The California Office of the Small Business Advocate (CalOSBA) has achieved a significant milestone by securing a $25.3 million award. The award showcases CalOSBA’s important role in fostering economic growth and highlights the pivotal role of small businesses in driving innovation, job creation, and local prosperity.

Vice President Harris and Treasury Department’s Announcement

Vice President Harris and the Treasury Department have taken a bold step by announcing an allocation of over $175 million to provide extensive support to small businesses. This substantial investment forms a pivotal component of the Biden-Harris Administration’s comprehensive Investing in America Agenda, which seeks to create a thriving environment for small businesses to flourish and contribute significantly to the economy.

Empowering Minority-Owned Businesses through Capital Readiness

A significant development accompanying this initiative is the Minority Business Development Agency (MBDA) Capital Readiness Program (CRP). This technical assistance program, funded by the U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI), aims to empower minority-owned businesses with critical resources. The CRP enhances accessibility to services for underserved businesses, ultimately promoting inclusivity and diversity within the small business landscape by supporting incubators and accelerators.

Technical Assistance Grants for Small Business Success

In line with the commitment to small business growth, the Treasury Department has also introduced the State Small Business Credit Initiative Technical Assistance Grant Program. Awardees in 12 states will receive over $57 million to offer legal, accounting, and financial advisory services to small businesses and underserved enterprises. This assistance aims to equip businesses with the necessary tools and knowledge to navigate the complexities of various government small business programs effectively.

Unlocking Entrepreneurial Potential Nationwide

Deputy Secretary Wally Adeyemo underscores the significance of these investments as essential pillars of the Biden-Harris Administration’s strategy to catalyze a small business boom. The initiative supports entrepreneurs in underserved communities suffering from lacking resources, enabling them to pursue their business aspirations with confidence.

Expanding the State Small Business Credit Initiative (SSBCI)

President Biden’s American Rescue Plan expands the scope of the State Small Business Credit Initiative (SSBCI which has proven successful in enhancing small business access to capital. The reauthorized SSBCI injects nearly $10 billion into states, territories, and Tribal governments to bolster capital access and foster entrepreneurship, particularly in historically underserved communities recovering from the pandemic.

Technical Assistance for Sustainable Growth

While capital access is crucial, the new SSBCI Technical Assistance Grant Program recognizes the need for comprehensive support. This program complements the SSBCI Capital Program by offering technical assistance that equips small businesses to manage and utilize funds efficiently. This holistic approach ensures businesses are capital-ready and equipped for sustainable growth.

Success Stories – States Putting Grants to Work

Several states are already demonstrating the transformative impact of these grants:

California

CalOSBA will utilize its $25.3 million award to provide small businesses with essential legal, accounting, and financial advisory services. This support will benefit 113,000 small businesses, facilitating 40,000 small business loans for underserved and small enterprises.

Ohio

The Ohio Department of Development will channel its $5.2 million award to provide financial advisory, accounting, and legal services to underserved businesses. This initiative aims to reach up to 360 businesses annually.

Nevada

The Nevada Governor’s Office of Economic Development will employ its $2 million award to offer comprehensive training, counseling, and networking opportunities to underserved and small businesses. Over a thousand companies will benefit, generating numerous job opportunities.

Conclusion

Building a Resilient Small Business Ecosystem The recognition and support garnered by CalOSBA’s $25.3 million award underscores the significance of fostering a resilient and dynamic small business ecosystem. Through strategic investments and comprehensive assistance, the Biden-Harris Administration lays the foundation for small businesses to serve and thrive in the ever-evolving economic landscape, driving progress, innovation, and opportunity for all.