by Marie Johns, SBA Deputy Administrator

Last month the Census Bureau reported that the number of minority-owned businesses increased by 46 percent from 2002 to 2007. This is good news. These new businesses are creating jobs and driving local economic growth all across the country.

However, this is no time to lessen our commitment or resources available to help minority small businesses grow and create jobs.
At the Small Business Administration, we are leveraging our three core mission areas—access to capital, opportunities in federal contracting, and business counseling—to build on the growth we’ve seen in minority business ownership.

Minority-owned firms struggle with access to capital, and when they
do receive a loan, it is often too small, or the interest is too high.
That’s why, according to the Urban Institute, minority small businesses
are three to five times more likely to get a loan if it is guaranteed by
the SBA.

Moreover, enhancements made possible by the Recovery Act have
helped SBA provide support for more than 14,000 Recovery loans, worth $5
billion, to minority-owned small firms. President Obama has called on
Congress to extend funding for these successful Recovery loan programs,
which ran out several weeks ago, resulting in a 60 percent drop in SBA
lending. Lenders and small business owners have also been clear: now is
not the time to pull back.

Already, billions of dollars in Recovery contracts have been
awarded to socially and economically disadvantaged firms that
participate in SBA’s 8(a) program. Meanwhile, the SBA and its resource
partners train and counsel hundreds of thousands of minority business
owners each year.

Business owners can learn about the tools and resources available
to them at Minority Enterprise Development Week events across the
country. At MED Week events in Atlanta, Chicago, New York, San
Francisco, and Washington, DC, minority business owners can network,
learn from each other, and find out ways to grow their business and
create jobs. For more information visit www.medweek.gov.

As one of the fastest growing segments of the small business
community, minority-owned businesses are key to the strength of our
economy and our global competitiveness. From loans to contracting to
counseling and business development, SBA will continue to ensure that
minority-owned small businesses and entrepreneurs continue to have the
tools to grow, drive our economy, and create jobs.