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Revitalize the SBA 8(a) business program

FLORIDA COURIER — According to the Small Business Administration (SBA): “The federal government’s goal is to award at least five percent of all federal contracting dollars to small disadvantaged businesses each year.” Here are the benefits: “To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) Business Development program.

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Mr. Alford is the Co-Founder, President/CEO of the National Black Chamber of Commerce ®. Ms. DeBow is the Co-Founder, Executive Vice President of the Chamber.
By Harry and Kay AlfordAccording to the Small Business Administration (SBA): “The federal government’s goal is to award at least five percent of all federal contracting dollars to small disadvantaged businesses each year.”

Here are the benefits: “To help provide a level playing field for small businesses owned by socially and economically disadvantaged people or entities, the government limits competition for certain contracts to businesses that participate in the 8(a) Business Development program.

“Disadvantaged businesses in the 8(a) Program can:  Compete for set-aside and sole-source contracts in the program.  Form joint ventures with established businesses through the SBA’s mentor-protégé program.  Receive management and technical assistance, including business training, counseling, market assistance, and high-level executive development programs, as they apply.”

Most successful program ever

The 8(a) program was the brainchild of Parren J. Mitchell while he was chair of the House Small Business Committee and his staff, led by NBCC Board Member Anthony W. Robinson.  It is the most successful minority business program in the history of federal procurement. No formal program has made more Black millionaires than this program. Still, it must be updated and reinforced.

A five percent minority business goal for the federal government is a pittance.  The Black population percentage of our nation is over 14.6 percent alone; Hispanics are 17 percent.  That’s 31.6 percent without other ethnicities. Racism and passive discrimination in this nation still exists and per the U.S. Supreme Court and Title VI of the Civil Rights Act of 1964, discrimination must be addressed according to the disparate impact placed on identified groups.

Didn’t follow through

President Bill Clinton had the answer to this after being encouraged (or intimidated) from the 1996 Million Man March.  His plan to “mend” affirmative action rather than “end” it included formal disparity studies for each of the 10 federal regions.  Following that, adjusted goals could be implemented. One big problem – he never did it. The Congressional Black Caucus should wake up and take the lead from its greatest founder, Congressman Mitchell, and proceed with the above idea.

The great HUD Secretary Alphonso Jackson applied this logic and took Black procurement at HUD to new heights, approaching 32 percent. President George W. Bush watched his back as Democratic congressmen tried to have him indicted for whatever reason they could find.  He eventually resigned to spend time protecting his name and future during various hearings and investigations. HUD does about four percent in Black procurement today.

The greatest challenge to the 8(a) program came ironically under the Barack Obama administration. This president had a mission to “repay” White construction unions for raising over $600 million in his first presidential campaign.  His payback was to require federal construction contracting over $1 million to become union-only projects. As Blacks and Hispanics are terribly underutilized by construction unions, this would cripple the 8(a) program.

We went to the White House and pleaded on the effect this would have over our constituency (which should have been his, too).  They ignored our efforts and quickly became adversarial. What happened was devastating. The Obama administration went “dark” over the 8(a) program.

Destroyed by Obama

Black procurement levels at the time George W. Bush left office were over 8 percent.  When Obama finished his two terms, it had been reduced to a little over one percent. That’s billions of dollars extracted from our communities.

SBA Regional Administrator Ashley Bell spoke at our recent annual conference and emphasized the reduction in Black procurement due to the reduction in active Black 8(a) firms.  The same can be said for SBA business loans. It was just devastating and most of the Black community does not know what hit them.

What was particularly “salt in the wounds” was that the SBA under the Obama administration became very hostile towards Black business. At one point, the SBA would reject our emails to them.  They took their budgets for funding development grants away from Black associations and tossed them around to non-Black groups. There was pure hatred over there during those eight dark years.  How could Blacks do this to other Blacks in the 21st Century?

Turn it around

Let’s turn this atrocity around. We must encourage the White House and federal agencies to quickly pick up the pieces and bring the 8(a) program back to life and with vigor and updated goals.  If Black firms could attain at least five percent in procurement contracting with the federal government, that would mean $25 billion annually infused into our economic base.

