text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Minority Business Development 
  Improvements Act of 2009''.
  
  SEC. 2. MINORITY BUSINESS DEVELOPMENT PROGRAM.
  
      The Director of the Minority Business Development Agency shall 
  establish the Minority Business Development Program (hereinafter in 
  this Act referred to as the ``Program'') to assist qualified minority 
  businesses. The Program shall provide to such businesses the following:
              (1) Technical assistance.
              (2) Loan guarantees.
              (3) Contract procurement assistance.
  
  SEC. 3. QUALIFIED MINORITY BUSINESS.
  
      (a) Certification.--For purposes of the Program, the Director may 
  certify as a qualified minority business any entity that satisfies each 
  of the following:
              (1) Not less than 51 percent of the entity is directly and 
          unconditionally owned or controlled by historically 
          disadvantaged individuals.
              (2) Each officer or other individual who exercises control 
          over the regular operations of the entity is a historically 
          disadvantaged individual.
              (3) The net worth of each principal of the entity is not 
          greater than $2,000,000. (The equity of a disadvantaged owner 
          in a primary personal residence shall be considered in this 
          calculation.)
              (4) The principal place of business of the entity is in the 
          United States.
              (5) Each principal of the entity maintains good character 
          in the determination of the Director.
              (6) The entity engages in competitive and bona fide 
          commercial business operations in not less than one sector of 
          industry that has a North American Industry Classification 
          System code.
              (7) The entity submits reports to the Director at such 
          time, in such form, and containing such information as the 
          Director may require.
              (8) Any additional requirements that the Director 
          determines appropriate.
      (b) Term of Certification.--A certification under this section 
  shall be for a term of 5 years and may not be renewed.
  
  SEC. 4. TECHNICAL ASSISTANCE.
  
      (a) In General.--In carrying out the Program, the Director may 
  provide to qualified minority businesses technical assistance with 
  regard to the following:
              (1) Writing business plans.
              (2) Marketing.
              (3) Management.
              (4) Securing sufficient financing for business operations.
      (b) Contract Authority.--The Director may enter into agreements 
  with persons to provide technical assistance under this section.
      (c) Authorization of Appropriations.--There are authorized to be 
  appropriated $200,000,000 to the Director to carry out this section. 
  Such sums shall remain available until expended.
  
  SEC. 5. LOAN GUARANTEES.
  
