NEW YORK — In March, a federal judge ruled that the Minority Business Development Agency, an organization that has helped thousands of minority-owned businesses over the past 55 years, must provide services to people regardless of race. The agency has since made adjustments to help all businesses run by socially or economically disadvantaged people obtain loans and government contracts.
The Associated Press recently interviewed MBDA leader Eric Morissette, assistant secretary of Commerce for Minority Business Development, about MBDA's future plans. The interview has been edited for length and clarity.
question:
How did you end up as Acting Under Secretary of Commerce for Minority Business Development?
A: My mother dedicated her life to public service. She served in New York City public schools for nearly 20 years. Every Sunday, my sister and I helped prepare meals for her students, many of whom did not have enough to eat at home. I was inspired by her selflessness and service, and realized there were families out there who could not put food on the table. For some of these children, it was the only meal they were guaranteed every day.
Q: What difference do you think the department is making to minority communities and minority businesses?
A: MBDA's mission is to help create an economy that gives all Americans the opportunity to build a successful business. A $6.3 trillion opportunity gap remains between minority-owned and non-minority-owned businesses. It is in our national interest to close that gap permanently if we are to compete with the rest of the world and have the strongest, most resilient economy.
Last year, we helped companies secure more than $5.4 billion in capital and contracts, an increase of nearly 90% from $2.9 billion in capital and contracts the previous year, primarily due to our expansion under the Biden-Harris Administration.
Q: What changes have had to be made since the ruling was handed down? What does the future hold for authorities?
A: MBDA is open to business and will continue to serve and deliver for businesses owned and operated by socially or economically disadvantaged individuals.
We are working closely with Department of Justice attorneys to explore all options while we comply with the court order, updating our website and customer engagement forms, establishing new guidelines for business center operators, and working collaboratively with operators to implement necessary changes.
MBDA, the Department of Commerce, and the Biden-Harris Administration are committed to ensuring that all people in every community have the resources, access, and opportunity they need to succeed. We will continue to fight to close the opportunity gap and pursue the mandate given to us by Congress.
Q: Has the racial and ethnic makeup of people applying to the program changed significantly, or is it too early to tell?
A: MBDA Business Center operators have been very supportive of MBDA. They want to know how they can help, are committed to supporting the community, and will continue to do extensive outreach efforts to let people know MBDA can help. For me, this has been the biggest takeaway in learning more about potential customers and how business centers adapt to change.
What's really encouraging to me is the impact of our business centers. Our Missouri Business Center played a major role in helping Kingsway Development secure $62 million in financing to purchase a large residential development in the heart of St. Louis' historically redlined neighborhood north of the Delmar Divide. In addition to helping revitalize a historically underserved area, the project is expected to create and retain more than 300 jobs.
Q: Do you feel like people have misconceptions about the authorities or the ruling?
A: Ensuring that all Americans have the opportunity to build successful businesses is critical to bridging the gap between what America is and what America should and should be.
The MBDA was established by President Nixon in 1969 and permanently reauthorized in 2021 by a bipartisan coalition of lawmakers. It has historically enjoyed bipartisan support. To challenge the constitutionality of this organization is to call into question the very value of equal opportunity, which is extremely frustrating and hurtful.
The work we do at MBDA benefits the entire country, not just the individual companies we serve. When underrepresented businesses succeed, the country succeeds. Our work to create opportunity is not a zero-sum game. It's not about reducing the opportunities that some people give to others.
This effort is about expansion. A bigger pie with more slices. If America closed the opportunity gap between minority- and non-minority-owned businesses, it would create an estimated $6.3 trillion in economic impact and 20 million jobs. That would benefit everyone and make our country and economy stronger.
Q: What would you like people seeking MBDA’s services to know?
A: I want to be clear that MBDA is open for business. We will continue to provide the services that have made MBDA a trusted business resource for business owners of all backgrounds for over 50 years. We are here to help minority businesses overcome the biggest challenges they face, including access to capital, contracts, networks and markets.
