UTSA’s federally funded center in Laredo extends outreach to minority businesses

Daniel Fosado (center) works to test Biokaab cleaning products with business center and corporation representatives.

JANUARY 6, 2025 — Minority business owners in South Texas can now receive support from the San Antonio MBDA Business Center. The agency’s newest satellite office, the Rural Center South Texas in Laredo, will enable the MBDA to reach new audiences and further UTSA’s goal of helping minority business owners and entrepreneurs thrive.

“We are excited to have the ability to expand the technical assistance we provide to the minority business community in San Antonio to South Texas,” said Orestes Hubbard, senior director of minority business services. “This office allows us to have a physical presence in the border region to assist local businesses to grow and prosper using the resources we have. Our intent is to expand further to other smaller communities in South Texas in the future.”

This new addition is one of four centers managed and operated by the Valdez Institute for Economic Development (VIED) and funded through the Minority Business Development Agency (MBDA), a bureau within the U.S. Department of Commerce. These include the San Antonio MBDA Business Center, the San Antonio MBDA Advanced Manufacturing Center and the San Antonio MBDA Export Center.

Fosado poses with the Biokaab team and some assistants at a pre-launching event in Laredo.

“As a business owner, I'm excited to have the opportunity to engage with MBDA. It has been so valuable to our business goals.”

The center provides no-cost small business technical assistance to underserved entrepreneurs in rural South Texas. Through business consultations, clients can receive counsel to guide them through critical hurdles in starting or growing a business, such as securing financing, navigating government contracting and entering new markets. These entrepreneurs also have access to more specialized advisors from the greater VIED network. For example, they can connect with experts in exporting goods, market research, or lean manufacturing.

This addition complements several UTSA initiatives dedicated to strengthening the South Texas economy, improving the quality of life and addressing obstacles for residents and business owners.

“This is rural South Texas, so many business owners face obstacles simply because they are geographically isolated,” explained Hector Ramirez, project manager at the center. “There’s a lack of access to resources, expertise and capital. Fortunately, anyone can receive support from our center if they’re experiencing social or economic barriers.”

Ramirez moved to Laredo to develop the center in February. He serves as both the center manager and as a business advisor for clients. He has focused on networking and identifying potential clients, consulting with over 400 community members and prospective collaborators since his arrival.

“Since MBDA San Antonio is relatively unknown throughout South Texas and with the Rural Center being a first-year pilot program, it is pivotal to establish partnerships throughout South Texas,” Ramirez said. “Partnerships with area economic development organizations, financial institutions, local business professionals and other business technical assistance providers are going to be vital to the impact the Rural Center wants to provide to businesses throughout South Texas.”

Fosado works in the manufacturing plant of his green cleaning product company, Biokaab.

Daniel Fosado is a business owner and one of the Rural Center’s first formal clients. Fosado owns Biokaab Inc, a developer and provider of eco-friendly cleaning products for commercial clients in a range of industries. Fosado was inspired to launch the business when he was working as a sustainability consultant in Mexico.

“I realized the impacts, costs and inefficiencies of industrial cleaning, and we developed an enzymatic formulation to replace the acid and caustic industrial cleaning products,” he said.

After developing the product formula with his co-founder, Alberto Alfaro, and attracting some clients, Fosado was invited to South by Southwest in Austin to participate in the International Pitch Competition in 2019. His company was among 10 finalists, gaining him access to mentors and other resources and paving the way for the company to enter the U.S. innovation ecosystem. The following year, Fosado participated in a three-month acceleration program in Austin and incorporated his company in Laredo, where he now lives.

Ramirez first approached Fosado in March 2024 to see if the MBDA could help him scale his business.

“Hector let me know about the possibilities of MBDA's assistance. We scheduled a meeting, signed the form and visited MBDA's office in Laredo. We've been receiving helpful, continuous guidance and support since then.”

The business was on hiatus during the pandemic but is now in the process of relaunching and expanding to new sectors and cities.

“Thanks to the MBDA, I have access to data, market analysis and business directories that allow me to align my market strategy, business connections, industrial wholesalers and client prospects,” Fosado said. “I've been introduced to MBDA's government contracting program and am planning to schedule a meeting with this area.”

While the business will continue bottling in Laredo, Fosado plans to broaden his customer base to include markets in San Antonio, Austin, Houston and outside of Texas. He’s also setting up online sales and diversifying his line of products.

“As a business owner, I'm excited to have the opportunity to engage with MBDA,” Fosado added. “It has been so valuable to our business goals.

The Rural Center South Texas is housed in the Laredo Economic Development Corp. In addition to conducting in-person appointments, the center also offers virtual consultations to support clients in neighboring counties.

— Audrey Gray