We are entering a presidential election year where Pennsylvania will play a critical role as one of the most competitive battleground states.
For this special edition of The Business Corner, I will discuss some of the funding and other programs that the Biden administration has offered to help small businesses grow.
The State Small Business Credit Initiative
Last month, the U.S. Department of Treasury announced awards of more than $50 million to 20 states to provide legal, financial, and small business advisory services that they anticipate will help more than 10,000 small businesses with diverse owners from underserved communities. This funding will help them secure loans as well as provide investment for expansion and growth.
These awards are part of the State Small Business Credit Initiative (SSBCI) Technical Assistance Grant Program. Thus far, the Treasury Department has already approved more than $8 billion in funding to all 50 states, as well as an additional $108 million in technical assistance grants to 32 states through the SSBCI Capital grant and Technical Assistance Grant Programs.
Increased funding for loan programs
In fiscal year 2023, the Small Business Administration (SBA) has already provided $50 billion to small businesses, with significant increases for underserved and minority-owned businesses.
This includes programs such as the 7(a) Loan Program, which supports financing to small businesses for working capital and a host of other uses.
One key point that continues to show the impact the Biden administration is having is the 9% increase (from 23% to over 32%) of the SBA’s loan portfolio that is going to minority-owned businesses.
March 28, 2022, Biden quoted on his X account…“Don’t tell me what you value. Show me your budget—and I’ll tell you what you value.”
With these budgeting decisions, Biden and his team continue to show what is important to support from their perspective.
It is also important to note that there has been an overall 45% increase in small dollar loans (less than $100,000) from the SBA. Small dollar loans are important to help businesses struggling to meet capital requirements at an earlier stage of business growth.
Recently, the Minority Business Development Agency (MBDA) awarded 43 nonprofit community-based organizations funding to support underserved businesses as they launch and scale. This program is the largest-ever direct federal investment in small business incubators and accelerators.
Increasing contracting opportunities
In fiscal year 2022, the Biden administration awarded approximately $163 billion in federal procurement opportunities to small businesses. This includes a record $69.9 billion (11.4%) to Small Disadvantaged Businesses (SDBs).
From my point of view, it’s clear that what the Biden administration has done shows a strong commitment to supporting small businesses and minority-owned businesses.
Teresa M. Lundy is the principal and founder of TML Communications, the award-winning strategic public relations, crisis communications, and community engagement firm serving corporations, nonprofit organizations, and government agencies. Follow Teresa on Twitter @TeresaMLundy.
