FREQUENTLY ASKED QUESTIONS MBDA Capital Readiness Program NOFO PDF Free Download
1 / 30/30
100%
1
FREQUENTLY ASKED QUESTIONS
MBDA Capital Readiness Program NOFO
Last updated: February 17, 2023
The below FAQs are for informational purposes only and are intended solely to assist potential
applicants in better understanding the MBDA Capital Readiness 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.
MBDA will update these FAQs throughout the competition as it receives additional questions or
requests for clarification.
Contents
Preliminary Questions 4
1. What is this competition? 4
2. I am an entrepreneur or small business owner, and I am looking to launch or scale my business. Can I
receive funding under this competition to help my business? 5
3. Can I be the lead applicant on one consortium application and still play a role in other applications under
this NOFO? 5
4. I need help with my application on grants.gov. Can MBDA help me? 5
5. I submitted a letter of intent, but I just realized from the information shared that I am not eligible for this
opportunity. How do I withdraw that letter? 6
Application Process 6
6. How do I apply for this funding opportunity? 6
7. After the application is submitted, what is the review process? 7
8. What is the difference between a grant and a cooperative agreement? 7
9. Why is it important to understand the competition funding announcement (i.e., the NOFO)? 7
10. What are some of the reasons an application could be unsuccessful? 8
11. Will there be a pre-application webinar? 8
12. I won’t be able to attend the webinars live. Will they be recorded and posted on MBDA’s website? 8
13. How many awards will be made pursuant to this NOFO? 8
Eligibility Information 9
14. Who may apply for funding under this NOFO? 9
2
15. Are current MBDA grantees, including existing Business Centers, eligible to apply for funding under this
NOFO? 9
16. Are applicants who have received or plan to receive funding from Treasury’s SSBCI technical assistance
program(s) eligible to apply for these funds? 9
17. Are applicants who have received or plan to receive funding from SBA, CDFI, or another federal funding
source eligible to apply for funding under this NOFO? 10
18. Are state, local, territorial, tribal governments eligible to apply for funding under this NOFO? 10
19. Are Tribal IRC 7871 Nonprofit Organizations (NPOs) eligible to apply? Or, do you only recognize
501(c)(3) type NPOs? 10
20. If the applicant is a non-profit, can it partner with a Tribal entity? 10
21. Are City governments able to apply? What about local colleges? 10
22. Can a non-profit and for profit submit an application together? 10
23. I am a state government, local government, or Tribal government. How can I engage with and support this
program? 11
24. Do I need to get a certification of minority status or SEDI status before applying to this funding
opportunity? 11
25. Are minority- or women-owned organizations given priority in selection? 12
26. I have a lot of ideas for great projects. Can I submit proposals for more than one project? 12
Application Review Process 12
27. What is initial application screening process? 12
28. How will my application be scored? 12
29. What are the merit review criteria for this program? 13
30. How do selection factors impact the competition? 13
31. What are the selection factors for this NOFO? 13
32. How long does the application review process take? When will I find out the results of the competition? 14
33. What is the project/award period? 14
34. When is the submission deadline? 14
35. Will applicants that receive less than 65 points in merit review be notified earlier or will they have to wait
for the full application review process to conclude? 15
36. If my proposal is not selected for funding, can I request feedback from MBDA on my proposal? 15
Budget 15
37. How much funding can I request in my application? 15
38. The NOFO discusses a maximum amount for an MBDA grant, but can applicants apply for less than that
amount? 15
39. If I propose a very small yearly budget, will my application be competitive? 15
40. If my application is selected for funding, am I required to provide any additional money as a non-Federal
cost share (i.e. “cost match” or “matching share”)? 16
3
41. How can I meet the Non-Federal cost share or matching requirement? 16
42. Can I use unrecovered indirect cost rates to meet the non-federal cost share? 17
43. Do I need to spend the non-federal cost share equally across all four years of the program? 17
44. I do not believe my organization can afford to provide the full amount of the minimum cost match. Can I
request a waiver of the matching requirement? 17
45. Can I charge client fees as part of my project design? 18
46. I have a question about whether I can propose a specific expense or category of expenses under this
Program. Can MBDA help? 18
47. Can I use earned income to meet some or all of the non-federal cost share requirements? 18
48. The NOFO indicates that applicants must include a budget narrative, but the required SF424A Budget
Information Non-Construction Programs form seems to cover that information. Are those the same? 19
49. Should the budget reflect funds be allotted by year or for the entire period of performance? 19
50. Can grant funds be used to provide wages or stipends to program participants? 19
51. 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? 19
52. Will we be expected to attend each conference for each budget year? 20
Application Materials 20
53. What must be included in an application for this competition? 20
54. What information must be included in the Project Narrative? 21
55. Under the “Applicant Capability” section of the Project Narrative, is the experience to run the program
limited to the organization itself or would experience extend to the personal capacity of the individuals running
the program? E.g., staff have experience as an Executive Director, grant management, etc. 21
56. In regards to the disclosure of lawsuits in the Project Narrative, can you please clarify if only suits filed
against the company are to be disclosed OR if we must also disclose any suits we have filed against other
parties? 21
57. What supporting documents must be included in an application for this program? 21
58. 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? 22
59. What is the Federal Assistance Listing Number (also known as a CFDA) for this program? 22
60. For the CD-511 form, what should I put for “Award Number”? 22
What Makes an Application Competitive? 22
61. What are the primary program objectives and priorities that must be addressed in an application for this
MBDA Capital Readiness Program funding opportunity? 22
62. Where must applicants address program objectives and program priorities within the application? 23
63. Do applicants need to meet all 3 of the requirements of build capacity, access to capital opportunities, and
access to networks? Or at least one of the 3? 23
64. Is there one SEDI classification that is weighted more than others? 23
65. Is having a cohort-like model required for this program? 23
4
66. Can I have more than one alliance organization? 23
67. Are applicants responsible for finding their own clients or is there an existing pipeline? 23
68. What can I do to make my application competitive? 24
69. For this Program, what does “Socially and Economically Disadvantaged Individual” (SEDI) mean? 25
70. Does an applicant’s proposal need to address every group or community that’s covered in the SEDI
definition? 26
71. Does the project need to have a physical location in the geographic area it proposes to serve? 26
72. Can multi-state organizations apply for multiple states under 1 application/entity? 26
73. My organization is not a formal incubator or accelerator. Could we be a competitive applicant for funding
under this NOFO? 27
74. My organization is an incubator/accelerator/venture capital firm that has not historically served SEDI
populations in the past. Could we be a competitive applicant for funding under this Program? 27
