U.S. Senator Jon Ossoff of Georgia has urged the Trump administration to reinstate a significant federal grant intended to support Black entrepreneurs in Atlanta. In early August 2023, Ossoff sent a letter to Commerce Secretary Howard Lutnick, requesting the reinstatement of a $3 million grant awarded to the Urban League of Greater Atlanta. He emphasized that withholding the funds “punishes job creators, hinders Georgia’s economic growth, and denies critical services from being delivered to my constituents.”
In 2023, the Urban League was among 43 organizations nationwide to receive funding from a federal $125 million Capital Readiness Program, administered by the Minority Business Development Agency (MBDA). This initiative aimed to support minority-owned businesses and was described by Biden administration officials as the largest direct federal investment in small business incubators and accelerators.
Cancellation of Funds and Legal Developments
The grant was abruptly canceled in April 2023 after former President Donald Trump issued an executive order to dismantle the MBDA. However, Ossoff pointed out that a subsequent court ruling mandated the reopening of the MBDA and the restoration of canceled grants. He asserted that this ruling requires the Commerce Department to reinstate funding for the Urban League of Greater Atlanta.
According to Nancy Flake Johnson, president and CEO of the Urban League, the organization was already 18 months into a four-year grant when the funding was halted, leaving approximately $2.2 million unspent. Johnson expressed her initial disappointment, stating, “This allowed us to really zero in on one of the biggest challenges that any small business faces, and that’s having the capital they need to operate during the peaks and valleys of business.”
The program was designed to offer classes, coaching, and opportunities for businesses to meet potential investors, banks, and other funding sources. In its first year, over 3,000 businesses in the Atlanta metropolitan area engaged with the program’s resources. Additionally, the Urban League facilitated $1.7 million in loans, grants, and contract opportunities for 17 companies, while 128 businesses graduated from their training programs.
Impact of Funding Suspension on Local Businesses
The second year of the initiative was on track to exceed previous engagement figures, with more than 1,700 businesses participating from September 2022 to spring 2023 before the grant was canceled. Johnson noted that the funding suspension forced her to lay off staff associated with that grant, significantly limiting the organization’s capacity to support local businesses.
Despite these setbacks, the Urban League is striving to continue its support with a reduced team. Johnson stated, “We are doing our best to continue to support those companies with the smaller team we have.”
As of now, the Commerce Department has not publicly responded to Ossoff’s letter, nor has it commented on the situation following inquiries from multiple news sources. The outcome of this funding dispute will likely have significant implications for Atlanta’s Black entrepreneurship landscape and the overall economic growth of the region.
