MBDA’s Strategic Focus Increase Size, Scale and Capacity of Minority Business Enterprises (MBEs)

1. Proposed Redesign of MBDA’s Native American Business Enterprise Center (NABEC) ProgramDee Alexander, DOC Senior Advisor on Native American AffairsHolden Hoofnagle, MBDA Chief of the Office of Business DevelopmentCynthia Rios, MBDA Program Management Unit SupervisorTribal Consultation WebinarMarch 13, 2012 U.S. Department of Commerce Minority Business Development Agency

2. MBDA Mission and OverviewMinority-Owned Firms Expand the Economy and Create Jobs for all Americans • MBDA’s mission is to foster the growth and global competitiveness of U.S businesses that are minority owned • According to the U.S. Census, in 2050, the minority community will represent 54% of total U.S. population • The U.S. needs strong minority-owned firms to support greater job growth and to create the maximum economic benefit to the nation • Minority firms have the potential to contribute significantly to the balance of trade as minority businesses are twice as likely to generate sales through exports compared to non-minority firms • MBDA is a catalyst to build minority-owned firms of size, scale and capacity

3. MBDA’s Strategic FocusIncrease Size, Scale and Capacity of Minority Business Enterprises (MBEs) • Create a new generation of minority-owned firms generating $100 million in annual revenues • Maximize job creation and global competitiveness for MBEs • Global Export Initiative • Expand Business to Business procurement events • Promote trade and reverse trade missions • Provide Access to Contracts, Access to Capital and Access to New Markets • Develop unique public-private partnerships to create funding vehicles for MBEs • Expand the number of financing options • Provide technical assistance and strategic business consulting • Foster innovation and entrepreneurship within minority communities in high-growth industries • Clean and renewable energy • Information technology • Healthcare • Create openness and transparency in minority business government contract reporting

4. Minority Business StatisticsU.S. Census Bureau’s 2007 Survey of Business Owners Data • Key Minority Business Indicators: • The minority population in the United States is 35% • Minority-owned businesses represent 22% of classifiable firms* (U.S. firms excluding publicly held) • Minority-owned businesses generated 9% of total gross receipts Source: MBDA’s analysis of U.S. Census Bureau’s 2007 Survey of Business Owners, July 2010. Classifiable Firms are all U.S. firms less publicly held, foreign-owned, non-profit and other firms whose ownership cannot be classified in terms of race, ethnicity, or gender. Classifiable Firms are MBDA estimates.

7. MBDA Funded Center Programs National Network of MBDA Business Centers and NABECs • 32 MBDA Business Centers • Average center funded at $290k and produces $80m in economic activity and 140 new jobs • Centers located strategically to maximize MBE impact, performance and Agency Return on Investment (ROI) • Leverage and maximize Agency’s national strategic partners and encourage centers to establish their own partnerships to best serve MBEs • Target MBE clients with $1 million or more in annual revenues, firms in rapid growth industries or firms with capacity or potential for exporting • Continue to serve MBEs of all sizes through referrals to strategic partnerships • Eliminate geographic boundaries for minority business centers allowing them to serve minority-owned firms nationwide • 1 MBDA Federal Procurement Center • Funded new national procurement center in 2011 in Washington DC • Assist MBEs across the nation in accessing and obtaining federal contracting opportunities • Establish a public-private partnership with a national reach that will provide services aimed at increasing the probability of success for minority-owned firms • 6 Native American Business Enterprise Centers (NABEC) • Based in Arizona, Alaska, California, Washington, New Mexico, Oklahoma and North Dakota • Current NABEC program continues through 08/31/12 • Re-designing program for 09/01/12 funding 7

8. MBDA Network of Funded Centers

9. Business Development ServicesIncrease Size, Scale and Capacity of Minority Business Enterprises Access to Contracts: Identification of procurement opportunities, Solicitation analysis, Bid and proposal preparation, Research contract award histories, Post-award contract administration, Central contractor registration, Certification assistance Access to Capital: Commercial lending and banking, Alternative capital sourcing, Financial, credit and risk analysis, SBA and conventional loan qualification and evaluation, Loan and grant identification and packaging, General finance counseling Access to Markets: Government procurement assistance, Private sector contract identification, Exporting assistance, Specialized certification assistance including 8(a), MBE, and Small Disadvantaged Business, Market research, Market plan development, Marketing communications – advertising, promotions, public relations, brochure design Strategic Business Consulting: Strategic and business planning, staffing, organizational and structural, policies and procedures and general business consulting, Strategic advisory (M&A, joint ventures and teaming arrangements) 9

10. NABEC Redesign Overview • MBDA is obtaining stakeholder input via tribal consultation on the redesign of MBDA’s Native American Business Enterprise Center (NABEC) program • MBDA is proposing to rebrand the Native American program under its existing MBDA Business Center banner • The redesigned program will establish national centers focused on the Native American and Alaska Native business community; however, the program will require the centers to serve all eligible minority firms • The program will eliminate geographic boundaries for the centers; centers can serve and claim production for clients outside of their physical location • Each MBDA Business Center will be strategically located in areas with significant concentrations of Native American and Alaska Native owned firms, and will serve minority firms nationally • The primary objective of the MBDA Business Centers is to provide strategic business consulting services that will result in increased financing, public and private sector contract opportunities and related awards to client businesses. Services offered will also create and retain jobs for Native American, Alaska Native and minority-owned firms • MBDA Business Centers must collaborate with other MBDA funded centers, staff and strategic partners to serve minority-owned businesses and achieve program goals • MBDA anticipates concluding tribal consultation March 16th 2012 and publishing the Federal Funding Opportunity in early April.

11. Target clients for the program will be Native American Business Enterprises (NABEs) and Minority Business Enterprises (MBEs) with $1 million or more in annual revenues, firms in rapid growth industries or firms with capacity or potential for exporting Average funding level per center will be increased Goals for the job creation, procurement award and financial award performance measures will be adjusted to reflect increased federal funding Certain center locations will change Globalization of NABEs and MBEs through the promotion of export initiatives and international deal making will be encouraged in alignment with MBDA global initiatives Generation of program income will be required through the collection of client service fees, membership fees and/or success fees Minimum cost share requirement will be increased to a minimum of 30% Administrative requirements for the program will be minimized Awards will be made for a five-year period Limit on Indirect Cost recovery of 30% of total direct costs Significant Programmatic Changes

12. Program Objectives of Redesign

13. Target Clients

14. Branding Initiatives

15. Major Program Services

16. Strategic Partners

17. Primary Performance Elements

18. Quantitative Goals * Goal amounts represent ranges across the program.

19. Locations and Funding Levels

20. MBDA & DOC Contact Information • Minority Business Development Agency (MBDA) • 888-324-1551 • www.mbda.gov; www.mbda.gov/main/people • MBDA Network of Funded Centers • www.mbda.gov/main/offices • Dee Alexander, DOC • 202-482-0789 • dalexander@doc.gov • Holden Hoofnagle, Chief of the Office of Business Development • 202-482-3937 • hhoofnagle@mbda.gov • Cynthia Rios, MBDA Program Management Unit Supervisor • 202-482-1015 • crios@mbda.gov 20

21. Open Discussion Questions and Answers