Room 1874, which is located at
Entrance #10, 15th Street, NW, between Pennsylvania and Constitution
Avenues. Unsigned applications and those that do not include required
forms will be considered non-responsive and will be returned to the
applicant.
FOR FURTHER INFORMATION CONTACT: For further information, contact Jason
Everett of the Office of Financial Access, at (202) 482-1940.
Pre-Application Conference: A pre-application conference will be
held for the MBCAPI program. Please contact Jason Everett of the Office
of Financial Access, at (202) 482-1940, for the date, time and
location. Please be aware that proper identification is required for
entrance into any Federal building.
SUPPLEMENTARY INFORMATION:
Authority: Executive Order 11625 and 15 U.S.C. 1512.
(Catalogue of Federal Domestic Assistance (CFDA): 11.802)
Program Description
MBDA promotes and encourages business opportunities for minority
business enterprises. Although minority businesses are growing at
approximately twice the rate of majority businesses, both in terms of
the number of companies and revenues, minority businesses, according to
the most recent Bureau of the Census data, currently account for only
6% of U.S. businesses, while representing nearly 25% of the U.S.
population. Lack of access to capital is a leading cause of the low
participation rate of minorities in the U.S. marketplace.
MBDA has determined that the lack of quantitative information
regarding, and analysis of, the financing needs of minority businesses,
strongly contributes to systemic difficulties in increasing the capital
available to minority businesses. By providing seed capital for this
project, MBDA will institute an effort to focus resources on issues of
capital access for minority businesses. MBDA anticipates that the
Institute will collect, analyze and disseminate information on the
capital needs of minority businesses, review and assess new strategies
and instruments for increasing financial access for minority
businesses, and promote the importance of increased capital flows to
minority business enterprises within the financial, general business
and public sectors.
Although research and advocacy materials developed by the MBCAPI
may be available to the general public, the Institute's primary
objectives are: (1) To research and educate financial institutions and
the capital markets about the needs of and opportunities presented by
minority businesses; and (2) to serve as a source of data and expertise
for minority businesses. The successful applicant will be required to
design and establish the Institute during the twelve-month grant
period; however, other than as set forth in this Federal Register
notice, the grantee will not be required to provide other research and
advocacy services during the grant period.
MBDA will provide funding for a twelve-month period for the
development and implementation of the MBCAPI; however, after the
initial grant, MBDA does not intend to fund the MBCAPI on an ongoing
basis. As a result, a significant portion of MBDA's evaluation process
will involve an assessment of the applicant's ability to develop
sufficient resources to sustain the Institute on a continuing basis.
However, it is not the intent of MBDA to have applicants use Federal
funds from the award to solicit financial resources for the continued
operation of the MBCAPI after the twelve-month award ends. Applicants
should be aware that under applicable cost principles (OMB Circulars A-
122, A-121 and A-87), the costs of organized fund-raising, including
financial campaigns, endowment drives, solicitation of gifts and
bequests, and similar expenses incurred solely to raise capital or
obtain contributions are unallowable under this award.
However, even though these costs are unallowable for purposes of
computing charges to Federal awards, they nonetheless may be treated as
direct costs for purposes of determining indirect costs rates and be
allocated their share of the organization's indirect costs if they
represent activities which: (1) Include the salaries of personnel, (2)
occupy space, and (3) benefit from the organization's indirect costs.
Work Requirements
Task 1
Formation and establishment of the MBCAPI, including, by the end of
the ninth month after the award start date, a strategic plan
(``Strategic Plan'' or ``Plan'') describing the MBCAPI's strategy and
methodology for becoming financially self-sustaining. The Strategic
Plan must include an estimated budget and business plan for the first
12 months of operation after MBDA funding ends.
Work on the project must have commenced within 30 days after the
start date of the award. By the end of the ninth month subsequent to
the start date of the award, the grantee will submit to MBDA the
Strategic Plan describing the approach the MBCAPI will use to become
financially self-sustaining after the award period. In the Plan, the
grantee must discuss strategies for funding MBCAPI's ongoing operations
(i.e., whether the MBCAPI will be a membership organization, where
membership dues will finance ongoing operations or whether other forms
of fundraising will be required) and identify likely sources of public
and private support sufficient to fund the MBCAPI's needs for the first
year of operation.
