Government To Cut Minority Business Programs

Trump's administration has proposed and enacted sweeping funding cuts and freezes targeting the Small Business Administration (SBA) and minority business programs, drawing sharp pushback from lawmakers and advocacy groups

• 67% Budget Slash: Proposed cutting the SBA budget from roughly $1 billion down to $329 million for fiscal year 2027.

• Program Eliminations: Targeted the elimination of 15 out of 16 entrepreneurial development programs, including SCORE (Service Corps of Retired Executives).

• Lending Restrictions: Implemented stricter ownership guidelines and new borrower fees, which critics note coincide with declining traditional SBA loan volumes.

Minority and Community Funding Cuts

MBDA Targeted: Proposed and enacted cuts targeting the Minority Business Development Agency (MBDA) via pocket rescissions, citing constitutional concerns over race-conscious grant programs.

Withheld Loans: Delayed or withheld hundreds of millions in congressionally appropriated funding for community lenders and Main Street loan programs over administration objections to "woke" or diversity initiatives.

Administration Rationale

Relief: The White House and congressional allies argue that broad tax cuts (such as the Working Families Tax Cuts Act) and reduced federal regulations stimulate small business growth more effectively than direct government grants or counseling programs.

Waste: Reduction: Officials defend the reductions as eliminating redundant, underperforming, or unconstitutional federal spending.