President-Elect Biden’s Plan For Black America
INVESTING IN AFRICAN AMERICAN BUSINESSES and ENTREPRENEURS
Double funding for the State Small Business Credit Initiative.
The Obama-Biden Administration created the State Small Business Credit Initiative (SSBCI) to support small businesses, driving $10 billion in new lending for each $1 billion in SSBCI funds. Biden will extend the program through 2025 and double its federal funding to $3 billion, driving close to $30 billion of private sector investments to small businesses all told, especially those owned by women and people of color.
Expand the New Markets Tax Credit, make the program permanent, and double Community Development Financial Institutions (CDFI) funding.
The New Markets Tax Credit has helped draw tens of billions of dollars in new capital to low-income communities, providing tax credits to investors in community development organizations that support everything from supermarkets to real estate projects to manufacturing plants. As part of his plan to reinvest in communities across the country, including in rural areas, Biden will also double funding for the Community Development Financial Institutions (CDFI) Fund, which supports local, mission-driven financial institutions in low-income areas around the U.S. This builds on Biden’s proposal to support entrepreneurs in small towns and rural areas by expanding both the Rural Microentrepreneur Assistance Program and the number of Rural Business Investment Companies, to help rural businesses attract capital.
Improve and expand the Small Business Administration programs that most effectively support African American-owned businesses.
The Community Advantage loan program, originally created during the Obama-Biden Administration, which provides capital for startups and growing small businesses located in particularly underserved communities through CDFIs and other mission-driven lenders, has been run as a pilot program since 2011. Biden will make this program permanent and reverse rules enacted by the Trump Administration that are making it more difficult for lenders to participate in the program and lend to African American-owned businesses and other businesses located in underserved communities.
Increase opportunities for African American-owned businesses to obtain or participate in Federal contracts.
The Obama-Biden Administration created an Interagency Task Force on Federal Contracting Opportunities for Small Businesses, which included a focus on contracting opportunities for minority-owned businesses. The Obama-Biden Administration implemented its vision of more equitable access to federal contracts through a variety of channels, including by launching the Federal Procurement Center (FPC) as part of the Commerce Department’s Minority Business Development Agency (MBDA). The FPC, a first-of-its-kind program, helps minority-owned firms apply for and win federal government contracts. As President, Biden will build on these efforts to support the expansion of opportunities for minority-owned small businesses.
(To be Continued)