MBDA Business Center Expansion - FAQs

The below FAQs are for informational purposes only and are intended solely to assist potential applicants in better understanding the Business Center Program and the application requirements set forth in the Notice of Funding Opportunity (NOFO) for this program. The FAQs do not and are not intended to supersede, modify, or otherwise alter applicable statutory or regulatory requirements, or the specific application requirements set forth in the NOFO. In all cases, applicable statutory and regulatory mandates, and the requirements set forth in the NOFO, shall prevail over any inconsistencies contained in the below FAQs.

General

1. How do I apply for this funding opportunity? 

• The First Step - Read the entire NOFO. A complete application, or an application that does not address required program objectives and priorities may not be reviewed or considered for funding. Applicants are also encouraged to participate in pre-application webinars, and review supporting materials, such as FAQs and the “How to Apply for a Grant” videos. Click here MBDA.gov to see available materials.
• The Second Step - Become familiar with MBDA, including its mission, vision, range of programs and initiatives, and the results of these investments. Click here to learn more about our current portfolio of programs. Get familiar with our most recent Annual Performance Report to gain insight regarding our agency accomplishments.
• The Third Step

1. Register in the System for Award Management (SAM) to receive a Unique Entity Identifier. The SAM is the official U.S. government system that consolidated the capabilities of several government-wide registries including the Central Contractor Registration (CCR) System. You must register your business with SAM.gov to do business with the federal government and your UEI must be active in order to start your application in the Grants.gov system.
2. Register in the Grants.gov system. Your application must be submitted online through Grants.gov in order to be filed with MBDA.
3. It may take up to a couple weeks to receive the UEI, so we encourage prospective applicants to register early.

• The Fourth Step - Write the proposal for submission and submit. This is the final step in the application process and cannot be completed unless the applicant has registered with each of the stated entities above. Access your completed application package, ensure all the necessary and required information and forms are entered, check the package for errors, then click the “Submit" button. Once you have submitted your application you will receive a confirmation email that your application was successfully submitted, and a tracking number to track your application.

 

2. After the application is submitted, what is the review process?

The panel review process begins with an initial screening to verify that all required forms and documentation are received by the deadline. Each application then goes through an independent merit review by a panel of at least 3 merit reviewers, one of whom may serve as the panel chair. Each application is reviewed based on the criteria published in the NOFO.  The panel will conduct a merit review, evaluate, and score the application. Following the panel review, MBDA’s Selecting Official makes the final decision as to whether the application will receive funding after considering any applicable selection factors.  Throughout the review and selection process, MBDA reserves the right to seek clarification in writing from applicants whose applications are being reviewed. MBDA may additionally ask applicants to clarify application materials or modify budgets or other specifics necessary to comply with Federal requirements.

 

3. How long does this process take?

The specific timeline varies for each application. The anticipated time for processing awards is between seventy-five (75) and one hundred (100) days from the closing date for receipt of applications. The anticipated award start date is September 1, 2022. All applicants will be notified around this time of the success of their application.

 

4. What is the difference between a grant and a cooperative agreement?

The key difference between a grant and a cooperative agreement is that under a cooperative agreement, the Federal agency has substantial involvement in the operation of the program and the technical assistance provided. All business center awards will be cooperative agreements.
 

5. Why is it important to understand the competition funding announcement (i.e., the NOFO)?

The NOFO outlines requirements for eligible entities interested in applying for an award under this competition. Applications that don’t meet application requirements may not be reviewed. The NOFO also identifies program requirements that grantees [the applicants ultimately selected for funding], must adhere to. For example, Appendix C of the NOFO identifies information technology and computer requirements that must be met within thirty (30) calendar days after receipt of the award. We strongly encourage all interested applicants and grantees to read the NOFO in its entirety to understand application and program requirements.

 

6. What are some of the reasons an application could be unsuccessful?

• Applicants failed to submit a full multi-year budget for the entire performance periods and budget narratives, as required by the NOFO.
• Applicants’ application failed to propose a non-federal cost share that is in alignment with the requirement in the NOFO, if applicable.
• Applicants' application is not aligned with the program objectives.
• Applicants’ application failed to align with NOFO performance metrics.
• Applicants failed to submit a complete application.

