Marie C. Johns, Deputy Administrator, U.S. Small Business Administration
In July 2010, the Census Bureau reported that the number of minority-owned businesses increased by 46 percent from 2002 to 2007. This is good news. These new businesses are creating jobs and driving local economic growth all across the country.
However, this is no time to lessen the commitment or resources available to help minority small businesses grow and create jobs.
At the Small Business Administration, three core mission areas – access to capital, opportunities in federal contracting and business counseling – are being leveraged to build on the growth that has occurred in minority business ownership.
Minority-owned firms struggle with access to capital, and when they do receive a loan, it is often too small or the interest too high. That’s why, according to the Urban Institute, minority small businesses are three to five times more likely to get a loan if the SBA guarantees it. Moreover, enhancements made possible by the Recovery Act have helped the SBA provide support for more than 14,000 recovery loans, worth $5 billion, to minority-owned small firms. President Obama has called on Congress to extend funding for these successful recovery loan programs, which ran out several weeks ago, resulting in a 60 percent drop in SBA lending. Lenders and small-business owners have also been clear: Now is not the time to pull back.
The Recovery Act has also been a critical tool in helping minority-owned small firms compete for and win federal contracts. Already, billions of dollars in Recovery Act contracts have been awarded to socially and economically disadvantaged firms that participate in SBA’s 8(a) program. Meanwhile, the SBA and its resource partners train and counsel hundreds of thousands of minority business owners each year.
Throughout the month of August, the SBA is sponsoring Minority Enterprise Development (MED) Week events across the country. Minority business owners can learn about the tools and resources available and they can network, learn from one another and find out ways to build their businesses and create jobs. For more information on attending a MED Week event near you, visit www.medweek.gov.
As one of the fastest-growing segments of the small-business community, minority-owned businesses are key to the strength of our economy and our global competitiveness. From loans, to contracting, counseling to business development, SBA will continue to ensure that minority-owned small businesses and entrepreneurs continue to have the tools to grow, drive our economy and create jobs.
Get more information about SBA resources in New Mexico.
Find a SBA lender in your community.
Download 151_SBA Help for Minority Owned Business PDF
Article 151
does a woman owned business qualify for a minority owned business? ms
John Woosley said, “As stated in the 2010 New Mexico Small Business Resource Guide, “The following individuals are presumed to be socially disadvantaged: Black Americans, Native Americans, Hispanic Americans, Asian Pacific Americans and Subcontinent Asian Americans.” Generally speaking, minority owned businesses would be those owned by members of the groups presumed to be socially disadvantaged, regardless of their gender. The Resource Guide goes on to state that social disadvantage may also be demonstrated by individuals who are not members of those groups, including non-minority women, based on a preponderance of evidence.”
John Woosley is District Director of the SBA New Mexico District. To see articles written by Mr. Woosley about SBA programs that benefit New Mexicans, use the article search engine in the right column by entering Woosley or the article numbers 148, 138, 118, 82, 55, and 42.
Congratulations to New Mexico’s own Sacred Power Corp. of Albuquerque on being named the Minority Retail Energy Company of the Year at the 28th annual Minority Enterprise Development Week Conference in Washington, D.C. See http://www.medweek.gov/award-winners for details.