White House Updates: News from Washington DC
The article highlights the Biden administration’s efforts to support small businesses in the United States. It announces new milestones in federal procurement dollars awarded to small businesses, including a record $76.2 billion to small disadvantaged businesses (SDBs) and $32 billion to Service-Disabled Veteran Owned Small Businesses (SDVOSB), surpassing the administration’s goals.1 The article emphasizes the administration’s focus on increasing federal investments in under-resourced businesses to help more Americans realize their entrepreneurial dreams and contribute to narrowing persistent wealth disparities.
As Congressional Republicans Propose Cutting SBA Funding by 31%, White House releases 2024 Small Business Boom Report that Shows SBA Small Dollar Loans on Track to Nearly Double Since 2020
Small businesses are the engines of the economy. As President Biden says, every time someone starts a new small business, it’s an act of hope and confidence in our economy. In celebration of National Small Business Week, the Biden-Harris Administration is announcing new milestones in support delivered to small businesses across the country.
Since arriving in office, the Biden-Harris Administration has overseen a sustained small business boom across the country. The President’s agenda has driven the first, second and third strongest years of new business application rates on record—and is on pace for the fourth—with Americans filing a record 17.2 million new business applications. Business applications are a leading indicator for new business creation, and the historic growth in business applications has coincided with the strongest labor market in decades. And traditionally underserved small businesses are growing at near-historic rates, with Black business ownership growing at the fastest pace in 30 years and Latino business ownership growing at the fastest pace in more than a decade.
Republicans in Congress have undermined small businesses by attempting to repeal Inflation Reduction Act investments that are lowering costs for small business. House Republicans are also threatening assistance to small businesses across the country by proposing draconian cuts to the Small Business Administration as part of their 31% reduction to government-wide spending. And House Republicans would defund the President’s agenda to advance racial and gender equity in federal contracts.
President Biden is fighting to grow the small business boom spurred by his agenda. Today, the Biden-Harris Administration announced:
New Records for Federal Procurement Dollars Awarded to Small Businesses, Including Small Disadvantaged Businesses (SDBs). The Small Business Administration (SBA) released its Procurement Scorecard showing that in Fiscal Year 2023, the Biden-Harris Administration awarded an all-time high in federal contracts to small businesses across federal agencies. In total, a record-high of $178.6 billion, or 28.4 percent, of all contracting dollars went to small businesses. This includes:
- $76.2 billion to SDBs, totaling 12.1 percent of federal contracting dollars and surpassing the 12% goal for FY23 established by the Office of Management and Budget. This represents the third consecutive year of record-breaking awards to SDBs under President Biden, and puts the Administration on track to reach the President’s goal of increasing federal contracting dollars to SDBs by 50% by 2025. Increasing federal investments in under-resourced businesses helps more Americans realize their entrepreneurial dreams, strengthens the supplier base, and contributes to narrowing persistent wealth disparities.
- $32 billion to Service-Disabled Veteran Owned Small Businesses (SDVOSB), representing a nearly $4 billion increase from Fiscal Year 2022. The Administration surpassed its goal by nearly 70%, with a total of 5.07 percent of federal contracting dollars going to SDVOSB.
- In FY23, government contracting with small businesses supported one million jobs, includingin manufacturing, construction, research & development, technology, defense, and other vital industries.
- Across the federal government, 22 agencies received an ‘A’ or higher on their individual procurement scorecards, surpassing last year’s total.
- In conjunction with the scorecard, the SBA released federal contract data broken down by business owner race and ethnicity for FY23, which shows that businesses owned by historically underrepresented groups earned more through federal contracts across every category.
Release of Third Annual Small Business Boom Report. The White House released its third annual Small Business Boom Report, illustrating the continued achievements of the Biden-Harris Administration to support small businesses by expanding access to capital, providing small businesses with more hands-on support, ensuring federal spending benefits small businesses, and building a fairer tax code. The report shows the Administration has continued to make historic progress on all 35 commitments in the original report including:
- SBA has nearly doubled small dollar loans. Small businesses consistently voice the need for access to small dollar loans, with survey results indicating over 50% of small businesses seek loans of less than $100,000, but only one-third of the smallest businesses – those with $100,000 or less in annual revenue – report receiving the full funding they request from banks. Less than one year since implementing policy reforms to increase access to small dollar loans, SBA is on pace to nearly double the number of small loans approved compared to the final year of the previous Administration, with over 20,000 7(a) loans under $150,000 approved in Fiscal Year 2024. It represents a one-third increase over last year, translating to 750 more businesses getting approved for a small dollar loans every month.
- Through the American Rescue Plan’s State Small Business Credit Initiative approved over $8 billion in capital support for small businesses, leveraging significantly more in private sector funding. Funded by the American Rescue Plan, Treasury’s nearly $10 billion State Small Business Initiative (SSBCI) program delivers funding to states, territories, and tribal governments that spur lending and investing in small businesses, and provides critical technical assistance. So far, Treasury has approved $8.4 billion in allocations to 55 states and territories and 34 tribal governments that are expected to catalyze at least $10 in private investment for each dollar of SSBCI capital funding. Already $1.1 billion of approved funding has been deployed to support loans or investments to small businesses or investments in venture capital funds. To date, Treasury has also announced the approval of more than $135 million in technical assistance grants to 40 states and territories.
- Delivering more than $250 billion to small businesses through SBA’s lending programs by the end of the decade. In 2021, SBA committed to delivering more than $250 billion in financing to more than 500,000 small businesses by the end of the decade. Under this Administration, SBA has taken numerous steps to expand access to capital including finalizing rules to increase small dollar lending, expanding programs that help connect traditionally underserved businesses with resources, and revamping its Lender Match portal. As a result, SBA has delivered nearly $124 billion in financing to small businesses through its 7(a), 504, and microloan programs, putting them on pace to reach their goal.
August 29 2024 White House Washington DC
Criticism: Potential Constitutional Concerns with the Biden Administration’s Small Business Support Programs
Based on the search results and the principles of the U.S. Constitution, there are a few potential criticisms that could be made regarding the Biden administration’s support for small businesses:
- Separation of State and Business: The U.S. Constitution emphasizes the separation of government and private enterprise to maintain a free market economy. Some may argue that the administration’s extensive efforts to support and promote small businesses, including through targeted funding and programs, could be seen as overreach and undue government interference in the private sector. 34
- Ensuring Fair Competition: The Constitution promotes the principles of free and fair competition. While the administration’s goals of supporting underserved and disadvantaged businesses are laudable, critics may argue that providing preferential treatment and targeted funding could distort the competitive landscape and undermine the level playing field for all businesses. 23
- Transparency and Accountability: The Constitution emphasizes the importance of government transparency and accountability. Some may question whether the administration’s small business support programs are being implemented fairly and without political favoritism, and whether there are sufficient oversight mechanisms in place. 3
- Limiting Government Power: The Constitution aims to limit the power of the federal government and protect individual economic freedoms. Opponents may argue that the administration’s extensive interventions in the small business sector exceed the appropriate role of government and infringe on the free market principles enshrined in the Constitution. 2
Ultimately, while the administration’s efforts to support small businesses may be well-intentioned, there are valid constitutional concerns that could be raised regarding the appropriate scope and implementation of such programs. A balanced approach that upholds the principles of free enterprise, fair competition, and limited government involvement would be more aligned with the spirit of the U.S. Constitution.
Source: Midtown Tribune news – WH.gov