Smith-Wade-El holds news conference to encourage state investment in small businesses
Rep. Ismail Smith-Wade-El May 1, 2025 | 11:14 AM
LANCASTER, May 1 – State Rep. Ismail Smith-Wade-El held a news conference Wednesday to draw attention to the critical importance of state investments in small businesses as drivers of local economies.
The news conference at ASSETS in Lancaster specifically highlighted the role that the PA Department of Community & Economic Development’s Historically Disadvantaged Business Assistance Program has played in helping minority-owned businesses succeed in today’s competitive marketplace.
Historically disadvantaged small businesses are defined under this program as minority businesses generating annual revenues of $1 million or less and employing fewer than 25 full-time equivalent employees.
According to DCED, disadvantaged businesses on average have less access to capital, are three times more likely to be denied loans, are more likely to pay a higher interest rate and are more likely to receive lower loan amounts than non-minority owned firms.
To rectify this historical economic inequity, Gov. Josh Shapiro secured $20 million in state funds for historically disadvantaged small businesses for the first time in the 2023-24 state budget. The new state-funded Historically Disadvantaged Business program opened in 2024, disbursing microgrants ranging from $2,000 to $10,000 to qualifying minority-, women- and veteran-owned businesses.
“As we prepare to pass another budget — a moral statement of our commonwealth’s priorities — I want to make a case for how important it is for the health and wellbeing of Pennsylvania communities that we continue to fund state investments in Black and brown small businesses,” Smith-Wade-El said. “These investments have fostered entrepreneurship, created jobs, stimulated economic growth, promoted economic equity and fostered a sense of hope in a brighter future in underfunded communities. I’m calling on my fellow legislators to continue to fund state investments in small businesses and communities like Lancaster, which is seeing a renaissance thanks to strategic state investments in its people.”
Smith-Wade-El was joined by DCED Deputy Secretary for Business Financing Mandy Book and ASSETS CEO Jaime Arroyo.
"For every hundred dollars you spend at a small business, $48 stays in your community,” Book said. “For every hundred dollars you spend at a big box retailer, only $14 of that stays in your community. Small businesses power the commonwealth."
“This is what equitable economic development looks like—intentional investment, grassroots leadership and shared prosperity,” Arroyo said. “Community Development Financial Institution organizations like ASSETS and Finanta help provide a necessary resource to small businesses: fair access to capital. Now more than ever, we must support CDFIs and our small business community with innovative efforts such as this program and we’re thankful for the support.”
The news conference recognized the following recipients of HDBA grants:
- Denise Evans, Village of Love Learning Academy $5k
- Jarrod Betts, Mr. Vic's Family Styling $5k
- Ole Hongvanthong, Mezcla Ice Cream $5k
- Oliver Saye, Homage $5k
- Victor Colon, Chevere Cafe $5k
- James Baker $5k
- Jose Rivera, Torres Family Bakery $5k
- Melissa Hernandez, El Jibarito $5k
- Michael Wherley, Keystone Claws $5k
- Jordan and Shelby Wormley, We & Company $5k
- Marcus Richardson, Rich Stitch $5k
- Pricilla Torres, Braids by Scilla $5k
- Roytel Encarnacion-Guzman, Mateo Grocery Fish Market $5k
“We’re still seeing the ongoing negative economic impact of the COVID-19 pandemic on our low to moderate income brown and Black communities across Pennsylvania, which had already been struggling with the legacy of systemic racism,” Smith-Wade-El said. “Though COVID-19 era funding has dried up, the problems the pandemic left in its wake have not disappeared. We need to keep supporting our minority small businesses so they can achieve economic parity and help Pennsylvania flourish.”