Tag Archives: Small Businesses

Biden Administration, Economic Development, Economic Policies, News & Photo Features

FACT SHEET: Marking Small Business Saturday, Biden-Harris Administration Takes New Actions to Increase Federal Support for Small Businesses

The Biden-Harris Administration is increasing small business lending limits and helping small businesses compete for federal contracting opportunities. This fact sheet is provided by the White House:

Small businesses are the engines of our economy and the heart and soul of our communities. Today, the White House announced new actions by the Small Business Administration (SBA) and the Office of Management and Budget (OMB) to increase access to federal lending and contracting opportunities for small businesses. SBA is announcing it is making it easier for traditionally underserved small businesses to access capital from mission-oriented lenders by increasing the cap on their SBA 7(a) loans from $350,000 to $500,000. OMB is releasing procurement guidance on both upcoming contracts and subcontracting opportunities to better enable federal agencies to support small business trying to compete for the over $700 billion in federal contracts. And federal agencies are leveraging small disadvantaged businesses at record rates to improve resilience in federal research and development (R&D) supply chains.
 
President Biden and Vice President Harris invested a record $56 billion in SBA-backed capital in small businesses last year—and have overseen a small business boom. American entrepreneurs have filed over 20 million new business applications, the most in any single Presidential term in history. And these applications are leading historic business creation, with new establishment growth higher under President Biden than at any point in the last quarter-century. Entrepreneurs are thriving across communities, with business ownership doubling among Black families, hitting a 30-year high for Hispanic families, exceeding a 30-year high for Asian Americans, and surpassing pre-pandemic levels for women business owners. The Biden-Harris agenda continues to make sure that small businesses in every corner of the country—rural, suburban, urban, and everywhere in between—have the resources they need to grow and thrive.
 
In advance of Small Business Saturday, the Biden-Harris Administration is doubling down on investments in entrepreneurs by taking the following actions: 

  • Expanding caps on critical lending programs. Today, the SBA is announcing an increase of the maximum loan amount backed by their Community Advantage Small Business Lending Companies (CA SBLCs) from $350,000 to $500,000 for active lenders in good standing. These mission-based non-depository lenders—often Community Development Financial Institutions (CDFIs)—focus on providing access to capital to underserved businesses and underinvested businesses, ensuring that women, people of color, veterans, rural, and low- and moderate-income communities have access to SBA-backed capital. This step builds on prior action by the Biden-Harris Administration to support small businesses through CA SBLCs, including making the program permanent following a successful pilot launched by the Obama-Biden Administration.
    • Improving forecasting of upcoming federal contracting opportunities. OMB is issuing guidance to federal procurement officials to strengthen government-wide procurement forecasts. Agencies have long been required to prepare annual forecasts of upcoming federal contract opportunities for businesses, but variance in the quality and timeliness has made it difficult for small businesses to prepare their proposals and more effectively compete against larger businesses. Today’s memo will help align timelines and expectations, better enabling small business to understand when new opportunities will become available and plan ahead to compete for federal awards.
       
    • Increasing access to federal subcontracting opportunities. In 2023, small businesses received a record $86 billion in subcontract awards from the federal government. Building on this success, OMB is issuing guidance to federal agencies on ways to continue to expand subcontracting opportunities for small businesses, the primary gateway for them to compete as prime contractors. This also improves the resilience of supply chains for critical government needs by increasing competition and expanding the pool of businesses engaged in federal contracts. This guidance describes promising policies and strategies adopted by forward-thinking agencies, and encourages federal procurement officials to recognize prime contractors who meet or exceed their subcontracting plan goals and work to strengthen their small business supply chains.
       
    • Leveraging Small Disadvantaged Businesses (SDBs) to meet research and development (R&D) Needs. Federal R&D investments are integral to maintaining American leadership in emerging science and technology. The Biden-Harris Administration has made significant progress in leveraging the talents of SDBs for federal R&D contracts, with two-year average annual spending at $2.5 billion in Fiscal Years 2022 and 2023—an all-time high and nearly $450 million a year more than in 2020. Following OMB’s call for agencies to strategically build out resilience within specific supply chains, the White House, SBA, and the National Aeronautics and Space Administration (NASA) released an internal set of best practices to help agencies reach even greater heights in the R&D sector, including actions to strengthen planning, outreach, and use of the resources available through the 8(a) Program. 

Both of OMB’s actions build on significant work by the Biden-Harris Administration to help small and underserved businesses access federal contract opportunities, including awarding a record $178.6 billion in federal contracting opportunities to small businesses (28.4% of eligible federal dollars) and a record $76.2 billion to small disadvantaged businesses (12.1% of eligible federal dollars).

Biden Administration, Economic Development, Economic Policies, Economy, News & Photo Features

FACT SHEET: Celebrating National Small Business Week, Biden-Harris Administration Announces Record Federal Dollars Awarded to Small Businesses

As Congressional Republicans propose cutting SBA funding by 31%, White House releases 2024 Small Business Boom Report that shows SBA small dollar Loans on track to nearly double since 2020. This fact sheet is provided by the White House:  

 

The Biden Administration is touting a sustained small business boom, with Americans filing a record 17.2 million new business applications © Karen Rubin/news-photos-features.com

Small businesses are the engines of the economy. As President Biden says, every time someone starts a new small business, it’s an act of hope and confidence in our economy. In celebration of National Small Business Week, the Biden-Harris Administration is announcing new milestones in support delivered to small businesses across the country.
 
