Why supporting Black-owned small business across Colorado is more important than ever
Of Colorado’s 730,000 small businesses, 34,000 are Black-owned. These businesses are a quickly growing and vital element of our economy, with more than 8,600 founded in the past two years. Yet, Black-owned small businesses still face barriers to success like high healthcare costs and accessing capital.
As a Black woman born and raised in Parker, Colo., I’ve seen firsthand how entrepreneurship is a way for under-resourced communities to build transferable wealth. From the woman who braids my hair out of her rented salon space, to my own family members who have started and run their own businesses, entrepreneurship allows Black people to thrive. But due to systemic barriers and discrimination, entrepreneurship has not been accessible to everyone.
I’m working to break down those barriers as Small Business Majority’s Colorado Director. In my role, I build and maintain strategic partnerships, educate entrepreneurs on key policy issues and advocate for policies that help small businesses. Through my work, I have the opportunity to get to know small business owners all across the state and learn from them about what they need to succeed and grow. These interactions help inform my advocacy work.
In recent months, I’ve spoken to lawmakers about a range of small business concerns, including testifying publicly on legislation that would reduce administrative burdens and make common-sense reforms that would benefit small businesses. One important bill that became law this year was HB25-1295, legislation that allows for reciprocal licensing for food truck small businesses. Previously, entrepreneurs had to obtain different health, business and fire licenses or permits for the different municipalities their truck operated in. Restaurateurs in our network told us that this permitting was costly, time consuming and oftentimes unnecessary for business to be safely conducted.
This bill significantly decreases some of the regulatory burden that food truck businesses face and supports their success. Food trucks are an integral part of the cultural fabric of our communities, and starting a food truck is a milestone on many entrepreneurs’ journey toward establishing a brick-and-mortar restaurant. This is especially important for under-resourced small business owners who often open a food truck as a first step in their entrepreneurial journey.
Additionally, Small Business Majority supported multiple bills during the 2025 Colorado legislative session that would make healthcare better meet the needs of Colorado small business owners. As federal abortion protections have been weakened, it’s important that we protect abortion rights here. Fortunately, the legislature passed SB25-130, which requires hospitals to provide emergency medical services to anyone who needs them and prohibits discrimination. At a time when the federal Emergency Medical Treatment and Labor Act’s (EMTALA) protections for patients needing emergency abortion or miscarriage services are being eroded, this law guarantees those protections at the state level in Colorado.
We also supported HB25-1094, legislation that requires Pharmacy Benefit Managers (PBMs) to be compensated only through a flat fee on each transaction. While there is no shortage of finger-pointing about who is driving up costs, for too long PBMs have quietly inflated prices, raking in billions in profits. PBMs were initially created to help reduce drug costs, but they now face growing scrutiny about their role in driving up prescription medication costs and spending. Requiring PBMs to be compensated only through a flat fee on each transaction, ensures they fully and equally reimburse pharmacies and requires that they pass on savings from negotiations to consumers, including small business owners and their employees. This law reins in the price of prescription drugs in Colorado, protecting small businesses’ bottom lines and allowing patients to access the medication they need.
Another significant legislative victory was SB25-196, which proactively protects insurance coverage for preventive health care in the event of federal action that reduces access. By using preventative services, entrepreneurs can avoid costlier bills that would result from an untreated health condition. It also helps decrease some of the racial disparities in our health care system and leads to better health outcomes.
Unfortunately, there were several missed opportunities during the past legislative session. One bill that failed was HB25-1174, legislation that would have established reimbursement limits for prices paid to certain hospitals through the small group market. According to the Colorado Department of Healthcare Policy & Financing, hospital profits in Colorado are among the highest in the nation. Currently, the average Coloradan with commercial insurance is paying 291%—nearly three times—what Medicare reimburses hospitals for the exact same care. High hospital prices significantly drive-up healthcare costs, making it challenging for
entrepreneurs and their employees to afford vital care. This bill would have established reimbursement limits for in-network—165% of Medicare—and out of network 150% of Medicare—on prices paid to certain hospitals through the small group market. These caps would have led to lower premiums and cost sharing for small group health plans because the cost of care at covered facilities would be lower.
Another piece of legislation that disappointingly failed was SB25-198, which would have expanded the Colorado Attorney General’s authority to review healthcare mergers and acquisitions and prohibit them unless certain criteria are met. Market consolidation through hospital mergers drives up healthcare costs for consumers. According to RAND Health Care, hospital mergers have resulted in estimated associated price increases ranging between 3 to 65%. With fewer competitors, healthcare costs rise without a corresponding increase in quality of care.
In fact, consolidation can instead lead to a higher mortality rate or other major health setbacks. Rural communities are particularly vulnerable to the negative impacts of healthcare mergers, as they’re more likely to experience larger than average price increases, often in outpatient services. Additionally, consolidated rural hospitals are more likely than rural independent hospitals to eliminate crucial services like maternal, neonatal and surgical care. Consolidation will only exacerbate the disparities in access to treatment and health outcomes that Black patients experience. The elimination of maternal care is particularly worrying as Black maternal mortality is on the rise throughout the country.