 

7. How is this funding opportunity different from prior funding opportunities for the Business Center Program? 

Some examples of differences:

• Business Centers are required to provide proof of a referral relationship with at least one community-based organization.

• Program priorities have been updated to include “Navigation”, in which the Business Centers must facilitate referrals and connections to an ecosystem of organizations that can support MBE growth and competitiveness.
• Performance measures have been updated, including the addition of a measure related to supporting MBEs’ ability to compete for projects and resources stemming from the Infrastructure Investment and Jobs Act and/or those in federally designated distressed areas.
• Applicant Narrative requirements have been updated to require applicants to demonstrate knowledge of the community that the applicant proposes to serve and its needs, as well as the ability to conduct effective outreach to that community.

• There is no financial threshold associated with the MBEs served by the Business Center. Business Centers may now serve MBEs of any size.

 

8. Will there be a preapplication teleconference?

Yes. MBDA will conduct a series of pre-application teleconferences from 2:00-3:00pm Eastern time on the following dates with focus areas noted below:

 • April 28 – General competition information, key changes from previous competitions and key dates, live Question and Answer session

• May 3 – Program priorities and objectives with examples, live Question and Answer session

• May 10 – Budget pitfalls to avoid and best practices, live Question and Answer session

• May 17 – Measuring success and performance, live Question and Answer session

Participants must register at least 24 hours in advance of the teleconference. Click here MBDA.gov to register and view recordings of the teleconferences, as well as other additional information.

 

9. How many awards will be made pursuant to this NOFO?

Pursuant to this funding opportunity MBDA expects to make a total of six awards. MBDA will award one cooperative agreement per Business Center per state (Arkansas, Indiana, Oregon, South Carolina, Wisconsin, Utah).

 

10. Can an entity receive an award to operate more than one Business Center?

Yes. An eligible entity that currently operates a Business Center in another state is eligible to apply for and receive an award under this funding opportunity if it proposes to operate a Business Center in either Arkansas, Indiana, Oregon, South Carolina, Wisconsin, Utah. If a single entity under this funding opportunity proposes to operate more than one Business Center in the target states, they should submit a separate application for each proposed state.

 

11. Who may apply for this Business Center program?  

Eligible applicants include:

• Private sector entities, defined as entities that are not public sector entities. This includes, for example, for-profit entities of any type and non-profit entities, and may include quasi-governmental entities that are not agents of the state, but does not include the Federal Government, any Federal agency, or any instrumentality of the Federal Government.
• Public sector entities, defined as States, agencies of a State, political subdivisions of a State, or agencies of a political subdivision of a State
• Native entities, which means a Tribal Government; an Alaska Native village or Regional or Village Corporation, as defined in or established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.); a Native Hawaiian organization, as that term is defined in section 7517 of title 20; the Department of Hawaiian Home Lands; and the Office of Hawaiian Affairs.
• Institutions of higher education

     

12. What does the initial application screening consist of?

Prior to the merit review, each application will receive an initial administrative screening to ensure that all required forms, signatures, and documents are present. An application will not be evaluated by the review panel if:

a)         The application is received after the closing date;

b)         The application package is not complete;

c)         The project fails to address program objectives and priorities (see NOFO Section I);

d)         The principal purpose of the activities in the application is to provide a direct benefit or service to MBDA.

 

13. How will my application be scored?

All complete applications will be reviewed by at least three individuals and scored against the Merit Review criteria provided in Section VIII(B)(2) (MBDA Merit Review Panel), of the NOFO. Applications will receive a score out of a possible 100 points. Applications that receive an overall average of 75 points or more will be considered for funding. Applications that receive an average score of 60 to 74 points will be given consideration for funding only if there are no proposals that score above 75 points. Applications that receive fewer than 60 points will not be considered for funding.

 

14. What are the merit criteria for this program?  

Applicants should review the NOFO for a complete breakdown of the merit criteria for this funding opportunity. The number of points that can be earned for each category of criteria is listed below, with 100 points being the maximum total that can be earned. The NOFO further allocates points within each broad category.

