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  1. Innovative Finance Baa Faqs

The below FAQs are for informational purposes only and are intended solely to assist potential applicants in better understanding the Fiscal Year 2022 Broad Agency Announcement – Access to Capital/Innovative Finance and the application requirements set forth in the Broad Agency Announcement (BAA) 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 BAA. In all cases, applicable statutory and regulatory mandates, and the requirements set forth in the BAA, 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 BAA. 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 so see available materials.
  • The Second Step
    Become familiar with MBDA’ss 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
    • 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.
    • Register in the Grants.gov system. Your application must be submitted online through Grants.gov in order to be filed with MBDA.
    • These processes take time, so we encourage prospective applicants to register early.

*Please note it is strongly encouraged to submit your application as early as possible

 

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 BAA.  The panel will conduct a merit review, evaluate, and score the application (on a 100 point scale). 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. Anticipated time for processing awards is approximately one hundred twenty (120) days from the receipt of applications. MBDA anticipates that the awards under this BAA will be made with start dates of September 1, 2022.

 

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

The BAA 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 BAA also identifies program requirements that grantees (i.e., the applicants ultimately selected for funding), must adhere to. For example, Appendix C of the BAA 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 BAA in its entirety to understand application and program requirements.

 

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

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


Yes. MBDA will conduct a series of pre-application teleconferences from 2:00-3:00pm Eastern Time on the following dates:  May 16, 23, and 26, 2022. Participants must register at least 24 hours in advance of the teleconference. Please visit the MBDA website at www.mbda.gov for more information.

 

7. How many awards will be made pursuant to this BAA?

MBDA anticipates making one (1) financial assistance award under this BAA to cover the first budget period of the selected project.   The award will be for a two-year term but funded one year at a time. MBDA anticipates that up to $884,559 will be available in FY 2023 to support continuation funding for the second year of the selected project..  

 

8. Who may apply for this program?

Eligible applicants include for-profit entities (including but not limited partnerships, limited liability companies, and corporations), non-profit organizations, institutions of higher education, or commercial organizations. Government or quasi-governmental organizations are not eligible. The successful applicant and program partners should have knowledge and experience working in the core areas listed under Program Objectives and should expect to work on behalf of MBEs.  It is also anticipated that the mission of successful project applicants will align with both the mission of MBDA and the BAA objectives.

Note: Project must be located in the U.S. or any U.S. territory, including Guam, Puerto Rico, and the Virgin Islands. MBDA is not authorized to provide awards to individuals under this BAA, and applications from individuals will not be considered under this request.

 

9. 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 BAA Section I);

d)         The application falls within the scope of an existing MBDA competitive program or announcement for Federal Funding or duplicates a project previously awarded; or

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

 

10. 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(B)(2) (MBDA Merit Review Panel), of the BAA. 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.

 

11. What are the merit criteria for this program?

Applicants should review the BAA 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 BAA further allocates points within each broad category.

Impact of Proposed Project (40 points)

Applicant Capability (25 points)

Applicant Budget (35 points)

 

12. 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 BAA. 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 BAA.

 

13. What are the selection factors for this BAA?

The selection factors for this funding opportunity are:

  • The availability of funds;
  • The extent to which the application meets the overall objectives and priorities of the program as provided in 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;
  • Project that can demonstrate clear purpose of causality between services provided (output), benefits to the ecosystem resulting from the services provided (outcome), and changes to the known impediments experienced by MBEs in accessing capital (impact). 
  • The project’s likelihood to enable ease of access to capital for MBEs through systemic change, addressing the barriers outlined in Section I.A and B;
  • Location of the project in an area that is or is adjacent to an area that is federally designated as an area of distress or serving a State or region that has a significant population of socially or economically disadvantaged individuals.

 

14. What is the project/award period?

MBDA will issue one (1) award for a total term of two (2) years from September 1, 2022 – August 31, 2024.

 

15. When is the submission deadline?

All proposals must be received on or before June 6, 2022 at 11:59:59 pm Eastern Time (E.T). Applications may be submitted starting from the publication date of this BAA 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

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

The budget and the budget narratives should be submitted for each year of the period of performance (i.e., budget and budget narratives for each of the two years of the project).

 

17. Can grant funds be used to provide wages, stipends, or direct loans to program participants?

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

 

18. 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 BAA at page 11 (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.

 

19. What is the cost sharing requirement?

A non-federal cost share of 33% of the Federal funding is required for each budget period. An applicant 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.

