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Black-owned small businesses are facing new economic pressures during President Donald Trump’s second term, as changes to federal programs, government contracting and trade policy reshape the business environment.
But many Black-owned businesses were already operating with fewer resources before Trump returned to office.
A 2024 report from Third Way and the Alliance for Entrepreneurial Equity found that 97% of Black-owned employer businesses had fewer than 20 employees, while three-quarters had fewer than five.
The report also found that 40% of Black-owned businesses were completely denied loans, lines of credit or cash advances, compared with 18% of white-owned businesses.
Some of the changes under Trump are adding to those challenges.
In 2025, the Trump administration moved to scale back the Minority Business Development Agency, the federal agency that provides resources and support to minority-owned businesses. A March 2025 executive order directed the agency to reduce its functions and personnel to the minimum required by law.
Federal contracting has also changed under Trump. In February 2025, the Small Business Administration (SBA) returned the federal contracting goal for small disadvantaged businesses to the statutory minimum of 5%, after the Biden administration had set a goal of reaching 15% by fiscal year 2025, according to the SBA. The agency’s 8(a) Business Development Program, which helps socially and economically disadvantaged businesses compete for federal contracts, has also undergone changes under Trump.
For some Black-owned business owners, those changes have already affected their bottom lines.
Axios reported that Nicole Turner, a Black-owned business owner whose consulting company has relied on federal contracts, estimated she was losing $15,000 to $20,000 a month because of reduced federal contracts and fewer requests for proposals.
Tariffs have created another source of pressure, particularly for some Black-owned beauty businesses.
Reuters reported that Georgia salon owner Dajiah Blackshear-Calloway saw the price of a package of hair imported from Vietnam rise from $190 to $290. Hair glue imported from China increased from $8 to $14.99 a bottle. Blackshear-Calloway said she has had to either absorb those higher costs or pass them on to customers.
While consumers cannot solve those larger economic and policy issues on their own, they can still support Black-owned businesses.
How To Support Black-Owned Businesses
Make them your first choice. When you're looking for a product or service, take a moment to see whether a Black-owned business offers what you need. That could mean ordering from a local restaurant, booking a hairstylist or hiring a Black-owned accountant, photographer, contractor or caterer.
Keep coming back. A one-time purchase is helpful, but becoming a regular customer can provide a small business with more dependable revenue.
Tell people about your experience. Robert F. Smith, founder of the Fund II Foundation, encourages consumers to recommend Black-owned businesses to friends and family. Sharing a business with people you know or on social media can help introduce it to potential customers.
Leave a review. A positive review on Google, Yelp or another platform can help a business build credibility and make it easier for new customers to find.
Pay their prices. Supporting a Black-owned business doesn't mean asking the owner to lower their prices, and it shouldn’t come with an expectation of a special discount. Paying the advertised price allows the business to account for its costs while earning revenue.
Think beyond restaurants and retail. Support Black-owned businesses that offer professional and creative services, including accountants, lawyers, photographers, designers, consultants and contractors.
Engage with their content. Follow Black-owned businesses on social media, like and share their posts, and interact with their content to help more people discover them.
Consumer spending won't eliminate the larger barriers Black entrepreneurs face, including challenges accessing capital and federal contracts. But where consumers choose to spend, whether they return and whether they tell others about businesses they value can all make a difference.
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