After more than a year, Jewish businesses will finally be recognized as minority-owned by the U.S. Department of Commerce, thanks to a memorandum signed during the Biden administration. This classification has the potential to create and sustain numerous businesses throughout the country.
Orly Gottesman, owner of Modern Bread and Bagel, exemplifies the impact of this new designation. Her restaurant caters to those who seek gluten-free options, even if she personally does not have dietary restrictions. The drive to create these options originated from her husband, Josh, who is gluten intolerant.
"It was a very isolating diagnosis for him and as a connection for me being his partner," Gottesman told Scripps News. "People would invite us over and say, 'Oh, but, you know, I don't know if we can have you because Josh can't eat anything.'"
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In response to her husband's diagnosis, Gottesman attended culinary school and developed gluten-free flours suitable for various baked goods.
"I was like a mad scientist in a science lab," she recalled.
Gottesman's journey began in her own kitchen and evolved into a test kitchen filled with trials and errors — both culinary and financial.
"We invested almost all of our savings into this place, knowing that we were doing something we really believed in," said Gottesman.
Despite the challenges, she never pursued available grants or loans, relying solely on her customers for funding. Prior to this change, she was unaware of the financial assistance available to Jewish business owners, who had previously been excluded from billions of dollars in government contracts and low-interest loans designated for minority businesses.
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According to P.V. Viswanath, professor of finance at Pace University New York, Jewish Americans constitute just 2% of the U.S. population — a stark contrast to Hispanic and Black communities, which make up 19% and 14% respectively.
"Sometimes there's actually open discrimination," Viswanath said. "There might be stereotypes that people have that might cause them to feel more comfortable with giving loans to people from a majority group."
He emphasized the importance of financial support for small businesses.
"Every business needs capital to work with," said Viswanath. "A small business, though, is in a tough situation because often it doesn’t have a history that it can take to the bank."
The new classification could significantly change the landscape for Jewish-owned businesses, providing greater access to necessary funding and opportunities. These programs were previously inaccessible, but Gottesman is eager to take advantage of them as she seeks to expand her product line, which includes baking mixes for larger grocery chains.
"They have a lot of programs for minority-owned businesses that we were never able to qualify for previously," she stated.
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For Gottesman, the goal transcends financial gain.
"It's like such an emotional ride for people; for us, this business is mission driven," she shared, highlighting her commitment to helping customers as they adapt to gluten-free diets.
Currently, the Minority Business Development Agency is updating grant application requirements that will no longer request specific minority backgrounds. However, it remains unclear how the agency will verify Jewish status in this new classification.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
