Build Back Better for Entrepreneurs of Color is working to address the historic inequities and deep disparities that create barriers for small business owners of color to gaining reliable and stable access to capital and technical assistance for the survival of their businesses. We are working with the Biden Administration and other decision-makers to improve data access and respond to the collective voices from hundreds of different communities to go further in protection and support for communities of color by updating and improving federal policies and programs.
Policy Recommendations
Provide the Department of Treasury’s Community Development Financial Institutions (CDFI) Fund with at least $1 billion for fiscal year 2024, including $100 million in funds to provide culturally and linguistically appropriate technical assistance to businesses owned by socially and economically disadvantaged individuals. Additionally, the CDFI Fund should aim to provide at least 40% of its grants to minority-owned CDFIs and those that serve low- and very-low-income communities.
Provide Small Business Administration’s Microloan Program at least $200 million for fiscal year 2024, and at least an additional $50 million for the agency to provide culturally and linguistically appropriate technical assistance. Additionally, intermediaries providing unique technical assistance services, such as language assistance, should be excepted from SBA-determined service territory boundaries, so that they could provide these services to individuals in need outside of assigned boundaries.
Support a strong Section 1071 rule by the Consumer Financial Protection Bureau that requires robust collection of data, including requiring financial institutions to request principal owners’ ethnicity and race using both aggregate categories as well as disaggregated subcategories, including the disaggregated subcategories with respect to Latino and Asian American, Native Hawaiian, Pacific Islander, and Black or African American populations.
1071 comment letter: Comment to CFPB from Broad Coalition Urges Robust Data Reporting Requirements for Small Businesses | Center for Responsible Lending
CRA comment letter: Joint Comment Letter on the Community Reinvestment Act Calling for Affordable Credit for Minority-Owned Businesses | Center for Responsible Lending
Community Advantage comment letter: Comment: Access to Capital Is One of the Greatest Barriers to Success for Minority Entrepreneurs | Center for Responsible Lending