Minority Entrepreneurship Grant Program Act of 2025

Bill Number

H.R. 3793

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-06-05: Referred to the House Committee on Small Business.

Last Updated

2025-12-17T09:06:29Z

AI-Generated Summary

Purpose of the Legislation

The Minority Entrepreneurship Grant Program Act of 2025 aims to boost minority-owned businesses by creating a federal grant program. It directs the Small Business Administration (SBA) to fund programs at minority-serving institutions (MSIs) and historically Black colleges and universities (HBCUs) that help minority students start or grow businesses. The goal is to increase access to entrepreneurship resources for underrepresented groups.

Key Provisions

• Definitions: The bill defines key terms, including:
• Minority: Individuals from groups such as Black or African American, Hispanic or Latino, Native American, Asian, Native Hawaiian or Pacific Islander, Native Alaskan, or other socially disadvantaged groups recognized by federal regulations.
• Minority-Serving Institution (MSI): Colleges or universities primarily serving specific minority populations, like Hispanic-serving institutions or Tribal Colleges (drawn from the Higher Education Act of 1965).
• Historically Black College or University (HBCU): Institutions established to serve Black students, as defined in federal education law.
• Student Entrepreneur: A minority student at an MSI or HBCU seeking to start or develop a business.
• Other terms cover the SBA Administrator, the grant program, and the Under Secretary of Commerce for Minority Business Development.

• Grant Program Establishment:
• The SBA must set up the program within 180 days of enactment, in consultation with the Under Secretary.
• Eligible applicants (MSIs and HBCUs) submit applications detailing needs, planned uses of funds, support for student entrepreneurs, and plans to expand business programs.
• Grants are at least $250,000 each and can fund resources like free legal advice, accounting, marketing, training, counseling, networking, technical help, and startup costs (e.g., forming a new business).
• Grantees must submit mid-year and year-end reports on outcomes, such as the number of students trained, businesses created (including details like business name and funding used), referrals to SBA resources, and participant demographics (broken down by sex, race, and ethnicity where possible).
• The SBA reports to Congress starting 18 months after the first grant, covering grant details, outcomes, and any unspent funds.
• Authorizes $50 million in funding for the program.

• Advisory Board:
• The SBA must create a Minority Entrepreneurship Advisory Board within 180 days.
• Members are appointed by the SBA Administrator and must have expertise in minority-owned small businesses, startups, or business consulting.
• The board develops recommendations on how MSIs and HBCUs can better support minority entrepreneurs.
• Recommendations are submitted to Congress within 18 months.
• The board is exempt from Federal Advisory Committee Act rules, which normally regulate government advisory groups for transparency and structure.

Significant Changes to Existing Law

This bill introduces a new grant program and advisory board within the SBA, which did not previously exist in this form. It builds on existing federal definitions from the Higher Education Act of 1965 (for MSIs and HBCUs) and the Small Business Act (for small businesses) but adds specific requirements for reporting, funding minimums, and focus on minority student entrepreneurs. No direct amendments to prior laws are made; instead, it creates standalone mechanisms to expand support for minority business development.

Potential Impacts

• On Government Agencies: The SBA gains new responsibilities for administering grants, reviewing applications, and reporting to Congress, potentially increasing administrative workload and requiring coordination with the Department of Commerce. The $50 million authorization could strain budgets if not fully appropriated, but it formalizes federal investment in minority entrepreneurship education.
• On Citizens: Minority students at MSIs and HBCUs benefit from expanded access to business resources, which could lead to more startups and job creation in underserved communities. It promotes economic inclusion by addressing barriers like lack of capital or training for minority entrepreneurs.
• On International Relations: No direct impacts; the bill focuses on domestic education and business support.

Main Stakeholders Affected

• Minority-Serving Institutions and HBCUs: Primary recipients of grants, responsible for creating or expanding programs and reporting outcomes.
• Student Entrepreneurs: Minority students at these institutions who gain access to training, counseling, and funding support to start businesses.
• Small Business Administration (SBA): Leads implementation, grant distribution, and oversight.
• Under Secretary of Commerce for Minority Business Development: Provides consultation to ensure alignment with broader minority business goals.
• Minority Business Owners and Communities: Indirectly benefit from increased entrepreneurship, potentially leading to more diverse small businesses.
• Congress: Receives regular reports to monitor effectiveness and guide future funding.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes enforceable reporting and accountability measures, with clear timelines (e.g., 180 days for program setup). The funding authorization allows for appropriations but does not guarantee them, leaving implementation dependent on congressional budgeting. Exemption from advisory committee rules streamlines the board but may raise questions about oversight.
• Constitutional: Supports equal protection principles by targeting resources to historically disadvantaged groups, aligning with federal efforts to promote economic opportunity without creating new entitlements. It avoids quotas, focusing on voluntary program expansion.
• Political: Introduced with bipartisan support (e.g., cosponsors from both parties), it emphasizes economic empowerment for minorities, which could influence debates on education funding and small business policy. Success metrics like business creation reports may inform future legislation on equity in entrepreneurship.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Williams, Nikema [D-GA-5]

Cosponsors (5)

Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Adams, Alma S. [D-NC-12], Rep. Evans, Dwight [D-PA-3], Rep. Torres, Norma J. [D-CA-35], Rep. Goldman, Daniel S. [D-NY-10]

Recent Actions

• 2025-06-05: Referred to the House Committee on Small Business.
• 2025-06-05: Introduced in House
• 2025-06-05: Introduced in House

Bill Versions

• Minority Entrepreneurship Grant Program Act of 2025 — issued 2025-06-05 — PDF (11 pages)