      (a) In General.--Subject to subsection (b), the Director may 
  guarantee up to 90 percent of the amount of a loan made to a qualified 
  minority business to be used for business purposes, including the 
  following:
              (1) Purchasing essential equipment.
              (2) Payroll expenses.
              (3) Purchasing facilities.
              (4) Renovating facilities.
      (b) Terms and Conditions.--
              (1) In general.--The Director may make guarantees under 
          this section for projects on such terms and conditions as the 
          Director determines appropriate, after consultation with the 
          Secretary of the Treasury, in accordance with this section.
              (2) Repayment.--No guarantee shall be made under this 
          section unless the Director determines that there is reasonable 
          prospect of repayment of the principal and interest on the 
          obligation by the borrower.
              (3) Defaults.--
                      (A) Payment by director.--
                              (i) In general.--If a borrower defaults on 
                          the obligation (as defined in regulations 
                          promulgated by the Director and specified in 
                          the guarantee contract), the holder of the 
                          guarantee shall have the right to demand 
                          payment of the unpaid amount from the Director.
                              (ii) Payment required.--Within such period 
                          as may be specified in the guarantee or related 
                          agreements, the Director shall pay to the 
                          holder of the guarantee the unpaid interest on, 
                          and unpaid principal of the obligation as to 
                          which the borrower has defaulted, unless the 
                          Director finds that there was no default by the 
                          borrower in the payment of interest or 
                          principal or that the default has been 
                          remedied.
                              (iii) Forbearance.--Nothing in this 
                          paragraph precludes any forbearance by the 
                          holder of the obligation for the benefit of the 
                          borrower which may be agreed upon by the 
                          parties to the obligation and approved by the 
                          Director.
                      (B) Subrogation.--
                              (i) In general.--If the Director makes a 
                          payment under subparagraph (A), the Director 
                          shall be subrogated to the rights of the 
                          recipient of the payment as specified in the 
                          guarantee or related agreements including, 
                          where appropriate, the authority 
                          (notwithstanding any other provision of law) 
                          to--
                                      (I) complete, maintain, operate, 
                                  lease, or otherwise dispose of any 
                                  property acquired pursuant to such 
                                  guarantee or related agreements; or
                                      (II) permit the borrower, pursuant 
                                  to an agreement with the Director, to 
                                  continue to pursue the purposes of the 
                                  project if the Director determines this 
                                  to be in the public interest.
                              (ii) Superiority of rights.--The rights of 
                          the Director, with respect to any property 
                          acquired pursuant to a guarantee or related 
                          agreements, shall be superior to the rights of 
                          any other person with respect to the property.
                              (iii) Terms and conditions.--A guarantee 
                          agreement shall include such detailed terms and 
                          conditions as the Director determines 
                          appropriate to--
                                      (I) protect the interests of the 
                                  United States in the case of default; 
                                  and
                                      (II) have available all the patents 
                                  and technology necessary for any person 
                                  selected, including the Director, to 
                                  complete and operate the project.
                      (C) Payment of principal and interest by 
                  director.--With respect to any obligation guaranteed 
                  under this section, the Director may enter into a 
                  contract to pay, and pay, holders of the obligation, 
                  for and on behalf of the borrower, from funds 
                  appropriated for that purpose, the principal and 
                  interest payments which become due and payable on the 
                  unpaid balance of the obligation if the Director finds 
                  that--
                              (i)(I) the borrower is unable to meet the 
                          payments and is not in default;
                                      (II) it is in the public interest 
                                  to permit the borrower to continue to 
                                  pursue the purposes of the project; and
                                      (III) the probable net benefit to 
                                  the Federal Government in paying the 
                                  principal and interest will be greater 
                                  than that which would result in the 
                                  event of a default;
                              (ii) the amount of the payment that the 
                          Director is authorized to pay shall be no 
                          greater than the amount of principal and 
                          interest that the borrower is obligated to pay 
                          under the agreement being guaranteed; and
                              (iii) the borrower agrees to reimburse the 
                          Director for the payment (including interest) 
                          on terms and conditions that are satisfactory 
                          to the Director.
                      (D) Action by attorney general.--
                              (i) Notification.--If the borrower defaults 
                          on an obligation, the Director shall notify the 
                          Attorney General of the default.
                              (ii) Recovery.--On notification, the 
                          Attorney General shall take such action as is 
                          appropriate to recover the unpaid principal and 
                          interest due from--
                                      (I) such assets of the defaulting 
                                  borrower as are associated with the 
                                  obligation; or
                                      (II) any other security pledged to 
                                  secure the obligation.
              (4) Fees.--
                      (A) In general.--The Director shall charge and 
                  collect fees for guarantees in amounts the Director 
                  determines are sufficient to cover applicable 
                  administrative expenses, not to exceed 1 percent of the 
                  amount guaranteed.
                      (B) Availability.--Fees collected under this 
                  paragraph shall--
                              (i) be deposited by the Director into the 
                          Treasury; and
                              (ii) remain available until expended, 
                          subject to such other conditions as are 
                          contained in annual appropriations Acts.
      (c) Credit Requirements.--To receive a loan guaranteed under this 
  section a qualified minority business shall--
              (1) be in good standing with regard to the credit of that 
          business in the determination of the Director;
              (2) have received technical assistance under section 4; and
              (3) submit reports, at such time, in such form, and 
          containing such information as the Director may require 
          regarding the credit of the business.
      (d) Limits on Guarantee Amounts.--
              (1) Maximum amount of guarantee.--The Director may 
          guarantee not more than $450,000 of any loan under this 
          section.
              (2) Maximum gross loan amount.--A loan guaranteed under 
          this section may not be for a gross loan amount in excess of 
          $500,000.
      (e) Authorization of Appropriations.--There are authorized to be 
  appropriated to the Director not more than $500,000,000 to carry out 
  this section during fiscal years 2011 through 2016.
  
