National ACE 2025 Policy Agenda by nationalace

2025 POLICY AGENDA

Letter from Leadership

TheNationalAsian/PacificIslanderAmericanChamberofCommerceand Entrepreneurship(NationalACE)servestheinterestsofover3millionAsianAmerican andPacificIslander(AAPI)-ownedsmallbusinessesandallentrepreneursacrossthe UnitedStates Throughpartnershipswithover130affiliatechambersandorganizations nationwide,wehavespentoveradecadeadvocatingfortheeconomic,social,and politicalprosperityforsmallbusinesses.Bybuildingstrongrelationshipswithlawmakers andbusinessleadersinbothpublicandprivatesectors,westrivetofosterthesuccessof AAPIbusinessesandoverallsmallbusinessgrowth.

Inour2025PolicyAgenda,weoutlineourlegislativeprioritiesinformedbynational surveysandtheNationalACESmallBusinessRoundtableSeries.NationalACE’sfocusfor 2025covers13criticalissues,rangingfromaccesstocapitaltoartificialintelligenceto taxreform.Theseissuesareallessentialasbusinessesnavigateachallengingeconomic landscapeandprepareforanewPresidentialAdministrationandCongress.Tosupport thesepriorities,weassessthepotentialimpactoftheseissuesonAAPIentrepreneurs andsmallbusinesscommunitieseverywhere,andprovidetargetedrecommendations toensurethatthepoliciesfosterentrepreneurialgrowthandresilience.

AAPIentrepreneurshaveshownincredibleresilience,rootedinbeliefoftheirabilityto overcomeeventhetoughestchallenges.Thisresilienceandentrepreneurialspiritremain someoftheirgreateststrengths,enablingthemtocontinuethriving.Wearehonoredto servethisdynamiccommunityandallsmallbusinesscommunities,supportingtheir successandprosperityastheycontinuetoinnovateandlead.

WewouldliketoextendourheartfeltthankstotheBoardofDirectorsandourcorporate partnersfortheirunwaveringadvocacyandsupport.Yourcommitmenttoadvancing smallbusinessinterestsisessentialtoourefforts,andwearegratefulforyourcontinued partnership

AswelookaheadtocollaboratingwiththeTrump-VanceAdministrationandthe119th Congress,weareeagertopartnerwithourleaderstoimplementstrategiesthatwill createanenvironmentwhereAAPIandallentrepreneurscancontinuetoinnovateand flourish.

Chiling Tong President & CEO National ACE

Garrett Gin Chair, Board of Directors National ACE

Jimmy Ferguson Chair, Policy Committee National ACE

Introduction

NationalACEisdedicatedtoservingastheunifiedvoiceforthe3millionAAPIownedenterprisesthatemployover5.2millionindividualsnationwide.In collaborationwith130affiliatechambersandbusinessorganizations,westrive toenhancetheeconomic,political,andsocialwell-beingofallsmallbusiness communitiesbybreakingdownbarrierstoentrepreneurshipandgrowth.

Ourmissionfocusesonempoweringsmallbusinessesthroughadvocacy, partnerships,andinnovativeprograms.Wecultivatecommunitydialogueand facilitateaccesstovitalresources,includingfinancingandtechnicalassistance. Byimprovingvisibilityinpolicydiscussions,weaimtocreateathrivingbusiness environmentthatcelebratestheaccomplishmentsofAAPIandallentrepreneurs. Together,weworktofosteraprosperouslandscapeandabrighterfuturefor generationstocome.

National ACE’s Three Pillars

Advocacy:NationalACEworkswith lawmakersatalllevelstoadvocate forpoliciesthatpromotethe successofallentrepreneurs.We ensuretheirneedsareaddressedin anonpartisanmanneracross government.

CommunityEngagement:WeconnectlocalandregionalChambersof Commerceandpartnersnationwide,offeringinnovativesolutionsthrough high-qualityprogramsthatempowerentrepreneurstosucceedincompetitive markets.

AccesstoCapital&TechnicalAssistance:NationalACEexecutesgrantand capitalprogramsthatfosterentrepreneurshipandbusinessgrowth.We advocateforinitiativesthatenhanceaccesstocapital,workforce development,andbusinessopportunities,increasingeconomicgrowthfor communitiesnationwide

Snapshot of AAPI Demographics

POPULATION

AAPIsarethefastestgrowingracialethnic groupintheUnited States 2

JOB CREATION

In2021,AAPI-owned firmscreatedover 5.2millionjobs.

Onaverage,547%ofAAPIshave acollegedegree,comparedto1 outof3peopleintheUS overall However,thepercentageof adultsaged25andoverwithat leastabachelor’sdegreevaries betweenethnicities.80%of TaiwaneseAmericanshaveat leastbachelor’sdegree, comparedto178%ofLaotian Americans.

ASIAN AMERICAN WOMEN

In2023,AsianAmericanswere thelargestconsumerof technologyintheUSA

BUSINESS OWNERSHIP

About1in10businessesare AAPI-owned.Thereare3 millionAAPI-ownedfirms.1

BUYING POWER

Inthelastdecade,theAAPI populationgrew39%,while theirbuyingpowerincreased by111%.By2025,AAPIbuyingis projectedtoreach$1.8trillion. 5

TheAAPIcommunityhasdriven someoftheworld’smost successfulbusinesses LinkedIn, Yahoo!,YouTube,Zoom,Panda Express,DoorDash,Peloton,Fitbit, OldNavy,andZapposallhaveAAPI foundersorco-founders More than26%ofallbillion-dollarvaluedstartupsinthelasttwo decadeshadatleastoneAAPI cofounder

Despitetheirfinancialchallenges, AsianAmericanwomencreatedmore than150,000newcompaniesbetween 2019and2023 AsianAmerican women-ownedbusinessesgenerate $2652billion,whichis98%ofall women-ownedbusinesses’revenue

NativeHawaiiansandPacific Islandersaretheracialandethnic groupmostlikelytoexperience homelessness.Since2015,therewas a91%increaseinhomelessnessfor Asiansanda21%increaseforNative HawaiiansorPacificIslanders.

2025 Legislative Priorities

Access to Capital

Advancing Health Access & Outcomes

Artificial Intelligence

Closing the Digital Divide

Collection of Meaningful Data

Energy

Federal Procurement

Fostering AAPI Leadership

International Commerce

Language Accessibility

Supplier Inclusion

Tax Reform

Workforce Development

Access to Capital

AccesstocapitalremainstheforemostconcernforAAPI-ownedsmallbusinesses.Keybarriers persist,includingalackofawarenessaboutfinancialresources,insufficientrelationshipswith lenders,andchallengesinnavigatingthelendingprocessduetolinguisticandculturalbarriers. However,severalrecentdevelopmentsindicateprogressandnewchallenges.

TheRoleofSelf-Funding:NationalACE releasedareporthighlightinghowa significantpercentageofAAPI entrepreneursareself-funded.Datafrom NationalACE’s2024RestaurantFund applicantsconfirmthis:47%ofapplicants sharedthattheirmainsourceofcapital forstarting,retaining,orscalingtheir businesscamefrompersonalfunds Only 21%indicatedloansandcreditfrom traditionalfinancialinstitutions This underscorestheheavyrelianceon personalresourceswithintheAAPI community,drivenbybarriersto institutionalcapital.

IncreasedSBASupport:TheUS SmallBusinessAdministration(SBA)reportedasignificant increaseinlendingtoAAPI-ownedbusinessesinfiscalyear2023,with7,500loansamountingto $64billion Theseloansrepresenta44%increaseinvolumeanda36%riseintotalloandollars since2020 themostinthepast15years Small-dollarloans(under$150,000)alsorosesharply, addressinggapsforbusinessesneedingsmallerfundingamounts.Programssuchasthe7(a) and504loanssawrecordgrowth,benefitingentrepreneursintheAAPIcommunity.