75. What are some examples of types of SEDI-serving organization that an applicant could partner with? 27
76. The NOFO requires applicants to demonstrate an effective track record in working with SEDI populations.
How can I demonstrate that track record? 27
Project Performance Measures and Goals 28
77. What are the performance measures for this program that must be addressed in an application for Capital
Readiness Program funding opportunity? 28
78. The NOFO gives the required performance measures for the Program, but it doesn’t give us numbers that
we have to hit each year. Where can we find those minimum numbers? 28
79. Where must an applicant address project performance measures and goals in the application? 29
80. 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? 29
Reporting 29
81. What are the reports that each project is required to provide? 29
Preliminary Questions
1. What is this competition?
MBDA published Notice of Funding Opportunity MBDA-OBD-2023-2007775 to seek
applications for funding under the MBDA Capital Readiness Program (Program). This Program
is designed to help close the entrepreneurship gap between socially and economically
disadvantaged individuals (SEDI) and non-SEDI. This NOFO requests applications from
qualified organizations that have the expertise to provide technical assistance for entrepreneurs
starting or scaling their businesses who are seeking various forms of capital. Specifically,
MBDA expects this Program to serve SEDI-owned businesses that are applying, have previously
5
applied, or plan to apply to an SSBCI capital program or other government program that supports
small businesses.
The competition seeks applicants that: (1) help SEDI entrepreneurs build capacity; (2) attract
and provide access to capital opportunities; and (3) attract and provide access to networks.
See Section 1.A of the NOFO. The proposed activities may resemble the service models of
incubators (focusing on early-stage technical assistance for new entrepreneurs) or accelerators
(providing emerging-stage technical assistance to businesses ready to expand or scale), or
provide a combination of both service models.
See the NOFO and the FAQs below for more information about this Program, how to apply for
this funding opportunity, and what could make an application competitive.
2. I am an entrepreneur or small business owner, and I am looking to launch or scale
my business. Can I receive funding under this competition to help my business?
No, this program does not provide grants to entrepreneurs or small business owners directly to
grow their own businesses. Rather, the funding under this program will go to entities who will
provide technical assistance services designed to help entrepreneurs and small business owners
build the skills to launch or scale their businesses. For eligibility information, please see Section
III.A of the NOFO.
Once the awardees are selected and the Capital Readiness Program is operational, we encourage
you to apply to receive technical assistance services. In the meantime, we encourage you to visit
our website at MBDA.gov to learn more about the nearest MBDA Business Center or other
MBDA technical assistance programs that are currently serving businesses in your area.
3. Can I be the lead applicant on one consortium application and still play a role in
other applications under this NOFO?
Yes, eligible entities can submit applications for different projects (or be part of multiple
proposed projects as part of a consortium). However, you should carefully consider whether you
have the capacity to execute both (or more than two) projects concurrently if they are selected for
funding. You should submit a separate application for each proposed project and ensure each
application is complete.
4. I need help with my application on grants.gov. Can MBDA help me?
MBDA does not operate the application submission process in grants.gov. We recommend you
review the resources available at grants.gov, including
https://www.grants.gov/web/grants/support.html and “Applicant FAQs” available at
https://www.grants.gov/web/grants/applicants/applicant-faqs.html. Applicants may also direct
their grants.gov-related questions to support@grants.gov.
6
5. I submitted a letter of intent, but I just realized from the information shared that I
am not eligible for this opportunity. How do I withdraw that letter?
There is no need to withdraw your email of intent. MBDA will only consider full applications
that are submitted via grants.gov.
Application Process
6. How do I apply for this funding opportunity?
• Step 1
Read the entire NOFO. An incomplete 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.
Visit MBDA.gov to see available materials.
Also, consider sending a voluntary Email of Intent to ssbci@mbda.gov. See page 15 of
the NOFO for additional information and sample text.
• Step 2
Become familiar with MBDA, including its mission, vision, programs and initiatives.
Click here to learn more about our current portfolio of programs. Get familiar with our
most recent Annual Performance Report to gain insight into our agency’s
accomplishments.
• Step 3
a.
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. Applicants without a current Sam.Gov
account must register with SAM.gov to do business with the federal government
It may take up to a couple of weeks to receive the UEI, so we encourage
prospective applicants to register early.
b.
For applicants with an existing Sam.Gov account: On April 4, 2022, the
identifier was changed from the DUNS number to the Unique Entity ID (UEI),
issued by SAM.gov. Learn more about the transition and how to retrieve your
assigned UEI here.
c.
Your UEI and Sam.Gov account must be active in order to start your
application in the Grants.gov system. Unfortunately, MBDA is not able to
extend the deadline for individual applicants who are unable to provide their UEI
and complete an application by the competition deadline.
7
d.
Register in the Grants.gov system. Your application must be submitted online
through Grants.gov in order to be filed with MBDA.
• Step 4
Write the proposal for submission and submit by no later than February 28, 2023, by
11:59 p.m. Eastern Standard Time. 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. Assess 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.
7. After the application is submitted, what is the review process?
Each application will be reviewed based on the criteria published in the NOFO. The panel review
process begins with an initial screening to verify 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 three merit reviewers, one of whom may serve as the panel chair. The panel will
conduct a merit review, evaluate, and score the application. Following the merit panel review, a
selection review panel will apply the selection factors to any applications that scored at least 65
points in the merit review process. The selection review panel will recommend a portfolio of
applications for funding to MBDA’s Selecting Official. 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 ask
applicants to clarify or modify application materials to comply with Federal requirements.
8. 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. See 2 CFR 200.1. All Capital Readiness Program awards will
be cooperative agreements.
9. 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 do not meet application requirements may not be reviewed.
The NOFO also identifies program requirements that grantees (i.e., the applicants ultimately
selected for funding), must adhere to. We strongly encourage all interested applicants and
grantees to read the NOFO in its entirety to understand application and program requirements.
8
10. 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.
• Applicants' application is not aligned with the program objectives.