Since arriving in office, the Biden-Harris Administration has overseen a sustained small business boom across the country. The President’s agenda has driven the first, second and third strongest years of new business application rates on record—and is on pace for the fourth—with Americans filing a record 17.2 million new business applications. Business applications are a leading indicator for new business creation, and the historic growth in business applications has coincided with the strongest labor market in decades. And traditionally underserved small businesses are growing at near-historic rates, with Black business ownership growing at the fastest pace in 30 years and Latino business ownership growing at the fastest pace in more than a decade.
 
Republicans in Congress have undermined small businesses by attempting to repeal Inflation Reduction Act investments that are lowering costs for small business. House Republicans are also threatening assistance to small businesses across the country by proposing draconian cuts to the Small Business Administration as part of their 31% reduction to government-wide spending. And House Republicans would defund the President’s agenda to advance racial and gender equity in federal contracts.
 
President Biden is fighting to grow the small business boom spurred by his agenda. The Biden-Harris Administration announced:

New Records for Federal Procurement Dollars Awarded to Small Businesses, Including Small Disadvantaged Businesses (SDBs). The Small Business Administration (SBA) released its Procurement Scorecard showing that in Fiscal Year 2023, the Biden-Harris Administration awarded an all-time high in federal contracts to small businesses across federal agencies. In total, a record-high of $178.6 billion, or 28.4 percent, of all contracting dollars went to small businesses. This includes:
 

  • $76.2 billion to SDBs, totaling 12.1 percent of federal contracting dollars and surpassing the 12% goal for FY23 established by the Office of Management and Budget. This represents the third consecutive year of record-breaking awards to SDBs under President Biden, and puts the Administration on track to reach the President’s goal of increasing federal contracting dollars to SDBs by 50% by 2025. Increasing federal investments in under-resourced businesses helps more Americans realize their entrepreneurial dreams, strengthens the supplier base, and contributes to narrowing persistent wealth disparities.
  • $32 billion to Service-Disabled Veteran Owned Small Businesses (SDVOSB), representing a nearly $4 billion increase from Fiscal Year 2022. The Administration surpassed its goal by nearly 70%, with a total of 5.07 percent of federal contracting dollars going to SDVOSB.
  • In FY23, government contracting with small businesses supported one million jobs, including in manufacturing, construction, research & development, technology, defense, and other vital industries.
  • Across the federal government, 22 agencies received an ‘A’ or higher on their individual procurement scorecards, surpassing last year’s total.
  • In conjunction with the scorecard, the SBA released federal contract data broken down by business owner race and ethnicity for FY23, which shows that businesses owned by historically underrepresented groups earned more through federal contracts across every category.

 
Release of Third Annual Small Business Boom Report. The White House released its third annual Small Business Boom Report, illustrating the continued achievements of the Biden-Harris Administration to support small businesses by expanding access to capital, providing small businesses with more hands-on support, ensuring federal spending benefits small businesses, and building a fairer tax code. The report shows the Administration has continued to make historic progress on all 35 commitments in the original report including:
 

  • SBA has nearly doubled small dollar loans. Small businesses consistently voice the need for access to small dollar loans, with survey results indicating over 50% of small businesses seek loans of less than $100,000, but only one-third of the smallest businesses – those with $100,000 or less in annual revenue – report receiving the full funding they request from banks. Less than one year since implementing policy reforms to increase access to small dollar loans, SBA is on pace to nearly double the number of small loans approved compared to the final year of the previous Administration, with over 20,000 7(a) loans under $150,000 approved in Fiscal Year 2024. It represents a one-third increase over last year, translating to 750 more businesses getting approved for a small dollar loans every month.
  • Through the American Rescue Plan’s State Small Business Credit Initiative approved over $8 billion in capital support for small businesses, leveraging significantly more in private sector funding. Funded by the American Rescue Plan, Treasury’s nearly $10 billion State Small Business Initiative (SSBCI) program delivers funding to states, territories, and tribal governments that spur lending and investing in small businesses, and provides critical technical assistance. So far, Treasury has approved $8.4 billion in allocations to 55 states and territories and 34 tribal governments that are expected to catalyze at least $10 in private investment for each dollar of SSBCI capital funding. Already $1.1 billion of approved funding has been deployed to support loans or investments to small businesses or investments in venture capital funds. To date, Treasury has also announced the approval of more than $135 million in technical assistance grants to 40 states and territories.
  • Delivering more than $250 billion to small businesses through SBA’s lending programs by the end of the decade. In 2021, SBA committed to delivering more than $250 billion in financing to more than 500,000 small businesses by the end of the decade. Under this Administration, SBA has taken numerous steps to expand access to capital including finalizing rules to increase small dollar lending, expanding programs that help connect traditionally underserved businesses with resources, and revamping its Lender Match portal. As a result, SBA has delivered nearly $124 billion in financing to small businesses through its 7(a), 504, and microloan programs, putting them on pace to reach their goal.