The Biden-Harris Administration has powered a small business boom, overseeing record growth and support for small businesses across the country
Since President Biden and Vice President Harris took office, American entrepreneurs have filed over 20 million new business applications, the most in any single Presidential term in history. Under the Biden-Harris Administration, we have had the first, second, and third strongest years of new business applications on record, and are on track for a fourth. Each new business is an act of hope and confidence in the economy, and each of these applications marks the first step in that journey. Over the last four years, entrepreneurs have filed an average of over 440,000 applications every month, a rate over 90% faster than pre-pandemic averages.
The Biden-Harris Administration has powered a small business boom across the country. Business ownership has doubled among Black households and hit a 30-year high for Hispanic households; new business creation rates hit a 30-year high for Asian Americans; and women own a higher share of businesses than before the pandemic. While the Biden-Harris Administration has invested in small businesses that lift communities in every corner of the country-rural, urban, and everywhere in between- Congressional Republicans have repeatedly tried to cut SBA's funding by nearly a third and want to raise taxes and costs for small businesses.
Today's announcement builds on significant actions taken by the Biden Administration to support small businesses, including:
- Record levels of capital through the Small Business Administration. In Fiscal Year (FY) 2024, the SBA backed an historic $56 billion in capital to small businesses and disaster impacted communities, providing over 100,000 financings in the forms of loans, investments, and surety bond guarantees to small businesses. Compared to FY20, the SBA tripled its lending to Black-owned business, doubled lending to Latino-owned and women-owned small businesses, and significantly increased lending to businesses owned by Native, Veteran, and rural entrepreneurs. The SBA also prioritized increasing access to small dollar loans, doubling the number of loans under $150,000.
- Lowering costs for small businesses through the Investing in America agenda. The Inflation Reduction Act included a number of provisions that have saved small business owners money. These laws created a tax credit to cover 30% of the cost of switching to solar power, allowed small businesses to deduct up to $1.00 per square foot of their business for making high energy efficiency upgrades, and lowered health care costs that saddle small business owner's budgets by capping out-of-pocket prescription drugs costs for seniors at $2,000, capping the cost of insulin for seniors at $35 a month, and preserving the American Rescue Plan's premium tax credit supports for the Affordable Care Act-saving millions of small business owners and self-employed workers an average of $700 per year on their health insurance premiums.
- Expanding access to capital across the country through the State Small Business Credit Initiative (SSBCI). Through SSBCI, the American Rescue Plan is providing nearly $10 billion to support small business loan and venture capital programs implemented by states, territories, and Tribal governments across the country. Through 2023, SSBCI funds had already catalyzed $3.1 billion in public and private financing for small businesses. Further, SSBCI funds have already supported $1.2 billion in venture capital financing and it is expected that jurisdictions may support as many as 200 investment funds over the course of the SSBCI program. In addition, SSBCI support targets underserved and very small businesses. Through December 2023, 75% of transactions supported underserved businesses and 78% supported business with fewer than 10 employees.
- Awarding record federal contracts to small businesses. The federal government is the world's largest purchaser of goods and services, giving it an important role in creating opportunities for entrepreneurs. In FY23, federal agencies awarded a record $178.6 billion in federal contracts to small businesses-representing 28.4% of all eligible federal contracting dollars. These federal contract awards enable small business growth, supporting more than one million jobs in manufacturing, construction, defense, and other core industries. Federal agencies also awarded a record $76.2 billion to small disadvantaged businesses.
- Supporting entrepreneurs through hands-on assistance and services to help them successfully access capital and grow and scale their businesses. In addition to providing access to capital and contracting opportunities, federal agencies also provided significant hands-on services and assistance to ensure that small businesses had the support they needed to capitalize on federal supports and access the broader market. Building on longstanding SBA assistance programs provided through their Regional Field Offices, Small Business Development Centers, Veteran's Business Outreach Centers, Women's Business Centers, and SCORE small business mentoring, the American Rescue Plan included the largest-ever dedicated federal investment in navigator services for small businesses through the Small Business Community Navigators Pilot Program, delivering training to over 350,000 entrepreneurs and 1:1 counseling services to over 33,000 small business owners. It also included the largest-ever direct Federal investment in small business incubators and accelerators through the Minority Business Development Agency's Capital Readiness Program. And through Treasury's SSBCI technical assistance grants and Small Business Opportunity Program awards, the Federal government is leveraging local and non-profit partners to ensure entrepreneurs can get the support they need regardless of where they live.
- Catalyzing small business growth and investments in industries of the future. The-Biden-Harris Administration's historic investments in clean energy, infrastructure, innovation, and manufacturing have also boosted small businesses. The Bipartisan Infrastructure Law will continue to provide support for and lower costs for small businesses by reducing shipping delays caused by aging infrastructure, increasing access to customers by expanding high-speed internet coverage, and leveraging small business contractors to complete critical projects for the Federal Highway Administration, Federal Transit Administration, and National Highway Traffic Safety Administration. The CHIPS and Science Act also provides $54 million in funding to small business to help them explore and participate in the commercial microelectronics marketplace. The Inflation Reduction Act builds on these direct investments, providing tax credits and incentives to support small business involvement in the green energy transition, including by making it cheaper for small businesses to use and supply clean fuels, solar panels, commercial clean vehicles, and other green products.
