Understanding MBDA Programs and Funding Opportunities

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U.S. Department of Commerce Minority Business Development Agency

A Presentation to the Coalition of Asian American Business Organizations

July 1, 2010

Hosts

Chiling TongCo-Chair, Coalition of Asian American Business Organizations

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Jamie BorromeoExecutive Director, National Council of Asian American Business Associations

Efrain Gonzalez, Jr.Chief, Office of Business DevelopmentMinority Business Development AgencyU.S. Department of Commerce

Overview

What is MBDA?

What is MBDA’s Strategic Growth Initiative?

Why is MBDA Important?

What Activities Does MBDA Fund?

What Do MBDA’s 46 Centers Do?

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Strategic Growth Initiative MBDA Minority Business Centers $12 Million in Funding Average Funding Levels Application Process Funding Notices Performance-Based Scopes of Work MBDA Branding Strategic Partnerships Cost-Sharing Requirements Fee-for-Service Requirements Indirect Costs Considerations

Specific Topics Covered

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The Agency

MBDA’s vision is economic prosperity for all American business enterprises.

To foster the growth and global competitiveness of U.S. businesses that are minority-owned.

Vision

Mission

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Why is MBDA important

• The U.S. needs strong minority-owned firms to achieve maximum economic growth.

• The nation is failing to reap the benefits of economic parity – the creation of 16 million jobs, generation of $2.5 trillion in gross receipts and unrealized tax base exceeding $100 billion per year.

• Minority firms have the potential to contribute significantly to the balance of trade. Minority businesses are twice as likely to generate sales through exports compared to non-minority firms.

• Minority-owned firms create job opportunities for all Americans; MBEstend to be generally more balanced in hiring minority and non-minority persons.

• In 2050, the minority community will represent 54% of total U.S.population.

• MBDA is a catalyst to build minority-owned firms of size, scale and capacity.

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Why is MBDA important (cont’d)

Source: U.S. Census Bureau, 2002 Survey of Business Owners, August 2006, and 2007 Special Tabulation on total minority firms for 2002.

55,368,000 $391,000$8.8 trillion 22,480,000 All U.S. Firms (excludes publicly-

held and other non-classifiable firms)

4,675,000 $167,000$661.1billion 3,958,000 All Minority

29,000 $148,000$4.3 billion 29,000 Native Hawaiian and Other Pacific Islander

1,538,000 $141,000$222.0 billion 1,574,000 Hispanic

2,213,000 $296,000$326.4 billion 1,104,000 Asian

191,000 $133,000$26.9 billion 201,000 American Indian & Alaska Native

757,000 $74,000$88.8 billion 1,198,000 African American

Paid Employees

Average GrossReceipts

Total GrossReceipts

Number ofFirmsGroup

Summary of Business Statistics by Group - 2002

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Our Clients

• MBDA serves all minority clients regardless of size

• The core MBDA client is a firm that generates $500,000 (+) in annual revenue or with rapid growth potential

• Minority firms eligible for MBDA services are: Native Americans, Hasidic Jewish Americans, Native Hawaiians, Asian Americans, Alaska Natives, Pacific Islanders, Hispanic Americans, and African Americans

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MBDA provides nationwide reach through five regional offices

MBDA Structure

New Orleans

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Service Delivery

MBDA network is comprised of 46 centers which are organized as public/private partnerships

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Service Delivery (cont’d)

• Procurement Assistance

• Private Equity and Venture Capital Sourcing

• Bonding Assistance and Lending Assistance

• Strategic Partnering (e.g., Business-to Business, Teaming, Joint Ventures, etc.)

• Strategic Business Consulting– Systems Integrated Approach

• Market Promotion of Clients to Prime Contractors and Other Buyers

MBDA provides the following services:

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Performance

• New Jobs Created• Dollar Value of Contracts Awarded• Dollar Value of Financing Transactions Awarded

• 2,001 New Jobs• $1.7 Billion in Contracts• $278 Million in Financing

n/a

n/a

n/a

n/a*

2,270

4,254

3,506

5,316

New Jobs Created

38x$1.1 B$29.0 MFY 03

79x$2.2 B$27.9 MFY 01

60x$1.7 B$28.3 MFY 02

54x$1.6 B$29.7 MFY 04

54x$1.6 B$29.8 MFY 05

53x$1.6 B$29.8 MFY 06

59x$1.8 B$29.9 MFY 07

74x$2.1 B$28.5 MFY 08

Return on Agency

Investment(ROI)

