The Biden-Harris administration is launching a government-wide effort to increase the share of federal contracts going to small minority businesses by 50 percent by 2026.
To accomplish the goal, the administration will expand federal contracting opportunities for underserved small minority businesses across the country. Federal agencies will assess every available tool to lower barriers and increase opportunities for small businesses and traditionally underserved entrepreneurs to compete for federal contracts.
Approximately 10 percent of federal agencies’ total eligible contracting dollars go to Black, Latino, and other minority-owned businesses. Increasing federal spending with these businesses will not only help make another level of the federal government more diverse and inclusive, but it will also give Americans another avenue to achieve their entrepreneurial dreams and narrow racial wealth gaps.
Black, Latino and women-owned businesses were massively affected by the coronavirus pandemic. Last May, 45 percent of Black businesses said in a nationwide survey they anticipated closing within the next six months. Another 41 percent said they were denied federal assistance when they applied.
The Paycheck Protection Program also largely ignored minority communities early in the pandemic. Large banks secured funds for their biggest clients before helping their smaller customers. Large national chains such as Shake Shack and even the Los Angeles Lakers took funds meant for smaller businesses and were shamed into giving the funds back.
President Biden is also releasing the details of his American Jobs Plan proposals, meant to create jobs and help build wealth in communities of color. The proposals include:
· A new $10 billion Community Revitalization Fund to support community-led civic infrastructure projects that create innovative, shared amenities; spark new local economic activity; provide services; build community wealth, and strengthen social cohesion.
· $15 billion for new grants and technical assistance to support the planning, removal, or retrofitting of existing transportation infrastructure that creates a barrier to community connectivity, including barriers to mobility, access, or economic development.
· A new Neighborhood Homes Tax Credit to attract private investment in the development and rehabilitation of affordable homes for low- and moderate-income homebuyers and homeowners.
· $5 billion for the Unlocking Possibilities Program, an innovative new grant program that awards flexible and attractive funding to jurisdictions that take steps to reduce needless barriers to producing affordable housing and expand housing choices for people with low or moderate incomes.
*This story will be updated.