• Applicants’ application failed to propose and justify its numerical goals for the NOFO
performance metrics.
• Applicants failed to submit a complete application.
11. Will there be a pre-application webinar?
Yes. MBDA will conduct a series of pre-application webinars from 2:00 pm - 3:00 pm Eastern
time on the following dates with focus areas noted below:
• JANUARY 10, 2023: Webinar I – Competition overview, Program priorities and
objectives, key dates, live Question and Answer session
• JANUARY 17, 2023: Webinar II – Application review criteria, live Question and
Answer session
• JANUARY 24, 2023: Webinar III – Budget best practices and pitfalls to avoid,
measuring success and performance, live Question and Answer session
Participants should 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.
12. I won’t be able to attend the webinars live. Will they be recorded and posted on
MBDA’s website?
Yes, MBDA will record the pre-application webinars and will post links to those recordings at
www.mbda.gov.
13. How many awards will be made pursuant to this NOFO?
Pursuant to this funding opportunity, MBDA expects to make 35-46 awards.
9
Eligibility Information
14. Who may apply for funding under this NOFO?
Eligible applicants are limited to:
• Non-profit organizations,
• 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,
• Institutions of higher education, and
• 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.
MBDA is not authorized to provide awards to individuals under this BAA, and applications from
individuals will not be considered under this request.
15. Are current MBDA grantees, including existing Business Centers, eligible to apply
for funding under this NOFO?
Yes, if a current MBDA grantee is an otherwise eligible entity under the eligibility categories in
this NOFO, it would be eligible to apply under this NOFO. Receipt of other MBDA funds does
not render an applicant ineligible. Similarly, receipt of other MBDA funds does not make an
otherwise ineligible entity eligible under this NOFO.
16. Are applicants who have received or plan to receive funding from Treasury’s SSBCI
technical assistance program(s) eligible to apply for these funds?
Yes, if that entity is an otherwise eligible entity under the eligibility categories in this NOFO, it
would be eligible to apply. Receipt of other Federal funds does not render an applicant
ineligible. Similarly, receipt of other federal funds does not make an otherwise ineligible entity
eligible under this NOFO.
10
17. Are applicants who have received or plan to receive funding from SBA, CDFI, or
another federal funding source eligible to apply for funding under this NOFO?
Yes, if that entity is an otherwise eligible entity under the eligibility categories in this NOFO, it
would be eligible to apply. Receipt of other Federal funds does not render an applicant
ineligible. Similarly, receipt of other federal funds does not make an otherwise ineligible entity
eligible under this NOFO.
18. Are state, local, territorial, tribal governments eligible to apply for funding under
this NOFO?
No, state, local, territorial, and tribal government entities are not eligible applicants under this
NOFO. However, eligible applicants could consider forming strategic alliances with such
entities to assist their efforts to drive SEDI participation to their programs.
19. Are Tribal IRC 7871 Nonprofit Organizations (NPOs) eligible to apply? Or, do you
only recognize 501(c)(3) type NPOs?
In order to be eligible under this Program, an applicant, including a Tribal applicant, must be a
non-profit organization, i.e., organized and operated in accordance with the State's non-profit
corporation statute. IRC Section 7871 provides that tribal governments (or political subdivisions
thereof) shall be treated as States for certain Federal tax purposes (see 26 U.S.C. § 7871) and
does not dictate whether an entity is a non-profit.
20. If the applicant is a non-profit, can it partner with a Tribal entity?
Tribal entities could be valuable strategic alliances for applicants. However, a Tribal
Government is not an eligible applicant and cannot be one of the applicants under a consortium
application. See page 14 of the NOFO for additional information.
21. Are City governments able to apply? What about local colleges?
Federal, State, Local, or Tribal Governments, agencies, or any of their instrumentalities are NOT
eligible to apply. Institutions of higher education (I.e. colleges and universities) are eligible to
apply.
22. Can a non-profit and for profit submit an application together?
Yes, as long as both entities are otherwise eligible applicants. Please review the requirements for
“consortium” applications, especially the requirement for a designated lead applicant.
11
23. I am a state government, local government, or Tribal government. How can I
engage with and support this program?
Although states, territories, and tribal governments are not eligible to apply for this funding
opportunity, eligible applicants are encouraged to consider forming strategic alliances to
strengthen their proposed projects. State/local/tribal governments could be valuable strategic
alliances. For example, one of the key components of this Program is to prepare and assist
entrepreneurs to apply for capital under SSBCI or other government programs that support small
businesses. Depending on the applicant’s proposal, a strategic alliance or collaboration with a
state/local/Tribal government focusing on that capability could aid the applicant’s project. For
example, you could commit to facilitating cooperation between the applicant(s) and the
government capital programs (including SSBCI) operating in your state. You could help
applicants understand the investment ecosystem in your geographic area. You could sign letters
of support for potential applicants – remember that specific letters about why you support the
applicant’s proposal will be viewed as more competitive. But again, state, local and Tribal
governments cannot receive funds under this program and are not eligible to apply or be part of a
consortium application.
Additionally, after the award period, MBDA will remain substantially involved in the
Program. In fact, MBDA anticipates facilitating collaborations with jurisdictions receiving
SSBCI funds as well as other government programs and subject matter experts. You could also
help raise awareness of the funded projects in your jurisdiction and drive participants to those
projects. So, even if you don’t engage with applicants before MBDA makes its funding
selections, your collaboration with our awardees could be extremely valuable to the successful
operation of MBDA’s Capital Readiness Program and in turn, our Program may help drive
participation in your SSBCI and other government programs within your jurisdiction. When the
time comes, MBDA will be prepared to make those introductions and to facilitate ongoing
engagement.
24. Do I need to get a certification of minority status or SEDI status before applying to
this funding opportunity?
No. There are no demographic ownership requirements to apply for funding under this program.
Any eligible entity may apply for technical assistance funding under this program. In other
words, a SEDI-owned business has no competitive advantage over any other eligible applicant.
For eligibility information, please see Section III.A of the NOFO.
As outlined in the NOFO, applicants for funding should design their technical assistance
programs to support the needs of SEDI entrepreneurs. SEDI status is not a pre-requisite to apply
for funding under this program. As further clarification, this program does not provide grants to
entrepreneurs or small business owners directly to grow their own businesses. Rather, the
funding under this program will go to entities who will provide technical assistance services
12
designed to help entrepreneurs and small business owners build the skills to launch or scale their
businesses.