In particular, the Strategic Plan must discuss strategies for
mobilizing the financial, investment and business communities,
including the minority business community and minority business
advocacy organizations, to obtain the necessary financial resources to
continue the MBCAPI for the first twelve months after MBDA funding
ends. The Strategic Plan also must include an estimated budget and
business plan. The MBCAPI must be operational by the end of the award
period and should be located in an office facility.
Task 2
Conduct needs assessment of the minority business community.
This assessment shall address the capital needs of the MBE
community. The assessment should include a description of the existing
sources and structures for financing minority businesses, particularly
lending sources
[[Page 36413]]
and evaluate the need for increased use of equity and mezzanine
financing.
Task 3
Conduct financial institutions needs assessment.
This assessment shall include a review of the information, market
research and other quantitative data that financial institutions need
in order to serve the minority business community to a greater extent.
This should include the information that financial institutions believe
is currently unavailable, such as up-to-date demographic data on the
MBE community, and the type of market research that would be likely to
increase their marketing to and investment in the MBE community.
Task 4
Develop a statement of policy focus and research strategy.
Based on the foregoing assessments of minority businesses and
financial institutions, the successful applicant must develop a
statement of policy focus and research strategy to be used during its
first two operational years. This statement must describe, in detail,
the most critical issues for the minority business community and the
strategies that the MBCAPI will use to address these issues. This
should include an outline of the research that will be required and a
description of the methodology that will be used to accomplish this
work.
Task 5
Develop a work plan (``MBCAPI Work Plan'') that will demonstrate
how the MBCAPI, once operational, will complete the following:
<bullet> Creation of a clearinghouse for information related to
capital access for minority businesses. This would include reports,
studies and academic work on investment in minority businesses and
emerging domestic markets. The Institute also will develop and
implement a strategy to disseminate this information to a number of
constituencies, including but not limited to organizations focused on
minority capital access; minority business groups; the Minority
Business Roundtable; the general financial and investment community;
and economic and policy think tanks. Methods of dissemination could
include a newsletter, electronic newsletters, e-mail, the press and
other media.
<bullet> Development of research strategies and new instruments
that can be utilized to increase capital access for minority
businesses. The strategies include, but are not limited to, the
creation of a secondary market for minority and small business loans;
identification of new sources of equity, mezzanine and quasi-equity
capital; and the development of new equity and debt products and
instruments.
<bullet> Collection of information on the equity needs of minority
businesses, including estimates of the equity needs of minority
businesses, current available sources, industries in which such equity
investments are concentrated, etc. The MBCAPI also will assess the
difficulties of minority businesses in obtaining equity capital,
including lack of access to venture capital networks and other equity
investors.
<bullet> Creation and maintenance of a database of loans made to
minority-owned businesses. The data to be gathered includes information
on loans made by commercial banks, finance companies, community
development lenders, Small Business Investment Companies and other
lending institutions. This information would include asset size of each
lender, average loan size and duration, borrower target groups, loan
default and loan loss rates and other data generally used by rating
agencies in assessing a securitization transaction. The data collected
would also include general information about minority businesses,
including but not limited to the primary industries where such
businesses are concentrated, average gross revenues, primary sources of
capital, average amount of bank or other financing, sources of equity
financing, geographic location of businesses, numbers of employees,
etc.
<bullet> Assessment of the impact of minority financial services
companies on providing capital to minority businesses and recommend
ways to improve the provision of capital by such companies.
<bullet> Implementation of an education strategy that includes an
annual conference geared towards mainstream financial service companies
and focused on the benefits of investing in minority businesses.
<bullet> Monitoring and evaluation of federal and state programs
that significantly impact or target increased capital for minority
businesses.
<bullet> Recommendation of minimum standards for loan documentation
and servicing for community development lenders for purposes of
promoting uniformity in evaluating new loans and performing due
diligence.
Use of Program Income: Applicants are advised that any program
income generated by the proposed project is subject to special
conditions. Anticipated program income must be documented appropriately
in the project budget. In addition, should an application be funded,
unanticipated program income must be reported to MBDA, and the budget
for the project must be renegotiated to reflect receipt of this program
income. Program income means gross income earned by the recipient that
is either directly generated by a supported activity or earned as a
result of the award.