While these bills didn’t pass, we will continue to advocate for solutions to healthcare affordability and access during the 2026 legislative session. This state-level work is especially important as federal policies threaten to balloon healthcare costs while reducing access to care for the Colorado small business community. Congress’ “Big, Beautiful Bill” $1 trillion cut to Medicaid and threatens the more than 21 million small business owners, employees and their dependents that rely on it for their affordable health coverage. In fact, a new analysis from Small Business Majority and Georgetown University found that one-third of all people enrolled in Medicaid nationwide are connected to small businesses. Therefore, around 380,000 of Colorado’s more than 1,140,000 Medicaid enrollees are part of the small business community.
Furthermore, as employer-sponsored coverage options remain out of reach for many of Colorado’s smallest employers, Connect for Health Colorado–our state’s Affordable Care Act (ACA) Marketplace–has become a vital source of quality, affordable coverage for millions of small business owners and employees. In fact, small business owners and self-employed entrepreneurs under age 65 now make up nearly 50% of all Marketplace enrollees and are three times more likely to rely on the Marketplace for coverage than others. The Marketplace is especially crucial to the Black community as the uninsured rate for nonelderly Black people dropped by about half between 2010 and 2024.
The increasing number of small business owners enrolled in the ACA Marketplace has largely been driven by the enhancements made to the ACA’s enhanced premium tax credits (PTCs), which lower monthly premium costs for more than 90% of all Marketplace enrollees. These enhancements, which were first passed by Congress in 2021 and later extended in 2022, strengthened the tax credit for lower-income Marketplace enrollees and extended eligibility to middle-income individuals with incomes over 400% of the federal poverty line. They are responsible for a 95% increase in Black enrollment in the Marketplace, more than every group except Latino consumers.
Despite their proven track record of lowering costs and expanding access to coverage, the ACA’s enhanced PTCs are scheduled to expire at the end of 2025, and nearly 225,000 Coloradans, including small business owners, their families and their employees will pay the astronomical price. Average premium increases will exceed 170% for marketplace customers in Colorado, with people in some rural counties facing increases of more than 300% if the PTCs expire. There simply is no way that the small business community can afford this spike. It will overwhelm enrollees who rely on these credits to afford quality coverage through the Marketplace.
During a special legislative session, the Colorado legislature passed HB25B-1006 to address the affordability of health insurance in the individual market if Congress fails to extend the enhanced PTCs. While the legislation would help mitigate some of the damage from the looming health coverage affordability crisis, it can’t fix it. That’s why Small Business Majority is working alongside Colorado entrepreneurs to advocate for the extension of the enhanced PTCs. During Congress’ August recess, we met with Rep. Gabe Evans (CO-8) and the offices of Reps. Diana DeGette (CO-1), Jason Crow (CO-6) and Jeff Hurd (CO-3) to explain how this crucial credit supports small business owners and their workers in their districts.
As Colorado entrepreneurs struggle to access affordable healthcare, they’ll have fewer federal resources and guidance to help their businesses succeed. The U.S. Minority Business Development Agency (MBDA) has been dedicated to supporting minority entrepreneurship since it was created by President Richard Nixon in 1969, and it expanded access to capital, contracting opportunities and new markets for thousands of Black small business owners over the past 56 years. Unfortunately, the MBDA effectively no longer exists after a presidential executive order issued in March required the MBDA to reduce its work and staffing to the minimum required by law. While a federal court recently blocked the implementation of that executive order, MBDA’s more than 100 employees have already been fired, reassigned or remain on leave with just one political appointee remaining.
This comes as the U.S. Small Business Administration (SBA) scales back its small business support. At least 43% of its workforce was fired as part of an executive order, leaving fewer employees to provide critical resources to entrepreneurs. SBA is reducing federal agencies’ targets for small business government contracting while changing previous guidance that made accessing capital easier for the small businesses. Additionally, SBA is eliminating programs like the Community Navigator Pilot Program that are aimed to help historically disadvantaged businesses, which are generally minority- and women-owned. Many Colorado small business owners will also struggle to access SBA’s remaining programs and resources as the regional office is scheduled to leave Denver and relocate elsewhere. Local offices, however, are not scheduled to move at this time.
These reversals are sure to undermine small businesses’ ability to thrive and limit prospective entrepreneurs from being able to start their businesses. Between 2021 and 2024, a record 21 million new businesses launched nationwide, with 40,000 new businesses in Colorado alone. To sustain this growth, Colorado must step up to support all small businesses but particularly the most vulnerable in the Black community and elsewhere. Small Business Majority is committed to advancing equity and I’ll continue my work during the 2026 legislative session to empower the Black community to build wealth and provide quality jobs through entrepreneurship.
Hunter Nelson is Small Business Majority’s Colorado Director.