The Hollowing Out of America’s Only Agency for Minority Business

November 13, 2025

The Trump administration is dismantling the Minority Business Development Agency (MBDA), reducing its staff from 23 career employees to zero, leaving only two political appointees. Originally established by President Nixon to help minority entrepreneurs access capital and business opportunities, the MBDA has served over 12 million minority-owned businesses through a network of more than 130 centers providing technical assistance and guidance. In recent years, the agency helped businesses secure billions in contracts and capital while supporting thousands of jobs, including its landmark Capital Readiness Program that raised $263 million for over 6,300 entrepreneurs in its first year.

Who is affected

More than 12 million minority business enterprises (MBEs) across the United States
Businesses owned by people of color, women, veterans, rural entrepreneurs, and other socially or economically disadvantaged groups
Specific examples include: Black-owned cybersecurity startups, Latina-led food manufacturers, Native American construction cooperatives, veteran-owned logistics firms, and Appalachian entrepreneurs
23 career employees who staffed the MBDA (now reduced to none)
Over 6,300 entrepreneurs served by the Capital Readiness Program
Workers in companies supported by MBDA (23,000+ jobs created/retained during Morrissette's tenure)
African American entrepreneurs who rely on MBDA as a federal lifeline
The broader U.S. small-business ecosystem and national economy

What action is being taken

The Trump administration is dismantling the MBDA
The agency's staff has been reduced from 23 career employees to zero
Only two political appointees remain at the agency (one of whom also serves as Deputy Secretary of Labor)

Why it matters

The MBDA's dismantling threatens America's economic competitiveness by eliminating the only federal agency dedicated to helping historically excluded entrepreneurs access capital markets, contracting networks, and investment pipelines. Minority-owned and disadvantaged businesses empirically receive less capital and pay more for financing, and MBDA programs were designed to close this gap. The destruction of MBDA represents the loss of an estimated $7.1 trillion in untapped economic potential—nearly a quarter of U.S. GDP—that could be activated through inclusive economic development. For Black Americans specifically, MBDA has been a critical federal lifeline for wealth creation in the face of systemic exclusion, with Black-owned businesses contributing $212 billion in revenue and $61 billion in wages to the economy in 2022. Beyond economics, the dismantling signals that the federal government no longer prioritizes correcting marketplace inequities, betraying the civil rights mission established over 50 years ago and undermining America's supply chain resilience and innovation capacity.

What's next

The authors call on Congress and the Administration to:
Act swiftly to reopen the government
Restore MBDA's staffing, budget, and network of partners supporting businesses around the country
(Note: The article mentions "Lawmakers must:" followed by what appears to be intended bullet points, but no specific actions are listed in the provided text)

Read full article from source: The San Diego Voice & Viewpoint