Total Contracts & Financial

OpportunitiesAwarded

Agency Funding

Fiscal Year

MBDA’s performance criteria is based on:

January 1 through August 25, 2009, MBDA has created:

* The Job Creation measure was established in fiscal year 2005 12

New Strategic Focus

• Increase focus to minority-owned firms with $1 million or more in revenue

• Create a new generation of minority-owned businesses with $100 million in annual revenue

• Continue to expand minority businesses globally

• Foster growth of minority businesses into key innovative industries:– Clean Energy– Green Technology– Healthcare – Information Technology

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• Public-Private Partnerships

• Competitive Grant Programs– Minority Business Enterprise Center (MBEC)– Native American Business Enterprise Center (NABEC) – Minority Business Opportunity Center (MBOC)

Program Types

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No. Awards (est.) 32 8 8Funding Range $200,000 $155,000 $130,000

- $339,500 - $287,500 - $300,000Non-Fed. Cost Share 20% 10% 20%Client Fees Yes Optional Optional

Avg. Duration 3 yrs 3 yrs 3 yrsPrimary Service M&TA M&TA BrokeringPerformance Yes Yes Yes

RequirementsCFDA No. 11.800 11.801 11.803

MBEC NABEC MBOC

Funding Opportunities

Actual investment may vary depending on the availability of funds.

Program Investment

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Total Program Funding is Approximately $12 Million

Branding

• Support MBDA program recognition

• Use of program (MBEC, NABEC, MBOC) logos

• Websites

• Publications

• Communications

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Strategic Partners

• A minimum of 5 (external) entities - Financial institutions - Major corporations- Major colleges and universities

• Assist the center achieve performance goals

• Assist the center achieve non-federal cost share goals

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Cost Sharing

• MBDA programs require a minimum non-federal cost share• Non-federal cost share is the portion of the project cost not borne by the federal

government• Required non-federal cost share is comprised of one or more the following:

– Client fees collected– Cash contributions– In-kind (i.e., non-cash) contributions– Third-party in-kind contributions– Note, the MBEC program is required to charge and collect client fees for services rendered

• MBDA award recipients are eligible to apply indirect costs• Cost rates vary and must adhere to OMB circulars• Cost rates must be approved by a cognizant Federal agency• MBDA grant applicants may submit proposed indirect cost structures for approval

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Cost Sharing

Indirect Costs

Understand MBDA Philosophy

Identify Strategic Compliments

Align Partnerships

Develop Proposal

Build Capacity via Program

Strategies for CompetitionB

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Preparing for Next MBDA Funding Cycle

Strategies for Competition (cont’d)

Research Archived Competitions

Select this item

Visit www.mbda.gov

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Strategies for Competition (cont’d)

Research Archived Competitions

Review these documents

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Federal Funding Opportunity

UnofficialPanel EvaluationForm

Sample Proposal

Strategies for Competition (cont’d)

Research Archived Competitions

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http://www.gpoaccess.gov/fr/ http://www.grants.gov http://www.mbda.gov

Strategies for Competition (cont’d)

Finding Notice of Competition

MBDA publishes its notice of competition in the following website:

MBDA also conducts pre-application conferences for all open competitions; potential applicants are encouraged to participate and ask specific questions related to the program and competition.

Details of pre-application conferences will be found at www.mbda.gov.

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Initiate process hereCFDA

11.800 MBEC11.801 NABEC11.803 MBOC

Set email alertRegister early

Strategies for Competition (cont’d)

Notice of Competition via Grants.Gov

Potential applicants can register on Grants.Gov to receive an email notice announcing new competitions.

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Notice of Competition via Grants.Gov

Strategies for Competition (cont’d)

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How to Ensure Participation?

• Study the entire MBDA presentation

• Download prior MBDA competition information

• Sign up for notices– www.Grants.gov

• Keep close watch for MBDA notices – www.MBDA.gov

• Once notice of competition begins– Review new FFO– Adhere to directions– Register for pre-application conference– Prepare questions for pre-application conference

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Close

Thank you for participating.

MBDA will provide CAABO notice of competition once initiated. CAABO will send an email announcement to its constituents.

Have a great day!

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