There is a federal election coming in 2020. We must make significant improvement while that environment exists. It is time for Blacks to address each political candidate with that great quote from Chaka Khan: “What ‘cha gonna do for me?”


Harry C. Alford is the co-founder and president/CEO of the National Black Chamber of Commerce (NBCC). Kay DeBow is the NBCC co-founder. Contact them via www.nationalbcc.org.

The post Revitalize the SBA 8(a) business program appeared first on Florida Courier.

This article originally appeared in the Florida Courier.

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U.S. Business Leaders Step Up to Fight Inequities in the South

Even as the pandemic has laid bare societal inequities that have long eroded the foundation of our democracy, political leaders in Washington and in state capitols are mired in a level of rancor and partisanship not seen since the ideological struggles over the Vietnam War. 

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Dr. Benjamin F. Chavis Jr./ NNPA Newswire

Even as the pandemic has laid bare societal inequities that have long eroded the foundation of our democracy, political leaders in Washington and in state capitols are mired in a level of rancor and partisanship not seen since the ideological struggles over the Vietnam War. 

This toxic atmosphere has left them incapable of addressing pressing, yet ingrained issues like the racial wealth gap, the digital divide, and vast inequalities in everything from health care to home ownership.

With COVID-19 still an omnipresent concern and the country’s recovery still very much in jeopardy, individuals, families, and communities – particularly communities of color throughout the South – are struggling to deal with issues that have only been exacerbated by the pandemic.

From impediments to wealth creation opportunities and a dearth of education and workforce development to a lack of access to reliable broadband, substandard housing, and inadequate political representation, communities of color have suffered an outsized toll during the ongoing public health crisis.

Yet political leaders can’t even agree on basic facts that would allow the nation to implement a coherent national strategy for combatting a pandemic that appears to be entering a new wave amid the rise of the highly contagious Delta variant that is currently ravaging parts of the South.

Against that disillusioning backdrop, there is at least some reason for hope. Moving to fill the vacuum created by the inaction of our political class, a group of business leaders in the technology and investment sectors have embarked on a far-reaching – and perhaps unprecedented – campaign to address the social inequities and systemic racism that has historically plagued our country’s southern communities.

Known as the Southern Communities Initiative (SCI), the campaign was founded by financial technology company PayPal, the investment firm Vista Equity Partners (Vista), and the Boston Consulting Group (BCG).

SCI was formed to work with local elected officials and advocacy groups to tackle the ubiquitous problems of structural racism and inequalities facing communities of color in six communities throughout the South. SCI notes that these areas – Atlanta, Ga., Birmingham, Ala., Charlotte, N.C., Houston, Texas, Memphis, Tenn., and New Orleans, La., – were chosen in part because they are home to around 50% of the country’s Black population and are where some of the greatest disparities exist.

SCI is aiming to drive long-term change, as outlined by PayPal CEO Dan Schulman, Vista CEO Robert F. Smith and BCG CEO Rich Lesser. 

In Atlanta, for example, SCI is working to bridge the wealth gap that exists among the region’s African-American residents. While there is a strong Black business community in the city, and high levels of Black educational achievement thanks to the regional presence of several Historically Black Colleges and Universities (HBCU) and the voice of the Black press, there is still an extremely low level of Black entrepreneurship and business ownership with only 6% of employer firms being Black-owned.

To remedy this disparity, SCI is working with the Southern Economic Advancement Project to create entrepreneurship hubs and accelerator programs to increase the number of minority-owned businesses. The corporations behind SCI are also using their networks to help other companies work with minority-owned supply companies.

In Alabama, SCI is seeking to bridge the massive digital divide in an urban area where 450,000 households are without connection to the internet. In order to tackle the crisis, SCI is leveraging relationships with local schools and libraries to distribute laptops and service vouchers. Another tact SCI is taking is to partner with the owners of multi-unit buildings in low-income neighborhoods to install free public Wi-Fi for residents.

The lack of access to capital is another reason Black communities throughout the South have been traditionally underbanked. In Memphis, where 47% of Black households are underbanked, SCI is partnering with Grameen America to cover the $2 million per year per branch start-up cost to build brick-and-mortar banks in minority communities.

This alone will provide 20,000 women access to more than $250 million per year in financing.