PersistentChallenges:

Despitethesegains,awarenessoffundingsourceslikeCommunityDevelopmentFinancial Institutions(CDFIs)andMinorityDepositoryInstitutions(MDIs)remainslow.Recentsurveys indicatethat44%ofAAPIbusinessownersareunawareofCDFIs,thoughtrustincommunity banks(85%)andlargerbanks(60%)continuestogrow

39%ofAAPIrespondentshavenoorlowconfidencetheycouldfundanunplanned$5,000 businessexpense

Languageaccessibilityandoutreachremaincriticalgaps 60%ofAAPIsmallbusinessowners wereunawareofSBAreliefoptionsduringthepandemic,andmanystillciteconfusionaround eligibilityandapplicationprocessesaskeybarriers

NationalACE’sCapitalReadinessProgram(CRP):Thisinitiativeaddressesthepressing challengesfacedbyentrepreneurs:raisingcapitalandeffectivelygrowingtheirbusinesses. Throughaccelerators,businesscoaching,andnetworkingevents,weareprovidingavital supportsystemforentrepreneursontheirjourneytosuccess.AsofFebruary2025,NationalACE hasraisedover$65millionforsmallbusinesses.

Access to Capital

“NationalACE’sCapitalReadinessProgram(CRP)helpedme refinemystrategytosuccessfullysecurealeasecontractat SanFranciscoInternationalAirport,andbecomean independentoperatorofaPandaExpresslocation Italso providedinvaluablesupportinaccessingthecapitalneededto expandmyoperations WiththehelpofaCRPbusinesscoach,I wasconnectedtokeyindustrycontactsandcouldapproach mybusinesswithafreshperspective Theinsights,capital,and personalizedsupportIreceivedhavepositionedmybusiness forlong-termgrowthandsuccess”

-IvaChen,CEO,IOCDesign&Consulting

eracy:Accesstocapitalaloneisnotenoughto y p ursfacechallengesinfinancialmanagement, withlimitedunderstandingoftopicslikecashflowoptimization,longevityliteracy(planningfor long-termsustainability),successionplanning,andretirementreadiness.

FinancialLiteracy:Operatingontightmargins,manyAAPIentrepreneursneedenhanced skillsinbudgeting,cashflowmanagement,andprofitreinvestmenttobuildfinancial resilienceandnavigateuncertainties.

LongevityLiteracy:Businessownersoftenfocusonimmediatesurvival,lackingastrategyfor long-termgrowth.Programsthatteachhowtonavigatecyclicaldownturns,buildrainy-day funds,andinvestinbusinesssustainabilityarecritical.

RetirementReadiness:AAPIentrepreneursfrequentlysacrificepersonalretirementsavingsto fundtheirbusinesses,leavingthemfinanciallyvulnerableinlateryears.34%ofentrepreneurs donothavearetirementplan,and40%arenotconfidentintheirabilitytoretirebeforeage 65.

SuccessionPlanning:Withthe“SilverTsunami”expectedtosee65-75%ofsmallfirmssoldin thenextdecade,effectivesuccessionplanningisvital.However,manyolderAAPI entrepreneurslackaccesstotoolsforbusinessvaluation,taxstrategies,andleadership transitions.Withouttheseresources,wealthtransferandcontinuitycanbecomesignificant challenges,leavingAAPIentrepreneursunpreparedandvulnerableattheendoftheir businessjourney.

:Increaseawarenessoffundingopportunitiesbypartnering withadvocacygroupsandofferingmultilingualresources

:Focusoncomprehensivetrainingthatincludesfinancial literacy,onlinebankingliteracy,longevityliteracy,andretirementandsuccessionplanning Programsshouldemphasizetheimportanceofbalancingshort-termbusinessneedswithlongtermwealthcreationandeffectivesuccessionplanninginordertosupportentrepreneursatall stagesofthebusinesslifecycle

Advancing Health Access & Outcomes

AccesstoaffordableandculturallyresponsivehealthcareremainsacriticalconcernforAAPI entrepreneursandtheircommunities.Persistentdisparitiesinhealthoutcomesarecompoundedby languageinaccessibilityandlackofdisaggregateddata.

DataGapsObscuringHealthNeeds:Despitesomeprogress,disaggregatedhealthdataisstill insufficient,oftenmaskingdisparitieswithinsubpopulations.Forinstance,VietnameseAmericans havethehighestprevalenceofHepatitisBandSouthAsianAmericanssufferstaggeringlyhighrates ofheartdiseaseanddiabetes,yetbothremainunderrepresentedinnationalhealthinitiatives

DisparitiesinAccessandOutcomes:

InstateslikeWashington,NativeHawaiianand PacificIslander(NHPI)communitiesexperienced COVID-19hospitalizationratesfivetimeshigherthan Whitepopulations.

Theuninsuredrateremainsconcerningforcertain nonelderlyAAPIsubgroups,suchasMongolian (28%)andMarshalleseAmericans(24%),compared tothebroaderAAPIaverageof6%.

About66%ofAsianAmericanssaidtheyworry aboutnothavingMedicaretocovertheirhealth carecostsinretirement

Between1992and2018,just017%ofthebudgetof theNationalInstitutesofHealthwasspenton researchfocusedonAsianAmericans,Native Hawaiians,orPacificIslanders,despiteAAPIsbeing thecountry’sfastest-growingethnicgroup

MentalHealthCrisis:Suicideremainstheleadingcause ofdeathforAsianAmericansaged15-24,with73.1%of AAPIadultswithmentalillnessesnotreceivingtreatment. Factorsincludestigma,lackofculturallycompetentcare, andaffordabilitybarriers.

“AsaformerNFLathleteandcurrentmentalhealth andperformanceconsultant,I'veseenfirsthandhow mentalhealthdisparitieswithinourAAPIcommunities canimpactperformance,well-being,andopportunity Healthequity,particularlyinmentalhealth,isabout creatingaccesstoculturallyrelevantcarethat acknowledgesouruniqueexperiencesanddismantles stigma Istartedmyworkbridginghigh-performance psychologyandculturaladvocacytoaddressgaps thatleaveAAPIindividualsunderserved Byprioritizing mentalhealthequitythroughpolicy,wecanempower ourcommunitiestothrive,notjustsurvive-transformingathletes,entrepreneurs,andleaders alikeintoagentsofchangeforfuturegenerations Healthequityisnotjustamatterofcare;itisa foundationforeconomicandculturalgrowthwithin ourAAPIcommunities"

-ManuMuasau,Founder&CEO,ManuMental

ExpandDisaggregatedDataCollection:Federalandstateagenciesmustinstitutionalize disaggregatedhealthdatatobettercapturethediverseneedsofallcommunities Accuratedata enablestargetedinterventionsandappropriateresourceallocation

1 EnhanceAccesstoCulturallyResponsiveCare:Investinworkforcetrainingtobuildapipelineof bilingualandculturallycompetenthealthcareproviders,ensuringcareisaccessibletonon-Englishspeakinganddiversepopulations.

2. AddressMentalHealthNeeds:PrioritizefundingformentalhealthservicestailoredtoAAPI communities,includingstigma-reductioncampaignsandexpandedinsurancecoveragefor therapyandcounseling.

Byaddressingthesesystemicbarriers,stakeholderscanworktowardahealthcarelandscapethat supportsAAPIandallentrepreneurs,theirfamilies,andtheircommunities.

Artificial Intelligence

Artificialintelligence(AI)continuestoreshapethelandscape forsmallbusinesses,offeringtoolstostreamlineoperations, expandcustomeroutreach,andimprovedecision-making. ForAAPIentrepreneurs,AIhasproveninstrumentalin managingcostsandenhancingproductivity,thoughgapsin AIliteracyandadoptionpersist.

