Ruling Against Minority Business Development Agency Will Harm More Than Five Million Hispanic Businesses Driving Growth In the American Economy

Share this via:

WASHINGTON, D.C., March 7, 2024 – The United States Hispanic Chamber of Commerce, America’s largest Hispanic business advocacy group, issued the following statement by President & CEO Ramiro A. Cavazos in response to the United States District Court for the Northern District of Texas Fort Worth Division ruling against the Minority Business Development Agency:

“The United States Hispanic Chamber of Commerce is disappointed and concerned at U.S. District Judge Mark Pittman’s ruling that the Minority Business Development Agency’s mission of helping minority-owned businesses is ‘unconstitutional.’

It is imperative that we recognize the critical role that Hispanic-owned businesses, and all minority-owned businesses, play in driving innovation, creating jobs and spurring economic activity in communities. The March 5, 2024 ruling is troubling in that it enjoins MBDA nationwide from using well established and historical considerations to assist disadvantaged businesses seeking support from the MBDA’s Business Centers.

We urge the Biden Administration and the U.S. Department of Commerce to immediately seek a stay of the injunction, so that this legal matter may pursue its appellate journey without the draconian impact that it will otherwise cause.

By neglecting to support and safeguard vital pipelines of economic opportunity, we are perpetuating a cycle of exclusion and inequity that hinders our country’s economic growth.

Beyond its lamentable impact on Hispanic-owned businesses, this ruling misses an even more important and broader point. Our government should be working across all communities to create more opportunity for job creation and economic development, rather than tearing down important avenues for entrepreneurs to seek contracts, investment and capacity building programming.

MBDA is critical to rebuilding an economy that works for all Americans. For the Hispanic community, between 2007 and 2020, Hispanic-owned businesses grew by 34%, as compared to a 7% decline in the number of Anglo-owned businesses. This net job creation injected nearly $800 billion into the American economy, making Judge Pittman’s ruling misguided and ill- advised in hindering prosperity for all Americans.”

Leave a Reply

Translate »
Skip to content