Beyond these initiatives, SCI is partnering with groups like the Greater Houston Partnership and the Urban League of Louisiana to provide in-kind support to improve job outcomes for minority college students, expand access to home financing through partnerships with community development financial institutions, and harness the power of technology to expand health care access in underserved urban and rural neighborhoods.

The issues facing these communities throughout the South are not new nor will they be fixed overnight.

Fortunately, SCI is taking a long-term approach that is focused on getting to the root of structural racism in the United States and creating a more just and equitable country for every American.

A once-in-a-century pandemic and a social justice movement not seen since the 1960s were not enough to break the malaise and rancorous partisanship in Washington. Fortunately, corporate leaders are stepping up and partnering with local advocates and non-profit groups to fix the problem of systemic injustice in the U.S.

We, therefore, salute and welcome the transformative commitments of the Southern Communities Initiative (SCI). There is no time to delay, because as Dr. Martin Luther King Jr. so accurately said, “The time is always right to do what is right.”

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Black Woman to Lead United States Park Police

 Chief Smith’s experience serving in leadership roles in every U.S. Park Police field office has provided her with an unmatched foundation to lead the diverse agency,” said Flynn, who oversees law enforcement programs at USPP.

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Pamela A. Smith

Pamela A. Smith, a 23-year veteran of the United States Park Police, will lead the nation’s oldest federal law enforcement agency.

Smith, who became the first African American woman to lead the 230-year-old agency, immediately remarked that she would establish a body-worn camera program for USPP within 90 days.

The program will initially begin in San Francisco and be implemented across the country by the end of the year, Smith said.

“Body-worn cameras are good for the public and good for our officers, which is why I am prioritizing implementing a body-worn camera program within my first 90 days,” Smith offered in a statement.

 “This is one of the many steps we must take to continue to build trust and credibility with the public we have been entrusted to serve.”

Smith earned a bachelor’s degree in Education from the University of Arkansas at Pine Bluff and graduated from the FBI National Academy. She is a member of the National Organization of Black Law Enforcement Executives and the International Association of Chiefs of Police.

During her law enforcement career, the proud Zeta Phi Beta Sorority sister has served as a patrol officer, field training officer, canine handler, and academy instructor at the Federal Law Enforcement Training Center.

 According to a news release, Smith also served as executive lieutenant to the chief of police, assistant commander of the San Francisco Field Office, commander of the New York Field Office, acting deputy chief of the Homeland Security Division, and deputy chief for the Field Operations Division.

Smith was the first woman to lead the New York Field Office as its Major.

At the USPP, she will lead a 560-member workforce that protects the public, parks, and the nation’s most iconic landmarks in Wash., D.C., New York City, and San Francisco metropolitan areas.

“Chief Smith’s commitment to policing as public service and her willingness to listen and collaborate make her the right person to lead the U.S. Park Police at this pivotal moment in our country,” Shawn Benge, deputy director exercising the delegated authority of the NPS director, noted in a statement.

 “Over the coming months, the leadership of the National Park Service will explore opportunities with Chief Smith designed to strengthen our organization’s commitment to transparency. Her personal and professional experience make her acutely aware of and ready to meet the challenges and responsibilities that face U.S. Park Police and law enforcement agencies across the nation.”

 Jennifer Flynn, the associate director for Visitor Resource Protection at the National Park Service added that she’s looking forward to Smith’s leadership.

“Chief Smith’s experience serving in leadership roles in every U.S. Park Police field office has provided her with an unmatched foundation to lead the diverse agency,” said Flynn, who oversees law enforcement programs at USPP.

 “As federal law enforcement officers, the U.S. Park Police officers have a new opportunity each day to give their best to the American people. Chief Smith exemplifies that approach as a colleague and mentor, and she will be instrumental in refining and shaping the future of the organization,” Flynn said.

Smith declared that she would lead by example and expects all officers to display integrity.

 “I have dedicated my career to the professionalism of law enforcement, and it is my highest honor and privilege to serve as chief of police,” Chief Smith declared. “Today’s officers face many challenges, and I firmly believe challenges present opportunities. I look forward to leading this exemplary team as we carry out our mission with honesty and integrity.”  

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