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Catalog of Federal Domestic Assistance

Program Descriptions

59.007:  Management and Technical Assistance for Socially and Economically Disadvantaged Businesses

Popular Name:  7(J) Development Assistance Program

Objectives:  To provide management and technical assistance and access to capital and other forms of financial assistance and business training and counseling through qualified individuals, public or private organizations to 8(a) certified firms and other existing or potential businesses which are economically and socially disadvantaged; businesses operating in areas of high unemployment or low income; firms owned by low-income persons; or participants in activities authorized by Sections 7(i), 7(j) and 8(a) of the Small Business Act.

PROGRAM AND AWARD	FINANCIAL AND INFORMATION CONTACTS
ELIGIBILITY REQUIREMENTS	FINANCIAL AND ADMINISTRATIVE INFO.
APPLICATION AND AWARD PROCESS	INFORMATION CONTACTS
RELATED PROGRAMS	ASSISTANCE CONSIDERATIONS
PROGRAM ACCOMPLISHMENTS	POST ASSISTANCE REQUIREMENTS

59.007 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:  State and local governments, educational institutions, public or private organizations and businesses, lending and financial institutions and sureties, Indian tribes and individuals that have the capability to provide the necessary assistance, as described in each program solicitation announcement.

Beneficiary Eligibility:  Socially and economically disadvantaged persons and businesses owned and operated by participants in the 8(a) program, (59.006) businesses operating in areas of low-income or high-unemployment, and firms owned by low-income individuals.

Credentials/Documentation:  As specified in the individual "Request for Application Proposals." Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments and OMB circular No. A-21 for educational institutions.

59.007 APPLICATION AND AWARD PROCESS:

Preapplication Coordination:  An applicant's mailing list requirements will be provided upon request. This program is excluded from coverage under E.O. 12372.

Application Procedure:  Application proposal forwarded to District Office Director for appropriate geographic area. (See Appendix IV under Small Business Administration for a listing of field Offices.) The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102 must be used for this program by State and local governments. This program is subject to the provisions of OMB Circular No. A-110.

Award Procedure:  Decisions on acceptance are made by the Office of Procurement and Grants Management based upon recommendations of the Associate Administrator for 8(a) Business Development or his/her designee. The Grants Management Officer notifies successful applicants by Notice of Award. Decisions on services from lending and financial institutions and sureties, and business training and counseling will be made by the Associate Administrator for 8(a) Business Development.

Deadlines:  As announced within individual "Request for Application Proposals."

Range of Approval/Disapproval Time:  Variable.

Appeals:  Not applicable.

Renewals:  Contact the Federal agency.

Criteria for Selecting Proposals:  As described in each announcement.

Examples of Funded Projects:  Not applicable.

Range and Average of Financial Assistance:  Amount subject to negotiation commensurate with management and technical assistance to be provided.

59.007 RELATED PROGRAMS:

• 11.110 Trade Development;
• 11.800 Basic Minority Business Development Centers;
• 59.009 Procurement Assistance to Small Businesses.

59.007 PROGRAM ACCOMPLISHMENTS:

In fiscal year 1999, 153 cooperative agreements were awarded.

59.007 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency:  SMALL BUSINESS ADMINISTRATION

Type of Assistance:  Project Grants (Cooperative Agreements).

Obligations:  (Cooperative Agreements) FY 99 $2,850,000; FY 00 est $2,600,000; and FY 01 est $5,000,000.

Budget Account Number:  73-0100-0-1-376.

Authorization:  Small Business Act of 1953, as amended, Section 7(j), Public Laws 95-507, 96-481, 100-656, 101-37, and 101-574.

Regulations, Guidelines, and Literature:  Fact sheet upon request.

59.007 INFO CONTACTS:

Regional or Local Office:  SBA District Offices listed in Appendix IV of the Catalog.

Headquarters Office:  Associate Administrator for Minority Enterprise Development, 409 3rd Street, SW., Washington, DC 20416. Phone: (202) 205-6410. Use the same number for FTS.

(See Appendix IV for more contact info.)

59.007 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:  None.

Length and Time Phasing of Assistance:  Awards are made for a maximum of 1 year with options as stated in the individual announcements. Disbursements are made within a few days of receipt of request for disbursement. Disbursements are made in partial payments based on work successfully performed. Length and time of services from lending and financial institutions and sureties and business training and counseling will be determined on a case-by-case basis.

Uses and Use Restrictions:  Financial assistance under this Section may be given for projects that respond to needs as outlined in each respective program solicitation announcement and services from lending and financial institutions and sureties and business training and counseling. Such assistance must provide a special level of effort or service in the delivery of management and technical assistance, or provide a special level of effort or service in the delivery of access to capital and other forms of financial assistance, and business training and counseling, to socially and economically disadvantaged small businesses in order to provide opportunity for successful and full participation in the free enterprise system. Types of management and technical assistance may include accounting, marketing, proposal preparation workshops and industry specific technical assistance, or access to capital and other forms of financial assistance and business training and counseling.

59.007 POST ASSISTANCE REQUIREMENTS:

Reports:  Program and fiscal reports, as described in each award. A final report is also due within 30 days after completion of agreement.

Audits:  Pre-award accounting system survey. Final audit by a certified or licensed public accountant. Other audits are required by SBA. In accordance with the provisions of OMB Circular No. A-133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records:  Appropriate records as needed for above requirements.