Encouraging Minority Entrepreneurship
President George W. Bush sits with Bob Johnson, founder and chairman of the RLJ Companies, and Kathy Boden, right, president and CEO of Blue House Water Solutions , during a meeting to discuss the economy with small business owners and community bankers, Monday, Oct. 23, 2006 at the Urban Trust Bank in Washington, D.C. White House photo by Eric Draper
"One of the great things about America is that somebody can start with nothing and end up with something when it comes to business. People can have a dream, and they can work hard to achieve that dream. And the role of government, it seems to me, is to make sure that the dreamers are rewarded for their hard work and their ingenuity and success. And the best way to do that is to reduce taxes on people. The more money a entrepreneur has in his or her pocket, the more likely it is he or she will be able to expand that business, which will create jobs."
-- President George W. Bush
October 23, 2006
Presidential Action
President Bush on July 23, 2004 announced a new initiative to expand
business ownership and entrepreneurship among minorities. The Administration will
undertake a unique association with the National Urban League (NUL) to create
an entrepreneurship network. Supported by the Business Roundtable and the
Ewing Marion Kauffman Foundation, the NUL network will include one-stop
centers for business training, counseling, financing, and contracting.
The U.S. Small Business Administration (SBA), the Department of
Commerce's Minority Business Development Agency (MBDA), and other
Federal entities will combine their resources to help NUL local offices
provide sustainable outreach and incubation of minority enterprise.
The NUL is a non-profit, nonpartisan, civil rights and
community-based movement that serves over 2 million people,
providing services, research and policy advocacy to help individuals
and communities reach their fullest potential. Primarily working with
African-American communities, its 105 professionally staffed affiliates
located in 35 states work to close equality gaps at all economic levels
and stages of life, and offer recipients a chance to give back as volunteers.
Background Presidential Action
The economic recovery is strong, and over 1.5 million new jobs have
been added since last August. And President Bush continues to promote
pro-growth policies to strengthen our economy, and to take actions that
will expand opportunities for jobs and ownership.
Under the new initiative, the Bush Administration together with
private sector, non-profit, and community and faith-based
organizations will focus talent, expertise, and other resources toward
facilitating economic growth and enterprise in historically neglected
areas. This initiative -- from basic financial literacy through
management counseling -- will cover the spectrum of needs, including
instruction, mentoring, business coaching, finance, and contract
negotiation.
The Bush Administration, working hand in hand with the National Urban League, will:
- Assist in establishing business growth centers in NUL local offices
throughout the U.S.;
- Provide formal evaluation tools for tailoring assistance to clients;
- Promote Internet-based instruction, information, contacts, and
networks;
- Provide mentoring and advice by experienced executives, managers,
and academics;
- Facilitate access to funding available from Federal government
programs and the private sector; and
- Provide opportunities to compete for Federal and private sector
contracts.
The National Urban League will equip up to fifteen local affiliates
for the pilot phase of the initiative, from which the initiative
will be broadened throughout the NUL's network of 105 local
affiliates.
The Business Roundtable's BusinessLINC program will offer
contracting opportunities with private firms, impress private sector
standards of performance, and provide other support for the work of the
NUL centers.
The program will be supported and guided by experts at the Ewing
Marion Kauffman Foundation, a national leader in entrepreneurial
development.
The initiative will also be supported by other private sector,
non-profit, and community and faith-based organizations and individuals
who are dedicated to promoting business ownership and entrepreneurship
among minorities.
Highlights of the President's Continuing Agenda for Minority
Economic Empowerment
New Markets Tax Credits for Minority Business: Since this program
began last year, millions of dollars have aided minority business
development. Treasury Secretary Snow recently announced an award of
$127 million in tax credits for equity and debt financing of businesses
in low-income areas. With part of a major New Markets Tax Credit
(NMTC) award for business finance, the National Urban League will
provide financial counseling in underserved areas.
Minority Home Ownership Initiative: Minority homeownership is at an
all-time high. In June 2002, the President announced the goal of
increasing the number of minority homeowners by at least 5.5 million
families before the end of the decade. The Census estimates an
increase of 1.54 million minority homeowners since the President
launched his initiative. The President signed the American Dream
Downpayment Act into law, which will help an additional 40,000
low-income families each year own homes. In his FY 2005 budget,
President Bush proposed the Zero-Downpayment Initiative for Federal
Housing Administration (FHA)-insured single-family mortgages for
first-time homebuyers.
Minority-Serving Institutions: The President strongly supports the
work and mission of America's minority-serving institutions as they
seek to empower students with the skills they need to succeed and
compete for the high-demand jobs of the 21st Century. The Bush
Administration has increased funding for minority-serving institutions
by 30 percent over four years, with funding increasing for Historically
Black Colleges and Universities, Historically Black Graduate
Institutions, and Hispanic-serving Institutions from $298.5 million in
FY 2001 to a requested $395 million in the FY 2005 budget.
SBA Financing Record: Last year SBA business loans for minorities increased by 40% and for African-Americans by 75%. The record numbers
of loans will likely be exceeded this year.
Federal Procurement for Small Disadvantaged Business: Through
contract unbundling and procurement initiatives, the Bush
Administration has expanded opportunities for minority businesses to
compete for Federal contracts.
Support for MBDA: The President's 2005 budget requests a 21%
increase for the Department of Commerce's Minority Business
Development Agency (MBDA)'the largest in more than a decade.
Africa Trade: MBDA and SBA initiatives are introducing more
minority firms to export opportunities, and creating business
linkages with Africa. With the President's recent signing of the
African Growth and Opportunity Acceleration Act of 2004, jobs,
investments, exports, and opportunities are expanding for Africans and
Americans alike.
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