In a move that has sparked controversy, Pennsylvania has initiated a business grant and assistance fund specifically designed to aid businesses in "historically disadvantaged communities.
".
These communities are identified based on factors such as race and economic status. This move follows a pattern of similar programs that have faced legal challenges over allegations of discrimination.
According to The Post Millennial, the program is a product of the Pennsylvania Department of Community & Economic Development and is part of Democratic Governor Josh Shapiro's 2024-2025 budget. The budget "includes funding for small, diverse businesses that have historically been denied access to social or economic opportunity, including minority-owned businesses, through the Historically Disadvantaged Business Assistance Program."
BartaBay, the president of the African American Chamber of Commerce of Western Pennsylvania, has expressed optimism about the program, stating that it will have a positive "ripple effect" across Pennsylvania. The program's provisions include funding for the establishment and support of "business assistance service centers" and microgrants programs. These funds are intended to cover start-up and expansion costs for "historically disadvantaged businesses."
The program's website defines a "historically disadvantaged business" as a "for-profit business enterprise that is owned or controlled by one or more socially or economically disadvantaged persons who are residents of this Commonwealth. The disadvantage, regardless of sex or marital status, may arise from cultural, racial, chronic economic circumstances or background or other similar cause. Such persons include, but are not limited to: African Americans, Hispanic Americans, Asian Americans, and Native Americans."
However, not everyone is in agreement with the program's approach. Frank Gamrat, executive director of the Allegheny Institute for Public Policy, a nonprofit institute that researches economic policy impacts in Pittsburgh, expressed his concerns to The Center Square. He stated that while he agrees Pennsylvania should facilitate the success of small businesses and job creation, this program is that whole picking winner and losers thing all over again. The state has a horrible, horrible record of doing that, at least on the side of the state.
Gamrat suggested that the state should focus on addressing regulatory barriers that discourage entrepreneurs, stating, Lets look at those and start knocking them down and make it simpler for someone to start. I dont disagree with that sentiment but let's cut the red tape.
He also voiced opposition to Governor Shapiros plan to designate and fund eligible minority organizations, such as educational institutions and nonprofit community groups focused on economic development. These organizations would act as technical assistance centers in different parts of the state, creating micro-grants to assist those hoping to start or expand their business. Gamrat's concerns highlight the ongoing debate about the best ways to support small businesses and stimulate economic growth, particularly in historically disadvantaged communities.
Login