It has become clear that the Minority Business Development Agency (MBDA), the only federal agency dedicated to supporting minority entrepreneurship, effectively no longer exists. We mourn this loss. Where the agency once had upward of 100 employees, MBDA now has no more than one politically appointed staffer remaining. As for the state-level business development centers supported by MBDA funds, their federally funded work has stopped and their federal contracts have been or will soon be terminated. The sudden and ruthless halting of MBDA operations happened because the Trump administration is using DEI as an excuse to eliminate any and all government programs that help level the playing field.
Standing up for small business in uncertain times
Programs that support small businesses and empower their economic growth are at risk. In recent months, we have witnessed serious threats to a number of government agencies and programs, including a mass reduction in Small Business Administration (SBA) staff and funding freezes across the government. And, more is likely to come. Also at risk is the Minority Business Development Agency, CDFI Fund and the State Small Business Credit Initiative, as well as other government programs that provide capital, business services, procurement support and disaster relief to support small businesses. These cuts, along with widespread tariffs, mass deportations of immigrants and possible cuts to Medicaid, threaten to undo the historic growth in new small business ownership we’ve seen in recent years.
In response, Small Business Majority has built the Small Business Rapid Response Coalition to communicate the impact of these policies on our nation’s small businesses. The coalition, which consists of more than 170 and counting local, state and national organizations, is amplifying the voices of small business owners and trusted business support organizations, and engaging with policymakers to demonstrate the real-world impact of these proposed cuts and policies.
Small Business Majority is also conducting research to understand how federal actions are impacting our nation’s entrepreneurs, and communicating these impacts to the White House, Capitol Hill and the media.
Letters, Press Statements and Testimony
Monday, April 14, 2025
On April 14, Small Business Majority, joined by nearly 20 business organizations nationwide, sent a letter to the administration expressing concerns about the SBA’s recent decision to cut its workforce by 43%, which represents roughly 2,700 employees nationwide.
Thursday, April 3, 2025
On April 3, Small Business Majority sent a letter to Senate leadership in opposition to the budget framework released this week which keeps trillions of dollars in spending cuts on the table and provides for more than $5 trillion in tax cuts that will largely benefit wealthy individuals and large corporations at the expense of small businesses.
Press release
Wednesday, April 2, 2025
Far from a ‘Liberation Day’ today for small businesses, President Trump’s latest announcement that there will be new tariffs – including 10% on all imports – could spell doom for many small firms. We’ve heard from small business owners who said that any cost increases can be devastating for businesses already operating on thin margins. And widespread tariffs of the type the president just announced will mean most small businesses have no choice but to pass their costs on to customers. Larger businesses, however, are more likely to have flexibility to absorb increased overhead, keeping prices lower and undercutting their smaller competition.
Tuesday, April 1, 2025
On April 1, Small Business Majority Founder & CEO John Arensmeyer testified before the U.S. House Committee on Small Business during a hearing titled “The Golden Age: Unleashing Main Street Through Deregulation.” In his testimony, John emphasized that small businesses nationwide are more concerned about burdensome tariffs, federal funding freezes, cuts to essential federal agencies supporting small businesses, and mass deportations than the effects of federal regulations.
Press release
Thursday, March 27, 2025
The U.S. Department of Health and Human Services’ plan to cut about 10,000 staff on top of 10,000 staffers who have already agreed to resign raises serious questions about the future of the Affordable Care Act (ACA) and its ability to deliver for small businesses. This is a major concern for small business owners because so many entrepreneurs and their employees rely on the ACA for quality, affordable health insurance. In fact, more than 6.2 million small business and self-employed workers have gained coverage under the ACA. Thanks to the ACA, the uninsured rate for small business employees dropped from 25.2% in 2013 to 16.3% in 2022. Similarly, the uninsured rate for self-employed individuals fell from 27.3% in 2013 to 16.4% in 2022. None of this would have been possible without the ACA.
Thursday, March 20, 2025
On March 20, Small Business Majority and 19 state and national business organizations sent a letter to President Trump and Office of Management and Budget (OMB) Director Russell Vought in strong opposition to the March 14 executive order, Continuing the Reduction of the Federal Bureaucracy, which attempts to dismantle several agencies including the Community Development Financial Institution (Fund) and the Minority Business Development Agency (MBDA).
Press release
Friday, March 21, 2025
The Trump administration’s move to reduce the U.S. Small Business Administration’s workforce by 43% is a decision that is as devastating as it is unnecessary. SBA in recent years has provided critical resources to entrepreneurs despite being understaffed. Yet, this administration bafflingly concluded that the best way to support small businesses is through fewer workers. It’s also asking SBA to do more with less, as the agency would now be responsible for overseeing student loans in addition to small business lending, according to the administration’s announcement.
Press release
Wednesday, March 19, 2025
We’re deeply worried about the future of anti-monopoly and fair competition enforcement at the Federal Trade Commission following President Trump’s decision to fire Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya. Commissioners Slaughter and Bedoya have been champions for small businesses, supporting a ban on non-compete agreements, working to rein in big tech companies that harm small firms and advocating for Robinson-Patman Act enforcement to stop price discrimination.
Press release
Saturday, March 15, 2025
President Trump’s executive order seeking to gut the Community Development Financial Institutions (CDFI) Fund and the Minority Business Development Agency (MBDA) is the wrong approach to small business development.
