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By: Rhett Buttle
Most Americans enter each new year with plans for what they are going to do differently and small business owners are no different. However, before diving headfirst into 2024, let’s take a quick look back at 2023 as it comes to close and celebrate some of the milestones for small business owners.
The past year was a big one for Main Streets across America in terms of trust in their communities and policy efforts to support them. Here are five of the biggest takeaways for small businesses.
1. Small Business Remains The Most Trusted Institution
While trust in many American institutions is low, small businesses continue to be the most trusted in the United States. Gallup’s annual survey on trust found that 65% of Americans still have confidence in small businesses. To put this in perspective, only 34% have confidence in the medical system and 8% do in Congress.
2. Big Laws Have Been Passed That Will Impact Small Business
Legislation passed over the past two years is supporting Main Streets. For example, the Bipartisan Infrastructure Law is currently funding nearly $400 billion for over 40,000 projects across over 4,500 communities in all 50 states, Washington, DC, U.S. territories, and tribal communities. These include efforts to upgrade our bridges and highways and invest in clean energy and are part of President Biden’s Investing in America agenda, which has helped drive over $614 billion dollars in private sector manufacturing and green energy investments.
In addition, the Inflation Reduction Act is helping small businesses and working Americans by investing in deficit reduction to fight inflation, increasing manufacturing, lowering drug prices, and leveling the playing field on taxes.
3. New Administrative Changes That Will Make Accessing Capital Easier For Small Businesses
The Biden-Harris Administration continues to take executive actions to support small businesses. In August, the Small Business Administration (SBA) implemented policies to modernize SBA’s signature 7(a) loan program that address long-standing gaps for small-dollar loans and underserved borrowers. The new policy now takes the burden off lenders in determining if they are eligible and has SBA manage it, streamlines the process for applying, removes criminal background checks, simplifies the underwriting process for loans of $500,000 or less, and does not require collateral for loans of $50,000 or less.
4. Federal Funding Flowing Into Communities And Businesses Across the Country
A number of programs were launched earlier this year to support economic development and small businesses all across the country and revive Main Streets. The U.S. Economic Development Administration (EDA) launched the Distressed Area Recompete Pilot Program. The program empowers the EDA to partner with communities and make flexible investments, allowing communities to access critical economic resources to fund workforce and entrepreneurial development programs.
The EDA’s Regional Innovation and Technology Hubs (Tech Hubs) will boost small businesses across the country by helping develop and grow innovative industries that range from semiconductors to clean energy, critical minerals, biotechnology, and AI. Each Tech Hub is a consortium of higher education, government, industry, economic development, labor or workforce, and other organizations focused on innovation. They are located across 32 states and Puerto Rico, with six including a tribal government, four being headquartered in low-population states, and four including coal communities.
The U.S. Department of Commerce’s Capital Readiness Program, a $125 million technical assistance program, is the largest investment to support underserved entrepreneurs in the history of the Commerce Department. The program will support the development of a national network of Capital Readiness incubators and accelerators that will help entrepreneurs build skills to start and scale businesses, access State Small Business Credit Initiative capital, and secure other forms of capital.
5. More Small Businesses Are Opening Than Ever Before
Americans have filed a record 15 million applications to start new businesses since 2021 and Black business ownership is growing at its fastest rate in 30 years. This has led to Black wealth being up a record 60% from before the pandemic and Black unemployment being at historic lows.
If you are a small business owner and are unaware of some of these opportunities available to you, there is still time to get involved to shape policy that can impact your bottom line. In the meantime, congratulations on another successful year as an entrepreneur.
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