25. Are minority- or women-owned organizations given priority in selection?
No, there is no competitive advantage for an applicant to be a minority-owned, women-owned,
or other SEDI-owned organization. See the response to the FAQ above for additional
information.
26. I have a lot of ideas for great projects. Can I submit proposals for more than one
project?
Entities can submit applications for different projects (or be part of multiple proposed projects as
part of a consortium). However, you should carefully consider whether you have the capacity to
execute both (or more than two) projects concurrently if they are selected for funding. You
should submit a separate application for each proposed project and ensure each application is
complete.
Application Review Process
27. What is initial application screening process?
Prior to the formal review process, each application will receive an initial administrative
screening to ensure that all required forms, signatures, and documents are present. An application
may not be evaluated by the review panel if:
a) The application is received after the closing date.
b) The application package does not contain mandatory items (see Section IV. B of the
NOFO).
c) The project fails to address program objectives and priorities (see Section I of the
NOFO).
MBDA, in its sole discretion, may continue review of applications with minor defects that may
be easily rectified or cured.
28. 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 V(A) of the NOFO. Applications will receive a score
out of a possible 110 points (including any bonus points). Applications that receive an overall
average of 65 points or more are eligible to be considered for funding.
13
29. What are the merit review 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 110 points being the maximum total that can be earned including bonus points.
The NOFO further allocates points within each broad category.
Project Goals and Proposed Solutions (40 points)
Organizational Capacity (Resources and Assets) (40 points)
Budget and Timeline (20 points)
Bonus Point Categories (up to a maximum of 10 points total)
30. How do selection factors impact the competition?
The merit review score is used to evaluate applications based on how well the application met
the merit review criteria identified in the NOFO. Applications that scored at least 65 points are
then eligible for consideration by the Selection Review Panel, which will consist of no more than
five federal employees. The Selection Review Panel will apply the selection factors identified in
the NOFO to the applications and recommend to the Selecting Official a portfolio of applications
for funding in accordance with their application of the selection factors. The Selecting Official
makes the final recommendation regarding the funding of applications under this NOFO. The
Selecting Official retains discretion to select and recommend an application for funding that was
not recommended by the selection review panel based on one or more of the selection factors
31. 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 Capital Readiness Program as provided in Section I.A.
• Likelihood that the applicant will be able to assist SEDI-owned businesses with
producing high-quality applications to state SSBCI programs or other similar government
programs that support small businesses.
• Demonstrated ability to provide high quality technical assistance.
• 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 carry out a
substantial portion of the project.
• The availability of funds.
• The extent to which the application demonstrates an effective plan to ensure that SEDI
entrepreneurs benefit from available resources.
• The likelihood that the applicant and its proposed partners will be able to effectively
engage with one or more SEDI groups.
14
• The likelihood that the proposal will benefit the SEDI business ecosystem in a lasting
way (i.e., sustainability and lasting impact).
• Diversity of SEDI needs targeted - The extent to which the project supports MBDA’s
goal of balance in distribution of program funds within the overall portfolio of awards to
serve a wide range of SEDI groups. Recognizing that the needs of various SEDI groups
vary widely, applicants may design programs that target the needs specific SEDI sub-
groups.
• The extent to which the project supports MBDA’s goals of balance in distribution of
program funds within the overall portfolio of awards, including balance in geographic
locations, business sectors, and/or life cycles of businesses targeted. Note: given the
widespread need for support for early-stage services for entrepreneurs, MBDA
encourages applicants to include services for new entrepreneurs and/or businesses in the
early stages of the business lifecycle as part of its offerings.
• The extent to which the proposal aligns with MBDA’s mission.
32. How long does the application review process take? When will I find out the results
of the competition?
The anticipated timeline for processing awards is between ninety (90) and one hundred and
twenty (120) days from the closing date for receipt of applications. The anticipated award start
date is July 1, 2023. MBDA a anticipates announcing a list of award recipients prior to the start
of the award period
33. What is the project/award period?
Subject to availability of funding, MBDA expects to issue awards for a total term of four years
from July 1, 2023 – June 30, 2027. The initial budget year will be 12 months. Subsequent
budget years will be for 12-month terms, as outlined below.
34. When is the submission deadline?
All applications must be received on or before February 28, 2023 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.
Year
Fiscal Year
Months
Budget Year
Year 1
FY23
12 months
July 1, 2023
June 30, 2024
Year 2
FY24
12 months
July 1, 2024
June 30, 2025
Year 3
FY25
12 months
July 1, 2025
June 30, 2026
Year 4
FY26
12 months
July 1, 2026
June 30, 2027
15
35. Will applicants that receive less than 65 points in merit review be notified earlier or
will they have to wait for the full application review process to conclude?
All unsuccessful applicants will be notified after the full application process concludes.
36. If my proposal is not selected for funding, can I request feedback from MBDA on
my proposal?
MBDA does not anticipate providing individual feedback to applicants. However, MBDA does
anticipate providing generalized feedback for all applicants.
Budget
37. How much funding can I request in my application?
Applicants may propose projects for up to $750,000 per year for four years under this Program
for a maximum award amount of $3 million dollars over the four-year project period. MBDA
encourages applicants to request yearly budgets of $500,000, $625,000, or $750,000 in
accordance with the proposed project’s activities and needs.
Applicants are required to provide a non-Federal cost share as part of this program. The required
non-Federal cost share (also commonly referred to as matching funds, matching share, non-
federal cost share, or non-federal share) is calculated as a percentage of the total funding that the
applicant requests. Applicants should note that the amount of funding they request will
determine what matching funds the applicant is required to provide as a condition of funding.
See Section II.A and III.B of the NOFO and the FAQs below for additional information.
38. The NOFO discusses a maximum amount for an MBDA grant, but can applicants
apply for less than that amount?
Yes, an applicant can apply for less than the maximum amount stated in the NOFO. MBDA
encourages applicants to develop compelling proposals that efficiently use federal dollars.
39. If I propose a very small yearly budget, will my application be competitive?
Although there is no minimum required funding request under this NOFO, MBDA seeks to fund
ambitious projects that will provide meaningful technical assistance to SEDI entrepreneurs.
