By Megan Sayles,
AFRO Business Writer,
msayles@afro.com
In line with President Joe Biden’s Investing in America agenda, the U.S. Department of Treasury announced $50.8 million in new funding for the State Small Business Credit Initiative’s (SSBCI) Technical Assistance Grant Program on Nov. 21. The investment will be used to provide more than 10,0000 small business owners across 20 states with access to legal, accounting and financial advisory services.
The state of Maryland was approved for $3.3 million in funding. The state’s Small Business Development Center (SBDC) at University of Maryland will use the capital to connect underserved and very small businesses (VSBs) with mentorship and government, nonprofit and corporate institutions that specialize in business development and financing.
“These investments are a key part of the Biden-Harris Administration’s efforts to fuel the small business boom by providing small businesses and entrepreneurs the resources they need to succeed,” said U.S. Treasury Deputy Secretary Wally Adeyemo, in a statement. “Today’s announcements will help unlock the potential of entrepreneurs in underserved communities across the nation who may have otherwise never had the support needed to pursue their business ideas and ambitions.”
The SSBCI was initially established in 2010, but the $10-billion program was reauthorized and expanded by Biden in 2021 under the American Rescue Plan. Its latest iteration includes technical assistance funding to aid VSBs—those with less than 10 employees— and underserved small businesses in applying for the SSBCI capital programs and other government small business programs.
Overall, the Biden administration expects the SSBCI to activate up to $10 of private investment for every $1 of SSBCI capital.
This announcement coincided with the release of the Small Business Administration’s (SBA) performance report for Fiscal Year (FY) 2023, during which the agency deployed a historic $50 billion to small businesses.
The report noted that lending to minority-owned businesses has increased from 23 percent to over 32 percent since 2020. In particular, the quantity and dollar value of loans from the SBA to Black-owned businesses has more than doubled.
“Starting and running a business takes tremendous grit and determination, but it also takes capital — something too many enterprising Americans have historically been unable to obtain equitably and affordably,” said SBA Administrator Isabel Casillas Guzman, in a statement. “The Biden-Harris Administration remains committed to simplifying and addressing persistent inequities in accessing capital to ensure all small business owners can get the funding needed to grow and create jobs for our economy.”
Megan Sayles is a Report For America Corps member.
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