Impact of Proposed Project (40 points)

Applicant Capability (30 points)

Applicant Budget (30 points)

 

15. How do selection factors impact the merit review score?

The merit review score is used to rank applicants based on how well the application met the merit review criteria identified in the NOFO. The Selecting Official may recommend an application for an award outside of the rank order based on one or more selection factors identified in the NOFO.

          

16. What are the selection factors for this NOFO?    

The selection factors for this funding opportunity are:

• The extent to which the application meets the overall objectives and priorities of the MBDA Business Center Program as provided in NOFO Section I.A and B;
• The performance of the applicant under previous Federal financial assistance awards, as well as the performance of any third parties the applicant identifies who will be responsible for carrying out a substantial portion of the project;
• The availability of funds;
• The extent to which the application demonstrates an effective plan to ensure MBEs benefit from the investments flowing from the Infrastructure Investment and Jobs Act

 

17. What is the project/award period?    

MBDA expects to issue awards for a total term of three years and ten months from September 1, 2022 – June 30, 2026, with an initial 10-month budget period from September 1, 2022 to June 30, 2023. Subsequent budget periods will extend for 12-month terms, as outlined below.

Year 1 (FY 22) - $350,000 10 months, September 1, 2022 - June 30, 2023
Year 2 (FY 23) - $420,000 12 months, July 1, 2023 - June 30, 2024 Notice of Federal Funding Page 7 of 41
Year 3 (FY 24) - $420,000 12 months, July 1, 2024 - June 30, 2025
Year 4 (FY 25) - $420,000 12 months, July 1, 2025 - June 30, 2026

    

18. When is the submission deadline?      

All proposals must be received on or before June 2, 2022 at 11:59:59 pm Eastern Time (E.T). Applications may be submitted starting from the publication date of this NOFO up to the deadline above. Applications received after this time will not be reviewed or considered for funding. Applications must be submitted electronically via Grants.gov

 

Budget

19. How much should I budget for the project?

The funding amount for each award in FY 2022 will be approximately $350,000.  MBDA anticipates that up to $7.56M will be available in FY 2023 through FY 2025 to support the continuation of the program for the subsequent budget periods (12 months each) of the selected projects. This translates into approximately $420,000 for each center in each of those budget periods.

 

20. 20. Should the budget reflect funds allotted by year or for the entire period of performance?

For the Budget narrative and the Standard Form 424A (Budget Information – Non-Construction Programs) you should submit information for EACH budget year, including a separate SF_424A for each year.

 

21. Can grant funds be used to provide wages or stipends to program participants?

No.  The grant funds are only to be used to provide service delivery to minority business enterprises.

 

22. Can I charge indirect costs to this project? How do applicants without a current or pending negotiated indirect cost rate agreement account for indirect costs in the Budget Narrative?

If indirect costs are included in the project budget, the applicant must include documentation to support the indirect cost rate it is using by submitting a copy of its current, approved negotiated indirect cost rate agreement (NICRA). See NOFO Section IV at page 14 (Indirect Cost Rate Agreement) for full details.

 

If the applicant does not have a current or pending NICRA, the applicant can elect to apply the 10 percent de minimis rate to modified total direct costs (MTDC). The definition of MTDC can be found at 2 CFR 200.1. If electing to use the de minimis rate, the applicant should include a statement in the budget narrative stating that is does not have a current (or provisional) negotiated indirect rate and is electing to charge the de minimis rate (see 2 CFR § 200.414(f)).

If the applicant would like to apply for a NICRA the applicant will be required to obtain such a rate in accordance with Section B.06 of the Department of Commerce Financial Assistance Standard Terms and Conditions, dated November 12, 2020 available at this link.

 

23. What is the cost-sharing requirement?  

A non-federal cost share of 33% of the Federal funding is required for each budget period. A Business Center may meet the matching requirement by using (i) cash or in-kind contributions, without regard to whether the contribution is made by a third party; or (ii) Federal funds received from other Federal programs, if those programs allow funding to be used for cost sharing purposes.

