Adams Leads Effort to Investigate the Administration's Failure to Uphold Promise to HBCUs

Statement

Today, Congresswoman Alma Adams (NC-12) unveiled a Government Accountability Office (GAO) report she commissioned to investigate whether the Small Business Administration (SBA) is providing adequate support to Historically Black Colleges and Universities (HBCUs) to help students become successful small business owners. The report raises several deficiencies in SBA's efforts to work with HBCUs, despite President Trump's 2017 Executive Order to promote engagement with HBCUs, strengthen HBCU participation in federal programs, and direct federal agencies to identify priorities for working with HBCUs.

Below are key highlights from the GAO report:

-SBA developed a 2018 plan for the White House Initiative on HBCUs but was unable to provide plans for other years;
-Responsibilities of SBA offices for addressing the White House Initiative on HBCUs are unclear;
-SBA has not communicated its plan to support HBCUs to key Small Business Development Centers (SBDCs) and District Offices; and
-SBA's data collection for its HBCU-related efforts is limited.

"HBCUs play an outsized role in contributing to workforce diversity and the development of small business owners and entrepreneurs of color. Yet, the GAO's report makes clear that SBA has fallen far short of executing the President's 2017 Executive Order on HBCUs, revealing a series of troubling failures that contradict the Administration's stance that HBCU engagement and investment is a priority," said Congresswoman Alma S. Adams. "The report makes me deeply concerned that other federal agencies under the Trump Administration may be similarly ill-prepared to follow through on HBCU-related engagement. HBCUs and their students deserve better than the status quo."

"Congresswoman Adams has been one of the foremost advocates for HBCUs in Congress, and I thank her for her tireless leadership on expanding opportunities in higher education," said Small Business Committee Chairwoman Nydia M. Velázquez (D-NY). "Back in April, our Committee held a hearing on the findings of the GAO report and ways the Small Business Administration can best serve entrepreneurs at HBCUs. As Chairwoman, I am deeply committed to finding solutions that open the doors to entrepreneurship for underserved communities and look forward to continuing the dialogue on how we can ensure HBCUs have the resources and support they need to thrive."

"Congresswoman Adams' commitment to supporting HBCUs and holding the SBA accountable will help an entire new generation of minority small business owners and entrepreneurs," said Oversight and Reform Committee Chairwoman Maloney. "The SBA must support these students and make accessible the tools they need to become successful business owners."

The GAO report found that SBA could meaningfully improve engagement with HBCUs and issued three recommendations:

-clearly assign responsibilities among relevant offices for addressing its plan for the White House initiative;
-communicate its plan to support HBCUs to SBA district offices and SBDCs (with HBCUs in their service areas), which deliver training and counseling; and
-collect relevant information to establish a baseline and track ongoing efforts to support HBCUs.

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