The National Minority Supplier Development Council (NMSDC) has its roots in the civil rights movement of the late 1960s. Having originated as the Chicago Economic Development Corporation, NMSDC was created to advance economic equity in systematically excluded communities of color. For 50 years, NMSDC has been on the ground working to achieve inclusive prosperity for Asian-Indian, Asian-Pacific, Black, Hispanic, and Native American communities through entrepreneurship.
Federal Legislative Priorities: 118th Congress
Economic equity is an integral part of the civil rights challenge of our generation. Ensuring equitable opportunities for NMSDC-certified MBES to participate in the business ecosystem is critical in moving our nation forward. This is the moment to lean into opportunities to grow and scale minority-owned businesses.
We are calling on members of Congress to promote and adopt economic inclusion by helping to provide a pathway by which entrepreneurs of color can participate inclusively in the business economy.
NMSDC’s priority is to focus on two major legislative areas that will ensure equitable opportunities in federal contracting and access to capital.
1. Equitable Access to Contracts and Procurement Opportunities
Congress should legislate, draft, and pass legislation that would allow for a universal MBE certification and designation system. NMSDC seeks to have the MBE gold standard certification become the standard for the federal government.
NMSDC is the gold standard of certification nationally. MBEs go through a rigorous certification process to ensure minority ownership and control. NMSDC is the largest and the most respected organization associated with minority business certification. More than 95% of all Fortune companies depend on NMSDCs certification to provide MBEs exclusive access to top corporate purchasing agents, premium networking events, searchable supplier databases, affordable consulting services, technology programs, and vital introductions to nationally known corporations. These companies recognize that a diverse supply base offers a competitive advantage in today’s multicultural business economy. They have supplier diversity programs in place to measure and improve their current procurement processes.
Currently, the federal government relies on several types of certifications to determine ownership and control of various demographics for small businesses but there is no specific designation that classifies a minority-owned business. Allowing for a universally accepted federal MBE certification and designation will streamline processes and increase opportunities for minority-owned businesses and subsequently provide a process of accountability on federal contracting goals.
2. Access to Capital
Start-up costs for bonding/insurance, equipment, workforce labor, and other necessary materials need early investment in order to pursue governmental contracts. There needs to be new types of financial access that does not push MBEs to secondary markets where terms are much more challenging for MBEs. NMSDC is advocating for the federal government to develop a more systematic pathway to increase opportunities for minority business enterprises to secure the capital needed to grow and scale their businesses.
The NMSDC supports the continuation and expansion of the State Small Business Credit Initiative (SSBCI) which will ensure that small businesses in underserved minority communities have access to state loan programs designed to grow new emerging businesses.
NMSDC also advocates for federally held investment funds to expand management opportunities with minority-owned wealth management firms. Currently, less than 1% of all wealth management funds are managed by minority-owned companies and NMSDC supports that all funds under management by the federal government increase their wealth management to a base of 5% to minority-owned firms.