RisingAIAdoptionAmongSmallBusinesses:In2024,nearly everysmallbusinessisutilizingatoolthatisenabledbyAI (98%),withtheuseofgenerativeAItoolslikechatbotsand imagecreationnearlydoubling(40%)fromlastyear. This growthhasbeendrivenbytheaccessibilityofgenerativeAI technologiesthatsupporttaskssuchascontentcreation, customerserviceautomation,financialforecasting,and inventorymanagement

UnlockingNewOpportunitiesforAAPIandAllEntrepreneurs:

Dr.KarenEngandDr.Sailesh ChittpeddiofRenesasElectronics discusstheimplicationsofAIfor smallbusinessatNationalACE’s AnnualConference

AIoffersAAPIbusinessowners opportunitiestoovercomebarrierstraditionallytiedtosizeorresourcelimitations.Entrepreneursand employeeswhohaveadoptedAIreportsavinganywherefrom5to7hoursperweekonadministrative tasks,allowingthemtofocusonstrategicgrowth. ToolslikeChatGPTandAI-drivenanalyticsenable businessesto:

ImprovecustomerinteractionswithAI-poweredchatbots. Optimizesocialmediamarketinganddigitaladvertisingtoreachdiverseaudiences Saveonadministrativecostsbyautomatingtaskslikeschedulingandbilling Gaininsightsintomarkettrendsthatwereonceaccessibleonlytolargecorporations

Withinflationremainingthebiggestchallengefacingsmall businesses,nearlyfourinfivesmallbusinessesreportthattheuse oftechnologyhelpedthemavoidraisingpricesforconsumers

KeyBarrierstoAIAdoption:

AILiteracyGaps:Manyentrepreneursreportchallengesinunderstandinghowtoeffectively integrateAIintotheirbusinesses

CostandComplexity:Highupfrontcostsandlimitedaccesstotechnicalexpertiseremain obstacles,especiallyforsmallerbusinesseswithfewerresources

AlgorithmicBias:Biasesinalgorithmscanperpetuatediscriminationinhiring,lending,andother essentialservices.

PrivacyandDataSecurityConcerns:AI’sabilitytoanalyzevastdatasetsalsoraisesprivacyand cybersecurityconcerns.ManyAAPIbusinessownersareskepticaloftoolsthatcouldcompromise sensitivebusinessorcustomerdata.EffortstoincreaseAIadoptioninthiscommunitymustprioritize transparentpracticesandrobustsecuritymeasures.

Artificial Intelligence

AIinPolicy:US SenatorsMariaCantwellandJerryMoranintroducedthebipartisanSmallBusiness ArtificialIntelligenceTrainingandToolkitActof2024,empoweringtheDepartmentofCommerce andSBAtoprovideAItrainingforsmallbusinesses Theseresourceswillimprovefinancial management,marketing,supplychains,andgovernmentcontracting,helpingruraland underservedcommunitiesadoptAI,streamlineoperations,andboostcompetitivenessinaglobal market.

RECOMMENDATIONS FOR IMPROVING THE ADOPTION OF AI:

TofullyrealizeAI’stransformativepotential,targetedeffortsmustaddressbarrierstoadoption whileemphasizingeducation:

ExpandingaccesstoinitiativeslikeAIliteracyworkshopsand community-centeredtechnologyeducationarecriticalforentrepreneurstolearnhowtotake advantageofAI’spracticalapplications.

Collaborationbetweentechnologyfirmsandcommunityorganizationsto createculturallyrelevantmaterials.

AIoffersimmensepromise,butitalsopresentsrisksthatmustbecarefullymanaged.Byinvestingin educationanddevelopment,policymakersandbusinessescanempowerAAPIandallentrepreneurs toharnessAI’sfullpotential,drivinginnovationandgrowthintheircommunities.

“Thefoodserviceindustryisnostrangertolonghours, intenseworkloads,andrepetitivetasks Thesechallenges oftenleadtohighstresslevelsandemployeeburnout However,AIroboticstechnologyoffersaninnovative solutiontotransformthesedynamics Byautomating repetitiveandlabor-intensivetasks,AI-drivenroboticscan alleviatetheburdenonhumanstaff,allowingthemto focusonmoreengagingandcreativeaspectsoftheir roles Thisnotonlyenhancesjobsatisfactionbutalso fostersahealthier,happierworkenvironment.Moreover, integratingAIroboticsenablesbusinessestoelevatetheir servicequality,extendoperationalhours,andoptimize customerinteractions allwithoutincreasingpressureon employees.Theresultisasustainablebusinessmodelthat reducesturnoverrateswhilemaintaininghighstandardsof serviceandefficiency WithAIrobotics,thefoodservice industrycanstrikeabalancebetweenoperational excellenceandemployeewell-being,creatingawin-win scenarioforbusinessesandtheircustomers”

-BettyXie,ExecutiveDirector, ChineseRestaurant Foundation

Closing the Digital Divide

Intoday’seconomy,digitalaccessiscriticalforsmallbusinesscompetitiveness,especiallyfor AAPIentrepreneurswhomustnavigatethedigitaleconomytoaccesscapital,resources,and growthopportunities.Frombroadbandaccesstodigitalliteracy,significantprogresswasmadein 2024,butgapsremain.

SupportingAAPIEntrepreneursintheDigitalEconomy:TheBroadbandEquity,Access,and Deployment(BEAD)Programhasallocated$42.45billiontoexpandhigh-speedinternetaccess acrosstheU.S.,targetingunservedandunderservedareas,includingAAPIcommunities. By2024, over$20billionofthisfundinghadbeenmadeavailable,withallstateandterritoryinitialproposals approved. 76.7%

Despiteprogress,challengespersist.Approximately25%ofRestaurantFundgrantapplicantssurveyed byNationalACEcitedthelackofadigitalpresenceasthebiggestbarriertogrowth

In2023,NationalACEpartneredwithOCA-AsianPacificAmericanAdvocatesonadigital accesssurveyledbyOCA.Thekeyfindingsincluded:

While76.7%ofAAPI respondentshave broadbandaccess, SoutheastAsiansare twiceaslikelyasEast Asianstolackinternetat home

5.4%ofrespondentswith noEnglishproficiencysaid theydon’thaveinternetat home.Thatpercentage shrinksto11%whenyou haveanative/bilingual levelofEnglishproficiency

53.5%ofAAPIrespondentsare digitallywell-connected, whichreferstoowningmore thantwodigitaldevicesaswell ashavingbothfixedresidentialandcellularinternet connectionsathome

TheBroadbandCommissionforSustainableDevelopmentreleasedareportin2024outliningthe primarybarriersandchallengestoconnectivityformicro,small,andmediumenterprises(MSMEs): Access:MSMEsmusthavesecuredconnectivitybutalsothedevicesandotherdigitalservices neededtorunasmallenterpriseonline

Affordability:AllservicesanddevicesmustbeaffordablefortheMSMEinordertobeadoptedand used

Relevance:MSMEsshouldbeawareofthebenefitsofconnectivity,andthereshouldbealarge onlinemarketwithanecosystemofrelevantplatforms

Knowledge&DigitalSkills:MSMEsshouldhaveknowledgeofthedigitaltoolsavailable,andtheir employeesshouldhavetheskillstomakeuseofthem.

Safety&Security:Customersmusthavetrustinusingonlineservices,andMSMEsmustbeableto addressonlinerisks.

Closing the Digital Divide

RECOMMENDATIONS FOR CLOSING THE DIGITAL DIVIDE:

ExpandDigitalLiteracyandWorkforceTraining:Partnerwithlocalandtrusted communityorganizationstodeliverculturallyrelevanttrainingindigitalskills, cybersecurity,andAItoensureAAPIandallsmallbusinessesandtheiremployeescan leveragetechnologyeffectivelyandsafely.

InvestinInclusiveandAffordableInfrastructure:Prioritizeunservedandunderserved communitiesinfederalandstatebroadbandinitiativesbyaddressingaccess, affordability,andlanguagebarriers.Theseeffortsarecriticaltoclosingthedigitaldivide andsecureinternetaccessforall

EnhanceAwarenessandOnlineSafety:Raiseawarenessabouttheeconomicbenefitsof digitaltoolsandprovideresourcesforrobustcybersecurity,fosteringtrustinonline transactionsandequippingMSMEstocompetesafelyinthedigitaleconomy.

