On January 14, 2024, the Minority Business Development Agency (MBDA) and the Orthodox Jewish Chamber of Commerce (OJCC) signed a Memorandum of Understanding (MOU) at the U.S. Department of Commerce. This landmark agreement aims to enhance access to capital, contracts, and global markets for minority business enterprises (MBEs) within the Jewish community. Eric Morissette, Under Secretary of Commerce for Minority Business Development, emphasized the significance of this partnership, marking a pivotal moment in the recognition of Jewish businesses as minorities for the first time in U.S. history, thereby correcting a long-standing oversight.
The MOU opens new opportunities for Jewish businesses, allowing them eligibility for grants and contracts previously inaccessible. Deputy Secretary of Commerce Don Graves reiterated the Biden-Harris Administration's commitment to supporting Jewish business owners, highlighting the administration's broader efforts to foster inclusivity in economic advancement. Historically, the MBDA has predominantly served Hispanic (90%) and African-American (16%) populations, with Jewish businesses constituting just 2% of the overall population. This agreement represents a significant milestone in the fight for economic equity and inclusion.
In conjunction with this development, on January 15, 2025, the MBDA announced $11 million in federal funding competitions aimed at supporting socially and economically disadvantaged entrepreneurs. The funding will support three specific programs: the MBDA Women's Entrepreneurship Program (WEP) with $2 million, the MBDA Rural Business Center Program with $4 million, and the Parren J. Mitchell Entrepreneurship Education Program with $5 million. Eric Morissette emphasized the importance of these initiatives in addressing systemic barriers faced by MBEs and promoting economic equity, noting that MBEs represent over $7.1 trillion in untapped economic value, nearly one-third of the U.S. GDP.
Additionally, the White House Council of Economic Advisers (CEA) released a report on December 20, 2024, revealing significant racial disparities in government contracting. The report indicates that minority-owned firms, including those in the Jewish community, receive a disproportionately low amount of contracting dollars compared to their representation in the business landscape. The CEA report emphasizes the necessity for race-conscious actions to ensure equality in government contracting, aligning with the goals of the newly signed MOU.
The combination of these initiatives reflects a concerted effort to promote diversity and reduce barriers for all entrepreneurs of color in the United States, including Jewish business owners. The collaboration between the MBDA and OJCC, alongside the findings from the CEA report and the new funding announcements, illustrates a commitment to addressing economic disparities and fostering a more inclusive economic environment. [f4df809c][0adfaf6f][2d422a67][1b98ddee]