Local Business Expansion Vice President Harris Announces Grants to Underserved Small Businesses

Introduction

During a visit to local small businesses in Washington D.C., Vice President Kamala Harris will announce grants to non-profit and community-based organizations from the $125 million Capital Readiness Program. This program aims to support underserved small businesses in accessing capital, which is a key pillar of the Biden administration’s economic agenda, also known as Bidenomics.

Capital Readiness Program Awards

Today, Vice President Harris will announce the 43 winners of the $125 million American Rescue Plan-funded Capital Readiness Program (CRP) awards competition. These critical funds will help underserved entrepreneurs launch and scale their small businesses. The CRP is the latest investment by the American Rescue Plan in navigation and support services for small businesses, building upon the $300 million already deployed through the Small Business Administration’s Community Navigator Program and the Treasury Department’s State Small Business Credit Initiative.

Under the Biden-Harris Administration, there has been a surge in new business applications, reaching a record-breaking 12.6 million. This trend is expected to continue in 2023, indicating the confidence of entrepreneurs in the effectiveness of Bidenomics. Vice President Harris will announce the awards during her visit to a local minority-owned retail village called Sycamore & Oak, which houses several small businesses.

Largest-Ever Investment in Small Business Incubators and Accelerators

The Capital Readiness Program, administered by the Minority Business Development Agency (MBDA), is the largest-ever direct federal investment in small business incubators and accelerators. Thanks to the President’s Bipartisan Infrastructure Law, the MBDA has been made permanent and expanded. The Capital Readiness Program represents the largest initiative in the MBDA’s history, spanning over 50 years.

Partnerships to Support Underserved Entrepreneurs

The 43 winning organizations include a mix of non-profit and community-based organizations, private sector entities, and institutions of higher education located across the country. These organizations will form partnerships to assist and train underserved entrepreneurs in accessing resources, tools, and support to start or scale their businesses. The focus will be on high-growth, high-wage industries such as healthcare, climate resilient technology, asset management, and infrastructure.

Examples of Awardees

• Arizona Hispanic Chamber of Commerce Foundation (Phoenix, Arizona): This organization will receive $3 million to deliver an enhanced business accelerator and incubator program. It will help underserved entrepreneurs in Arizona, Nevada, and California access capital for projects focused on renewable energy, information technology, and infrastructure development.

• Bridgeway Capital (Pittsburgh, Pennsylvania): This organization will receive $2 million to serve at least 340 minority-owned and rural entrepreneurs in Pennsylvania, West Virginia, and Ohio. The funds will be used to scale up their business education programs, helping entrepreneurs build capacity and access revenue-generating growth opportunities.

• The Urban League of Greater Atlanta, Georgia: This organization will receive $3 million to provide incubator and accelerator services through its Entrepreneurship Center. Historically underserved entrepreneurs in high-growth industries such as healthcare, climate-resilient technology, infrastructure, and transportation and logistics will benefit from these services.

• The Northern Great Lakes Initiative (Marquette, Michigan): This partnership between a community lender and a small business incubator will receive $3 million. The funds will support entrepreneurs in Michigan, with a focus on West Michigan, from the idea phase to the incubation and growth stages of their businesses.

• The Capital Region Minority Supplier Development Council (Silver Spring, Maryland): This organization will receive $3 million to support its Ingenuity Consortium. The consortium, comprised of six Historically Black Colleges and Universities and Minority-Serving Institutions, aims to provide entrepreneurial opportunities for underserved small business owners through capital access partnerships.

A full list of CRP award-winners is available on the website.

State Small Business Credit Initiative (SSBCI) Technical Assistance Grant Program

In addition to the Capital Readiness Program, the Biden-Harris Administration is announcing the first approvals of awards for up to $58 million to 12 states as part of the SSBCI Technical Assistance Grant Program. This program will provide approximately $200 million to states, territories, and tribal governments, helping small businesses access the support provided by the American Rescue Plan. The SSBCI is expected to benefit around 100,000 small businesses over the next decade.