“NewYorkCity’ssmallbusinessesin Chinatownarefacingacriticaldigital dividethatthreatenstheirabilityto sustainoperationsinanincreasingly onlineeconomy.Accordingtoour ChinatownImpactStudy,47%of businessesoperatingforover10years reportedtechnologyasatopchallenge, comparedtoonly7%ofnewerbusinesses. Thisgenerationalgaphighlightsthe urgentneedfortargetedsupporttohelp legacybusinessesmodernizewhile preservingtheirculturalidentity.

Improvedinternetconnectivityandaccessibledigitaltrainingprogramscould providethesebusinesseswiththetoolstocompeteinthedigitalage,ensuringtheir longevity.OvercomingthisbarrierwouldnotonlystrengthenNewYorkCity Chinatown’seconomybutalsopreserveitsroleasagatewayforopportunityand culturalexchangeforfuturegenerations.”

-VicLee,CEO,WelcometoChinatown

Collection of Meaningful Data

TheAAPIcommunityencompassesover25millionindividualsfromhundredsofethnicitiesand cultures,underscoringtheneedfordetaileddata.Withoutsuchdata,thestoriesofthecommunity oftengounrecognized.WithoneintenbusinessesbeingAAPI-ownedandwithacommunity purchasingpowerof$1.8trillion,itiscrucialtohavedatatorepresentthetruereachandimpactof theAAPIcommunity

PersistentEconomicDisparities:AAPIsarethemost economicallydivideddemographicgroupintheUS,with thetop10%earningover107timesasmuchasthebottom 10% Earningsalsovarywidelyamongsubgroups:while Indianwomenearn$121foreverydollarmadebywhite men,Samoanwomenearnjust62cents,andBurmese womenearn50cents. Thesegapshighlighttheneedto accuratelycapturethecommunity'sdiverseexperiences andchallenges.

FortheFirstTime,SBAReleasesDisaggregatedData:In responsetoadvocacybyorganizationssuchasNational ACEandcongressionalpressureledbytheTri-Caucus,the SmallBusinessAdministration(SBA)released disaggregateddataonminority-ownedbusinessesforthe firsttime. Thisdatamarksaturningpointinunderstanding andaddressingdisparitieswithinthecommunity.

NationalACE’sAdvocacy:NationalACEhasbeenatthe forefrontofpushingforbetterdatacollectionand transparency Bysigningontoinitiativeslike CongresswomanBarbaraLee’slettertotheSBAurging datadisaggregation,theorganizationhasamplifiedthe callformeaningfuldatapractices,ensuringthatpolicy decisionsreflecttheneedsofdiverseentrepreneurs

“InHawai‘i,disaggregateddatahasconsistently revealedthatNativeHawaiianandPacificIslander (NHPI)communitiesareamongthemostvulnerable, particularlyinareassuchaschronicdiseases When COVID-19hit,theneedfordetaileddatabecame evenmoreurgent,shapingWAO’sinitiativesto protectandsupportourcommunity Havingaccess todisaggregateddatawasessentialforsecuring fundingtailoredtospecificneeds Forexample,WAO successfullyappliedforDOICARESfunding,which providedcriticalsupportforcitizensoftheinsular areas,includingtheCOFANationsandAmerican Samoa Thisdemonstrateshowdisaggregateddata canbeapowerfultoolnotonlyforidentifying disparitiesbutalsoforunlockingresourcesthat directlyaddresstheneedsofdiversecommunities”

-Jocelyn(Josie)Howard,ChiefExecutiveOfficer, WeAreOceania(WAO)

Community-CenteredResearch:Overthepastseveralyears,NationalACEhasconductedmultiple surveysaddressingissuessuchasaccesstocapital,contracting,paidfamilymedicalleave,and institutionaltrust Thesesurveyshaveinformedpolicyrecommendationsandprovidedafoundation fortargetedsupport Theresearchispublishedonnationalaceorg/research

RECOMMENDATIONS FOR EXPANDING THE COLLECTION OF DATA:

Tosustainandexpandprogress,itiscriticalto: InstitutionalizeDisaggregatedDataPractices:Federalagenciesshouldcontinuecollectingand publishingdetaileddata,gatheringsustainedinsightsforpolicymaking. 1 ExpandCommunity-DrivenResearch:Supportinvestmentincommunitypartnershipstoenhance datastorytelling,whichinfluencesresourceallocationandpolicies.

2. ExpandTransparencyMandates:Buildonexistingagencyrulestorequiredetailedreporting acrossotherfederalandstatebusinessassistanceprograms.

Energy

Fossilfuelsalonewillnotbesufficienttomeetrisingenergydemands,itisessentialthatpolicymakers prioritizethediversificationofenergysourcestoensurenotonlythattheU.S.remainsglobally competitive,butthatenergyisaccessibleandaffordableforsmallbusinesses.Withthecostof energyontherise,considerationofalternativeenergysources,suchasnaturalgasandhydrogen,in additiontorenewableoptionsincludingsolarandwind,willbecrucial.

Naturalgasconsumptionhasgrownmorethananyotherenergysourcesincethe2008financial crisis,andin2023,itcoveredmorethanhalfofallUS electricitydemand Furthermore,it producesabouthalfasmuchcarbondioxideascoaland30%lessthanoil Aspopularityfor alternativestocoalandfossilfuelsgrow,naturalgasprovestobeaviableoptiontomeetgrowing energyneeds Importantly,thewaytoachievemeaningfulemissionsreductionswhileensuring affordable,reliableenergyistosupportandexpandAmerica’snaturalgasinfrastructure

NaturaldisastersintheIndo-PacificandEastAsiahavesignificantlyaffecteddiasporacommunities, withthePacificIslandsfacingthedualchallengeofhighenergycostsandincreasingnatural disasterrisks ThecostofimportingfossilfuelstotheIslandsaddstotheirenergyburden,costing about$6billionannually,whichamountsto5-15%oftheirGDP. Diversifyingenergysourcesiscrucial forreducingthesecostsandincreasingenergyresilienceinthePacificIslands.

AIandEnergy:TheriseofAItechnologiesisexpectedtodriveasignificantincreaseinenergy consumption.AsAIsystems,particularlylarge-scalemodels,re power,theenergydemandfromdatacentersisprojectedtod sustainabilitychallenges,especiallyinregionsalreadyfacinge AI’senvironmentalimpact,itisessentialtopairitsgrowthwith towardalternativeenergysources.

RECOMMENDATIONS FOR MEETING RISING

SupportCommunitiesFacingEnergyChallenges:

Manycommunities,especiallyinthePacificIslands, strugglewithhighenergycostsandare disproportionatelyimpactedbyclimatechange. Investmentsinalternativeenergysourcesare necessary.Investmentinalternativessuchasnatural gasanditsinfrastructurecanhelplowerthecostof energy,especiallyinareaswherefuelimportsarea significantburden.Supportingenergyaffordability andresiliencecanbenefitbothbusinessesand communitiesintheseregions,improvingtheir sustainability

PromoteAlternativeEnergyandAffordability:Itis essentialtoprioritizepoliciesthatsupportalternative energysourcesandelectricvehicles(EVs) With67% ofAmericanssupportingalternativeenergy, expandingthesetechnologiesandimprovingenergy affordabilitycanbenefitsmallbusinessesbylowering energycostsandfosteringglobalsustainability

Federal Procurement

Thefederalgovernmentisfrequentlyregardedasthe‘largestconsumerintheworld’–spending over$760billiononproductsandservicesannually. Governmentcontractsextendfarbeyond defensecontracting(andWashington,DC),andreachintoindustriesacrosstheeconomy,from researchandconstructiontoprofessionalservices(suchasconsultingandaccounting).The governmentshopswithbusinessesofallsizes,includingsmallbusinesses,withwhichitspent $163billioninfiscalyear(FY)2022alone

