Newly signed infrastructure law makes MBDA permanent and authorizes $ 550 million over five years to support minority business community
Washington, DC – Biparty infrastructure legislation enacted by President Joe Biden will make the US Department of Commerce’s Minority Business Development Agency (MBDA) permanent after Senator Tammy Baldwin worked to include the provision in legislation. The newly signed infrastructure law also authorizes $ 550 million over five years, or $ 110 million in annual funding until fiscal 2025, more than double the agency’s $ 48 million credit in 2021. .
The infrastructure legislation will expand the capacity of the Minority Business Development Agency to promote and administer programs to support the development and resilience of minority business enterprises (MBEs), enabling the agency to increase its capacity. programs and educate the more than 9 million minority-owned businesses. .
âThe Minority Business Development Agency is a strong resource for minority businesses and entrepreneurs and the bipartisan infrastructure legislation signed by President Biden will strengthen the support provided by MBDA to help our minority business community rebuild better. ” Senator Baldwin said. âBy collaborating with the economic development efforts of states and local communities, we now have a permanent federal partner who fosters the growth of minority-owned businesses. This action will help reduce racial economic disparities and strengthen the growth of our economy. “
In August, Senator Baldwin made an effort to include the bipartisan group Minority Enterprise Development Act 2021 as an amendment to infrastructure law, and Wisconsin leaders praised Baldwin’s work to expand and elevate the support provided by the Minority Business Development Agency.
“The African-American Chamber of Commerce of Wisconsin proudly supports the Minority Business Development Act of 2021 and recognizes the leadership of Senator Baldwin on this issue” said Ossie C. Kendrix Jr., president and CEO of the African American Chamber of Commerce in Wisconsin. “This legislation would make the Minority Business Development Agency at the Ministry of Commerce permanent, providing intentional support to the single agency tasked with helping the development of minority-owned businesses. As black business owners begin to rebuild our economy in the post-pandemic world, we will need deliberate legislation that will help create and grow economic opportunities in our community. “
“We thank Senator Baldwin and his colleagues for leading the effort to deliver critical investments to underserved communities for years to come,” said Nelson Soler, president and CEO of the Southeastern Wisconsin Latin Chamber of Commerce. “The Southeastern Wisconsin Latin American Chamber of Commerce believes that efforts to codify and modernize the MBDA will ensure minority business owners the support they need to grow their businesses and make an impact. within their local communities. “
“The Wisconsin Indian Business Alliance and the Wisconsin Native Loan Fund applaud Senator Baldwin for defending the Minority Business Development Act of 2021″, says Fern Orie, the Wisconsin Native Loan Fund and the Wisconsin Indian Business Alliance. âMinority-owned businesses are often the most neglected, but this legislation will give our businesses the support they need through the Minority Business Development Agency of the Ministry of Commerce. By providing our minority-owned businesses with opportunities for capital, technical assistance and expansion, this legislation will help our economy continue to recover from the COVID-19 pandemic. “
Concretely, the law on infrastructures will:
- Expand the geographic reach of MBDA by authorizing the establishment of regional MBDA offices, rural business centers and increasing the number and scope of existing programs.
- Increase MBDA’s grantmaking capacity to partner with community and national nonprofit organizations engaged in private and public sector development as well as research.
- Provide assistance of at least $ 250,000 through the agency “MBDA Business Center Program” entities eligible to operate centers that help minority businesses access capital, contracts and grants, and create jobs. The agency could also create MBDA Rural Business Centers.
- Create the Parren J. Mitchel Entrepreneurship Education Grants program to train the next generation of minority entrepreneurs in historically black colleges and universities (HBCU) and institutions serving minorities (MSI);
- Provide grants to community and national non-profit organizations with an annual budget of less than $ 1 million and support MBEs.
- Create an Under Secretary of Commerce appointed by the President and confirmed by the Senate for Minority Business Development to head the agency; creates a council to advise the Undersecretary on MBE support; and authorizes the Undersecretary to coordinate federal MBE programs.