During a recent government meeting, significant concerns were raised regarding proposed budget cuts impacting small business support programs, particularly those aimed at assisting Black and brown entrepreneurs. A council member highlighted a combined reduction of $2.3 million—over 31% of the total $7.37 million allocated to tenant improvement, business community ownership funds, and capital access programs. These programs are crucial for minority entrepreneurs who historically face challenges in accessing capital due to systemic racism in lending practices.

The council member emphasized that the reduction in funding would lead to fewer approved projects, ultimately hindering opportunities for minority-owned businesses to thrive and build generational wealth. They pointed out that the current level of support for small businesses is disproportionately low compared to other city initiatives aimed at preventing displacement in at-risk communities.

The discussion also touched on the need for small businesses, particularly those owned by people of color, to be considered for additional funding sources beyond the Office of Economic Development (OED). The council member expressed a desire for more inclusive funding strategies that would allow successful small businesses to receive ongoing support, rather than just a one-time funding opportunity.

In response, city officials acknowledged the importance of these concerns and noted ongoing coordination between various departments to enhance support for small businesses. However, they clarified that specific funding for small businesses under the Economic Development Initiative (EDI) is still a topic of exploration.

As the meeting progressed, the council considered whether to restore or repurpose funds to better align with the strategic framework for Seattle's economic future, indicating a potential shift in priorities to bolster support for small businesses in the community.