MBDA encourages applicants to request yearly budgets of at least $500,000. Applicants should
also keep in mind that MBDA seeks to fund holistic programs for entrepreneurs, not one-off
services. Applicants should ensure that their proposed budgets and proposed performance
16
metrics and goals are ambitious, realistic, and able to deliver holistic results that serve as many
SEDI entrepreneurs as possible. Yearly budgets that are significantly less than $500,000/year
may be less likely to deliver on those fronts for a four-year program.
40. If my application is selected for funding, am I required to provide any additional
money as a non-Federal cost share (i.e. “cost match” or “matching share”)?
Yes, unless you apply for and are granted a wavier, your organization will be required to provide
the required non-Federal cost share. The required amount of the cost match is calculated as a
percentage of the total amount of MBDA funding requested.
As explained in the chart below, applicants that request up to $2 million total will be required to
provide a 10% non-Federal cost share. Applicants requesting between $2 million and $2.5
million will be required to provide a 15% non-Federal cost share. Applicants requesting between
$2.5 million and $3 million will be required to provide a 25% non-Federal cost share. See
Section II.A and III.B of the NOFO and the FAQs below for additional information.
Tier Level
Yearly Budget
Amount
Required Non-
Federal Share
Estimated Total
Federal Funding (Over
Four Years)
Estimated Total
Non-Federal
Share (Over
Four Years)
Tier 1
Up to $500,000
10%
Up to $2,000,000
Up to $200,000
Tier 2
From $500,001
to $625,000
15%
From $2,000,001 to
$2,500,000
From $300,001
to $375,000
Tier 3
From $625,001
to $750,000
25%
From $2,500,001 to
$3,000,000
From $625,001
to $750,000
Note: if the applicant’s proposal is selected for funding but receives less than the amount of
funding requested, the percentage will be calculated based on the total amount of funding
received from MBDA.
41. How can I meet the Non-Federal cost share or matching requirement?
All cost sharing or matching must be consistent with the requirements of 2 CFR 200.306.
Awardees may meet the non-Federal matching requirement by using (i) cash or in-kind
contributions, without regard to whether the contribution is made by a third party if the
contributions meet the requirements in 2 CFR 200.306(b)(1)-(7); and (ii) Federal funds received
from other Federal programs only if those programs allow funding to be used for cost sharing
purposes. If contributions include Federal funds received from other Federal programs, the
applicant must attest that such program funding may be used for cost sharing purposes.
17
In-kind contributions must be documented and must be directed towards eligible project costs
and meet applicable Federal cost principles and other requirements of the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2
CFR Part 200.
Revenue may be, but is not required to be, generated from fees for service, client fees,
membership fees, or other appropriate fees associated with services or activities funded through
this Program as long as they are approved by MBDA. Any income generated 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 program authorized by the award (2 C.F.R. 200.307(e)(2)). Awardees
cannot charge fees so high that Program-funded services and activities are not accessible to a
broad range of SEDI entrepreneurs and SEDI-owned businesses.
The budget narrative, SF-424A, and commitment letters should clearly and consistently
document the total project budget and should delineate and substantiate matching share, both
cash and in-kind, including appropriate valuations.
42. Can I use unrecovered indirect cost rates to meet the non-federal cost share?
Yes, applicants can use unrecovered indirect costs to meet all or a portion of their required non-
federal cost share. See 2 CFR 200.306. Please be sure to submit indirect cost rate documentation
that is current and signed.
43. Do I need to spend the non-federal cost share equally across all four years of the
program?
Applicants must propose and justify their budget and timeline in their proposal. However, as a
general matter, absent compelling circumstances, awardees should plan to spend their non-
federal cost share at approximately the same rate as their federal budgeted amount over the
course of the four-year program.
44. I do not believe my organization can afford to provide the full amount of the
minimum cost match. Can I request a waiver of the matching requirement?
Yes, applicants may request a waiver of the matching requirement. If you intend to request a
waiver, you must submit a waiver request with your application, including a justification for the
waiver, supporting documentation, and the amount being sought. MBDA will only grant waiver
requests if it determines in its sole discretion that the applicant has demonstrated a showing of
substantial need for the waiver amount requested. Note: If an applicant has requested a waiver,
18
the applicant must also submit a plan to meet the matching share if they wish to be considered
for funding in the event that waiver is not granted.
45. Can I charge client fees as part of my project design?
Yes. Client fees are allowed under this Program. Client fees could be a way of ensuring that
entrepreneurs take this seriously or to make others take your project seriously. However, you are
not required to charge fees. It is up to you to justify in your application what fees you will
charge and why they are appropriate.
Client fees should be reasonable and not prohibitive for intended program participants.
46. I have a question about whether I can propose a specific expense or category of
expenses under this Program. Can MBDA help?
To maintain competition fairness, MBDA cannot provide individualized budget guidance. We
encourage you to explain and justify your proposed expenses in your proposal and to view the
third webinar on budget best practices, which goes into depth on budget issues, including the
cost share requirement and ensuring proposed expenses are reasonable, allocable, and allowable.
The webinar slides and on-demand recordings are available here: https://www.mbda.gov/mbda-
capital-readiness-program-grant-competition (scroll down to the Webinars section and enter your
information at the link to view). You should also review 2 CFR 200.306 for additional guidance
on the non-federal cost share.
Additionally, as a general matter, program funds (including federal and non-federal share) cannot
be used to provide individual cash transfers to program participants. It is possible that an award
recipient may make such investments outside the program with outside funds that are not Federal
or matching share funds.
47. Can I use earned income to meet some or all of the non-federal cost share
requirements?
Yes, you can use earned income (or revenue) generated from client fees or other appropriate fees
in this project. As long as you have a reasonable and realistic plan to meet the match
requirement, MBDA does not have a preference as to how you meet the match. However, a
project cannot charge fees so high that Program-funded services and activities are not accessible
to a broad range of SEDI entrepreneurs and SEDI-owned businesses.
Also, if you elect to charge fees, you might earn more from those fees than what you proposed to
use for your cost match. If that’s the case, you must take that additional revenue and use it to
carry out additional activities under this program. See page 15 of the NOFO and 2 CFR Section
200.307(e)(2) for more information.
19
48. The NOFO indicates that applicants must include a budget narrative, but the
required SF424A Budget Information Non-Construction Programs form seems to
cover that information. Are those the same?
