The Biden-Harris administration outlined the historic support provided to small manufacturing businesses across the United States through the State Small Business Credit Initiative.
The American Rescue Plan's SSBCI is assisting small businesses nationwide, according to a May 4 news release. States are using the initiative to increase access to capital for small manufacturers.
“Small manufacturing businesses play a vital role in our economy," U.S. Assistant Secretary of Treasury Wally Ademeyo said in the release. "The State Small Business Credit Initiative and President Biden’s Investing in America agenda is helping unlock the potential of entrepreneurs across the manufacturing sector who may have otherwise never had the support needed to pursue their business ideas.”
The Biden-Harris administration's Investing in America agenda is rebuilding the U.S. manufacturing base by empowering small businesses, the release reported. Vice President Kamala Harris will highlight this new SSBCI report while visiting a small manufacturing company in Virginia which received an SSBCI investment.
The Treasury Department's SSBCI program is strengthening this small business boom and fostering the fastest manufacturing recovery since the 1950s, according to a White House fact sheet, the release reported. In order to establish initiatives to address a variety of common difficulties encountered by small manufacturers, the Treasury Department collaborated with the White House to convene meetings among nearly 20 states focused on manufacturing.
Since jurisdictions have created programs to provide access to capital and intend to set up technical assistance programs that aid entrepreneurs seeking SSBCI-supported funding, small manufacturers operated by underserved entrepreneurs stand to benefit from SSBCI, according to the release.
The SSBCI, which was first launched in 2010 and was extremely effective in boosting access to finance for small firms and entrepreneurs, was renewed and enlarged by the ARP, the release said. By giving roughly $10 billion to states, the District of Columbia, territories and Tribal governments, the new SSBCI expands on this effective model to improve access to financing and foster entrepreneurship, particularly in historically neglected regions as they recover from the pandemic.
This includes financial aid and incentives totaling $2.5 billion for underserved enterprises, the release reported. For every $1 of SSBCI capital funding, up to $10 in private investment is expected to be catalyzed, magnifying the effects of this funding and giving small business owners the tools they need to expand and thrive.