 

24. Can the program income be counted towards nonfederal cost match?   

Any income the Center generates in operating the Business Center may be used towards the matching requirement, unless the matching requirement is met from other cash or in-kind sources. Any income generated in excess of the matching requirement must be used to carry out the activities of the Business Center authorized by the award (2 C.F.R. 200.307(e)(2)). MBDA cautions against charging fees at a level where the Center cannot accomplish the mission of providing robust service to a range of MBEs.

 

25. Will we be expected to attend each conference for each budget year?

For each budget year, applicants should include in their SF 424A budget forms and budget narrative travel costs for (2) key personnel to attend the events included below. The conference location may vary, and applicants should use their judgment, but we recommend budgeting approximately $1,500 per person per conference to cover travel and hotel expenses and registration, where relevant.  In the event that the COVID-19 pandemic continues to cause limitations on travel and gatherings, the event(s) will be virtual.

• Minority Enterprise Development Week
  • MED week expenses include travel and registration
• National Training Conference
  • Expenses include travel (no conference registration costs) and the duration of the conference is approximately 2-3 days.
• NOAA Grants Management Workshop – Year 1 & 3 only
  • Expenses include travel (no conference registration costs) and the duration of the conference is approximately 2-3 days.

 

Application

26. What must be included in an application for this competition?

Applicant should review the entire NOFO to understand what is required for an application to be considered for funding. Applications that fail to include all the necessary elements may not be reviewed or considered and may be disqualified.  A complete application packet consists of the following forms and required submissions described below.  See Section IV.B and Section V.A of the NOFO for further details about each required application component.

• A title page
• Table of contents
• Applicant narrative (including a description of the project, applicant capability, and project goals and objectives)
• Supporting Documents
• Standard Forms and Budget Narrative (including Standard Application Forms, budget narrative, required travel items, indirect cost rate agreement- if applicable)

Applicants should review the NOFO to understand formatting requirements and substantive requirements within each component of the application. Applicants that fail to include a title page will have 5 points deducted from their merit review score.  Similarly, applicants that fail to include a table of contents will have 5 points deducted from their merit review score.   Applicants that fail to include an applicant narrative, standard forms, or budget narrative will be disqualified.
 

27. What supporting documents must be included in an application for this program?

Applicants should review the entire NOFO to understand what suggested and/or required supporting documents should be submitted as part of their application. For example, the applicant must provide in the Supporting Documents section of the application a bio or resume showing relevant experience of the applicant’s key leader(s), for example President/CEO to oversee the success of the proposed project, as well as for the key project personnel who will lead the project. Applicants must also provide, at a minimum, proof of one referral relationship to a community-based organization. 

 

28. Do you have to have your staff positions completely filled with the application submission or can you designate open roles and people that will fill in the interim?

The application merit evaluation considers the knowledge, experience, and qualifications of the key project personnel, but if the individuals are not yet in place, awardees will be given a reasonable window of time to fill the positions.

 

Program Objectives and Priorities

29. What is the primary program objective that must be addressed in an application for this Business Center funding opportunity?

The primary objective for this funding opportunity is to award cooperative agreements to eligible entities for the operation of (1) business center in each of the following states:  Arkansas, Indiana, Oregon, South Carolina, Wisconsin, Utah. MBDA will NOT make awards to entities proposing to operate a Business Center in any other state. See NOFO Section 1.A for a complete description of the program objectives for this funding opportunity.

 

30. What are the program priorities that must be addressed in an application for this Business Center funding opportunity?

Business Centers must offer a wide array of assistance, which can be accomplished through a mixture of direct services or referrals to other qualified organizations. Business Centers must offer programming and services across three categories: business development, capacity-building, and navigation. For more information about each of these three categories see Section I.B. of the NOFO.

 

31. Where must applicants address program objectives and program priorities within the application?

Applicants must address the program objectives and program priorities in the applicant narrative. See Section IV.B.3 of the NOFO for more detailed information.

Within the project description of the applicant narrative, applicants are required to address the location and market needs of the center, among other things. Applicants that propose to locate a Business Center in either Arkansas, Indiana, Oregon, South Carolina, Wisconsin, Utah will be considered for funding.