Whilefederalcontractsrepresentsignificantopportunitiesforsmallbusinessestoaccesscapital, hiretoptalent,andgrowtheirprofessionalnetworks,theprocessofwinningcontractsisoften describedasopaqueandcomplex.Withoutexpertiseortherightconnections,navigatingthe federalbureaucracyisatallorder.Despitethefederalgovernmentincreasingannualspendingwith smallbusinesses,thenumberofsmallbusinesseswithinthefederalsupplierbasehasbeenin declinesince2008.TheUSgovernmenthaslosthalfofitssmallbusinessvendorssince2008and,in FY2023,thenumberofindividualsmallbusinessvendors(74,716)remainednearlyunchanged comparedto20yearsprior

AAPIsinFederalContracting:AAPIsactively participateinthefederalmarketplace, thoughtheirparticipationisnot representativeoftheirshareofbusiness ownershipandpopulationgrowth AAPIsown 1in10smallbusinessesintheUS,and accountfor71%ofthetotalpopulation

Withinthefederalmarketplace,AAPIs, definedasAsianAmericanOwnedSmall BusinessesandSubcontinentAsian AmericanOwnedSmallBusinesses,received 14%and182%offederalcontractingdollars respectivelyinFY2023 Increasedaccess tofederalcontractsamongAAPI entrepreneurscanhelpboosteconomic growth,businessinnovation,andliftup wholecommunities

Department of Housing and Urban Development Nuclear Regulatory Commission Department of Transportation Environmental Protection Agency Department of Commerce

Business Administration Department of Commerce Office of Personnel Management Social Security Administration Department of Agriculture

Top 5 Agencies for Contracting Include:

Federal Procurement

RECOMMENDATIONS FOR A VIBRANT AND ACCESSIBLE FEDERAL MARKETPLACE:

ReformtheFederalMarketplacetoReduceComplexity

AttractMoreSmallBusinesses:Amongsmallbusiness owners,thetopchallengetoaccessingfederalcontract thattheprocessisexpensive,timeconsuming,andofte requirestheexpertiseofattorneysandcontracting professionals Additionally,morethan50%ofbusiness ownerssaytheydon’tknowspecificcontractsavailable them,andjustunder30%ofsmallbusinessownersinth US arecompletelyunawarethatthefederalgovernmen awardscontractstosmallbusinesses

IncreasingtheMicro-PurchasingThreshold(MPT): RaisingtheMPTwouldattractmoresmallbusinessowners tothefederalmarketplacebymodernizinggovernment procurement,simplifyingtheprocurementprocess,and incentivizingnewentrants.Thiswouldhelpclosethewealth gapbyincreasingopportunitiesfordiversebusinessesthat mightnotbeabletoaccessthefederalmarketplace otherwise.

YingMcGuire(NationalMinoritySupplier DevelopmentCouncil),PatrickKirkwood(Los AngelesLGBTQChamberofCommerce), NormanChen(TheAsianAmerican Foundation),MarkHerbert(CAMEONetwork), andSusiFeltch-Malohifo`ou(PacificIsland Knowledge2ActionResources)sharetheir expertiseonenhancingopportunitythrough supplierdiversityonabreakoutpanel

3.Culturally-RelevantMentorship:NationalACEsupportseffortstoincreasementoringopportunities tohelpbridgethegapbetweenfederalcontractsandsmallbusinessowners.Specifically,wesupport mentoringprogramsthatareculturallyrelevantandofferlanguagetranslationservices.National ACEsupportsallocationofadditionalresourcestoSmallBusinessDevelopmentCenters(SBDCs),the SBA’sWomen’sBusinessCenters,andSCOREofficestoensuresmallbusinessownershaveaccessto localcontractingresources

Federalcontractingcanserveasapowerfulopportunityforsmallbusinessownersand entrepreneurstogrowtheirbusinessesandclosecapitalgaps,butmoreworkisneededtohelpthem capitalizeonopportunitiesavailabletothem

“FederalprocurementisachallengingbuttransformativespaceforAAPIentrepreneurs Navigatingcomplexregulations,competingwithlargerfirms,andaccessingtheright networksoftencreatesbarriersthatlimitopportunitiesforsmallbusinesses Yet,small businessesaretheenginesofinnovation,pushingboundariesanddeliveringcreative solutionstosomeofthenation’stoughestchallenges AtTheOutpost,weseefirsthand howstartupsandentrepreneursaretransformingindustriesandleveragingtechnology toenhanceoperationalefficiencyandtransparency Wearecommittedtoclosing thesegapsbyprovidingtailoredresourcesandguidancetohelpentrepreneursengage effectivelyinthefederalmarketplace Bydrivingpoliciesthatsimplifyprocurement processesandleveltheplayingfield,wecanunlocknewopportunitiesforsmall businessestothrive,sustaintheiroperations,andcontributeinnovativesolutionstoour government Closingthisgapisnotjustaboutequity it’saboutunleashingthefull potentialofAAPIentrepreneurstostrengthenoureconomyandsociety”

-LinhHoang,CEO,TheOutpost

Fostering AAPI Leadership

AsianAmericansandPacificIslandersrepresentoneofthefastestgrowingdemographicsinthe country,owning1in10smallbusinessesincluding1in5restaurants

PrivateSector:IncorporateAmerica,AAPIshavealsomadestrides,yetchallengesremain.3ofthe4 mostvaluablecompaniesinAmericaareledbyAAPIs:Google,underSundarPichai;NVIDIA,under JensenHuang;andMicrosoft,underSaytaNadella.ItwouldalsoseemthatAAPIsaremakinginroads totheC-Suite,asAMDCEOLisaSu,MetaCFOSusanLi,andNetflixChiefContentOfficerBelaBajaria, areAsianAmericansinhighly-visibleexecutivepositionsatsomeofthelargestcompaniesinthe world. Inspiteofallofthis,AAPIsmakeup14%ofU.S.professionalswhilerepresentingonly7%of executives Nevertheless,thereisabrightspot:AAPIrepresentationontheboardsofFortune1000 companiesissteadilyincreasing,risingfrom4%to64%from2020to2023

PublicOffice:WhileAAPIsremainunderrepresentedinleadershipandexecutiveroles,theycontinue tomakesignificantprogress Inthe2024generalelection,arecord-breaking550AAPIcandidates ranforfederalandstateoffice,markingapowerfulstepforward Asthefinalvoteswerecounted,it becameclearthatnewAAPIfaceswouldjointhe119thCongressincludingSenatorAndyKim(NJ), CongressmanTedLieu(CA-36),CongressmanMarkTakano(CA-39),CongresswomanGraceMeng (NY-06),CongresswomanYoungKim(CA-40),CongresswomanAmataRadewagen(AS)and CongressmanVinceFong(CA-20).

Fortune500Companies:TheunderrepresentationofAAPIsinC-suitesandcorporateboards highlightsanopportunityforgrowthintheworkforce Thecorporatesectorcancontinuetomake stridesbyidentifyingandrecruitingqualifiedAAPIsforseniorpositionsandboardseats AsianAmericanscomprise2%ofFortune500CEOpositions Ithasstayedat2%forthepast decade

Whileaccountingfor13%ofprofessionalpositionsatlargeemployers,AsianAmericansholdjust 6%ofseniormanagementpositions Acrossthecountry,there’sapersistentgapbetweenAsian Americanrepresentationinentry-levelprofessionalpositionsandmoreseniormanagement roles

AsianAmericansonlycomprisedapproximately4.4%ofdirectorsofFortune1000companies. In2021,AAPIscomprised9%ofnewboardmembersofFortune500companies. IntheFortune100,theboardseatsheldbyAsian/PacificIslanderscontinuedtosteadilyincrease. Whilethisprogresscontinues,itisaminuteamountintermsofthenumberofboardseats an increaseofjustnineseatssince2020.Asian/PacificIslanderwomensawagrowthof23.5%board seats.In2022,AAPIrepresented5.2%ofFortune100BoardSeats(63total).

