Washington, D.C.— Today, the House Small Business Committee, led by Chairwoman Nydia M. Velázquez (D-NY), approved legislation to deliver $25 billion in funding to invest in small business programs. The committee now sends the bill to the House Budget Committee for inclusion in the Build Back Better Act.
“Small businesses are the foundation of our economy and ultimately the key to our nation making a full economic recovery,” said Chairwoman Velázquez. “The small business policies that we advanced today represent a generational investment in America’s entrepreneurs and will help businesses recover from COVID now and prosper in the future. That’s why Congress and the Biden administration must continue moving forward with the Build Back Better Agenda and pass this legislation.”
The committee’s proposal includes provisions to invest in solutions to fundamental concerns in the small business sector. The proposal would invest in Small Business Administration (SBA) programs that increase access to capital, foster entrepreneurial development, expand federal procurement opportunities, and drive innovation.
The legislation includes the following investments:
$35 million in funding for veteran federal procurement entrepreneurship training
Over $1 billion in funding for an uplift accelerator program and business development academy at Historically Black Colleges and Universities (HBCUs) and Minority Serving Institutions (MSIs) for underrepresented small businesses
Provides $1 billion to establish a national network of business incubators
$20 million to enhance the SBA’s Office of Native American Affairs
$9.5 billion to establish a subprogram within the Small Business Investment Company program to provide patient capital to underserved markets and small manufacturers
$600 million to enhance, improve, and expand the SBA’s Community Advantage program
$4.465 billion to fund a direct loan product under the current 7(a) lending program administered by the SBA
$500 million to fund a pilot program for eligible cooperatives and employee-owned businesses to receive SBA loan products without the requirement of a personal or entity guarantee
Invests $2.746 billion to establish a direct lending subprogram under the 504/CDC lending program to allow CDCs to make loans to small contractors, small manufacturers, and small businesses in underrepresented markets
Over $100 million to invest in entrepreneurial training initiatives for the formerly incarcerated
Click here for a section-by-section summary of the proposal.