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President Bush Announces Historic FY ’05 Funding Increase for Minority Business
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Posted On: Tuesday February 3rd, 2004 at 12:00am EST
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President Bush Announces Historic FY ’05 Funding Increase for Minority Business
President Bush today announced that he will ask Congress for a $5.6 million increase in funding for the Commerce Department’s Minority Business Development Agency (MBDA) in fiscal year 2005. MBDA is the only federal agency authorized to support the growth and development of minority-owned businesses.
“The increase funding underscores the Bush Administration’s strong support for minority business enterprise and entrepreneurship,” said Ronald N. Langston, MBDA’s National Director.
Highlights of the increase include funding for a Survey of Minority-Owned Businesses (SMOBE), additional program money for the Agency’s business development center program and funding for a new initiative aimed at Asian American and Pacific Islander business development. MBDA is requesting $3 million to conduct an annual survey of minority enterprises (SMOBE). The SMOBE survey, conducted by the US Census Bureau, is currently conducted every five years. The Agency has been pushing for an annual survey to give lenders and borrowers the most accurate, up-to-date market information they need to do business.
“There is a lack of data on minority business growth and development in this country, particularly as it relates to the ability of minority businesses to gain access to the capital that they need to grow their businesses,” Langston said. “The ability to conduct this survey on a regular basis is critical.”
MBDA also requests an increase of $2.1 million for the Business Development Centers and Minority Business Opportunity Committees programs to improve opportunities for minority businesses in areas with the highest minority business density. The programs assist minority-owned businesses to increase their access to capital, identify new market opportunities, and to improve their business operations. Finally, MBDA requests an increase of $0.5 million to establish trade activities in response to the President and the Secretary of Commerce’s initiative on trade promotion for US minority businesses with Asian American and Pacific Islanders.
Commerce Department statistical data shows that minority firms today are growing faster than the general business community. While minority population growth significantly outpaces majority growth, minority businesses are still far behind majority businesses in terms of penetrating markets, attracting capital, and growing revenue. “This Administration understands that what is good for the minority business community is good for the US economy as a whole,” Langston said. “This budget increase gives us the opportunity to offer much-needed services to the fastest growing sector of the economy.” |
SOURCES
Department of Commerce
Areaka McFadden
202-482-1526
MBDA
Stephanie Childs
202-482-6272
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