 

Application

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

Applicant should review the entire BAA 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 BAA 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 BAA 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 any of the following will be disqualified: an applicant narrative, budget narrative, and/or standard forms 424 or 424A.

 

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

Applicants should review the entire BAA to understand what suggested and/or required supporting documents should be submitted as part of their application. The applicant may provide additional information that supports the proposed project. This should include any memorandum of understanding, commitment letters, or other evidence of existing strategic partnerships. For example, the applicant should provide in the Applicant Capability section of the Applicant Narrative 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 

 

Program Objectives and Priorities

22. What are the primary program objectives and program priorities that should be addressed in an application for this alternative financing opportunity?

This program seeks to address, mitigate, and remove systemic barriers of traditional financing by leveraging alternative funding methods and non-traditional sources of lending. Applicants are encouraged to review in detail Section 1 of the BAA.   

 

23. What are the program priorities that should be addressed in an application for this alternative financing opportunity?

Applicants should offer a wide array of assistance, which can be accomplished through a mixture of direct services or referrals to other qualified organizations. Applicants should offer programming and services across these non-exhaustive categories:

  • Research, development or pilot of innovative financing products that address the unique needs of minority owned businesses - such as a product that provides financing using non-traditional or alternative methods of funding (non-asset-based);
  • Development of a new navigation program to improve the matchmaking between non-traditional lenders and minority borrowers;
  • Craft the business case for lending to MBEs including researching accurate methods of risk assessment, merit and returns;
  • Provide technical assistance targeted at non-traditional lenders servicing (or aspiring to serve) minority-owned businesses;
  • Test, modify or launch an innovative new credit methodology aspiring to predict the credit risk of minority-owned businesses more accurately;
  • The launch of clinics, training, or webinar programs to enhance business lending practices of providers targeting minority-owned businesses, including origination, underwriting, and services of loans;
  • Solutions to address the lack of economies of scale, funding, data sharing or business capabilities among non-traditional lenders supporting the credit needs of minority owned businesses.

For more information about each of these three categories see Section I.B. of the BAA.

 

24. 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 (10 page maximum). See Section IV.B.3 of the BAA for more detailed information.

A) Project Description:  The applicant should fully describe and explain the project being proposed, including:

(1) Executive Summary

(2) Project Activities and Rationale

(3) Organization Location and Service Coverage

(4) Project Implementation Timeline

(5) Key Partners

B) Applicant Capability: The applicant must present information describing the experience and qualifications of the organization to carry out the project.  The application should include the following information.

(1) Project Organization/Institution Profile and Experience   

(2) Project Organizational Structure

(3) Biographies or Resumes for Major Participant(s)

(4) Proof of Capability

C) Project Goals and Objectives:  The applicant must propose measures and annual goals for each year of the proposal; including a break-down of the goals in semi-annual increments (e.g., first six-months and twelve-months).  The Applicant should include the following: 

1) A detailed description of the methodology or evidence that was used to propose the semi-annual and annual goals; and identification of key assumptions and/or risks that may impact the Applicant’s ability to meet or exceed the goals.

(2) Proposed contingency plans and/or strategies for meeting proposed goals if or when Applicant falls behind in meeting program objectives.

(3) The organization’s process for monitoring the accomplishment of goals and objectives. The process should include minimum program measures.

 

Project Performance Measures and Goals

25. What are the performance measures for this program that must be addressed in an application for this alternative financing funding opportunity?

Section I.B. of the BAA includes information for applicants related to program performance measures and goals. Applicants must propose a project that clearly defines a plan to achieve the program priorities and that allows for the measurement of the growth and/or benefit of the ecosystem resulting from the project.  Applicants should clearly identify in the project the measures and goals for performance and ability to report their performance based on the goals and measures set.  Applicants must use reliable evidence and data to measure progress, outcomes, and impact.

 

26. 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.

 

Reporting

27. 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 semi-annual and annual basis. The semi-annual and annual reports are due thirty (30) days after the end of the initial six-month period in each funding period. The final report is due within one-hundred twenty (120) days after the expiration of the award.
  • Progress Report – Progress reports are to be submitted to the Department of Commerce via Grants Online on a semi-annual and annual basis. The semi-annual report is due forty-five (45) days after the end of the initial six-month period in each funding period. The final report is due within one hundred twenty (120) days after the expiration of the award.

    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.
      •  
  • 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 will be required in a format requested by NOAA before any award will be made under this BAA.