No, the Budget Narrative and the SF-424A (Budget Information Non-Construction Programs)
are separate and distinct required documents. The SF-424A identifies the totals per budget line
item. Applicants should submit one SF-424A form for each budget year. The budget narrative
identifies and justifies how the funds in each budget line item will be used to support the
proposed project and links each line item to its relevant commitment letter or funding source.
Budget narrative line items and whole budget totals should mathematically match the total
project costs listed in the appropriate totals fields of the SF-424A and question 18, line g
(“TOTAL”) of the SF-424. The budget narrative and each SF-424A (one per budget year)
should clearly and consistently delineate federal funds and matching share funds, both cash and
in-kind. MBDA strongly encourages applicants to review Section IV(B)(4) of the NOFO for
additional information.
49. Should the budget reflect funds be allotted by year or for the entire period of
performance?
Applicants should break down their budget by year. 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.
50. Can grant funds be used to provide wages or stipends to program participants?
No. The grant funds are only to be used to provide technical assistance service delivery to
program participants (i.e., entrepreneurs or businesses). Direct transfer of federal funds or non-
federal matching share funds to program participants is not allowed under this Program.
51. 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
20
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.
52. Will we be expected to attend each conference for each budget year?
For the first budget year only, applicants must budget for two personnel to attend the MBDA
Capital Readiness Program Implementation Meeting in person in Washington, DC.
For each budget year (including the first year), applicants should include in their SF 424A budget
forms and budget narrative travel costs for up to two (2) personnel (one of whom must be the
project director) to attend two events listed below. The conference location may vary, and
applicants should use their judgment. MBDA will notify applicants no later than 2 months
before each conference whether there will be a virtual attendance option for these events. In the
event of a virtual conference, applicants will be allowed to reallocate the estimated travel
expenses to other budget line items.
i. Minority Enterprise Development Week
ii. National Training Conference
Application Materials
53. 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 for the Program must be complete and follow the format
described in the NOFO. A complete application packet consists of the following forms and
required submissions described below. Applications that fail to include all the necessary
elements may not be reviewed or considered and may be disqualified.
Required Application Content
1
Project Abstract
One (1) page
limit
2
Project Narrative
Twenty (20)
page limit
3
Supporting Documents (i.e., letters of commitment, resumes)
4
Standard Forms
• SF-424 (Application for Federal Assistance)
• SF-424A (Budget Information Non-Construction Programs)
21
Required Application Content
• SF-424B (Assurances for Non-Construction Programs)
• CD-511 (Certification Regarding Lobbying)
• SF-LLL (Disclosure of Lobbying Activities)
5
Budget Narrative
6
Letters of Commitment (from applicants who are working with other
organizations with strong track records of working with SEDI)
7
Indirect Cost Rate (ICR) Agreement Documentation (if applicable)
Throughout the review process, MBDA reserves the right to seek clarification and corrected or
missing documents in writing from applicants.
54. What information must be included in the Project Narrative?
Section IV(B)(2) of the NOFO lists in depth the information that applicants are required to
include in their Project Narrative. The Project Narrative is one of the most important parts of
your application, and MBDA strongly encourages applicants to review the NOFO carefully and
ensure that all required information is included.
55. Under the “Applicant Capability” section of the Project Narrative, is the experience
to run the program limited to the organization itself or would experience extend to
the personal capacity of the individuals running the program? E.g., staff have
experience as an Executive Director, grant management, etc.
MBDA encourages applicants to include both the organization’s track record as a whole and the
experience and track record of the staff that will run the project. See the requirements for the
Applicant Capability section of the Project Narrative on pages 19-22 of the NOFO. Applicants
should also keep in mind the evaluation criteria under “Organizational Capacity” (pages 29-30 of
the NOFO) when crafting their proposals.
56. In regards to the disclosure of lawsuits in the Project Narrative, can you please
clarify if only suits filed against the company are to be disclosed OR if we must also
disclose any suits we have filed against other parties?
The disclosure requirement applies to any lawsuits related to the subject matter listed on page 21
of the NOFO filed in federal or state court against the applicant or any member of the applicant’s
Leadership Team. You are not required to disclose a lawsuit filed by your organization unless
that lawsuit was filed against any member of your organization’s leadership team (as defined on
page 21 of the NOFO).
57. What supporting documents must be included in an application for this program?
22
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. See page 23 of the NOFO for a list of required documents.
Please note that applicants should have ONE Budget Narrative that covers all budget years, ONE
SF-424 that covers all budget years, and FOUR SF-424As (one SF-424A for each budget year).
58. 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.
59. What is the Federal Assistance Listing Number (also known as a CFDA) for this
program?
The Federal Assistance Listing Number for this program is 11.034. MBDA recently updated the
NOFO to reflect this corrected number.
60. For the CD-511 form, what should I put for “Award Number”?
Applicants may leave the section for “Award Number” blank on the CD-511 form.
What Makes an Application Competitive?
61. What are the primary program objectives and priorities that must be addressed in
an application for this MBDA Capital Readiness Program funding opportunity?
Section I.A of the NOFO gives important and detailed information about the Capital Readiness
Program priorities and objectives. The primary objective for this funding opportunity is to award
cooperative agreements to eligible entities for the operation of technical assistance to socially
and economically disadvantaged entrepreneurs under three Program Pillars:
1. Access to Capital
2. Access to Networks
3. Capacity Building
23
The proposed activities may resemble the service models of incubators (focusing on early-stage
technical assistance for new entrepreneurs) or accelerators (providing emerging-stage technical
assistance to businesses ready to expand or scale), or provide a combination of both service
models. MBDA seeks to fund holistic programs for entrepreneurs, not one-off services.
Activities and services that are provided as part of a multiple week curriculum seeking to
graduate participants will be viewed as more competitive. MBDA strongly encourages
applicants to carefully review Section I.A as they prepare their applications.
62. 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)(2) of the NOFO for more detailed information. Within the project description
of the applicant narrative, applicants are required to address the needs of the SEDI population(s)
it proposes to target and how that applicant (and any strategic alliance organizations) is prepared
to drive SEDI participation in its project. Applicants are also required to identify whether they
propose to serve early-stage entrepreneurs or later stage entrepreneurs.
