Since day one in office, President Biden has been focused on providing America’s small businesses with the tools and resources they need to reopen, rehire and build back better. To date, the Biden-Harris administration has distributed more than $400 billion in critical relief to more than 6 million small businesses.
President Biden’s efforts have not only helped millions of Main Street businesses keep their lights on and employees on the payroll, they have enabled a remarkable rebound in small business activity, demand for labor- labor and inventories of small businesses reaching record levels. Higher share of small businesses planning to add new jobs in next three months than at any time during previous administration, top survey of small business owners shows . Another recent survey of small business owners found that 71% are optimistic about their own performance in 2022, up from 63% a year ago. The broader economic recovery – one of the fastest on record – has also helped spur the rise of entrepreneurship. Americans are applying to start new businesses at a record pace, up about 30% from before the pandemic.
The historically high level of new business applications has occurred as part of the Biden-Harris administration’s historic bottom-up approach to economic recovery. Shortly after taking office, the Biden-Harris administration signed into law the American Rescue Plan (ARP), which provided direct relief to families and small businesses and supported the vaccination of more than 200 million people. Americans. Through the combination of ARP investments and existing emergency relief programs, the Biden-Harris administration has distributed more than $400 billion in critical relief to more than 6 million small businesses. ARP has also provided thousands of entrepreneurs with the personal and financial security needed to launch their own businesses. This support included Economic Impact Payments of $1,400 per person, expanded Child Tax Credit payments of up to $300 per child per month, Affordable Care Act credits, and support for COBRA premiums to ensure healthcare coverage remains available, and an extension of employer retention credit, including expanding eligibility to recent startups.
Despite the historic progress made to date, the Biden-Harris administration remains committed to helping America’s new small businesses grow, create jobs, and provide the essential goods and services our communities depend on. Specifically, the Biden-Harris administration is:
- Expand access to low-cost loans and investments. The Treasury Department is working with all states and territories and 400 tribal governments to establish small business loan and investment programs under the $10 billion Small Business Credit Initiative (SSBCI). dollars established by the ARP. and By this summer, the first wave of programs will launch, unlocking billions of dollars in new loans and investment capital for small businesses in big cities and small towns across America. Small businesses can also continue to access the traditional Small Business Administration (SBA) 7a, 504, and microcredit programs, which collectively reached record lending volume in fiscal year 2021. providing $44.8 billion through more than 61,000 loans.
- Increase access to billions of dollars in federal contracts for small businesses. Last year, the Biden-Harris administration announced its strategy to increase the share of federal procurement dollars going to socially disadvantaged businesses by 50% by 2025. President Biden’s bipartisan infrastructure act also includes a landmark procurement effort designed to support small businesses and address long-standing inequities in the procurement system. Among other things, the legislation directs the DOT to attempt to award more than $37 billion in federal contracts to disadvantaged small businesses.
- Helping small businesses hire new employees and reach new customers by providing universal broadband. High-speed Internet is necessary for Americans to do their jobs and increasingly important for small business owners across America. President Biden’s bipartisan Infrastructure Act will invest $65 billion in broadband infrastructure, helping to ensure that every American has access to reliable high-speed internet and creating new opportunities for small businesses across the country. national scale.
- Connecting small businesses to the resources they need to grow and succeed. The SBA Community Navigator program was launched last year and deploys trusted messengers to underrepresented communities to offer small businesses a wide range of support services. The bipartisan Infrastructure Act made the Minority Business Development Agency (MBDA) permanent, elevated its director to undersecretary of commerce, and gave the agency more tools and authority. SBA also recently launched the Small Business Digital Alliancea public-private partnership aimed at providing small businesses with essential technology resources to start and grow their e-commerce business, on their way to success.