Center for Women & Enterprise lays off Worcester director amid uncertainty over federal funding, efforts to eliminate DEI
Racquel Knight, Center for Women & Enterprise director
The Center for Women & Enterprise Central MA, a Worcester-based nonprofit supporting women in business, has laid off Director Racquel Knight as organizations throughout the country are feeling the effects of the President Donald Trump Administration’s attempt to freeze federal aid to nonprofits with government contracts.
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“While I am disappointed by this decision, my commitment to supporting and uplifting women entrepreneurs remains unwavering. I will continue to advocate for and create pathways for business success, ensuring that underestimated entrepreneurs have access to the resources, knowledge, and support they need to thrive,” Knight wrote in a text message to WBJ.
In addition to Knight, the four other CWEs across New England notified their directors on Wednesday they would be laid off effective Friday.Â
The move to lay off its directors was unwanted yet necessary to keep the organization financially afloat, said Gaby King Morse, CEO and president of Center for Women & Enterprise, which is headquartered in Boston.
“My job as a CEO is to make sure CWE is here for our communities for the long haul, and right now, we're in a very uncertain situation,” King Morse said.
About one third of CWE’s annual budget comes from federal funding through the U.S. Small Business Administration, aid that now hangs in limbo as a federal judge temporarily blocked the Trump Administration’s funding freeze on Feb. 3.
Though the funding halt is reversed at the moment, King Morse said CWE and other nonprofits are still not receiving financing. In fact, the government owes CWE $225,000 from last year. With CWE typically receiving about $1 million per year from the federal government, this lag represents nearly one fourth of its annual compensation.
While the organization is usually paid late, King Morse is now uncertain the federal government will ever pay them again.
CWE’s decision to terminate its directors’ employment is part of the organization’s need to make decisions to ensure it is still able to deliver its obligations to its funders, including the SBA, she said.
“But we dedicate ourselves to do much more than that, and right now we just can't. And we had to let go of some of the most amazing community leaders. That's the situation we're in,” King Morse said.
From King Morse’s understanding, SBA-credentialed woman-owned small businesses now need to comply with certain executive orders to become certified and continue receiving funding, but what that specifically means is still unclear to her and her peers.Â
In order to comply, CWE is no longer allowed to focus its programming on any specific group, with programming language needing to make clear that each initiative is open to all. The Trump Administration has made a strong push to remove diversity, equity, and inclusion efforts from public institutions and organizations receiving public money.
While King Morse couldn’t disclose specifics, she said CWE will continue to provide all programming it is contracted to with the SBA, other foundations, and the restricted funding sources that it has already signed up to provide.
When it comes to the number of programs CWE provides that are there because of community wants and needs, several of those will not be able to be provided at this time, said King Morse.Â
An example of CWE’s specified programming is its Women of Color Business Summit, which in 2024 was held on Oct. 16 at College of the Holy Cross in Worcester.Â
“We're working on that. I think no matter what, we're going to do a summit. What it's called, I don't know, but it will be open to all,” said King Morse.
Language right now is a particularly tricky subject matter for CWE.
And as far as she knows, no Women’s Business Centers across the nation have been certified yet, for which there are nearly 150, according to the Association of Women's Business Centers’ website.
CWE has sent the SBA what it thinks is needed to be certified but is waiting to hear back.
In order to compensate for the loss of its directors, CWE has drafted proactive programming plans, and the delivery of its services is going to probably look different, said King Morse.Â
Further layoffs and/or structural organizational changes are going to depend on if CWE is able to retain its federal funding.Â
“If all of that funding goes away, we're going to have to make some more really uncomfortable decisions,” she said. “I wish we had any line of sight or any feeling of control.”
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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