Performance Measures: In accordance with 15 CFR parts 14 and 24,
the successful applicant must manage and monitor functions and
activities supported by the financial award. Grantees will be required
to use program performance measures in quarterly reports and to provide
an end-of-the-year assessment of the accomplishments of the project
using these measures. Applicants must include a detailed plan in their
proposals which provides a timeline of proposed activities and
milestones to implement each of the tasks set forth above.
Funding Availability: MBDA anticipates that approximately $350,000
will be available in FY 2000 for Federal assistance under this program.
If MBDA receives sufficient funding for FY 2001, an additional $75,000
may be available to the grantee to enhance the project. In no event
will MBDA or the Department of Commerce be responsible for proposal
preparation costs if this program fails to receive funding or is
canceled because of other Agency priorities.
Matching Requirements: Cost sharing of at least 15% is required.
Additional cost sharing is encouraged. Cost sharing may be in the form
of cash, third party in-kind contributions, non-cash applicant
contributions or combinations thereof. The share may also be
contributed by local, state, and private sector organizations or joint
ventures between these organizations.
Type of Funding Instrument: A financial assistance award in the
form of a grant will be used to fund this program.
Eligibility Criteria: State or local government entities, American
Indian Tribes, colleges, universities, for-profit and non-profit
organizations are eligible to operate the MBCAPI.
Award Period: The award period shall be for approximately twelve
calendar months from the award start date. Publication of this notice
does not obligate the Department of Commerce or MBDA to award any
specific grant or to obligate all or any part of available funds.
Indirect Costs: The total dollar amount of the indirect costs
proposed in
[[Page 36414]]
an application under this program must not exceed the indirect cost
rate negotiated and approved by a cognizant Federal agency prior to the
proposed effective date of the award.
Application Forms and Package: Standard Forms 424, Application for
Federal Assistance; 424A, Budget Information--Non-Construction
Programs; 424B, Assurances--Non-Construction Programs, (Rev 4-97); SF-
LLL (1996), Disclosure of Lobbying Activities; and Department of
Commerce Forms CD-346; CD-511; and CD-512 shall be used in applying for
financial assistance. Standard Forms 424, 424A, 424B and LLL may be
downloaded at www.whitehouse.gov/omb/grants/index and Department of
Commerce Forms CD-346, CD-511 and CD-512 may be downloaded at
www.doc.gov/forms.
Evaluation Criteria
Proposals will be evaluated based on the following criteria:
I. Applicant Capability (45%)
The applicant's proposal will be evaluated with respect to the
applicant firm's experience and expertise in providing the work
requirements listed. Specifically, the proposals will be evaluated as
follows:
<bullet> Experience in and knowledge of issues related to capital
access for minority businesses and innovative programs designed to
increase such capital (10%);
<bullet> Resources and professional relationships within the
financial and investment community (10%);
<bullet> Capacity to develop the resources to make the MBCAPI self-
sustaining (10%);
<bullet> Experience and expertise in advocating on behalf of
minority businesses, including education and advocacy resources (10%);
and
<bullet> Assessment of the qualifications, experience and proposed
roles of staff who will operate the MBCAPI (5%).
To assist MBDA in its evaluation process, the following types of
information should be included in the proposal:
1. A brief Business Service History of the applicant firm or firms
in addressing issues of capital access for minority businesses. This
should address the organization's ability to perform work of the nature
and level described in the work requirements of this Federal Register
notice. If the applicant organization has an ISO 9000 Quality Assurance
certification, then it should be expressed here. Knowledge possessed by
individual staff members outside of the organization should not be
provided here (see below).
2. A brief Subject Area Overview should demonstrate the applicant's
knowledge and understanding of the subject of minority capital access.
This should include knowledge of: (a) Minority business demographics;
(b) the impediments within the capital markets to increased financing
for minority businesses; (c) financial institutions, including non-
depository lenders, and non-traditional financing sources such as
community development funds; (d) the venture capital community and
other sources of equity capital; and (e) economic development issues
and the risks to the economy of limited growth within the minority
business sector. The applicant also should demonstrate its background
in education and advocacy.
3. A brief Business Relationships Overview which synopsizes the
applicant's professional relationships which can be utilized to address
issues of capital access. Particular emphasis should be placed on those
relationships and/or partnerships within: (a) The financial and
investment community and (b) the minority business development
community that indicate applicant's ability to understand and address
the concerns of the different ethnic groups (including African
Americans, Native Americans, Puerto Ricans, Spanish speaking Americans,
Eskimos, Aleuts, Asian Indians, Asian Pacific Americans and Hasidic
Jews) served by MBDA. Information included in this overview should
reflect business relationships of both the applicant firm(s) as an
organization and those of individual proposed staff. This part should
also include references (with telephone numbers) and letters of
support, and should also answer the following questions:
<bullet> Is the applicant firm(s) or proposed MBCAPI staff known in
the financial, investment, business and minority business development
communities?