63. Do applicants need to meet all 3 of the requirements of build capacity, access to
capital opportunities, and access to networks? Or at least one of the 3?
Applicants must propose activities under all three Program Pillars. Please review the NOFO
carefully.
64. Is there one SEDI classification that is weighted more than others?
No, there is no competitive advantage to focusing on any one SEDI group over others. As stated
in the NOFO, one of MBDA’s goals is to have a balance in distribution of program funds within
the overall portfolio of awards to serve a wide range of SEDI groups.
65. Is having a cohort-like model required for this program?
MBDA seeks to fund holistic programs for entrepreneurs, not one-off services. Activities and
services that are provided as part of a multiple week curriculum seeking to graduate participants
will be viewed as more competitive.
66. Can I have more than one alliance organization?
Yes. Applicants can form strategic alliances with more than one organization.
67. Are applicants responsible for finding their own clients or is there an existing
pipeline?
24
This is a new program, and there is no existing pipeline. Applicants should include in their
application a plan to drive SEDI participation in their project. If an applicant is an existing
incubator or accelerator, such a plan could include strategies for how the applicant will scale
their existing client pipeline.
68. What can I do to make my application competitive?
Competitive applications will:
• Demonstrate a clear understanding of the business environment, Capital
landscape, and government program opportunities in the identified geographic
area, industry, and/or for the SEDI entrepreneurs that the proposal proposes to
serve. This includes a demonstrated familiarity and understanding in state SSBCI
programs or other government programs that support small businesses.
• Clearly identify SEDI entrepreneurs’ needs or barriers in launching or scaling
businesses, accessing Capital and accessing networks in a defined geographic
area, industry, and/or market segment.
• Clearly delineate strategies to provide effective tailored technical assistance to
overcome barriers that inhibit access to Capital and access to networks for SEDI-
owned businesses and to leverage business ecosystems to stimulate
commercialization. Proposed strategies and solutions to the above-identified
needs must align with and address all three Program Pillars (capacity building,
access to Capital, and access to networks). Proposals should provide evidence
illustrating how funds received through this competition will not only help
launch new businesses and/or scale existing businesses that produce good jobs,1
but also promote a region’s entrepreneurial ecosystem or promote more SEDI
entrepreneur participation in traditionally non-SEDI industries. MBDA seeks to
fund holistic programs for entrepreneurs, not one-off services. Activities
and services that are provided as part of a multiple week curriculum seeking
to graduate participants will be viewed as more competitive.
• Demonstrate a successful track record in working with one or more SEDI groups
or (for applicants who have not historically served SEDI groups) demonstrate
commitments from organizations with track records in working with one or more
SEDI groups, such as community-based organizations and HBCUs, TCUs, or
MSIs. The proposal must identify one or more SEDI group’s needs it
proposes to target. See Section IV.B.2.d.ii for more information about alliances
and commitments.
• Demonstrate a successful track record in working with early-stage businesses or
working with emerging businesses that are poised to raise Capital, that have
successfully raised Capital, or that have exited via a sale. The proposal must
identify where in the business lifecycle its target participants are – i.e.,
whether the proposal proposes to serve mostly early-stage businesses,
emerging businesses, or a mix of both. The proposal should note the
1 See https://www.dol.gov/sites/dolgov/files/goodjobs/Good-Jobs-Summit-Principles-Factsheet.pdf.
25
industry(ies)/sector(s)/business stage(s) that they serve and their track record in
serving those entrepreneurs. See Section IV.B.2.d.iii for more information.
• Demonstrate an effective network of contacts in the investment ecosystem that
the applicant and/or strategic alliances can leverage to provide program
participants with capital raising opportunities.
• Propose outreach strategies to maximize participation of SEDI entrepreneurs and
increase the likelihood of success in achieving performance goals.
• Provide a non-Federal match of 10% to 25% of the total requested award amount
(see Sections II.A and III.B, below).
69. For this Program, what does “Socially and Economically Disadvantaged Individual”
(SEDI) mean?
For this Program, a SEDI-owned firm is:
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.2
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);
2 Underserved communities are populations sharing a particular characteristic, as well as geographic communities,
that have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life
because of, for example: race, color, religion, sex, sexual orientation, gender identity, disability, residence in a rural
community; and persistent poverty. See 31 C.F.R. 35.27(g)(11)(ii). “Underserved communities” includes Black,
Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders, and other persons of
color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons
with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or
inequality. (See 31 C.F.R. 35.27(g)(11)(ii)).
26
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).
70. Does an applicant’s proposal need to address every group or community that’s
covered in the SEDI definition?
No, MBDA recognizes that the needs among different SEDI groups may vary significantly, and
not all SEDI group needs may be targeted at once by any single project under this Program. As
such, applicants can design their proposals to target the needs of one or more group within the
definition of SEDI. However, service delivery must be in compliance with Title VI of the Civil
Rights Act of 1964. 42 U.S.C. § 2000d to 2000d-7, and its implementing regulations, 28 C.F.R.
Part 42, Subpart C; and Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794.
MBDA’s goal for the Capital Readiness Program is to fund a portfolio of projects that will serve
a wide range of SEDI groups.
71. Does the project need to have a physical location in the geographic area it proposes
to serve?
Awardees may provide proposed services in-person, virtually, or through a combination of in-
person and virtual services. If the proposal seeks to focus instead on a particular industry or
market segment that spans multiple geographic service areas, the proposal must clearly
demonstrate a plan to effectively service multiple geographic areas. As part of the merit review,
applicants will be evaluated on their plan to effectively provide services. MBDA encourages
applicants to consider in-person services as part of their offerings.
72. Can multi-state organizations apply for multiple states under 1 application/entity?
This is a national competition, and you can propose a service area that encompasses more than
one state or target a specific industry or market segment that is nationwide or spans multiple
states. However, if your proposal seeks to focus on multiple states or other geographic service
areas, the proposal must clearly demonstrate a plan to effectively service multiple geographic
areas. You should also keep in mind that any applicant proposing to serve SEDI entrepreneurs
significantly outside its local geographic area must clearly demonstrate a comprehensive
understanding of the business ecosystem(s) it hopes to serve, its challenges, and opportunities,
and provide an effective outreach plan to reach and serve SEDI entrepreneurs in that area,
industry, or market segment. See NOFO pages 11 and 17. For example, an applicant proposing
to target entrepreneurs across the country who operate in a specific industry should demonstrate
an understanding of the needs and opportunities in that industry and an effective plan to serve
entrepreneurs nationwide.
