Supporting Women- and Minority-Owned Private Practices

Blueprint of Public Policy Priorities for the 119th Congress, 2025-2026

Priority:

• Expand access to capital for women- and minority-owned private practices in mental health and social services

Legislative Initiatives:

• Low-Interest Loan and Grant Programs for Women- and Minority-Owned Private Practices

Goal:

• To establish federal low-interest loan and grant programs specifically designed to support women- and minority-owned private practices, ensuring they have the financial resources to start, sustain, and grow their services. These programs aim to increase access to culturally competent and high-quality care in underserved areas while promoting equity in business ownership.

Background:

Women and minority providers are essential in delivering culturally competent mental health and social services, especially in underserved communities. Patients experience better outcomes when treated by providers who share their cultural and linguistic backgrounds. However, despite making up a substantial portion of the mental health and social work workforce, women and minorities own a disproportionately low percentage of private practices. They face significant challenges in accessing the capital needed to start or expand private practices, for example, and women- and minority-owned businesses are 50% more likely to be denied loans or offered unfavorable terms compared to others. Without equitable access to funding, these providers face missed opportunities to establish practices in high-need areas, workforce challenges that perpetuate disparities in entrepreneurship, and service gaps that limit options for culturally sensitive care in marginalized communities.

Recommendations:

Given these challenges and their severe implications for service delivery, NASW urges policymakers to:

1. Introduce legislation to create federal low-interest loan and grant programs aimed at supporting women- and minority-owned private practices
2. Secure federal appropriations to fund these programs and incentivize providers to serve underserved communities
3. Conduct Congressional hearings to spotlight the systemic barriers these providers face and the transformative potential of the proposed programs
4. Collaborate with stakeholders to ensure comprehensive outreach, technical support, and equitable access for eligible providers

Expanding access to capital for women- and minority-owned private practices is a crucial step toward fostering equity in mental health and social services. By implementing federal low-interest loan and grant programs, Congress can help remove financial barriers, strengthen the workforce, and improve care for underserved communities. NASW urges policymakers to take decisive action to support these providers, ensuring a more inclusive and accessible system that benefits both practitioners and the populations they serve.