Additional Actions to Support Small Businesses and Underserved Entrepreneurs

The Biden-Harris Administration has implemented various initiatives and programs to support small businesses and underserved entrepreneurs. These include:

Expanding Access to Capital

• Delivering Historic Support to Minority-Supporting Community Financial Institutions: The Community Development Financial Institutions (CDFI) Equitable Recovery Program has awarded over $1.7 billion in grants to more than 600 CDFIs. This funding supports lending to small businesses and microenterprises, particularly those in underserved communities. The Emergency Capital Investment Program (ECIP) has also distributed nearly $9 billion to CDFIs and Minority Deposit Institutions, providing loans, grants, and forbearance for small and minority-owned businesses.

• Making Permanent Programs that Boost Lending to Underserved Communities: The Small Business Administration (SBA) finalized a rule allowing over 100 nonprofit lenders to secure permanent access to SBA loan products. These lenders have a proven track record of lending to underserved businesses, including those owned by minorities, women, and veterans.

• Expanding Lending Licenses to Address Capital Access Gaps: SBA is increasing the number of licenses for non-depository lenders, expanding competition and providing more borrowing options for small businesses. These licenses will fill gaps in the small business lending marketplace, particularly in traditionally underserved communities.

• Forming the Interagency Community Investment Committee (ICIC): The ICIC, chaired by the Treasury Department, facilitates collaboration among federal community investments. This coordination aims to maximize the impact of federal dollars in underserved rural and urban communities.

• Streamlining and Simplifying Small Business Lending: SBA is modernizing the lending criteria and conditions for its business loan programs. This simplification will expand access to affordable loans for credit-worthy business owners.

• Delivering Historic Support for Small Business Investment in Clean Energy Projects: The Greenhouse Gas Reduction Fund (GGRF), a $27 billion program launched by the Environmental Protection Agency (EPA), mobilizes financing for clean energy projects. This program focuses on reducing air pollution and supporting small business owners in accessing financing and technical assistance.

Making Historic Investments in Helping Small Businesses Navigate Available Resources

• Meeting Small Business Owners Where They Are: The Community Navigator program, funded by the American Rescue Plan, provides funding to organizations that partner with community service providers to close resource, capital, and educational gaps for small businesses. Community Navigators have helped secure nearly $250 million in approved funding for small businesses and provided training and counseling to thousands of business owners.

• Providing Dedicated Support at MBDA Business Centers: The MBDA has awarded nearly $3 million in funding to support Business Centers in assisting underserved businesses in accessing contracting opportunities. These centers will provide technical assistance and facilitate access to capital for small businesses.

• Maximizing Federal Agency Resources to Support Small Businesses: SBA, MBDA, and DOT have signed Memorandums of Understanding to improve access to resources and foster equity in procurement initiatives. These initiatives aim to help small businesses in transportation obtain bonds, increase their bonding capacity, and access private capital for projects.

Leveraging Federal Spending to Support Small Businesses

• Using Federal Contracting Dollars to Support Small and Disadvantaged Businesses: President Biden has directed agencies to increase federal contracting with underserved small businesses, with a goal of 15% of procurement dollars going to small disadvantaged businesses by 2025.

• Ensuring CHIPS Act Funding Supports Small Businesses: The Administration is ensuring that small businesses benefit from the $52.7 billion CHIPS Act. Funding opportunities have been released with a focus on supporting small businesses in clean technology projects.

• Creating Contracting Opportunities in Clean Energy and Energy Efficiency: The Inflation Reduction Act includes funding for training contractors in energy efficiency and electrification improvements. It also provides funding for rebate programs and support for rural electric cooperatives, benefiting small businesses in the home contracting sector.

• Cutting Energy Costs for Small Businesses: The Inflation Reduction Act includes tax credits and deductions for small businesses that switch to low-cost solar power, invest in energy efficiency improvements, and purchase clean commercial vehicles.

Conclusion

The Biden-Harris Administration is committed to supporting local business expansion through various initiatives and programs. The Capital Readiness Program and the State Small Business Credit Initiative Technical Assistance Grant Program are significant investments in underserved small businesses. Additionally, the Administration is working to expand access to capital, simplify small business lending, and leverage federal spending to support small businesses. These efforts aim to create jobs, foster economic opportunity, and ensure that small businesses in every community can thrive under the Bidenomics agenda.