  SEC. 6. SET-ASIDE CONTRACTING OPPORTUNITIES.
  
      (a) In General.--The Director may enter into agreements with the 
  United States Government and any department, agency, or officer thereof 
  having procurement powers for purposes of providing for the fulfillment 
  of procurement contracts and providing opportunities for qualified 
  minority businesses with regard to such contracts.
      (b) Qualifications on Participation.--The Director shall by rule 
  establish requirements for participation under this section by a 
  qualified minority business in a contract.
      (c) Annual Limit on Number of Contracts Per Qualified Minority 
  Business.--A qualified minority business may not participate under this 
  section in contracts in an amount that exceeds $10,000,000 for goods 
  and services each fiscal year.
      (d) Limits on Contract Amounts.--
              (1) Goods and services.--Except as provided in paragraph 
          (2), a contract for goods and services under this section may 
          not exceed $6,000,000.
              (2) Manufacturing and construction.--A contract for 
          manufacturing and construction services under this section may 
          not exceed $10,000,000.
  
  SEC. 7. TERMINATION FROM THE PROGRAM.
  
      The Director may terminate a qualified minority business from the 
  Program for any violation of a requirement of sections 3 through 6 of 
  this Act by that qualified minority business, including the following:
              (1) Conduct by a principal of the qualified minority 
          business that indicates a lack of business integrity.
              (2) Willful failure to comply with applicable labor 
          standards and obligations.
              (3) Consistent failure to tender adequate performance with 
          regard to contracts under the Program.
              (4) Failure to obtain and maintain relevant certifications.
              (5) Failure to pay outstanding obligations owed to the 
          Federal Government.
  
  SEC. 8. REPORTS.
  
      (a) Report of the Director.--Not later than October 1, 2011, and 
  annually thereafter, the Director shall submit to the Committee on 
  Energy and Commerce of the House of Representatives and the Committee 
  on Commerce, Science, and Transportation of the Senate a report 
  describing the activities of the Director during the preceding year 
  with respect to the Program.
      (b) Report of the Secretary of Commerce.--Not later than October 1, 
  2011, and annually thereafter, the Secretary of Commerce shall submit 
  to the Committee on Energy and Commerce of the House of Representatives 
  and the Committee on Commerce, Science, and Transportation of the 
  Senate a report describing the activities the Secretary engaged in 
  during the preceding year to build wealth among historically 
  disadvantaged individuals.
  
  SEC. 9. DEFINITIONS.
  
      In this Act:
              (1) The term ``historically disadvantaged individual'' 
          means any individual who is a member of a group that is 
          designated as eligible to receive assistance under section 
          1400.1 of title 15 of the Code of Federal Regulations, as in 
          effect on January 1, 2009.
              (2) The term ``principal'' means any person that the 
          Director determines to exercise significant control over the 
          regular operations of a business entity.
target: Minority Business Development Improvements Act of 2009 - Requires the Director of the Minority Business Development Agency to establish the Minority Business Development Program to provide qualified minority businesses with technical assistance, loan guarantees, and contract procurement assistance. Outlines minority business qualification requirements for the Program, including that: (1) not less than 51% of the entity be directly and unconditionally owned by historically disadvantaged individuals; and (2) each officer or other individual exercising control over regular operations is a historically disadvantaged individual. Outlines specific types of technical assistance and loan guarantees authorized under the Program. Provides loan guarantee limits.
  
  Authorizes the Director to enter into agreements for the fulfillment of federal procurement contracts by, and contracting opportunities for, qualified minority businesses. Provides contract limits.
  
  Allows the Director to terminate a qualified minority business from the Program under specified circumstances.
feat_title: To establish in the Department of Commerce the Minority Business Development Program to provide qualified minority businesses with technical assistance, loan guarantees, and contracting opportunities, and for other purposes.