With Small Business Saturday just around the corner on November 25th, the Biden-Harris Administration is taking substantial steps to bolster the backbone of the American economy—entrepreneurs. The administration’s focus on economic growth and resilience is evident in the record-breaking 14.6 million applications to initiate businesses during President Biden’s tenure, showcasing increased confidence among entrepreneurs.
The U.S. Department of the Treasury injects $50 million from the American Rescue Plan into initiatives aligning with the President’s Investing in America agenda. This funding aims to aid over 10,000 businesses owned by individuals from traditionally underserved communities. Through the State Small Business Credit Initiative’s (SSBCI) Technical Assistance Grant Program, these funds will provide essential legal, financial, and advisory services, facilitating growth and expansion. This announcement is part of the nearly $10 billion SSBCI funds deployed to create opportunities and stimulate economic growth, demonstrating that each dollar invested multiplies into $10 of lending and investments.
In Fiscal Year 2023, the Small Business Administration (SBA) delivered a historic $50 billion in capital, marking a 32% increase compared to the same period in the previous administration. The data reveals a concerted effort to uplift minority-owned businesses, increasing their share from 23% to over 32% since 2020.
The SBA’s mandate to support various demographics is evident, with loans to women-owned, veteran-owned, and minority-owned businesses witnessing significant growth. Notably, small-dollar loans, often crucial for the smallest businesses, have seen a surge, with the SBA delivering nearly $90 million in microloan funding in FY23, benefitting minority-owned businesses substantially.
Recognizing the importance of rural businesses, the SBA and the Department of Agriculture have strengthened their partnership through a memorandum of understanding. This collaboration aims to create jobs, foster economic growth, and improve economic security in small and underserved rural communities. This partnership underscores the need to foster entrepreneurship across America by training rural business owners and identifying opportunities for agricultural producers.
The Biden-Harris Administration has taken significant steps to support entrepreneurs, including expanding the Small Business Lending Company (SBLC) program for the first time in four decades. Introducing three new licensed lenders specializing in underserved communities reflects a commitment to addressing historical disparities.
Additionally, the Treasury’s Notice of Funding Opportunity for the $75 million SSBCI Investing in America Small Business Opportunity Program, the Minority Business Development Agency’s $100 million Capital Readiness Program, and the SBA’s Community Navigators Program highlight the comprehensive approach the administration is taking to empower entrepreneurs across the nation.
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