MBDA Capital Readiness Program

The Minority Business Development Agency's (MBDA) Capital Readiness Program (Program) was designed to help close the entrepreneurship gap between socially and economically disadvantaged individuals (SEDI) and non-SEDI. This program funded qualified

The Minority Business Development Agency's (MBDA) Capital Readiness Program (Program) was designed to help close the entrepreneurship gap between socially and economically disadvantaged individuals (SEDI) and non-SEDI. This program funds qualified organizations that have the expertise to provide technical assistance for entrepreneurs starting or scaling their businesses who are seeking various forms of capital. This program is no longer making new awards, but existing projects are still active.

Eligible applicants are limited to: • Non-profit organizations, • Institutions of higher education, and • Private sector entities (defined as entities that are not public sector entities). This includes, for example, for-profit entities of any type, including sole-proprietorships, partnerships, limited liability companies, and corporations, but does not include public sector entities, such as Federal, State, Local, or Tribal Governments, agencies, or any of their instrumentalities, • A consortium of two or more of any of the above-mentioned eligible applicants. In a consortium application, there must be a designated lead applicant; the lead applicant would enter into the award agreement with MBDA and assume primary operational and financial responsibility for completing the project should an award be made.

a) a business that is owned and controlled by individuals or whose current majority founders are individuals who have had their access to credit on reasonable terms diminished compared to others in comparable economic circumstances, due to their: (1) membership in a group that has been subjected to racial or ethnic prejudice or cultural bias within American society; (2) gender; (3) veteran status; (4) limited English proficiency; (5) disability; (6) long-term residence in an environment isolated from the mainstream of American society; (7) membership in a federally or state-recognized Indian Tribe; (8) long-term residence in a rural community; (9) residence in a U.S. territory; (10) residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization); or (11) membership in an underserved community. b) a business enterprise that certifies that it is owned and controlled by individuals whose residences are in Community Development Financial Institution (CDFI) Investment Areas, as defined in 12 C.F.R. § 1805.201(b)(3)(ii); c) a business enterprise that certifies that it will build, open, or operate a location in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii); or d) a business enterprise that certifies that it is located in a CDFI Investment Area, as defined in 12 C.F.R. § 1805.201(b)(3)(ii).

• Assisted startups and small businesses or expand existing businesses by providing critical technical assistance strategies and services. • Helped SEDI enterprises secure growth capital (equity, debt, and grants). • Cultivated a network of partners to close the entrepreneurship and wealth gaps in regions across the nation.

The following activities and associated costs are not allowable under this Program. Such costs may not be charged to the Federal share or matching share of the award. • Construction: Construction activities are not allowable under this program. For the purposes of an award made pursuant to this NOFO, construction includes any activity that disturbs the ground or modifies a structure. • Equity Investments & Loans: The use of award funds for equity investments, loans, or grants to entrepreneurs or businesses is not allowable under this program. Thus, the cost of any equity investment, loan, or grant is not an allowable cost under an award. Neither Federal nor matching share funds may be invested in startups or other companies, whether through equity, debt, hybrid, or another mechanism. Similarly, services funded by Federal or matching share cannot be exchanged for equity or otherwise used as the basis for an equity stake in a company. However, an award recipient may make such investments with outside funds that are not Federal or matching share funds under the award

Grants/cooperative agreements were awarded for a four-year period.

Pre-Application webinars were offered prior to an open funding competition to help potential applicants understand the program and develop competitive applications.

See the Notice of Funding Opportunity located on Grants.gov.

Each responsive application was received by an independent, merit review by a panel (Merit Review Panel) qualified to evaluate and rank the applications submitted based on selection criteria. The ranked applications will be forwarded to the Grants Officer for review for completeness and then forwarded to the Selecting Official. The Selecting Official made the final recommendation to the Grants Officer regarding the funding of applications under the NOFO.

Email of Intent Deadline was: January 31, 2023, by 5:00PM Eastern Standard Time Application Deadline was: February 28, 2023, by 11:59 PM Eastern Standard Time The Notice of Funding Opportunity Announcement was located on grants.gov.

All applicants - successful and unsuccessful were notified of their status after the competition completed.

There is no appeal process for final decisions. However, applicants may request a debriefing from MBDA.