WASHINGTON - Since President Biden and Vice President Harris took office, American entrepreneurs have filed more than 20 million new business applications, the most in any presidential term in history. Under the Biden and Harris administrations, we've had the first, second and third strongest years for new business applications in history, and we're on pace for the fourth. This is happening in communities across the country - every state has had the most new business applications filed in a single presidential term. Each new business is a sign of hope and confidence in the economy, and each of these applications represents a first step on that journey. Over the past four years, entrepreneurs have filed an average of more than 440,000 applications each month, a pace more than 90 % faster than pre-pandemic averages.
The Biden and Harris administrations have fostered a boom in small business across the country. Entrepreneurship has doubled in black households and reached a 30-year high in Hispanic households; the number of new businesses started has reached a 30-year high for Asian Americans; and women own a larger share of businesses than before the pandemic. While the Biden and Harris administrations have invested in small businesses that lift up communities in all corners of the country - rural, urban, and everywhere in between - Republicans in Congress have repeatedly tried to cut SBA funding by nearly a third and have sought to raise taxes and costs on small businesses.
The announcement builds on significant actions the Biden Administration has taken to support small businesses, including:
Record amounts of capital through the Small Business Administration. In fiscal year 2024, the SBA provided an all-time high of $56 billion in capital to small businesses and communities affected by disasters, and provided more than 100,000 funds to small businesses in the form of loans, investments, and surety bond guarantees. Compared to 20 years ago, SBA tripled the volume of loans made to Black-owned businesses, doubled the volume of loans made to small businesses owned by Latinos and women, and significantly increased the volume of loans made to businesses owned by Native Americans, veterans, and rural entrepreneurs. SBA also prioritized increasing access to small dollar loans and doubled the number of loans under $150,000.
Reducing costs for small businesses through the Investing in America program. The Inflation Reduction Act contained a number of provisions that saved small business owners money. These laws created a tax credit to cover the 30 % cost of switching to solar, allowed small businesses to deduct up to $1.00 per square foot of their business for making energy efficiency upgrades, and reduced health care costs that burden small business owners' budgets by limiting prescription drug costs for seniors to $2,000, capping insulin costs for seniors at $35 per month, and maintaining the American Rescue Plan premium tax credit support for the Affordable Care Act - saving millions of small business owners and self-employed individuals an average of $700 per year in health insurance premiums.
Expanding access to capital across the country through the State Small Business Credit Initiative (SSBCI). Through SSBCI, the American Recovery Plan provides nearly $10 billion to support small business lending and venture capital programs implemented by states, territories, and tribal governments across the country. By 2023, SSBCI funds have already catalyzed $3.1 billion in public and private small business financing. Additionally, SSBCI funds have already supported $1.2 billion in venture capital funding, and it is anticipated that jurisdictions may support up to 200 investment funds over the course of the SSBCI program. In addition, SSBCI support targets underserved and very small businesses. Through December 2023, 75 % transactions supported underserved businesses and 78 % supported businesses with fewer than 10 employees.
Awarding record federal contracts to small businesses. The federal government is the world's largest purchaser of goods and services, giving it an important role in creating opportunities for entrepreneurs. In FY23, federal agencies awarded a record $178.6 billion in federal contracts to small businesses - representing 28.4 % of all eligible federal contract dollars. These federal contracts enable small business growth and support more than 1 million jobs in manufacturing, construction, defense, and other key sectors. Federal agencies also awarded a record $76.2 billion to small disadvantaged businesses.
Supporting entrepreneurs through practical assistance and services to help them successfully access capital and develop and expand their businesses. In addition to access to capital and contracting opportunities, federal agencies have also provided significant hands-on services and assistance to ensure that small businesses have the support they need to take advantage of federal supports and access the broader marketplace. Building on SBA's long-standing assistance programs provided through their regional offices, Small Business Development Centers, Veterans Business Assistance Centers, Women's Business Centers, and SCORE Small Business Counseling, the American Recovery Plan included the largest-ever dedicated federal investment in small business navigator services through the Small Business Community Navigators pilot program, which provided training to more than 350,000 entrepreneurs and 1:1 counseling services to more than 33,000 small business owners. It also included the largest-ever direct federal investment in small business incubators and accelerators through the Minority Business Development Agency's Capital Readiness Program. And through the Treasury Department's SSBCI technical assistance grants and awards under the Small Business Opportunity Program, the federal government leverages local and nonprofit partners to ensure that entrepreneurs can get the support they need no matter where they live.
Stimulating small business growth and investment in the industries of the future. The Biden-Harris Administration's historic investments in clean energy, infrastructure, innovation and manufacturing have also supported small businesses. The bipartisan Infrastructure Act will continue to provide support and reduce costs for small businesses by reducing transportation delays caused by aging infrastructure, increasing access to customers by expanding high-speed internet coverage, and leveraging small business contractors to complete critical projects for the Federal Highway Administration, Federal Transit Administration, and National Highway Traffic Safety Administration. The CHIPS and Science Act also provides $54 million in funding to small businesses to help them explore and engage in the commercial microelectronics market. The CHIPS Act builds on these direct investments and provides tax credits and incentives to encourage small business participation in the green energy transition by, among other things, making it cheaper for small businesses to use and supply clean fuels, solar panels, commercial clean vehicles, and other green products.
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