Due to a “Notice of Grant Termination” from the U.S. Dept. of Commerce that the city of Tacoma received on April 29, as well as ongoing uncertainty around future funding and program support at the federal level, the Washington State Minority Business Development Agency Business Center has closed.

For several years, the City of Tacoma has served as the local operator for this federal program, aiming to connect businesses across Washington state with resources. Tacoma was one of two local governments to operate an MBDA Business Center, the other being Albuquerque which also closed its MBDA. Numerous other MBDA centers across the country have been notified of federal grant cuts initiated by the Trump administration.

“I am deeply troubled by the closure…,” Mayor Victoria Woodards said in a statement. “The Washington State Minority Business Development Agency Business Center in Tacoma helped strengthen our local, regional, and state economy. Undermining such efforts weakens this foundation and is both shortsighted and unacceptable. We remain committed to working with our federal legislative partners in their quest to restore funding.”

President Richard Nixon created the MBDA in 1969 to boost the growth of minority-owned businesses and help level the playing field to address economic inequality. Inc.com reports that during President Biden’s term alone, the agency helped create more than 23,000 jobs and assisted such enterprises in securing over $3.2 billion worth of contracts.

Tanja Carter is Director for the Community and Economic Development Department for the City of Tacoma. She said that in recent months, the national MBDA program “has faced significant operational instability, leaving local operators like us navigating a landscape of uncertainty. This has included the shutdown of the national client data system, a lack of clear communication on funding, and no written confirmation of a potential one-year grant extension that was part of our original agreement.”

Carter emphasized that closing the MBDA in Tacoma was not a decision made lightly.

“Rather, it is a proactive measure to ensure that our support for minority-owned and small businesses is resilient, impactful, and directly aligned with the needs of our local Tacoma community,” she said.

“We have a profound duty to be prudent stewards of taxpayer dollars and to mitigate risk. The current volatility of the federal funding environment presented a clear choice: continue with an unstable federal partnership that posed potential risks to other vital city programs, or pivot to a more secure and sustainable model of local support. We have chosen the path of stability and enhanced local focus.”

Carter wants Tacoma’s business community to know that the conclusion of this single federal program does not mean the end of support.

“In fact, it sharpens our focus. The services offered through the MBDA program are already deeply embedded in the day-to-day operations of the city’s Community and Economic Development department and the city’s robust network of local partners. We work in lockstep with the Tacoma-Pierce County Chamber of Commerce, the Economic Development Board for Tacoma-Pierce County, the Tacoma Urban League, WorkSource Pierce, and the Washington State Department of Commerce. Together, we provide a comprehensive suite of services – from business planning and financial counseling to procurement assistance and marketing strategy.”

According to Carter, these partnerships ensure that support for minority-owned businesses is not just a standalone program, but the very fabric of Tacoma’s economic strategy.

“We invite all business owners to explore these extensive resources at MakeItTacoma.com,” she said.

Woodards said that Tacoma will continue to support inclusive economic growth for the city’s entrepreneurs through the City of Tacoma’s Community and Economic Development Department.

“We will continue to monitor federal executive orders and contract requirements closely. Should conditions change, I will work with my city council colleagues to direct the city manager to prepare a proposal supporting the relaunch of the Washington State Minority Business Development Agency Business Center in Tacoma,” Woodards stated. “Until then, know that the City of Tacoma has appreciated the staff, the program, and its successful efforts over the years.”