Frugal Café Blog Zone

Posted By Vicki McClure Davidson on March 7, 2010

In the era of dimming hopenchange, minority businesses are getting shafted when it comes to receiving Obama’s stimulus money to help their struggling businesses.

From Associated Press, STIMULUS WATCH: Less stimulus for minority firms:

WASHINGTON – Hispanic and black businesses are receiving a disproportionately small number of federal stimulus contracts, creating a rising chorus of demands for the Obama administration to be more inclusive and more closely track who receives government-financed work.

Latinos and blacks have faced obstacles to winning government contracts long before the stimulus. They own 6.8 and 5.2 percent of all businesses, respectively, according to census figures. Yet Latino-owned business have received only 1.7 percent of $46 billion in federal stimulus contracts recorded in U.S. government data, and black-owned businesses have received just 1.1 percent.

That pot of money is just a small fraction of the $862 billion economic stimulus law. Billions more have been given to states, which have used the money to award contracts of their own.

Although states record minority status when they award contracts to businesses, there is no central, consistent or public compilation of that data, according to Laura Barrett, director of the Transportation Equity Network. She and other minority advocates are calling for complete and publicly accessible demographic information on all contracts and jobs financed by the stimulus.

Minority businesses are often too small to compete for projects; do not have access to the necessary capital, equipment or bonding requirements; or lose bids to companies with well-established relationships. There also has been an emphasis on spending stimulus money quickly, which favors businesses that have won past contracts.

But minority advocates say that blacks and Latinos have been harder hit by the recession, and getting a fair share of stimulus contracts is key to the recovery of these communities. Unemployment among blacks and Hispanics is much higher than among whites. And although unemployment among whites increased at a faster rate during the worst of the recession than among minorities, rates of those considered underemployed — including people who have given up looking for full-time work or people working part-time because there is no full-time work available — increased faster among minorities than whites.

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Categories: Business & Economy, Government, Race Issues, Social and Political Climate
Tags: Barack Obama, Congress, economic crisis, economic hardship, economic recession, government waste, minorities, minority, minority business, Obama, political, politics, pork barrel spending, porkulus bill, Pres. Obama, stimulus bill, stimulus package