Small Business Administration Expands Access to Capital for Underserved Communities
The Small Business Administration (SBA) recently shared the Biden administration’s plans to further support the small business community. “Under the Biden-Harris Administration, the SBA has prioritized closing longstanding capital gaps by expanding the number of lenders focused on underserved markets so these highly entrepreneurial communities can power our economy,” SBA Administrator Isabel Guzman said.
The Small Business Administration acknowledges that access to capital remains a substantial barrier to entrepreneurs. The SBA also identified some of the most underserved groups of business owners that they aim to support, which include:
- people of color (POC)
- rural and low- and moderate-income communities
To help set these identified communities up for success, the SBA introduces over 140 new Community Advantage Small Business Lending Companies (CA-SBLCs) across the United States. With these lenders, small business owners who are part of underserved communities can secure the financial resources they need for their business, whether it’s for expansion of staff, upgrade to new tech, or additional working capital.
Learn more about the SBA Community Advantage Program here.
This effort is just one of many ways the administration supports and empowers small businesses. Most small business owners may be familiar with the Paycheck Protection Program (PPP), which helped businesses keep their staff employed during the COVID-19 crisis. Aside from small business loans, SBA offers valuable resources for entrepreneurs. The SBA also designs programs that help underserved communities compete for federal contracts. Such initiatives include the Women-Owned Small Business Federal Contracting and the Service-Disabled Veteran-Owned Small Businesses programs.
Visit the US Small Business Administration website for more information.
The Contribution of Small Businesses on the US Economy
Small businesses are essential to any healthy economy. They help stimulate economic activity within local communities and create more jobs. Small businesses also positively impact the local communities they serve by giving back, whether it’s by helping local charities or partnering with educational institutions to nurture young talents. This is especially true for the United States.
According to the SBA’s March 2023 update, there are more than 33 million small businesses in America, which account for 99.9% of all US businesses. These entities employ around 61.7 million Americans, 46.4% of private sector employees. The numbers are quantitative proof that small businesses play a huge role in an economy’s success. And by supporting small businesses—with an emphasis on underserved communities—the government also drives job creation and economic growth.
About the Small Business Administration (SBA)
Established in 1953, the SBA or Small Business Administration is a US government agency. Its mission is to serve and support the interests of entrepreneurs and small businesses. Their programs include counseling, funding programs, and contracting assistance designed to help small businesses survive and thrive in a highly competitive economic landscape.
Administrator Isabel Guzman currently heads the SBA. Sworn into office in March 2021, she is the 27th Administrator of this government agency. Before her 2021 appointment, Administrator Isabel Guzman spent her time championing small businesses in other capacities. Her previous roles include the California Office of the Small Business Advocate Director and Deputy Chief of Staff at the SBA, to name a few.