Lawmakers are raising urgent concerns about the future of minority entrepreneurship in the U.S. In a powerful letter sent to U.S. Small Business Administrator Kelly Loeffler and Commerce Secretary Howard Lutnick, a group of bipartisan senators criticized the Trump administration’s recent actions aimed at programs supporting minority entrepreneurs. The letter highlights significant changes that have ramifications for small business owners, particularly those from underserved communities.

The letter, spearheaded by Ranking Member Edward J. Markey (D-Mass.) and Commerce Committee Ranking Member Maria Cantwell (D-Wash.), underscores the dismantling of critical programs managed by the Minority Business Development Agency (MBDA) and other small business contracting initiatives. “The Trump administration’s war on targeted federal programs is already hurting minority and underserved small businesses,” the senators stated, emphasizing that these actions could undermine the American economy.

Key Takeaways:

• The MBDA and related programs are vital for minority entrepreneurs, helping to connect them with resources, funding, and contracting opportunities.
• Lawmakers are pushing back against executive orders that have led to staff reductions and funding cancellations at the MBDA.
• The letter requests answers by July 10, 2025, outlining the administration’s plans for minority business support.

The senators highlighted that the MBDA, established by Congress, plays a crucial role in promoting the interests of minority-owned businesses, which collectively generate more than $2 trillion in annual revenue. However, with the recent moves to scale back the agency’s operations, they argue that the Trump administration is neglecting the historic challenges minority business owners face. As the letter explains, “These actions are unacceptable and harm the American economy.”

For small business owners, particularly those in minority communities, the stakes are high. The MBDA supports entrepreneurial development and small business contracting, areas that can significantly influence economic growth and job creation in local communities. If these resources continue to be diminished, the implications could be severe: fewer opportunities for access to essential programs that assist minority entrepreneurs in overcoming barriers to capital and market access.

Senators are demanding clarity on how the Department of Commerce plans to utilize funds that have been appropriated to the MBDA. They seek details on staffing changes—specifically why personnel who support the MBDA Business Centers were recently terminated—and how the administration intends to meet existing small disadvantaged business (SDB) contracting goals. Concerns are also raised about a proposal to eliminate several specialized programs, including the Women’s Business Center Program and SCORE, which provide crucial support to entrepreneurs.

One significant challenge highlighted in the letter is the potential impact on minority-owned businesses’ ability to thrive in a competitive marketplace. By dismantling dedicated federal programs designed to assist these entrepreneurs, the administration risks widening existing disparities rather than addressing them.

“Rather than strengthening support for minority-owned firms, President Trump has instead dismantled the MBDA,” the lawmakers wrote. This dismantling not only affects the businesses themselves but also has a ripple effect on local economies, employment, and the broader job market.

As July 10 approaches, all eyes will be on the Trump administration’s response to lawmakers’ concerns. Small business owners would be wise to stay tuned for developments, as any changes could directly impact their access to vital federal resources and support systems.

For those in the minority business community, the letter serves as a reminder of the importance of advocacy and the collective responsibility to ensure that their voices are heard in Washington. The fate of these critical small business programs hangs in the balance as lawmakers push for accountability in how federal support is structured and implemented.

For further details, read the full letter here.

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This article, “Senators Urge Stronger Support for Minority Business Owners Amid Policy Cuts” was first published on Small Business Trends