Federal Stimulus Contracts Inaccessible For Minority Vendors

Greater Diversity
07 April 2010

A demand for more federal stimulus contracts for Hispanic and black businesses from the government is on the rise these days. Members from these minority groups who own and operate businesses are asking for an improved system that tracks those who receive government-funded work and to be more included on the list for receiving stimulus aid.
Obtaining contracts has been a major challenge for Hispanics and blacks before federal stimulus contracts were issued. Of the $46 billion in federal aid, Hispanic-owned businesses have received only 1.7 percent and black-owned businesses have received only 1.1 percent. These numbers are quite low when compared to the percentage of black and Latino-owned businesses in the nation. According to the census, Hispanics own 6.8 percent of all businesses and blacks own 5.2 percent.
Improved Data Tracking SystemData showing minority status when contracts are awarded to businesses is often inconsistent and there is no centralized system that records all the information. Additionally, the information is inaccessible to the public. Minority vendor advocates are demanding for more complete and accessible demographic data on stimulus contracts. Ultimately, minority-owned businesses need to be tracked by race in order to receive federal stimulus funding.
A Fair Share at Federal Stimulus ContractsAside from tracking issues, minority vendors need a more proportionate piece of the stimulus pie. Currently, the competition for stimulus contracts is intense and minority groups have a bigger challenge to face when competing for the projects. The reality is that Hispanics and blacks could use the aid more than white communities due to the fact that they have been affected by the recession more. In other words, there is higher unemployment in minority communities and the extra financial relief will help rebuild communities and improve business.

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