Lisa Su

CEO

Source: Reuters

Sundar Pachai Google CEO

Source: Tony Avelar/AP Images

Sayta Nadella Microsoft CEO

Source: Reuters

Jensen Huang NVIDIA CEO

Source: NVIDIA

Fostering AAPI Leadership

RECOMMENDATIONS FOR ELEVATING THE BRIGHTEST AAPI LEADERS AND ENTREPRENEURS:

WhileprogresscontinuestobemadeasmoreAAPIsareelectedtooffice,therateatwhichAAPIsare advancingtoexecutiveleadershipisstillslowrelativetothelevelofexpertiseandeducationthatAAPIs consistentlybringtothetable.InordertoelevatethebrightestAAPIleadersandentrepreneurs,itis criticalto:

CombatStereotypes:Policiesshouldchallenge stereotypesthatlimitAAPIvisibilityinleadership

PromotingthediversityandcontributionsofAAPI communitieshelpscreatemoreopportunitiesfor leadershipadvancement

2 BoostAAPIRepresentation:FostermeaningfulAAPI representationincorporateandpoliticalleadership throughmentorship,networking,andskillstraining. SupportingAAPIentrepreneursandboostingthe businessecosystemtoproducebusinessleaderswill alsohelptoachievethis.

EnhanceAAPIVisibility:NationalACEPresidentand CEO,ChilingTong,servesontheCommissiontoStudy thePotentialCreationofaNationalMuseumofAsian PacificAmericanHistoryandCulture,helpingto highlighttheinvaluablecontributionsofAAPIs. IncreasingawarenessonAAPIhistoryand contributions,aswellasincreasingthevisibilityofAAPI stories,canhelpdismantleharmfulstereotypes.

NationalACEhostedaLasting LegaciesFiresideChatwithThe HonorableElaineL.Chao,24thU.S. SecretaryofLaborand18thU.S. SecretaryofTransportation

“AAPIrepresentationinthemediaisnotjustimportant itis transformative.Forgenerations,AsianAmericansand PacificIslandershavebeenmarginalized,misrepresented, orerasedfromthestoriesthatshapeourculture But today,asAAPIvoicestakecenterstage,moreanddiverse storiesaretoldwithgreaterauthenticityanddepth,weare witnessingaseismicshiftinhowweareseenandhowwe seeourselves AsmoreAAPItalentbreakthebamboo ceilingintoleadingroles,itcanreshapeanentireindustry ThisholdsthepotentialtotransformnotjusttheAAPI community,butsocietyitself usheringinafuturewhere representationisn’tjustareflectionofreality,butaforce thatshapesitintosomethingbetter That'swhatJoySauce isabout”

-JonathanSposato,Founder&CEO,JoySauceTV

International Commerce

TheIndo-Pacificregionisespeciallysignificant,withU.S.foreigndirectinvestmentinthearea exceeding$969billionin2020,nearlydoublingsince2010.Tradewiththisregionsupportsoverthree millionU.S.jobsandcontributesover$900billioninforeigndirectinvestmentbackintotheUnited States. Astradepoliciesevolve,AAPIandallbusinessownersmustnavigatebothchallengesand opportunitiesinthisincreasinglycomplexglobalmarketplace.

TariffPoliciesandSupplyChains:Oneofthesignificantissuesininternationaltradeisthepotential forincreasedtariffs,particularlyonimportsfromChinaandotherkeyIndo-Pacificpartners.These tariffsareintendedtoincentivizedomesticmanufacturingandstrengthentheU.S.economy.However, theywouldleadtohighercostsforbusinessesthatrelyonimportedgoodsaswellasconsumers acrosstheboard.Entrepreneurs,especiallythoseinindustrieslikeretail,food,andmanufacturing, mayfacechallengesfromthesecostincreasesastheyimpacttheirsupplychains.Tariffincreases fromCanada,Mexico,andChina particularlyinindustrieslikesteel,aluminum,autoparts,and energy wouldcostsmallbusinesses$47billioninTexas,$33billioninCalifornia,and$28billionin Michigan,allstateswithsignificantAAPIpopulations

The2024GlobalTradeReportbyThomsonReutersrevealedthefollowingsupplychainvulnerabilities andtradecomplexities:

EconomicUncertaintyandRegulation

1. LaborandWorkforceChallenges:Laborshortages,risingcosts,and complexlaborlawsremainsignificantconcerns.ManyAAPIentrepreneurs relyoninternationalproductionandlabor-intensiveindustries,wherethese challengescanlimitcapacityandraiseoperationalcosts.

:Recentsurveysrevealthat74%of businessesareimpactedbysupplychainduediligencerequirements,and 52%areaffectedbygeopoliticalexportcontrollaws.Theseregulationscan complicateoperations,particularlyforAAPIentrepreneursinvolvedin cross-bordertrade.

2. TechnologyandESGConsiderations:Enhancingsupplychainvisibility, security,anddataprotectionaretopprioritiesforbusinessesinvestingin technology Additionally,81%ofbusinessesreportthatenvironmental, social,andgovernance(ESG)considerationsinfluencetheirsupplier selection Thesefactorsareincreasinglyshapingbusinessdecisionsin internationaltrade

POLICY RECOMMENDATIONS FOR

AccordingtoUNTrade andDevelopment (UNCTAD),globaltrade hitanall-timehighof $33trillionin2024,up$1 trillionfromtheprevious year Evenmodest changesinUnited Statestariffswillhave substantialeffectson globaltradedynamics

NAVIGATING THE GLOBAL MARKET:

EnhanceSupplyChainResilience:Policymakersshouldincentivizethediversificationofsupply chainstoreducedependencyonsingleregionsandmitigaterisksposedbytariffsortrade barriers.Supportinginvestmentintechnologieslikereal-timetrackingandpredictiveanalytics canenhancesupplychainresilienceanddataprotectionwhileaddressingevolvingsecurity needs.

EnsureTradePolicyTransparency:Adjustmentstotradepoliciescanleadtosignificantripple effects,includingshiftsinmarketaccessorreciprocaltariffs.Lawmakersshouldprioritize transparentcommunicationabouttradepolicychangesandengagewithindustry associationsandchambersofcommercetounderstandtheneedsofbusinessesimpactedby suchshifts.

2. PromoteEfficiencyandWorkforceInnovation:Federalandstateinitiativesshouldfocuson encouragingtechnologicaladvancementsthatstreamlinelogisticsandimprovee-commerce capabilitiesforbusinesses.Additionally,workforcedevelopmentprogramsandincentivesfor automationadoptioncanhelpmitigatelaborshortages,strengthenbusinesssustainability, andmaintaincompetitivenessinfluctuatingtradeconditions

Language Accessibility

LanguageaccessibilityisacriticalissueforAAPIentrepreneursandtheircommunities Withover100 languagesspokenwithinAAPIcommunitiesintheUS,itisessentialthatkeyservices,information, andresourcesareavailableinmultiplelanguages

LanguageBarriersinBusinessOperations: AsianAmericans havethehighestratesoflimitedEnglishproficiency(LEP)at 35%,whichisdefinedbytheCensusBureauasthosewhodo notspeakEnglish“verywell” Only15%ofAAPIsaged65 yearsandolderspeakEnglishathome,andoverhalf(60%) havelimitedEnglishproficiency Thislanguagedividelimits accesstocrucialresourcesandcriticalinformationabout governmentprogramsandpolicies,taxrequirements, technicalassistance,andfundingopportunities,which disproportionatelyaffectsentrepreneursincommunitieswith highconcentrationsofLEPindividuals

SpotlightonHealthcare:Whethercommunicatingwitha healthcareprovider,understandinginstructionsfora medication,applyingforfinancialassistanceorinsurance, orsimplymakinganappointment,languageandliteracy barriersexacerbatepoorhealthoutcomesfornon-native Englishspeakers(NNES).NNEShavelowerratesofhaving insurance,sufferhigherratesofchronicdisease,and overallhavepoorerhealthoutcomesthannativeEnglish speakers.

