U.S. Senator Jon Ossoff of Georgia is advocating for the reinstatement of a significant federal grant aimed at supporting Black entrepreneurs in Atlanta. In a letter addressed to Commerce Secretary Howard Lutnick in early August 2023, Ossoff requested the restoration of $3 million in funding for the Urban League of Greater Atlanta, which had been designated for a program providing crucial support and technical assistance to local businesses.
The funding was initially part of a $125 million federal Capital Readiness Program administered by the Minority Business Development Agency (MBDA). This initiative was intended to bolster resources for minority-owned businesses across the United States, representing the largest direct federal investment in small business incubators and accelerators to date. However, the grant was canceled in April 2023 following an executive order from then-President Donald Trump that sought to dismantle the MBDA.
Ossoff’s letter highlighted the negative impact of withholding this funding, stating it “punishes job creators, hinders Georgia’s economic growth, and denies critical services from being delivered to my constituents.” He emphasized that a recent court ruling mandating the reopening of the MBDA and the restoration of canceled grants necessitated the reinstatement of the funding for the Urban League.
The Urban League was approximately 18 months into a four-year grant when funding was halted, according to Nancy Flake Johnson, president and CEO of the organization. She noted that about $2.2 million remained in the grant at the time of its cancellation. Johnson expressed her disappointment, stating that the funding was vital for addressing one of the most significant challenges small businesses face: accessing the capital necessary for operations during fluctuating market conditions.
Impact on Local Businesses
Through the program, the Urban League offered classes, coaching, and opportunities for entrepreneurs to connect with investors and financial institutions. They also facilitated an accelerator program focused on securing contracts. In its first year, more than 3,000 businesses in metro Atlanta engaged with the organization’s resources. The Urban League successfully assisted 17 companies in obtaining $1.7 million in loans, grants, and contract opportunities, while 128 businesses graduated from the training programs offered.
By the second year, the program was on track to exceed these impressive figures, with over 1,700 businesses participating between September 2022 and spring 2023. However, following the grant’s cancellation, Johnson reported having to lay off staff dedicated to the initiative. The organization is now striving to support these businesses with a reduced team.
As of now, the Commerce Department has not responded to Ossoff’s letter, and there has been no comment on the matter from the department regarding the funding situation.
The efforts of Senator Ossoff and the Urban League reflect a broader commitment to empowering minority-owned businesses, which play a crucial role in economic growth and resilience in communities across the country. The outcome of this funding request remains uncertain, but the push for reinstatement highlights the ongoing challenges faced by Black entrepreneurs in accessing vital resources.