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Washington, D.C.— Today, Small Business Subcommittee on Investigations, Oversight, and Regulations Chairwoman Judy Chu (D-CA), convened federal watchdogs and leaders from Historically Black Colleges and Universities (HBCUs) to gain insight into the Small Business Administration’s (SBA) efforts to engage America’s network of 101 HBCUs, which serve nearly 300,000 students. 

“The purpose of today’s hearing is to examine whether HBCUs are receiving adequate support from the SBA to help foster entrepreneurship,” said Rep. Chu. “Over 150 years ago, the first HBCUs were born out of adversity to ensure African Americans had an opportunity to attend college.  Today, there are more than 100 historic institutions across the country, serving nearly 300,000 students, many of whom are low-income and the first in their family to attend college.”

Rep. Chu called for the hearing after a recent report from the Government Accountability Office (GAO) found that the SBA’s development programs are not prioritizing partnerships with HBCUs.  Twenty members of Congress commissioned the report, including Rep. Alma Adams, Founder and Co-Chair of the Congressional Bipartisan Historically Black Colleges and Universities (HBCU) Caucus and former member of the Committee who was present at today’s hearing. 

“Historically, HBCUs have always been at a disadvantage when it comes to federal resources. This GAO report shows us that the SBA has a lot of work to do to strengthen outreach to HBCUs. They’ve been talking the talk, but it’s time to walk the walk,” said Congresswoman Adams. “Today’s hearing was a good first step and I look forward to continue working with the SBA to build strong partnerships with HBCUs to foster Black entrepreneurship and reduce the resource gap.” 

The first panel of the hearing featured federal administrators and examined the GAO report and the SBA’s efforts to work with HBCUs.

“SBA’s key programs and activities that foster entrepreneurship have included, but do not specifically target, HBCUs,” said Anna Maria Ortiz, Acting Director of Financial Markets and Community Investment at the Government Accountability Office. “For instance, the SBDC program is a key program for fostering entrepreneurship but does not target HBCUs. However, some HBCUs host SBDCs or have service centers.”

“The GAO review has been instructive and has led to positive internal discussions on how we can strengthen the initiative going forward across program offices, said Allen Gutierrez, Associate Administrator Office of Entrepreneurial Development at the U.S. Small Business Administration  “Among our goals will be to break down any existing silos within our HBCU engagements, foster greater coordination with our Office of Field Operations, and ensure consistency and data collection.”

The second panel gave members the opportunity to hear directly from a number of Presidents and Deans of HBCUs about their experience working with the SBA and ways to expand access to federal entrepreneurial development programs. One witness, Dr. Barron H. Harvey, Dean of the School of Business at Howard University represents one of only two HBCUs to host a lead Small Business Development Center (SBDC) out of 63 total centers.

“The report explains that SBA’s first goal to provide HBCUs with information on accessing and competing for federal grants and contracts in a bit more detail,” said Dr. Roslyn Clark Artis, President and CEO of Benedict College in Columbia, SC. “Both the Small Business Innovation Research and Small Business Technology Transfer programs are mentioned. SBA indicates that these programs are underutilized by HBCUs, but what the report fails to disclose is that funding requested for these very same programs in the FY 2020 budget request was significantly lower at $3 million compared to the $5.99 million that was enacted in FY 2019, a 2.99 million dollar decrease.”

“HBCUs are invaluable institutions that not only contribute to society, but provide an invaluable experience for our students,” said Dr. Paulette Dillard, President of Shaw University in Raleigh, NC. “Especially our students who are low-income and first generation. I hope to see greater collaboration between SBA and HBCUs.”

“SBA support has provided specific clients with invaluable insight and resources for furthering their own enterprises,” said Dr. Michael H. Casson, Jr. Dean of the School of Business at Delaware State University in Dover, DE. “However, the impact of the SBA’s funding and services could be exponentially more significant if the University and the SBA strategically worked together to develop targeted programming that effectively integrates the talent and resources of both entities”

“This points to a disparity on the part of SBA and its approach and process to foster and encourage education and small-business assistance to the minority community, specifically African-American communities,” said Dr. Barron H. Harvey, Dean of the School of Business at Howard University in Washington, DC.  “As stated previously, HBCUs have long been a significant of source of education and economic development within minority communities. The Small Business Administration needs to increase its presence at HBCUs if it truly seeks to increase the participation rate of African-Americans and Minorities in its various programs”

“Clearly, more needs to be done to strengthen the collaboration between SBA and HBCUs”, said Rep. Chu. “And that is why we are holding this hearing today.  HBCUs offer tremendous opportunities to foster entrepreneurship and drive economic growth, particularly in underserved communities.”

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