27
73. My organization is not a formal incubator or accelerator. Could we be a
competitive applicant for funding under this NOFO?
Yes, applicants do not have to be formal incubators or accelerators so long as they are otherwise
eligible entities as provided in Section III of the NOFO. Competitive applicants will have the
necessary skills and ability to execute the proposed activities that align with the three Program
Pillars. See Section I(A) of the NOFO.
74. My organization is an incubator/accelerator/venture capital firm that has not
historically served SEDI populations in the past. Could we be a competitive
applicant for funding under this Program?
Yes, applicants who have not historically served SEDI populations must demonstrate a
commitment from at least one SEDI-serving institution to work with the applicant to increase
the proposed activities’ ability to effectively serve SEDI groups and effectively target SEDI
needs. The applicant must explain the role the SEDI-serving institution(s) will play in the
proposal. Such roles could include, but are not limited to, ensuring that the applicant’s proposed
activities and curricula address the needs of SEDI group(s), identifying potential barriers to SEDI
participation in the applicant’s current services and curricula, working with the applicant to
design a plan to remediate those barriers, and amplifying and driving SEDI participation in the
applicant’s project. For each commitment by a SEDI-serving organization, the applicant
must provide a letter of commitment from the SEDI-serving institution signed by an
official authorized to commit that institution. Letters with more detail about the
institution’s willingness and ability to provide support to the applicant will be viewed as
more competitive.
75. What are some examples of types of SEDI-serving organization that an applicant
could partner with?
Examples of SEDI-serving organizations include, but are not limited to, community-based
organizations, Historically Black Colleges and Universities (HBCUs), Tribal Colleges and
Universities (TCUs) or Minority Serving Institutions (MSIs), chambers of commerce at the
Federal, state, or local level that serve SEDI groups, investment funds or institutions that focus
on specific SEDI groups’ needs, and any other organization that could aid the applicant in
cultural competency in its proposed curricula and activities, identifying barriers to SEDI
participation in its proposed project, working with the applicant to design a plan to remediate
those barriers, and amplifying and driving SEDI participation in the applicant’s project.
76. The NOFO requires applicants to demonstrate an effective track record in working
with SEDI populations. How can I demonstrate that track record?
An applicant could include the applicant’s (or alliance organization’s) history working with the
target program participants, quantitative and/or qualitative data about the applicant or alliance
28
organization’s ability to build trust within the SEDI group(s) and drive participation in similar
programs, or other indicia that the applicant or alliance organization are able to understand the
needs of and reach SEDI groups. Applicants should include any numerical data broken down on
an annual basis up to the last five years to support the applicant’s track record and experience.
Project Performance Measures and Goals
77. What are the performance measures for this program that must be addressed in an
application for Capital Readiness Program 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 the required annual goals and measures. Achieving and reporting on performance
goals is a requirement of the award.
The following are the six (6) required measures that applicants must report on under the Program
(See Appendix B of the NOFO for the definitions of each performance measures and how goals
must be set):
• Number of SEDI entrepreneurs enrolled in the project
• Number of SEDI entrepreneurs that graduate from the project
• Number of networking events held
• Number of SEDI entrepreneur or SEDI-owned business pitches to Capital
provider(s)
• Number of SEDI-owned businesses formed or scaled
• Total amount of Capital raised (equity investments, debt, and grants)
Applicants must also propose and define at least one additional performance measure (“Other
Performance Measure”) that best reflects project scope of work. This Other Performance
Measure is subject to MBDA approval (see Appendix B).
Applicants must propose specific numerical goals in their applications for each performance
measure for each year of the project. Applicants should also identify the rationale for the
proposed measure, including any key assumptions underlying the measure.
78. The NOFO gives the required performance measures for the Program, but it
doesn’t give us numbers that we have to hit each year. Where can we find those
minimum numbers?
MBDA did not provide minimums for the performance measures. Applicants are in the best
position to determine what goals they can meet based on their location, proposed activities, and
amount of funding requested. As part of their application, applicants must propose specific
numerical goals in their applications for each performance measure for each year of the project.
29
Applicants should also identify the rationale for the proposed measure, including any key
assumptions underlying the measure. MBDA encourages applicants to be ambitious and realistic
in setting proposed numerical goals. The merit review process will evaluate the feasibility of the
proposed performance goals, particularly whether the goals and activities are ambitious, realistic,
achievable, and reasonable given the amount of funding requested by the proposal.
79. Where must an applicant address project performance measures and goals in the
application?
Applicants must propose numerical goals for each performance measure in the Project Narrative.
See NOFO Section IV(B)(2) and Appendix B for more information.
80. 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, eligible clients to whom a Business
Center may provide services located in any U.S. state or territory will count toward the
performance goals.
Reporting
81. What are the reports that each project is required to provide?
The project is required to provide the following reports:
a) 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 via Grants Online (or its successor system) on a periodic basis using
the SF-425 form. The financial reports are due thirty (30) days after the end of the
initial six-month period and every six-month period thereafter. The final report for
each budget year is due within ninety (90) days after the expiration of that year.
b) Progress Reports – Progress reports are to be via the Grants Online system (or its
successor) on a periodic basis. The periodic reports are due 30 days after the end of the
initial six-month period and every six-month period thereafter. The final report is due
within ninety (90) days after the expiration of each budget year.
The periodic reports must include data and information to determine project
progression and success. MBDA will rely on these reports, data, and information as
30
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 and/or terminated access to Federal funds.
c) Ongoing Performance Reporting - All required project performance reporting to
MBDA shall be conducted via the Internet using a Performance System to be
designated and provided by MBDA. Data entry shall occur on a frequent basis and no
later than five (5) business days of service action by the project.
d) Federal Funding Accountability and Transparency Act of 2006 Reporting - The
Federal Funding Accountability and Transparency Act of 2006, 31 U.S.C. 6101
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
www.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
http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl.
e) Operational assessment input – The project is required to provide information as
requested by MBDA related to the project’s operational status, including but not
limited to branding, website, hiring and training of staff, office space, and compliance
with information technology requirements.
