“Growing minority businesses is a priority… making [the Minority Business Development Agency] and its programs permanent, along with doubling its budget, provides the support needed to give these business owners the capacity they need to create new jobs.” – Sen. Cantwell

The Minority Business Development Agency (MBDA) was established in 1969 to help minority-owned business enterprises (MBEs) overcome disparities, such as a greater likelihood of being denied a business loan. In fiscal year 2020, the MBDA helped MBEs secure almost $8 billion in contracts and funding and helped create and retain over 27,000 U.S. jobs.

Despite being a key resource for MBEs since 1969, the MBDA had never been permanently authorized by Congress. The Minority Business Development Act of 2021 fixed this oversight and more than doubled the agency’s budget authorization so the MBDA can expand its most successful programs. In August 2022, the Senate confirmed Donald Cravins, Jr. to serve as the first Under Secretary of Commerce for Minority Business Development to lead the MBDA.

Don Cravins during his Commerce Committee nomination hearing in July 2022

For minority entrepreneurs in rural areas, the bill authorizes new rural business centers to help them succeed at small business ownership.

For minority entrepreneurs who face barriers in attracting financing, the bill helps identify alternative financing solutions and gives grants to nonprofits that aid minority entrepreneurs.

For young people considering entrepreneurship, the bill funds entrepreneurship classes at minority-serving colleges.

For all minority small business owners, permanent statutory authorization means they can count on the MBDA being permanent – they don’t need to worry that MBDA services will suddenly vanish. They will also have their interests represented on a new advisory council made up of private sector and federal agency experts that will suggest ways for the MBDA to better serve them. 

Sen. Cantwell and Commerce Sec. Raimondo meets with business owners and entrepreneurs in Washington state in July 2021

Sen. Cantwell joined as a lead co-sponsor of the Minority Business Development Act of 2021 to permanently establish the MBDA, increase its budget and expand the MBDA’s authorities, programs, and geographic reach to enhance support for MBEs. The legislation passed the Commerce Committee in August 2021 with strong bipartisan support. Sen. Cantwell then secured the inclusion of this key legislation in the Infrastructure Investment and Jobs Act, which became law in November 2021.

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