<bullet> Does the applicant enjoy solid working relationships in
the financial investment, business and minority business development
communities that verify its service quality and recommend it?
4. A Minority Business Summary that discusses the applicant's
knowledge of the unique problems facing a cross-section of minority
entrepreneurs in obtaining capital.
5. A Discussion of the Capabilities of Proposed Staff includes
staff knowledge acquired both within the applicant firm and in previous
work settings, and should specifically address knowledge in performing
work of the nature and level described in the MBCAPI work requirements.
The identification of key personnel, such as an executive director or
program manager, to direct the MBCAPI on a day-to-day basis is
important. Any change in the executive director or program manager
requires grants officer approval.
6. Overview of the MBCAPI Staff Structure includes an
organizational chart, which provides a distinct delegation of authority
and which identifies all positions, with position descriptions and
qualifications (both in-house and consultant subcontractors, if any)
for the MBCAPI. This overview should be directly tied into the work
requirements for the MBCAPI.
II. Techniques and Methodologies (40%)
The applicant will be evaluated according to the following sub-
criteria:
<bullet> Applicant's specific plan on how to carry out each of the
five MBCAPI work requirements, including proposed activities and
milestones (timeline). For example, with regard to Task 1, in addition
to discussing the development of the Strategic Plan, the applicant
should describe how it intends to establish a detailed organizational
and functional framework for the management of the MBCAPI, with a
schedule of proposed activities and milestones for doing so. The
evaluation of each task will be worth 5%.
<bullet> Applicant must provide a detailed discussion relating its
plan for carrying out each of the five MBCAPI work requirements to the
particular resources and business capabilities of its organization,
including staff and networks, thus indicating how its organization will
research, analyze and disseminate information on the capital needs of
the minority business community. The evaluation of this sub-criteria
will be worth 15%.
III. Proposed Budget and Supporting Budget Narrative (15%)
The applicant's proposal will be evaluated on the following sub-
criteria:
<bullet> Reasonableness, allowability and allocability of costs
(10%).
<bullet> Proposed cost sharing of 15% is required. The non-Federal
share must be adequately documented (5%).
<bullet> Cost sharing which exceeds 15% will be awarded bonus
points on the following scale: 16-20% 1 point; 21-25% 2 points; 26-
30% 3 points; 31-35% 4 points; and over 36% 5 points.
An application must receive an average of at least a 70% of the
total points available for all three evaluation criteria in order for
the application to be considered for funding.
[[Page 36415]]
Selection Procedures: Each application will receive an independent,
objective review by a panel qualified to evaluate the applications
submitted. The independent review panel, consisting of at least three
individuals, two of whom are reviewers who are not employees of MBDA,
will review all applications based on the criteria above. The
independent review panel will evaluate and rank the proposals. The
Director of MBDA makes the final recommendations to the Department of
Commerce Grants Officer regarding the funding of applications, taking
into account the following selection criteria:
(1) The evaluations and rankings of the independent review panel;
(2) The extent to which the applicant demonstrates ongoing
partnerships and relationships with organizations that have expertise
and knowledge regarding the unique business development issues faced by
the range of ethnic groups supported by MBDA; and
(3) The availability of funding.
The amount of funds awarded to the grantee, the scope of
programmatic activities, and clarifications and/or correction of errors
will be determined and/or conducted in pre-award negotiations between
the applicant, the Grants Officer, and the MBDA Program Officer.
Other Requirements
(1) Purchase of American-Made Equipment and Products
Applicants are hereby notified that they are encouraged, to the
greatest extent practicable, to purchase American-made equipment and
products with funding provided under this program.
(2) Paperwork Reduction Act
This notice involves collections of information subject to the
Paperwork Reduction Act, which have been approved by OMB under OMB
control numbers 0348-0043, 0348-0044, 0348-0040, and 0348-0046.
Notwithstanding any other provision of law, no person is required to
respond to nor shall a person be subject to a penalty for failure to
comply with a collection of information subject to the requirements of
the Paperwork Reduction Act unless that collection of information
displays a current valid OMB control number.
