Significant Reduction in Operations at the Minority Business Development Agency

The Minority Business Development Agency, the only federal agency solely focused on the growth of minority-owned businesses, has undergone a significant reduction in operations. In March 2025, the Continuing the Reduction of the Federal Bureaucracy executive order mandated that nearly all of its roughly 50 employees received Reduction in Force notices. The remaining five career employees received reassignment to other agencies on Wednesday April 9, 2025 leaving the agency to be staffed by one political appointee. While the agency remains statutorily authorized, this shift effectively guts the agency and ensures its dormancy.

This marks a major change in the federal government’s engagement with minority business enterprises, a sector that has historically faced structural barriers to capital, contracts, and market access.

A Legacy Of Impact

Established by Executive Order in 1969 and codified by Congress in 2021, the MBDA operated for more than five decades as the federal government’s primary resource for minority business development. According to its FY 2024 Annual Performance Report, the agency helped facilitate over $5.6 billion in capital, contracts, and export deals for minority-owned businesses and contributed to the creation or retention of over 22,000 jobs.

Through a network of more than 47 business centers, MBDA provided technical assistance to African American, Latino, Asian American, Pacific Islander, Native American, and Hasidic Jewish entrepreneurs. The agency also partnered with Historically Black Colleges and Universities (HBCUs), tribal colleges, chambers of commerce, and trade associations to expand outreach and service delivery.

Federal Statute And Sudden Scale-Back

The Consolidated Appropriations Act of 2021 made MBDA a permanent federal agency, granting expanded authority to establish regional offices, enter cooperative agreements, and conduct research on economic disparities. While this statute affirms MBDA’s long-term mission, the recent staffing reductions raise questions about its capacity to fulfill these responsibilities in practice.

Although the agency remains authorized, the reduction to a core staff—now also subject to RIF—marks a significant limitation in federal support infrastructure for MBEs.

Impact On Business Networks And Supplier Diversity

There are more than 9.9 million minority-owned businesses in the U.S., generating over $1.8 trillion in annual revenue and employing 8.9 million workers. According to the Federal Reserve, these businesses are more likely to be denied financing or offered less favorable terms than their white-owned counterparts. MBDA played a vital role in helping businesses navigate these inequities.

The agency also served as a key federal partner in advancing supplier diversity. It worked in close coordination with the National Minority Supplier Development Council (NMSDC) and co-hosted the annual Minority Enterprise Development (MED) Week—a signature event convening policymakers, corporations, and business leaders to celebrate and support MBEs. Due to the agency’s recent restructuring, MED Week has been cancelled for 2025 with no clear directive for future reengagement.

A Shift In The Minority Business Ecosystem

MBDA’s partnerships with regional development organizations, supply chains, and nonprofit intermediaries helped shape a national framework for minority business support. Its contraction leaves a gap in coordination, data, and federal investment that previously supported equitable economic development.

As the agency’s future remains uncertain, stakeholders across government, philanthropy, and the private sector may face greater pressure to meet the needs of diverse entrepreneurs. This shift could prompt reassessments of how technical assistance, capital access, and procurement opportunities are delivered. Meanwhile, evolving federal policy and mounting DEI rollbacks in the corporate sector may lead to further scale-backs—leaving the future of supplier diversity in limbo.

For over 50 years, MBDA helped expand economic participation for communities historically excluded from traditional business pathways. Its reduction marks a critical inflection point—not just for the agency, but for the broader pursuit of inclusive economic growth.

Conclusion

The reduction of the Minority Business Development Agency marks a significant change in the federal government’s engagement with minority business enterprises. The agency’s legacy of impact and its sudden scale-back have raised concerns about the future of supplier diversity and the support infrastructure for minority-owned businesses. As the agency’s future remains uncertain, stakeholders must reassess how to meet the needs of diverse entrepreneurs and ensure equitable economic development.

Frequently Asked Questions

Q: What is the Minority Business Development Agency (MBDA)?
A: The MBDA is a federal agency that provides support and resources to minority-owned businesses.

Q: Why was the MBDA reduced?
A: The reduction was a result of the Continuing the Reduction of the Federal Bureaucracy executive order, which mandated Reduction in Force notices for nearly all of the agency’s employees.

Q: What impact will the reduction have on minority-owned businesses?
A: The reduction may limit access to capital, contracts, and market access for minority-owned businesses, which have historically faced structural barriers to these resources.

Q: What is the future of the MBDA?
A: The agency remains statutorily authorized, but its future is uncertain due to the significant reduction in staff and resources.

Introduction to Shawn Cheshire

Army veteran Shawn Cheshire doesn’t like to feel limited, so she’s found innovative, inspiring ways to live her life since losing her sight in an accident while working as a paramedic at age 36. “If you want to know who I am and what I stand for, just look at how I live,” she says. To wit: she competed in the 2016 Paralympic Games in Rio de Janeiro and became a 13-time U.S. Champion in paracycling. In 2021, she spent 60 straight days riding a single (not tandem) bicycle across the United States — a 3,600-mile journey chronicled in the documentary “Blind AF.”

