The U.S. Department of the Treasury has released a report card detailing the implementation of federal investments in entrepreneurs and small businesses, including those in President Biden's American Rescue Plan. The mission of the administration that will be led by Biden and Harris is to expand the number of new small businesses that are created by making it easier for entrepreneurs to have access to funding, markets, and other resources. The United States Census Bureau said in January that a record 10.5 million applications for new businesses had been filed in the United States in the two years preceding to 2021 and 2022, making 2021 and 2022 the best two years ever for the submission of new business applications. In response to increased customer demand, new federal financing assisted in providing support for the expansion of small businesses.
The State Small Company Credit Initiative (SSBCI), the State and Local Fiscal Recovery Funds (SLFRF), and the Emergency Capital Investment Program (ECIP) have all been programs that have been led by the Treasury Department. These programs are responsible for the large investments that have been made in the small business environment. In order to facilitate access to financing and inspire more people to start their own businesses, the State Small Business Credit Initiative has made about $10 billion in funding accessible. Out of this total, $2.5 billion will be put aside to support disadvantaged businesses and jurisdictions that are successful in meeting their goals.
According to recent data that was made public on October 16, 2023, states, territories, and the major cities and counties have allocated 85 percent of the total resources, and the number of projects has increased by 18 percent when compared to the first quarter of 2023. This is the result of obtaining State and Local Fiscal Recovery Funds. Over $8.5 billion was invested through the Emergency Capital Investment Program (ECIP) into community development financial institutions (CDFIs) and minority business investment organizations (MDIs) in order to provide loans, grants, and forbearance to small businesses, minority-owned firms, and consumers. This was done for the benefit of low-income and marginalized communities.
