White House Proposes Actions to Support Small Business

On January 24th, the Administration hosted a roundtable discussion with small business leaders to explore the Administration’s commitment to ensuring small companies have access to the funding, technical help, and support they need to prosper. Actions proposed by the Administration include:

Expanding Access to Capital:

• Proposed Rule for Small Business Lending Companies (SBLC). The SBA is committed to reaching borrowers where they are by expanding its program offerings to lenders that provide funding to underrepresented small businesses.
• Proposed Rule for Small Business Investment Companies (SBIC). SBICs are SBA-licensed and regulated investment vehicles that are privately owned and managed. An SBIC invests private and borrowed cash with an SBA guarantee in eligible small businesses to make long-term debt or equity investments.
• Lending Criteria, Affiliation, and Employee Ownership for SBA Business Loan Programs Proposed Rule: SBA is proposing to streamline and modernize various regulations governing its 7(a) and 504 loan programs.
• Implementing the American Rescue Plan’s State Small Business Credit Initiative (SSBCI): The Treasury Department has implemented the SSBCI, which provides nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to expand access to capital for small businesses, build ecosystems of opportunity and entrepreneurship, and create new jobs and economic opportunity—particularly in underserved communities still reeling from the effects of the pandemic.

Investing in Support Services for Small Businesses:

• Emergency Capital Investment Program (ECIP).  In 2022, Treasury closed and funded approximately $8.38 billion in investments with 170 institutions through ECIP.
• The CDFI Fund makes a diverse range of investments. In 2022, the CDFI Fund will have allocated $5 billion in New Market Tax Credit allocations, $355 million under the Bond Guarantee program, and more than $580 million in additional award programs to deliver finance to traditionally neglected regions.
• Providing SSBCI Technical Assistance: As part of the $10 billion State Small Business Credit Initiative, Treasury has announced the availability of $200 million to support small business technical assistance for states, the District of Columbia, territories, and tribal governments participating in SSBCI.
• SBA Community Navigators Program: In 2021, the SBA will offer a $100 million grant to organizations in all 50 states and Puerto Rico that are working to bridge resource gaps for small companies in the United States as well as those in underprivileged and underrepresented areas. Nonprofits, state and local governments, colleges, and tribal bodies that act as “hub” organizations are eligible for financing under the program.

Improving Agency Services and Coordination:

• Improving SBA’s Lender Match: SBA will implement significant technological improvements to its small business borrower and lender marketplace tool, Lender Match. This improved version of Lender Match will provide an enhanced landing page to match small business borrowers with SBA lenders and offer the option to be taken through the entire loan process.
• Interagency Community Investment Committee (ICIC): In July, Vice President Harris announced the formation of the Interagency Community Investment Committee (ICIC) chaired by the Treasury Department.

More information on the proposed initiatives can be found HERE.