Achievements and Expeditions

She went on to power her bicycle over 2,000 miles from Canada to Mexico, and last year, she set a record time for paralympic athletes by completing a 23-mile, rim-to-rim hike across the Grand Canyon without a guide in under 11 hours. “The mentality can’t be, ‘What can I or can’t I do?’” Cheshire says. “It’s more of, ‘If I want to do something, how would I do it?’” It was a tough question to face in the immediate aftermath of becoming blind due to a traumatic brain injury sustained in 2010 in the back of an ambulance during a snowstorm.

Overcoming Challenges

“It is incredible how much we take for granted our independence as sighted individuals. I was a strong, independent single parent and lost all kinds of independence with this injury,” she recalls. “I was really depressed and all I could think about was dying.” After battling complex PTSD through an adaptive program at a VA hospital in which she trained for half marathons, Cheshire started her next chapter. When someone told her she’d never be good enough to compete in the Paralympic Games, it proved to be the impetus she needed to prove them wrong.

Getting A Guide Dog

Another pivotal choice was choosing to partner with a guide dog, a German shepherd named Nick, in 2020. Cheshire hadn’t considered it until she and a friend were shopping in a mall and stopped by a table hosted by the nonprofit Guiding Eyes for the Blind. “A woman named Lisa tried to talk to me about a guide dog, and I’m like, ‘I’m not a dog person. I can barely take care of myself. I don’t know if I can take care of a dog,’” she recalls. “She said, ‘You can try it and if doesn’t work, it’s not like they’re going to leave the dog with you, stuck there forever.’”

Bond with Nick

So Cheshire applied for a guide dog and partnered with Nick, who has “absolutely” increased her independence. The “spunky” service dog not only guides her to doors, stairs, chairs, escalators, curbs and other objects she asks him to find, but helps with her PTSD by waking her from nightmares and reflecting her emotional state. “Nick is literally my emotional barometer,” she says. “If Nick doesn’t seem to be OK and I can’t figure out why, that’s my signal to look at myself and think about how I’m feeling — what’s my anxiety? What’s my fear? Because nine out of ten times, it has more to do with me than him. It’s an incredible bond. Once you bond with these dogs, it is unbelievable how magnificent they are.”

Moving Forward

Nick joins Cheshire when she’s training for her adventures, hiking on trails near their home in Flagstaff, Arizona, or swimming while she paddleboards. He stayed with a Guiding Eyes for the Blind trainer during her bike ride across the U.S. because it wouldn’t be feasible for him to run it. She started that journey by dipping her bike’s wheels in the Pacific Ocean from Florence, Oregon, and ended by being reunited with Nick the night she finished in Virginia Beach, Virginia, where she dipped her wheels in the Atlantic Ocean. The key to the ride was unlikely: music. A wireless JBL speaker on the back of the lead bike played tunes nonstop (which is inaudible in the movie because of copyright considerations).

The Documentary

She also had a two-way radio in her helmet to communicate with the lead bike, follow car and film crew. “They were always giving me feedback as to how close I was to the rumble strip or to the edge of the road or to the guard rail,” she says. “So I was just constantly thinking about all the sounds and staying focused on the music and listening to what the crew was saying. And then really trying not to be overwhelmed and scared by the wind or semi-trucks or all of the other stuff. It was a lot.” Cheshire hopes the film, which was directed by Gina LeVay and screened April 7 as part of the ReelAbilities NY Film Festival, inspires audiences from any walk of life.

Conclusion

“I hope that people can hear and maybe feel that no matter how bad it gets, there’s still a way through,” she says. “There’s always a way through.” Shawn Cheshire’s story is a testament to the human spirit and the incredible bond between a guide dog and their owner. Her determination and perseverance are an inspiration to anyone facing challenges, and her story serves as a reminder that with the right mindset and support, anything is possible.

FAQs

• Q: What inspired Shawn Cheshire to start competing in paracycling?
  A: Shawn Cheshire was inspired to start competing in paracycling after someone told her she’d never be good enough to compete in the Paralympic Games.
• Q: How did Shawn Cheshire navigate her bike ride across the United States?
  A: Shawn Cheshire navigated her bike ride across the United States with the help of a two-way radio in her helmet, a wireless JBL speaker playing music, and feedback from the lead bike, follow car, and film crew.
• Q: What is the name of Shawn Cheshire’s guide dog?
  A: Shawn Cheshire’s guide dog is named Nick, a German shepherd.
• Q: What is the name of the documentary about Shawn Cheshire’s bike ride across the United States?
  A: The documentary about Shawn Cheshire’s bike ride across the United States is called “Blind AF.”

