Yesterday, U.S. District Court for the Northern District of Texas Judge Mark T. Pittman ruled that the Minority Business Development Agency (MBDA)’s presumption that businesses owned by Black, Latino, and other minorities are inherently disadvantaged violates the U.S. Constitution’s guarantee of equal protection.
While further legal analysis is needed to assess the implications of this decision, NMSDC is deeply disappointed by the decision. The court did however acknowledge that minority-owned businesses experience discrimination and bias. NMSDC is committed to continuing its efforts to ensure the MBDA and organizations like it can continue their work to support minority entrepreneurs from Black, Hispanic, and other communities.
NMSDC is actively monitoring this and other legal challenges that pose a threat to minority business development. As we recently emphasized in an open letter to Fortune 500 CEOs that was issued in partnership with other leaders from the business community, NMSDC remains committed to supporting our certified minority business enterprises (MBEs) and the continued advancement of business diversity, something that is critical for the future growth and success of the U.S. economy.
We remain steadfast in our knowledge that business diversity is good for American businesses and competitiveness and will continue to provide you with regular updates on our efforts to ensure these legal and political challenges do not negatively affect our mission of accelerating MBE growth and creating a stronger, more resilient economy that works for all.
