Updates focus on providing access to capital and entrepreneurial support services, creating economic opportunities, and developing the national economy
WASHINGTON, Feb. 14, 2024 (GLOBE NEWSWIRE) — Today, Administrator Isabel Casillas Guzman, head of U.S. Small Business Administration (SBA) President Biden's Cabinet, the voice of more than 33 million small businesses and startups in the United States, announced the SBA's updated 2023 Equity Action Plan and announced that the SBA will advance the Biden-Harris Administration's equity investment efforts. We have outlined actionable steps that can be taken. Opportunities for capital and income growth. Customize business counseling, training, and other services. and increasing access to disaster assistance for underserved communities.
“Under the Biden-Harris Administration, the face of entrepreneurship is changing as Americans from traditionally underserved and underrepresented communities start businesses at record rates.” said Director Guzman. “SBA's latest Equity Action Plan recognizes the tremendous value that diverse entrepreneurs bring to our nation's economy in terms of job creation, innovation, and competition both domestically and internationally. America's unprecedented small business boom This latest Equity Action Plan is a testament to SBA's commitment to advancing entrepreneurship among people of color, women, veterans, and rural communities as we continue to enjoy the benefits of .”
This Equity Action Plan is consistent with an executive order signed by President Biden on his first day in office, requiring all federal agencies to conduct comprehensive assessments of their programs, policies, and practices, and to ensure that every community and individuals, particularly areas of historical significance, to ensure that services are provided equitably. Not receiving enough services.
SBA identifies underserved communities as demographic and geographic communities that are systematically denied the opportunity to fully participate in aspects of economic, social, and civic life. Some SBA programs adopt specific definitions for underserved communities and disadvantaged small businesses, as outlined in the program's statutes and regulations.
The 2023 Equity Action Plan outlines the following strategies:
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Improve access to loan funds It will enroll new lenders with the ability to enter underserved markets, increase the participation of existing lenders by taking advantage of the SBA's simplified lending rules, and expand lending to justice-involved entrepreneurs. This is done by proposing new policies that promote
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Improving access to federal procurement and contracting opportunities By leveraging resources to support disadvantaged small and medium-sized businesses (SDBs) and working with federal agencies to advocate for and identify more contracting opportunities for SDBs.
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Improving access to disaster relief By modernizing technology, streamlining the application process, and increasing support for underserved disaster survivors navigating the application process.
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Improve access to business counseling, training, and business service By tailoring outreach, training, and educational resources to the specific needs of underserved communities.
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Improve access to investment funds Introducing new rules to the Small Business Investment Company (SBIC) program could increase the diversity of participating fund managers and lead to more investment capital going to underserved entrepreneurs.
SBA's regular engagement with the small business community and its stakeholders informed the Equity Action Plan. Through our national network of field and program offices, SBA communicates directly with entrepreneurs through activities such as training events, small business coaching sessions, office hours calls, and regulatory and policy notification processes. SBA also gains insights from resource partners, small business trade associations, chambers of commerce, and other organizations similarly focused on supporting small business growth.
In addition to this plan, SBA also highlighted the following updates and accomplishments of the initial equity action plan:
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Establish a new type of small business lending company (SBLC) called SBLC. Community Advantage Small Business Loan Company (CASBLC)It provided for the conversion of Community Advantage Pilot lenders into fully licensed CA SBLCs with permanent 7(a) lending authority.
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When you open a new window, New application for SBLC license The new SBLC will help target a critical market gap in SBA lending to underserved small businesses.
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creation of Rules for SBIC growth and diversification, This is by establishing a new fund of funds license, aligning terms with patient and growth strategies, increasing support for smaller funds, and simplifying and streamlining licensing. Facilitated greater participation of more diverse fund managers across the country. rule.
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In FY2022, through SBA initiatives, SBIC will increase the number of women-owned, minority-owned, Veteran-owned small businesses increased by 29%.
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negotiation achieve your goals in spite of 24 Chief Financial Officer Law Agencies To put more federal money into SDB owners. These targets were set to achieve his 2022 interim target of 11% of contract awards to SDB, with a milestone towards 15% by 2025.
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SDB earns more dollars From $62.4 billion in FY21 to a record high of $69.9 billion in FY22.
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Increased Federal Procurement and Contracting Opportunities for Small Businesses From $89.5 billion in FY21 to $99.5 billion in FY22.
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start of 8(a) Multiple Award Schedule (MAS) Pool, Work with the General Services Administration (GSA) to increase opportunities for 8(a) program participants within GSA's MAS program.
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Deploying new electronic tools to identify eligible companies and measure the health of the industrial base We are collaborating with the Office of Federal Procurement Policy (OFPP) at the Office of Management and Budget (OMB), including the Small Business Data HUB and resources and tools to promote procurement equity for GSA.
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Register additional SDBs Incorporated into SBA's Business Development and Contracting Program.
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Get the most out of your application's education and assistance 8(a) for business development programs.
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complete Disaster financing system change regulations Increase the maximum allowable amount of disaster loans to ensure disaster assistance is sufficient for disaster victims to complete full recovery.
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Implement Rural Disaster Relief Act Increase accessibility of disaster assistance in rural areas.
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Leverage the new “SBA Whole-Wide Approach” to foster a broader network of partnerships Implement planned customer service campaigns early in the disaster response cycle to optimize delivery of recovery resources.
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Creation of SBA's new Portable Loan Outreach Center (PLOC) initiative Provide assistance to underserved disaster survivors who may not receive SBA assistance.
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In FY23, several rural areas were served by PLOC. For example, in Mississippi, 352 contacts completed 72 successful loan applications. In Florida, his 132 applications were accepted from 248 contacts.
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Approximately $45 million allocated (32%) of funds Investments in Small Business Development Centers (SBDCs) are now tied to investments in Minority Serving Institutions (MSIs).
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choosing 5 new women's business centers (white blood cells) Although expected to operate with established MSIs in 2022, 60% of WBCs are located in rural areas.
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creation of Tribal College Small Business Merit Grant To support Native American economic development.
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By expanding, Veterans Business Outreach Center (VBOC) Program 6 centers (up to 28) and host the Military Spouse Entrepreneur Virtual Summit.
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Hosting outreach events in collaboration with various federal agencies; These include the new Pathways to Prosperity series, which has attracted more than 3,300 participants, primarily from rural areas.
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Signed a strategic alliance memorandum (SAM) with American Jewish Committee To combat anti-Semitism. SAM also signed with the National Panhellenic Council to promote SBA programs and services to Black entrepreneurs, and with Operation HOPE, where he provides financial literacy and resources to efforts to create 1 million Black businesses. did.
Read the full SBA Equity Action Plan here.
Read the White House fact sheet on the Government-wide Equity Action Plan here.
Click here to learn more about our commitment to equity across government.
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About the U.S. Small Business Administration
The U.S. Small Business Administration helps advance the American dream of business ownership. As the single go-to resource and voice for small businesses backed by the power of the federal government, SBA helps entrepreneurs and small business owners start, grow, and expand their businesses and recover from declared crises. We will provide you with the resources and support you need. disaster. We provide services through an extensive network of SBA field offices and partnerships with public and private organizations. For more information, please visit www.sba.gov.
CONTACT: Christine Saah Nazer U.S. Small Business Administration press_office@sba.gov