Introduction to Hispanic Homeownership in America

A recent report released by the National Association of Hispanic Real Estate Professionals sheds light on the state of Hispanic homeownership in America in 2024. Drawing from both publicly available data and insights from real estate practitioners within the NAHREP network, the report aims to tell the evolving story of Hispanic homeownership. It highlights key trends in homeownership growth, including barriers, opportunities, and cultural nuances influencing Hispanic consumers. These insights help shape NAHREP’s policy priorities for legislative and administrative actions, while guiding industry efforts to reduce barriers and expand homeownership opportunities.

Current State of Hispanic Homeownership

Despite rising home prices and high interest rates, the number of Hispanic homeowners in the U.S. reached a record 9,781,000 in 2024—representing 49% of all Hispanic households. Although this figure is slightly below the 49.5% reported in 2023, it reflects a net gain of 238,000 new Hispanic homeowners over the past year. These 238,000 new homeowners accounted for 35% of the nation’s total net growth in homeownership, a disproportionately high share compared to the overall Hispanic population, which makes up approximately 15% of U.S. households. This means Hispanics are punching above their weight in driving homeownership growth.

The Role of Non-White Households

Despite accounting for only 36% of total households, non-white households represented 82% of all new household formations in the United States. This indicates the increasing importance of multicultural segments in shaping the future housing market. One particularly striking data point is that Hispanics formed 676,000 households in 2024, accounting for 43% of all new household formations in the country. However, many of these households opted to rent instead, which contributed to the slight dip in the Hispanic homeownership rate from 49.5% to 49%.

Growth in Hispanic Homeownership

The growth in Hispanic homeownership over the past decade has been remarkable. In 2014, only 6,864,000 Hispanic households owned a home. By 2024, that number had increased by nearly 3 million—a 42% increase in just ten years. According to the report, this sustained growth is driven by several factors: greater mobility to relocate to more affordable regions, innovative financing solutions, and a strong cultural commitment to achieving the American Dream.

Demographic Characteristics

With a median age of 31, Hispanics are young compared to the general population, and 43% of Hispanic homebuyers in 2024 were under 45 years old. By comparison, only 38% of non-Hispanic homebuyers are under the age of 45. Nearly half of Hispanic heads of households belong to the Millennial or Gen Z generations.

Geographic Trends

Geographically, Texas continues its long-standing trend as the state with the largest increase in Hispanic homeowners. Interestingly, less traditional markets like St. Louis, Pittsburgh, and Wichita have also emerged as popular destinations due to more affordable housing options and lower costs of living.

Economic Influence and Ripple Effect

The report emphasizes that the economic influence of the U.S. Hispanic population is growing faster than its size. As the country faces economic uncertainty and potential recession, the Hispanic consumer segment stands out as a critical driver of sustainable business growth. Moreover, the ripple effect of increasing Hispanic homeownership extends beyond the real estate sector. It fuels growth across industries such as financial services (mortgages and insurance), construction and building materials, home improvement, appliances, furniture and décor, legal and professional services, utilities, moving and storage, technology, and smart home devices.

Call to Action

Gary Acosta, co-founder and CEO of NAHREP, states, “Despite record high prices, tight inventory, and rising interest rates, the resilience and determination of Hispanics have led to record levels in homeownership and household formation. But this progress is not guaranteed. We must address the affordability crisis and remove systemic barriers to ensure that every Latino family has a fair shot at achieving the American Dream.” The findings from the 2024 NAHREP report present a clear and urgent call to action for advertisers: the U.S. Hispanic segment is not just growing—it is driving the future of homeownership and household formation in America.

Conclusion

With nearly 10 million Hispanic homeowners and a youthful, upwardly mobile population forming households at record rates, this demographic represents one of the most powerful and untapped engines of economic growth. Brands that recognize this moment and strategically invest in culturally relevant, data-informed marketing will be best positioned to earn the trust and loyalty of this influential audience. The time to act is now. As the Hispanic consumer base continues to expand in size, wealth, and influence, those who delay will fall behind. This is more than a market trend—it’s a defining opportunity for brands to align with the values, aspirations, and economic power of the next generation of American consumers.

FAQs

• Q: What was the number of Hispanic homeowners in the U.S. in 2024?
  A: The number of Hispanic homeowners in the U.S. reached a record 9,781,000 in 2024.
• Q: What percentage of all new household formations in the country did Hispanics account for in 2024?
  A: Hispanics accounted for 43% of all new household formations in the country in 2024.
• Q: What is driving the sustained growth in Hispanic homeownership?
  A: The sustained growth is driven by several factors including greater mobility to relocate to more affordable regions, innovative financing solutions, and a strong cultural commitment to achieving the American Dream.
• Q: What is the median age of Hispanics compared to the general population?
  A: With a median age of 31, Hispanics are young compared to the general population.
• Q: Why is the Hispanic consumer segment important for economic growth?
  A: The Hispanic consumer segment is critical for sustainable business growth as its economic influence is growing faster than its size, making it a driver of economic growth amidst economic uncertainty.