Applicants also are required to address program activities in the project description, including a description of how the applicant proposes to offer services to support the goals of business development, capacity-building, and navigation, which are the program priorities described in Section I.B. of the NOFO.

 

32. Does the Business Center need to have a physical location in the state for which the applicant is applying?

Yes. The Business Center must have physical office space in the state for which you apply.

 

33. Can you have physical office space in one part of the state and work with strategic partners to have office space in additional areas where you see greater MBE need than where your physical office is located?

The application merit evaluation considers the effectiveness of the project to serve the needs of the MBE population in the proposed service area, including the quality of the proposed services and their alignment to the needs of the MBEs to be served, as well as the breadth and quality of the applicant’s strategic partners and alliances. Typically, Business Centers are located where there is a concentration of MBEs to be served, but an applicant may be able to demonstrate an effective ability to serve MBEs in alternative ways.

 

34. Are Business Centers required to provide proof of one referral relationship to a community-based organization with their application?

Yes. As part of the required navigation services that Business Centers must provide, Business Centers are required by law to establish or continue a referral relationship with at least one community-based organization. At a minimum, the applicant must provide proof of one referral relationship to a community-based organization.  A community-based organization is a public or private nonprofit organization of demonstrated effectiveness that is representative of a community or significant segments of a community; and provides educational or related services to individuals in the community that the applicant is proposing to serve. 

 

35. Do you have to have your staff positions completely filled with the application submission or can you designate open roles and people that will fill in the interim?

The application merit evaluation considers the knowledge, experience, and qualifications of the key project personnel, but if the individuals are not yet in place, awardees will be given a reasonable window of time to fill the positions.

 

36. What are some ways an applicant could provide proof of a referral relationship to a community-based organization?

An applicant could provide a letter of support from that organization or a memorandum of agreement between the applicant and the organization.

 

37. What does “demonstrated effectiveness” mean in the definition of community-based organization?

MBDA does not have a specific definition or specific requirements for what it means to have "demonstrated effectiveness." In determining whether a community-based organization (CBO) has demonstrated effectiveness, applicants/grantees could consider factors such as:

1. How long the CBO has served the community
2. Prior history between the applicant and CBO
3. The CBO’s self-reported measures of success
4. The CBO’s track record and service delivery to the community

 

Project Performance Measures and Goals

38. What are the performance measures for this program that must be addressed in an application for this Business Center funding opportunity?

Section I.B. and Appendix A of the NOFO include information for applicants related to program performance measures. Applicants should develop workplans that allow them to achieve and report on these minimum performance goals. Applicants may propose alternative numerical goals within each of the performance measures below, but any deviation below the numerical targets set below requires justification. MBDA is more likely to permit a deviation if it is grounded in facts and data about the specific needs of the MBEs in the region the applicant proposes to serve.

Applicants may propose different numerical targets for a given performance measure, but not different measures. Section VII.B.(c).3 of the NOFO provides more detail on the process for proposing alternative numerical goals. Appendix A defines each performance measure.    

Measures & minimum goals:

Customers Reached

• First 10 months – 2,500
• First full-year reporting period goal (i.e., goal for months 11 through 22 of the award) - 3,600
• Second full-year reporting period goal – 4,320
• Third full-year reporting period goals – 5,184

Number of MBEs Served

• First 10 months – 83
• Subsequent-year annual goals – 100, including 50 new clients

Client Gross Revenue Generated

• First 10 months – $62,500,000
• Subsequent-year annual goals – $75,000,000

Percent Clients that Increase Profits

• First 10 months – 42%
• Subsequent-year annual goals – 50%

Value of Financing, Capital & Bonding

• First 10 months – $20,833,333
• Subsequent-year annual goals – $25,000,000

Number of Jobs Created or Retained

• First 10 months – 208
• Subsequent-year Annual Goals – 250

Strategic Facilitated Actions

• First 10 months – 21
• Subsequent-year annual goals – 25

Strategic Partners

• First 10 months – 8
• Subsequent-year annual goals – 10

 

39. Where must an applicant address project performance measures and goals in the application?

In the applicant narrative, applicants are required to address the project goals and objectives.  In that section, the applicant must provide a breakdown of the proposed annual goals in 6-month increments. For the first ten-month period the breakdown should be the first 120 days and subsequent 6 months.  If the applicant is proposing to deviate from the minimum baseline provided for each award period, a data-driven justification should be provided.  For the breakdown of the goals, the applicant should provide:

(1)       A detailed description of the methodology or evidence and assumptions that were used to construct and propose the breakdown.

