The MBDA’s New Permanent Status is a Historic Victory for AAPI Owned Small Businesses

[Washington, D.C. January 31, 2022] – Aside from its groundbreaking investments in infrastructure, the Infrastructure Investment and Jobs Act, it also made permanent the Minority Business Development Agency (MBDA), which until this point relied on annual appropriations from Congress for funding and did not have a Senate appointed Agency head. This is a historic victory for minority small businesses. It will give the MBDA more authority and resources to better serve minority-owned small businesses. 
Since its inception, the MBDA has been the number one resource for minority-owned businesses. The MBDA promotes the growth of minority-owned businesses through the mobilization and advancement of public and private sector programs, policy, and research. The Agency helps connect millions of minority entrepreneurs and business owners to access capital, contracts, and markets. In 2020 alone, the MBDA helped minority businesses secure over $1 billion in capital, $6.9 billion in contracts, and helped facilitate $3 billion in export transactions. 

While this is a milestone for the entire minority small business community, it represents a major victory for the AAPI small business community:  

Additional Funding: 

With the act signed into law, the MBDA will now receive additional funding that more than doubles its FY21 funding. The Agency is set to receive $110 million every year through 2025. Additional funding will help the Agency better support AAPI small businesses in need of capital and technical assistance, two areas we know are critical for AAPIs. In fact, research conducted by National ACE and Reimagine Main Street found that during the pandemic, the majority (61% of AAPIs surveyed) reported not applying for relief such as the PPP or EIDL programs due to lack of awareness, language barriers, or because the application was too complicated. With its increased funding, the MBDA will have a greater capacity to reach businesses and provide the services needed to help AAPIs access much needed relief. 

Presidentially and Senate Confirmed Undersecretary 

The permanent status of the MBDA establishes a new Undersecretary of Commerce for Minority Business Development to lead the Agency. The Undersecretary will have more authority and a stronger voice to advocate on behalf of minority small businesses. This is significant given that the MBDA is the only federal agency dedicated to providing access to capital, technical assistance, and business development training to minority-owned businesses of all sizes. The Agency will now operate with the same authority as agencies that focus on small businesses as a whole. 

Expanded Reach 

Another key component of the MBDA’s permanence is that it will have an expanded reach into rural and underserved communities. While AAPIs are thought to primarily live in cities or be more well off, there are segments of the AAPI population, such as Vietnamese, Bengali, and Bhutanese Americans that report some of the highest levels of poverty among all demographics and lack access to the tools and resources needed to access relief. The MBDA’s permanent status will help existing AAPI businesses continue to grow, while helping new and emerging AAPI entrepreneurs to kick start their businesses and thrive. 

The MBDA’s new permanent status is historic, and it represents a major victory for AAPI small businesses and the entire minority business community. With additional funding and enhanced leadership, the MBDA will be one step closer to closing the resource gaps within the small business community that have been created by racial disparities.

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About National ACE 

National ACE’s mission is to serve as a strong advocate of AAPI business interests and effect positive change on all issues that enhance and advance the goals and aspirations of AAPI business owners, entrepreneurs, and corporate leaders.  National ACE strives to do this through supporting and promoting issues that impact the AAPI business community, improving the economic development and economic impact of the AAPI community, advancing coalitions and enhancing community building, and fostering the next generation of AAPI entrepreneurs and executives. National ACE provides a unified voice for the business interests of AAPIs nationally.