NationalACE’sCapitolHillvisitwith U.S.CongressmanJakeEllzey(TX06),whositsontheHouse AppropriationsandSmallBusiness Committees

TechnologySolutions:Theriseoftoolssuchasmachine translationandautomatedbilingualcustomerservice toolsoffersanopportunitytobridgelanguagedivides moreefficiently.However,thesetoolsmustbetestedfor accuracyandculturalrelevancetomeettheneedsofAAPI andLEPcommunities

2 ProvideFundingforMultilingualResources:Allocate fundingfornonprofitsandcommunityorganizationsto providemultilingualeducationalresourcesandservices, particularlyinunderservedareas

ExpandLanguageAccessPolicies:Advocateforgreater languageaccessinbothpublicandprivatesectorssothat AAPIandLEPcommunitiescanfullyaccessbusiness, healthcare,andlegalresourceswithoutlanguagebarriers

3 WorkforceTrainingandAdvocacy:Accesstotranslators iscrucialforimprovingservicedelivery.Businessesand organizationsshouldinvestinculturaltrainingprograms fortheirstaffthatequipthemtoserveLEPclients effectively,creatingamoreinclusiveenvironmentforall.

“Languageaccessibilityiscrucialina diversecountryliketheUnitedStates, butitremainsachallengeformany That’swhywefoundedVowChats to provideanAI-poweredsolutionthat helpssmallbusinessesbreakdown languagebarrierseffortlessly.By offeringmultilingualsupport,small businessownerscanexpandtheir marketreach,improvecustomer service,andboostbrandvisibility,all withouttheneedforfull-time translators.Thisnotonlymakestheir servicesmoreinclusivebutalso strengthensrelationshipswithnonEnglish-speakingcustomers"

-NateChen,Founder,VowChats

RECOMMENDATIONS FOR ADDRESSING THE LANGUAGE GAP:

Supplier Inclusion

Supplierinclusiondriveseconomicgrowthandfostersinnovation.ForsmallandAAPI-owned businesses,supplierinclusionprogramsoffercriticalpathwaystocapital,mentorship,andmarket access,playingapivotalroleinunlockingeconomicpotentialwithinsmallbusinesscommunities By participatinginsupplierinclusionprograms,AAPIandallentrepr markets,mentorshipandnetworkingopportunitiesinadditionto opportunities.

Inthelastseveralyears,investmentsinsupplierinclusion programsintheprivatesectorhaveremainedconsistent In2024,executiveinterest,includingamongChiefExecutive OfficersandChiefFinancialOfficers,insupplierinclusion programshasincreased,withmoresupplierinclusion teamsreportingtotheC-Suite.Businessleadersrecognize thesignificanteconomicvalueofsupplierinclusion, includingsupplychaincompetitiveness,abilitytowinnew businessandthevalueaddtocorporatecultureand workplaceinclusion

Thereisaneconomicimperativefordiversificationofthe supplierpipelineforlargecorporations.World-class supplierinclusionprogramsoutperformprocurement departmentsthatdonotemphasizeinclusionand belonging Topsupplierinclusionprogramsgenerate133% greaterreturnonthecostofprocurementoperationsthan averageperformers,drivinganadditional$3.6millionto theircompany'sbottomlineforevery$1millionin procurementoperationscosts. Itisimportantto acknowledgethatsupplierinclusionprogramsarenot mandated;thecorporationsthatusethemhaveelectedto dosobecauseitisgoodfortheirbusinesses

Topsupplierinclusionprogramsgenerate133%greater returnonthecostofprocurementoperationsthanaverage performers,drivinganadditional$36milliontotheir company 'sbottomlineforevery$1millioninprocurement operationscosts.

RECOMMENDATIONS TO IMPROVE SUPPLIER INCLUSION:

"BeingbothMBE(NationalMinoritySupplier DevelopmentCouncil)andWBE(Women’s BusinessEnterpriseNationalCouncil) certifiedhasunlockedtransformative opportunitiesforSugarBliss,aproudAAPIownedretailbakeryandbakedgoods companyheadquarteredinChicago. Supplierinclusionprogramsaremorevital thanever,astheyensurebusinesseslike ourshaveaseatatthetable These programshaveopeneddoorsforSugar Blisstopartnerwithcompanieslike Walgreens,CompassGroup,andMacy's, fuelingourgrowthandamplifyingthe representationofAAPIentrepreneursinthe businesslandscape."

-TeresaGing,CEO&Founder,SugarBliss

Weareamplifyingthevalueofmerit-basedsupplierinclusiontocorporateleadersand policymakers,illustratinghowaninclusiveanddiversifiedsupplychainleadstobusinessgrowth.

NationalACEissharingtheeconomicimpactandsuccessofAAPIsthroughsupplierinclusionand federalcontractingwithcorporateleadersandpolicymakers. 2.

NationalACEpartnerswiththeU.S.BlackChambers,Inc.,theU.S.HispanicChamberofCommerce, theNationalLGBTChamber(NGLCC),andReimagineMainStreettomaketheeconomicand businesscaseforsupplierinclusionintheprivatesector.

3. Despitetheshiftinglandscape,organizationslikeNationalACEremainsteadfastinadvocatingfor supplierinclusionbasedonthemeritandexcellenceofallentrepreneurs.Bycollaboratingwithdiverse partnersandamplifyingtheeconomicimpactofAAPIandotherbusinesses,NationalACEcontinuesto strengthenthecaseforsupplierinclusionasacornerstoneofthriving,competitiveeconomies.

Tax Reform

Therenegotiationofthe2017TaxCutsandJobsAct(TCJA)i 119thCongress.WithkeyprovisionsoftheTCJAsettoexpire criticalopportunitytoreformthetaxcodetobettersupport ownedbyAAPIentrepreneurs.

Smallbusiness-relatedprovisionsintheTCJAsetto sunsetinclude:

20%Pass-ThroughDeduction:Expiringin2025,this deductionsupportssmallbusinessesstructuredas pass-throughentitiesbyreducingtheirtaxableincome ChildTaxCredit(CTC):Enhancedcreditsof$2,000per childandhigherincomethresholdswillrevertto$1,000 andpre-2017levelsin2026.

BonusDepreciation:Businesseswilllosetheability tofullydeductthecostofequipmentpurchasesby 2026.

R&DAmortization:R&Dexpenses,currentlyrequired tobespreadoverfiveyears,createfinancialhurdles forbusinessesinvestingininnovation.

StateandLocal(SALT)TaxDeductions:SeveralSALT relatedprovisionsarepoisedtosunset,including SALTforpass-throughbusinesses.ThecurrentSALT deductionslimittheamountbusinessownerscan deduct.ExpandingSALTdeductionsforsmalland mediumsizedbusinessescouldsupporteconomic growthandinvestment

CongresswomanJudyChu(CA-28) supportstheProvidingReal OpportunitiesforGrowthtoRising EntrepreneursforSustainedSuccess (PROGRESS)Act,whichwouldcreate twonewtaxcreditstoexpand accesstocapitalforsmallbusiness owners.

Recognizingthebipartisanmomentumfortaxreform,asseeninlegislativeproposalsliketheTax ReliefforAmericanWorkersandFamiliesAct,NationalACEcallsonCongresstosimplifythetax codeandremoveadministrativeburdensthatdisproportionatelyimpactsmallandAAPI-owned businesses.

“Thequalifiedbusinessincome(QBI)deduction (alsoknownasthe"Pass-ThroughDeduction"or "Section199Adeduction"),scheduledtoexpireat theendof2025,shouldbereworkedtoexpandtax benefitstotheownersoftheverysmallestofsmall businesses MostAAPIbusinessownersrun microenterprises,whichrequirethemosttaxrelief tocreatejobsandenabletheirexpansion Business taxbreaksshouldbeprogressiveinnatureand shouldalsoincluderefundablecreditstohelp jumpstartnewmicroenterprisestarts.”

addphoto

-LamarHeystek,President,ASIAN,Inc.

