15 U.S.C. § 9561 — Grants to nonprofit organizations that support minority business enterprises

(a) Definition. In this section, “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 is tax-exempt under section 501(a) of that title; and
(2) can show that providing services to minority business enterprises is one of its main activities, whether through education, grants, loans, or similar work. This section does not define the quoted term “minority business enterprises.”

(b) Purpose. The purpose is to give grants to covered entities so they can continue necessary work supporting minority business enterprises.

(c) Designation of office. (1) Within 180 days after November 15, 2021, the Under Secretary^* must designate an office to make and administer these grants. (2) The Under Secretary^* must ensure that the designated office has enough staff to do its work under this section.

(d) Application. A covered entity seeking a grant must apply to the Under Secretary at the time, in the manner, and with the information the Under Secretary requires.

(e) Priority. The Under Secretary must give priority to an application from a covered entity located in a federally recognized area of economic distress^*.

(f) Use of funds. A recipient may use grant money to support the development, growth, or retention of minority business enterprises.

(g) Procedures. The Under Secretary must create procedures to— (1) discourage and prevent waste, fraud, and abuse by grant applicants and recipients; and (2) ensure grants go to a diverse range of covered entities. That range may include (A) entities with a national presence; (B) community-based entities; (C) entities with annual budgets below $1,000,000; and (D) entities mainly serving low-income and rural communities.

(h) Inspector General audit. Within 180 days after the Under Secretary begins making grants, the Commerce Department Inspector General must (1) audit the grants to look for discrepancies or irregularities, and (2) send Congress a report about the audit.

(i) Updates to Congress. Within 90 days after the designation under subsection (c), and every 30 days afterward, the Under Secretary must send Congress a report stating (1) the number of grants made during the reporting period, and (2) for those grants— (A) their geographic distribution by State^* and county; (B) when applicable, demographic information about the minority business enterprises served by the recipients; and (C) information about the industries of those enterprises.