Vice President Visits State Small Business Credit Initiative Recipient and Releases New Report Demonstrating Administration’s Support for Small Manufacturers
Today, in celebration of National Small Business Week and in recognition of the critical role that small manufacturing businesses play in the economy, the White House released a report detailing how the Biden-Harris Administration’s Investing in America agenda is providing critical support for small businesses in manufacturing industries, including through the State Small Business Credit Initiative (SSBCI). Vice President Harris will travel to Richmond, Virginia to highlight the report, visit one of the nation’s thriving small manufacturing companies, and discuss how the Biden-Harris Administration’s Investing in America agenda is rebuilding the U.S manufacturing base by empowering small businesses.
Since the start of this Administration, we have seen record progress made by small businesses. They have created 3.1 million jobs, and employ nearly half of all private sector workers. In 2021 and 2022, a record 10.5 million applications for new small businesses were filed, the strongest two years on record. Earlier this week, the White House released a report card demonstrating across-the-board progress on commitments designed to maintain the nation’s historic momentum in fostering new business creation and leading to the small business boom seen over the last two years.
White House Report Highlights How the Biden-Harris Administration’s Investing in America Agenda Works for Small Businesses, Works for Small Manufacturers
Today’s report illustrates how the Biden-Harris Administration’s historic SSBCI, authorized by the American Rescue Plan and administered by the U.S. Treasury Department, is providing small businesses with access to capital to invest in critical manufacturing equipment and assets. Already, 52 states and territories have been approved for over $8 billion in SSBCI capital for small business growth and expansion that will create hundreds of thousands of jobs over the next decade. SSBCI is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, meaning this historic investment will provide tens of billions of dollars in public and private support for small businesses across the country. In addition, Treasury has convened manufacturing-focused discussions among nearly twenty states to stand up initiatives to address a host of common challenges faced by small manufacturers. These SSBCI-supported efforts include programs to reduce lender risk when investing in advanced technologies, expanding access to working capital, expanding opportunity for small business owners from disadvantaged backgrounds, and investing in innovative start-ups.
Today, the Vice President will visit Babylon Micro-Farms, a small manufacturing company based in Virginia that has become a leader in developing sustainable and affordable indoor farming equipment. In December 2022, Babylon received a $150,000 equity investment from the Virginia Innovation Partnership Corporation supported by the State of Virginia’s SSBCI program. Virginia’s investment in Babylon is just one example of how the Biden-Harris Administration’s small business strategy is helping entrepreneurs to thrive and is strengthening the U.S. manufacturing base.
The Biden-Harris Administration’s Investing in America agenda is strengthening this small business boom and encouraging the fastest manufacturing recovery since the 1950s. Small businesses are the backbone of the manufacturing sector. Nearly 75% of the U.S. manufacturing sector is made up of companies with fewer than 20 employees. Small to medium-size manufacturers generate half of all industrial output and employ close to 9% of the U.S. workforce. Already, nearly 800,000 manufacturing jobs have been created since President Biden took office, the most of any Administration and private sector companies have announced more than $400 billion in major manufacturing projects in industries of the future, such as clean energy, semiconductor fabrication, and biotechnology, since President Biden took office.
House Republican Bill Would Harm Small Businesses, Manufacturing Strength, and Eliminate Jobs
While the Biden-Harris Administration has made historic investments in small business to strengthen our manufacturing power here at home, Speaker McCarthy and House Republicans have passed a bill that would slash billions in vital programs for small businesses, eliminate good paying jobs, and directly target the SSBCI program that has contributed so much to small business growth:
- Slash almost $2 billion from SSBCI, reducing needed capital for up to 10,000 small businesses and support for 100,000 jobs. This would particularly harm small business loans and equity investments for tribal and other underserved entrepreneurs.
- Eliminate the Department of Commerce’s Capital Readiness Program, a grant program funded as part of SSBCI and administered by the Minority Business Development Agency (MBDA) to support incubators and accelerators that will support minority and other underserved entrepreneurs. Last year, MBDA released a Notice of Funding Opportunity for this program
- Rescind up to $575 million from the Emergency Capital Investment Program, which supports small businesses through Community Development Financial Institutions and Minority Depository Institutions. These funds were designed to help these institutions provide support to small businesses and other borrowers in underserved communities.
- Exacerbate access to capital gaps by slowing loan approvals, impeding new lender registration, reducing lender oversight, and impeding technology updates and customer service for small business applicants, forcing small businesses to seek more expensive non-Small Business Administration capital options.
- Eliminate free business counseling for 295,000 small businesses owners.
- Reduce support for thousands of rural businesses. The Republican proposal would cut funding for the U.S. Department of Agriculture’s Rural Development Business Programs, resulting in more than 2,000 rural businesses—nearly all small businesses—losing access to this assistance.
Official news published at https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/04/fact-sheet-vice-president-harris-celebrates-small-business-and-manufacturing-boom/