By Brandon Patterson
On March 14, President Trump signed an executive order slashing the operations of two federal agencies supporting growth in minority business and neighborhoods as he continued his attacks on programs supporting people of color and on the size of the federal bureaucracy.
The latest executive order targeted several federal agencies, including the Minority Business Development Agency (MBDA) and the Community Development Financial Institutions Fund, ordering that their programs and staff be reduced “to the minimum presence and function required by law.” The executive order targeted more agencies that Trump “has determined are unnecessary,” the order stated.
The MBDA’s mission is to “promote the growth and global competitiveness” of minority business enterprises, or MBEs. In 2023, according to its website, the agency helped MBEs access $1.5 billion in capital and facilitated nearly $3.8 billion in contracts awarded to minority business enterprises. It also helped MBEs create or sustain more than 19,000 jobs nationwide. Similarly, the CDFI Fund supports economic growth in under-invested communities by providing funding and technical assistance to local CDFIs, including banks, loan funds, and credit unions, that support community development projects in cities across the country. In 2023, the fund supported more than 1,400 local CDFIs across the country, including more than 80 in California — among the highest number for any state in the country.
The MBDA has local satellite business centers operated by organizations that support minority clients with services such as business consulting, contract bid preparation, loan packaging, and accessing capital funding. The San Francisco Bay Area business center is San Jose, operated by San Francisco-based organization Asian, Inc. Meanwhile, local Oakland CDFIs supported by the federal CDFI fund since 2021 include Habitat Community Capital, TMC Community Capital, Gateway Bank Federal Savings Bank, Beneficial State Bancorp, Inc., and Main Street Launch.
“It is clear that the hollowing out of the CDFI Fund and MBDA is not being ordered because those programs have failed in their mission,” the CEO of Small Business Majority John Arensmeyer, a national organization that advocates for small businesses, said in a statement on Saturday. “Instead, it is yet another case of President Trump using DEI as a club to eviscerate programs that seek to level our economic playing field.”
Congresswoman Lateefah Simon also slammed the decision in a statement to the Oakland Post. “As a member of the House Small Business Committee who represents multiple CDFIs in CA-12, I believe Trump’s gutting of operations at the Minority Business Development Agency and at the Community Development Financial Institutions Fund is a direct attack on small businesses, communities of color and other underserved communities,” Rep. Simon said. “Both the MBDA and the CDFI Fund were created with bipartisan support to help historically underserved communities and small businesses — and both programs have helped to dramatically change the material realities of people and bolster entrepreneurship in the U.S. There is no logic to this decision. The point is discrimination and cruelty.”