(3) Federal Policies and Procedures
Recipients and sub-recipients are subject to all Federal laws and
Federal and Department of Commerce policies, regulations, and
procedures applicable to Federal financial assistance awards.
(4) Past Performance
Unsatisfactory performance under prior Federal awards may result in
an application not being considered for funding.
(5) Pre-Award Activities
If applicants incur any costs prior to an award being made, they do
so solely at their own risk of not being reimbursed by the Government.
Notwithstanding any verbal or written assurance that may have been
received, there is no obligation on the part of the Department of
Commerce to cover pre-award costs.
(6) No Obligation for Future Funding
If an application is selected for funding, the Department of
Commerce has no obligation to provide any additional future funding in
connection with that award. Renewal of an award to increase funding or
extend the period of performance is at the total discretion of the
Department.
(7) Delinquent Federal Debts
No award of Federal funds shall be made to an applicant who has an
outstanding delinquent Federal debt until either:
i. The delinquent account is paid in full,
ii. A negotiated repayment schedule is established and at least one
payment is received, or
iii. Other arrangements satisfactory to the Department of Commerce
are made.
(8) Name Check Review
All non-profit and for-profit applicants are subject to a name
check review process. Name checks are intended to reveal if any key
individuals associated with the applicant have been convicted of or are
presently facing criminal charges such as fraud, theft, perjury, or
other matters which significantly reflect on the applicant's management
honesty or financial integrity.
(9) Primary Applicant Certifications
All primary applicants must submit a completed Form CD-511,
``Certifications Regarding Debarment, Suspension and Other
Responsibility Matters; Drug-Free Workplace Requirements and
Lobbying,'' and the following explanations are hereby provided:
i. Non-procurement, Debarment and Suspension. Prospective
participants (as defined at 15 CFR part 26, section 105) are subject to
15 CFR part 26, ``Non-Procurement Debarment and Suspension'' and the
related section of the certification form prescribed above applies;
ii. Drug-Free Workplace. Grantees (as defined at 15 CFR part 26,
section 605) are subject to 15 CFR part 26, subpart F, ``Government
wide Requirements for Drug-Free Workplace (Grants)'' and the related
section of the certification form prescribed above applies;
iii. Anti-Lobbying. Persons (as defined at 15 CFR part 28, section
105) are subject to the lobbying provisions of 31 U.S.C. 1352,
``Limitation on use of appropriated funds to influence certain Federal
contracting and financial transactions,'' and the lobbying section of
the certification form prescribed above applies to applications/bids
for grants, cooperative agreements, and contracts for more than
$100,000, and loans and loan guarantees for more than $150,000, or the
single family maximum mortgage limit for affected programs, whichever
is greater; and
iv. Anti-Lobbying Disclosures. Any applicant that has paid or will
pay for lobbying using any funds must submit an SF-LLL, ``Disclosure of
Lobbying Activities,'' as required under 15 CFR part 28, appendix B.
(10) Lower Tier Certifications
Recipients shall require applicants/bidders for sub-grants,
contracts, subcontracts, or other lower tier covered transactions at
any tier under the award to submit, if applicable, a completed Form CD-
512, ``Certifications Regarding Debarment, Suspension, Ineligibility
and Voluntary Exclusion-Lower Tier Covered Transactions and Lobbying''
and disclosure form, SF-LLL, ``Disclosure of Lobbying Activities.''
Form CD-512 is intended for the use of recipients and should not be
transmitted to DOC. SF-LLL submitted by any tier recipient or sub-
recipient should be submitted to DOC in accordance with the
instructions contained in the award document.
(11) False Statements
A false statement on an application is grounds for denial or
termination of funds and grounds for possible punishment by a fine or
imprisonment as provided in 18 U.S.C. 1001.
(12) Intergovernmental Review
Applications under this program are not subject to Executive Order
12372, ``Intergovernmental Review of Federal Programs.''
[[Page 36416]]
(13) Executive Order 12866
It has been determined that this notice is not significant for
purposes of Executive Order 12866.
Courtland Cox,
Director, Minority Business Development Agency.
Juanita E. Berry,
Federal Register Liaison Officer, Minority Business Development Agency.
[FR Doc. 00-14503 Filed 6-7-00; 8:45 am]
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