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2026-07-06 10:51:44 -04:00

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LegalText 15 U.S.C. § 9561 Grants to nonprofit organizations that support minority business enterprises us united_states_code code_section 15 COMMERCE AND TRADE 120 MINORITY BUSINESS DEVELOPMENT 9561 15 U.S.C. § 9561 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc15@119-100.zip /us/usc/t15/s9561 data/legal/raw/us/code/title-15/usc15.xml 96479443857312eb305ecd505e6b23e925dffece1400206ecce228d8cc040435 6982338d990ef19d6b52bff6825089bdd6d0ee1233d9382673faf533decd5059 ff5f78a8bf401612511ef3676f2e5f82214907870e6dd6be432c5cee9829525c 2026-07-04 official
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15 U.S.C. § 9561 - Grants to nonprofit organizations that support minority business enterprises

Text

(a) Definition In this section, the term “covered entity” means a private nonprofit organization that—

(1) is described in paragraph (3), (4), (5), or (6) of section 501(c) of title 26 and exempt from tax under section 501(a) of such title; and

(2) can demonstrate that a primary activity of the organization is to provide services to minority business enterprises, whether through education, making grants or loans, or other similar activities.

(b) Purpose The purpose of this section is to make grants to covered entities to help those covered entities continue the necessary work of supporting minority business enterprises.

(c) Designation of office (1) In general Not later than 180 days after November 15, 2021, the Under Secretary shall designate an office to make and administer grants under this section.

(2) Considerations In designating an office under paragraph (1), the Under Secretary shall ensure that the office designated has adequate staffing to carry out the responsibilities of the office under this section.

(d) Application A covered entity desiring a grant under this section shall submit to the Under Secretary an application at such time, in such manner, and containing such information as the Under Secretary may require.

(e) Priority The Under Secretary shall, in carrying out this section, prioritize granting an application submitted by a covered entity that is located in a federally recognized area of economic distress.

(f) Use of funds A covered entity to which a grant is made under this section may use the grant funds to support the development, growth, or retention of minority business enterprises.

(g) Procedures The Under Secretary shall establish procedures to—

(1) discourage and prevent waste, fraud, and abuse by applicants for, and recipients of, grants made under this section; and

(2) ensure that grants are made under this section to a diverse array of covered entities, which may include—

(A) covered entities with a national presence;

(B) community-based covered entities;

(C) covered entities with annual budgets below $1,000,000; or

(D) covered entities that principally serve low-income and rural communities.

(h) Inspector General audit Not later than 180 days after the date on which the Under Secretary begins making 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 discrepancies or irregularities with respect to those grants; and

(2) submit to Congress a report regarding the audit conducted under paragraph (1).

(i) Updates to Congress Not later than 90 days after the date on which the Under Secretary makes the designation required under subsection (c), and once every 30 days thereafter, the Under Secretary shall submit to Congress a report that contains—

(1) the number of grants made under this section during the period covered by the report; and

(2) with respect to the grants described in paragraph (1)—

(A) the geographic distribution of those grants by State and county;

(B) if applicable, demographic information with respect to the minority business enterprises served by the covered entities to which the grants were made; and

(C) information regarding the industries of the minority business enterprises served by the covered entities to which the grants were made.

(Pub. L. 11758, div. K, title IV, § 100401, Nov. 15, 2021, 135 Stat. 1461.)