(2)       Identification of key assumptions and/or risks that may impact the applicant’s ability to meet or exceed the goals, as well as proposed contingency plans and/or strategies for adjusting performance to a satisfactory level if an applicant falls short of their goals.

 

40. What are the current measures in which MBDA evaluates Business Center performance?

Performance ratings will be assigned by MBDA in proportion to the Center operator’s satisfaction of the performance goals set forth in the application and incorporated into the terms and conditions of the award, found in Appendix A of NOFO. The performance measures and maximum allowable points are listed below:

Customers Reached – 10 points
Number of MBEs Served – 15 points
Gross Revenue Generated – 15 points
Percent Clients that Increase Profits – 15 points
Value of Financing, Capital & Bonding – 15 points
Number of Jobs – 10 points
Strategic Alliances – 10 points
Strategic Facilitated Actions – 10 points

 

Reporting

41. Can your performance goals for number of clients served include those who are located outside of the state your MBDA Business Center is located in?

MBDA will evaluate applications based on the applicant’s demonstrated ability to serve the community and states in which they are located. However, a Business Center may provide services to minority business enterprises located in any U.S. state or territory. 

 

42. What are the reports that each project is required to provide?

The project is required to provide the following reports:

• Financial Reports – The financial report shall include details on the use of Federal funds and contributions of non-Federal funds (if proposed). The financial reports are to be submitted to the Department of Commerce via Grants Online on a periodic basis. The periodic reports are due forty-five (45) days after the end of the initial four-month period and every six-month period thereafter. The final report is due within ninety (90) days after the expiration of each budget period.
• Progress Report – Progress reports are to be submitted to the Department of Commerce via Grants Online on a periodic basis. The periodic reports are due forty-five (45) days after the end of the initial four-month period and every six-month period thereafter. The final report is due within ninety (90) days after the expiration of each budget period.

The periodic reports must include data and information to determine project progression and success. MBDA will rely on these reports, data, and information as evidence for success stories, future program design, policy recommendations, and/or statistical purposes.

Note: failure to submit reports in a timely manner may result in MBDA award enforcement and/or delayed access to Federal funds.

• Federal Funding Accountability and Transparency Act of 2006 Reporting - The Federal Funding Accountability and Transparency Act of 2006, 31 U.S.C. 6101 note, includes a requirement for awardees of applicable federal grants to report information about first-tier sub-awards and executive compensation under Federal assistance awards. All awardees of applicable grants and cooperative agreements are required to report to the Federal Sub-award Reporting System (FSRS) available at FSRS.gov on all sub-awards over $30,000. Please see the OMB guidance published at 2 CFR Parts 170 and 200, which can be accessed at ECFR.gov.   
• Restrictions Governing Making Grants to Corporations Convicted of Felony Criminal Violations and/or Unpaid Federal Tax Liabilities - In accordance with current Federal appropriations law, execution by an applicant of the Representation by Corporations Regarding an Unpaid Delinquent Tax Liability or a Felony Conviction Under Any Federal Law may be required in a format requested by NOAA before any award will be made under this NOFO. Note: This information is a required Representation and Certification within SAM. 

 

43. Should applicants address their capability of reaching MBEs who speak languages other than English?

Yes. The applicant must describe specific data-driven marketing strategies it will use to reach large numbers of MBEs, recruit MBE clients, and expand visibility of the services offered by the proposed Business Center.  This strategy should explain how it will be executed in the relevant languages of the MBE community it intends to serve. 

Additionally, Business Centers’ website design should include a “translator plugin” or other translations services to provide content in additional languages.  See Appendix D of the NOFO regarding Website Requirements for more information.