Reauthorize and Fund the State Small Business Credit Initiative
Although large companies and multi-national corporations seem to dominate our national consciousness, small business remains the backbone of the U.S. economy. According to the 2014 Annual Survey of Entrepreneurs, nearly 61 percent of all firms with paid employees have a staff of just 4 people or less. In fact since 1970, 55 percent of all existing American jobs have been supported by small business, and 61 percent of all net new jobs have been created in the small business sector. Clearly, small businesses in the U.S. carry a disproportionately large burden to employ the 149.5 million people in the labor force compared to large enterprises.
Yet, despite the outsized role small businesses play in driving economic growth, effective financial tools that would support and encourage small business development have been slow to develop. Access to capital issues plague small businesses and would-be entrepreneurs alike, affecting mostly individuals with limited household wealth and credit histories. As a result, business startup rates, both before and after the recession, have been highest among the wealthiest households, exacerbating issues related to wealth inequality and sending negative ripple effects throughout the economy.
Pass the Small Business Access to Capital Act
Until its expiration in 2017, the State Small Business Credit Initiative (SSBCI) was a incredibly successful federal financing program that delivered flexible, affordable capital to small businesses around the country.The SSBCI program filled a critical economic development need that has since gone unfulfilled following the program's expiration. Passage of the Small Business Access to Capital Act (S. 1897) would reauthorize the SSBCI program, and allocate $500,000,000 to eligible participating states to support small business lending and loan programs.
Read S. 1897
Learn More about SSBCI
Read the 2018 Policy Agenda