Tax Reform

MakingtheTaxCodeWorkforSmallBusinesses:Extendandexpandprovisionslikethe20% pass-throughdeductionandbonusdepreciationtofostersmallbusinessgrowth.Small businessestakeadvantageofthe20%pass-throughdeduction,with64%ofnon-Ccorporationsclaimingthedeductionintheirmostrecenttaxfiling. NationalACEisalso supportiveoftaxmeasuresthatincreaseaccesstopaidfamilyleave,includingthe45S EmployerTaxCredit,whichprovidesacreditforemployerswhoofferpaidleavebenefits.

SupportingInnovation:AllowbusinessestoimmediatelydeductUS-basedR&Dexpensesto encourageinnovationandcompetitiveness

RestoreR&DExpensing:ThenonpartisanJointCommitteeonTaxation(JCT)wroteinJuly thatrestoringR&DexpensingwilldecreasethecostofR&D,therebyincentivizingbusinesses toexpandtheirinvestments

ReduceRegulatoryBurden&SimplifyExistingTaxCreditsforBusinesses:Addressbarriers facedbyAAPIandallentrepreneurs,includingcomplexcompliancerequirementsandlimited accesstotaxcredits.

ThefederalgovernmentestimatesthatregulationscostAmericanbusinessesroughly$300 billionannually.

Low-incomeAAPIhouseholdsarelesslikelytoreceiveworkrelatedtaxcredits,suchasthe EarnedIncomeTaxCredit(EITC),duetothecomplexityofthecreditandlackofawareness ofthecreditamongAAPIs.

AsCongressconsidersexpandingtheTCJAandreformingthetaxcode,theymusttakesmall businessesandentrepreneursintoaccount Themajorityofsmallbusinesses,includingAAPIownedsmallbusinesses,overwhelminglybelievethatthecurrenttaxcodefavorslarge businesses,signalingtheneedforstrongersmallbusinessrepresentationinthetaxcode

Byaddressingthesepriorities,Congresscancreateataxenvironmentthatdrivesgrowth, innovation,andprosperityforAAPIandallsmallbusinessesaswellasthebroadereconomy. NationalACEstandsreadytoworkwiththeAdministrationandCongressionalleaderstoensure thattheneedsofsmallbusinessesarerepresentedinthetaxdebate.

Workforce Development

Recentshiftsinboththepublicandprivatesectorshaveledtoemergingworkforcetrends,fromAI adoptionandchangesinworkplacebenefitstoagrowingemphasisonScience,Technology, Engineering,Arts,andMath(STEAM)educationtopreparethefutureworkforce.Astechnologyadvances rapidly,includingtheevolutionofAI,bothemployersandemployeesmustadapttoremaincompetitive.

PaidLeaveandCaregivingFlexibility:Multigenerational householdsarecommonwithintheAAPIcommunity,leading toahigherproportionofAAPIsshoulderingcaregiving responsibilitiesforolderrelatives.Formany,caringforeldersis aculturalnorm,with73%ofAAPIsfeelingexpectedtocarefor theirparents. AARPfoundthatthecostofunpaidcaregiving contributionsreachedapproximately$600billion,not includinglostwages. NationalACEadvocatesforflexiblepaid leavepoliciesthatcatertocaregivingneeds,ensuring accessibilityforworkerswhoneedit,withoutprioritizingone formofleaveoveranother.

STEAMEducation:AsAIandtechnologybecomemore sophisticated,theneedforanincomingworkforcepreparedto harnesstheirpotentialgrows Careersinscience,technology, engineering,andmathematics(STEM)areprojectedtogrow108% by2032,outpacingnon-STEMoccupationsbymorethanfour times AAPIsrepresent11%ofundergraduateandgraduateSTEM degreesand13%oftheSTEMworkforce,despitecomprisingjust7% oftheUS population However,whendataisdisaggregated, SoutheastAsians(e.g.,Filipino,Vietnamese,Thai)are underrepresentedinSTEAMeducationandtheworkforce. AAPI women,especiallyBurmese,Nepali,andSamoanwomen,also facesignificantgenderwagegapsinthesefields. NationalACE advocatesforexpandingaccesstoSTEAMopportunities.

“Inairportsandmajortransportationhubsacross theUSA,theDepartmentofTransportationsets goalsforminority-ownedsmallbusinessestobe awardedconcessionopportunities Myfamilyhas participatedintheAirportConcessions DisadvantagedBusinessEnterprise(ACDBE) programfortwogenerationsatHarryReid InternationalAirport Theseprogramsare essentialnotonlyforcreatingalevelplayingfield incompetitivemarketsbutalsoforfostering workforcedevelopmentandempoweringthe nextgenerationofminorityentrepreneurs My hopeisthatmyfamily’sbusinesswillcontinueto grow,creatingjobsandopportunities,andwillbe passedontofuturegenerations”

-MikeTy,President/Owner,Hospitality Culinaire,Inc.

RECOMMENDATIONS FOR BUILDING A THRIVING WORKFORCE ECOSYSTEM:

PaidLeaveWorkingGroups:WeareactivelyengagedwithbipartisanandbicameralCongressional workinggroupsonthecreationofanationalpaidleaveframework Wesubmittedalettertothe SenateWorkingGroupinJanuary2024outliningtheimportanceofaflexiblepaidleaveprogram attunedtotheneedsoftheAAPIcommunity

NationalACEreleasedfindingsfromanationalsurveyofbusinessownersto betterunderstandsentimentonpaidfamilymedicalleavelaws

complianceburdensthatdisproportionatelyaffectminorityentrepreneurs.

NationalACEhasengagedwiththird-partyappstoexploreportablebenefitsfor gigworkers,recognizingthisframework'spotentialtoprovideflexibilitywhileensuringcritical benefits.

NationalACEremainscommittedtoadvocatingforflexiblepaidleave,expandingSTEAMopportunities, andaddressingtheuniqueworkforcechallenges Throughpolicyengagement,amplifyingAAPIand smallbusinessowners'voices,andworkingwithcorporatepartners,westrivetocreateaworkforce ecosystemthatempowersentrepreneurstothrive

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62 Forbes, Spur Economic Growth By Protecting Supplier Diversity Programs

63. Forbes, Spur Economic Growth By Protecting Supplier Diversity Programs

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NATIONAL ACE BOARD OF DIRECTORS

Garrett Gin

National ACE Board Chair

Senior Vice President, Local Marketing and Corporate Affairs Los Angeles Bank of America

Adeel Afshar

Executive Director ACE NextGen

Jason Chan

Chief of Staff to President, State External & Legislative Affairs

AT&T

Melody Chen President Maruson Technology

Jimmy Ferguson

Owner/Operator; McDonald’s Asian McDonald’s Operators Association (AMOA) President, Maxtab, Inc.

Karen Ideno

Group Vice President - ESG Investing & Toyota Chief Indirect Procurement Officer

Toyota North America

Bill Imada

Chairman & Chief Connectivity Officer

IW Group

Susan Jin Davis

Social Impact Officer

Al Roker Entertainment

Joon Kim

Associate Vice President, External Affairs

Comcast

Pat Fong Kushida

President & CEO California Asian Chamber of Commerce

Chris Law

National Vice President, Asian Initiatives UnitedHealthcare

Grace Lee

President & CEO Ashford Connex, LLC

Roberto Llames

President & CEO Enterprise Solutions, Inc

Manumalo Muasau

Founder Manumental

Andrew Moy

Executive Vice President, Asian Segment Leader, Commercial Banking Wells Fargo & Company

George Tanaka

Managing Director, Head of Japan Practice US Bank

Thomas “Tony” Waller

Vice President, Constituent Relations and Racial Equity

Walmart

Helene Yan

Chief Client Officer, Health Interpublic Group

Vivian Young

Global Head Asian & Pacific Islander Affairs

JPMorgan Chase