U.S. Senator Jon Ossoff of Georgia has formally requested the Trump administration to reinstate a federal grant worth $3 million designated for the Urban League of Greater Atlanta. This funding was intended to support a program aimed at assisting Black entrepreneurs in the Atlanta area. In a letter sent to Commerce Secretary Howard Lutnick in early August, Ossoff criticized the withdrawal of these funds, stating that it “punishes job creators, hinders Georgia’s economic growth, and denies critical services from being delivered to my constituents.”
The Urban League of Greater Atlanta was one of 43 organizations nationwide that received grants as part of a $125 million federal Capital Readiness Program, which was administered by the Minority Business Development Agency (MBDA). This initiative was designed to bolster minority-owned businesses, and Biden administration officials touted it as the largest direct federal investment in small business “incubators and accelerators” to date.
Funding Cancellation and Its Impact
In April 2023, the grant was abruptly canceled following an executive order by then-President Donald Trump to dismantle the MBDA. However, Ossoff pointed out that a subsequent judicial ruling mandated the reopening of the MBDA and the restoration of canceled grants. He emphasized that this ruling necessitates that the Commerce Department reinstate the funding for the Urban League of Greater Atlanta.
At the time of the funding cessation, the Urban League was approximately 18 months into a four-year grant cycle, with around $2.2 million remaining on the grant. Nancy Flake Johnson, president and CEO of the Urban League of Greater Atlanta, expressed her disappointment, stating, “This allowed us to really zero in on one of the biggest challenges that any small business faces, and that’s having the capital they need to operate during the peaks and valleys of business.”
The Urban League’s program included a variety of resources such as classes, coaching, and networking opportunities for businesses to connect with investors and banks. In its first year, the initiative engaged over 3,000 businesses in the metro Atlanta area. Additionally, the organization facilitated $1.7 million in loans, grants, and contract opportunities for 17 companies, with 128 businesses graduating from its training programs.
Challenges Faced by the Urban League
As the second year of the program progressed, the Urban League anticipated significantly higher engagement figures. Between September 2022 and spring 2023, more than 1,700 businesses participated in the program’s activities. However, following the funding cut, Johnson reported that staff associated with the grant had to be laid off, leaving the organization to operate with a smaller team while continuing to support the affected businesses.
The Commerce Department has yet to respond to Ossoff’s letter and did not provide immediate comments when approached for further information. The reinstatement of the grant could significantly impact the ability of the Urban League to continue its vital work in supporting Black entrepreneurs in Atlanta.
