3 Ways to Get Minority-Led Small Companies Back to Business

WASHINGTON, D.C. – Today at an event in Wisconsin, President Biden will highlight the record 14.6 million new business applications filed to date during the Biden-Harris Administration. The United States is on track to have the three strongest years ever for new small businesses. The small business boom shows the opportunity the Investing in America agenda has for reaching communities across the country, including Black and Latino entrepreneurs and business leaders. Recent research from Reimagine Main Street found that contracting with the federal government and large corporations presents significant opportunities for diverse-owned and small businesses. Businesses are eager to learn more about opportunities from the Investing in America agenda and see promise in the Bipartisan Infrastructure Law, the Inflation Reduction Act, and the CHIPS and Science Act for economic growth and emerging new businesses. Rhett Buttle, President Of Public Private Strategies Institute & Founder of Public Private Strategies: “This boom in new business applications indicates the Investing in America agenda is working. Small businesses are the backbone of our economy and federal investments like the Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act have prioritized getting economic opportunities to entrepreneurs and business leaders across the country. Today’s announcement of the CHIPS Act’s Recompete Pilot Program also shows the promise of encouraging economic activity in geographically diverse and persistently distressed communities. Americans’ innovation and readiness to start new businesses is at an all-time high, and as we continue to connect federal investments to communities across the country, our economy will continue to prosper.” Tammy Halevy, Executive Director, Reimagine Main Street, a project of the Public Private Strategies Institute: “Our economy thrives when Americans from all backgrounds have opportunities to start successful businesses. The surge in applications for new businesses is a sign of optimism and a reflection of opportunities from the Investing in America agenda for entrepreneurs on Main Streets, MLK Boulevards, Cesar Chavez Ways and Chinatowns. Our research this year shows that many diverse businesses are already competing for and winning contracts in Investing in America sectors, and that the capacity is there for even more contracting. The intentional efforts of the Biden-Harris Administration and the business community has opened up new opportunities for diverse entrepreneurs — and they’re ready to seize them.” Ramiro A. Cavazos, President and CEO, United States Hispanic Chamber of Commerce: “More than five million Hispanic-owned businesses are currently fueling the U.S. economy, so it is welcome news that the Investing in America agenda continues to impact our communities as they make meaningful economic contributions across the country. These much-needed new investments enable Latinos and Latinas to grow our already impressive $3.2 trillion GDP. As the U.S. economy continues to strengthen, we look forward to seeing these important opportunities benefit Hispanic entrepreneurs and businesses everywhere.” Ron Busby, President and CEO, the U.S. Black Chambers, Inc.: “This new record number of Black business applications is a promising and hopeful sign for everyone. Black entrepreneurs and small-business owners make our economy vibrant and our communities thrive. Black communities across the nation are seeing real results from the opportunities created by the Investing in America agenda, and these emerging businesses will make our economy stronger. As we look toward 2024, this welcome news must redouble our commitment to ensuring all entrepreneurs and business owners have access to these important federal investments.” Ying McGuire, President and CEO, National Minority Supplier Development Council: “Diverse businesses are the backbone of our communities. It is exciting to see the growth and emergence of so many diverse suppliers thanks to the Investing in America agenda. The Biden-Harris Administration’s investments are creating a historic expansion of economic opportunity and prosperity for the Asian-Indian, Asian-Pacific, Black, Hispanic, and Native American businesses and entrepreneurs we serve. NMSDC-certified businesses are ready to compete for and win new contracts with both the government and corporate America and today’s news reflects their optimism for the future. Providing equitable opportunities to all business owners creates a strong and dynamic economy that benefits us all.” Marc H. Morial, President and CEO, National Urban League: "Black-owned small businesses are the lifeblood of their communities, but what they need are what we call the three C's – customers, contracts and capital. That's why the National Urban League proudly advocated for the landmark economic initiatives the Biden-Harris administration has spearheaded, including the American Rescue Plan, the Infrastructure Investment and Jobs Act, and the Inflation Reduction Act. These investments have the potential to dramatically advance economic justice in our nation." ###

Statement from Tammy Halevy, Executive Director of Reimagine Main Street, on the impact on small businesses of the Supreme Court’s decision to eliminate race-conscious admissions at higher education institutions and its impacts on small businesses: June 29, 2023 – "The Supreme Court’s decision striking down Affirmative Action is not only a decisive blow to diversity efforts in the realm of education, but reflects a broader strategy to dismantle hard-won progress in removing barriers to full participation by all in every aspect of American economic and civic life. This ruling and the broader sentiment it reflects puts small businesses, large corporations, and the broader economy at risk. "Access to economic opportunity on a level playing field is imperative. Challenges to policies and programs designed in response to documented disparities are increasingly appearing before the courts, from preferences in some COVID-related relief initiatives such as the Restaurant Recovery Act, to the injunction last month by a federal judge on the work of the Minority Business Development Agency in various states. "This ruling creates an imperative for creative problem-solving and new approaches that steer clear of explicit race-based criteria but address quantifiable barriers to competition and unlock the economic benefits of diversity." ###

Statement from Tammy Halevy, Executive Director of Reimagine Main Street, on the impact on small businesses of the Supreme Court’s decision to eliminate race-conscious admissions at higher education institutions and its impacts on small businesses: June 29, 2023 – "The Supreme Court’s decision striking down Affirmative Action is not only a decisive blow to diversity efforts in the realm of education, but reflects a broader strategy to dismantle hard-won progress in removing barriers to full participation by all in every aspect of American economic and civic life. This ruling and the broader sentiment it reflects puts small businesses, large corporations, and the broader economy at risk. "Access to economic opportunity on a level playing field is imperative. Challenges to policies and programs designed in response to documented disparities are increasingly appearing before the courts, from preferences in some COVID-related relief initiatives such as the Restaurant Recovery Act, to the injunction last month by a federal judge on the work of the Minority Business Development Agency in various states. "This ruling creates an imperative for creative problem-solving and new approaches that steer clear of explicit race-based criteria but address quantifiable barriers to competition and unlock the economic benefits of diversity." ###

Public Private Strategies Institute and U.S. Department of Commerce Announce New Collaboration to Educate Business Owners on New Federal Economic Investments & Pilot Strategies to Accelerate “Good Jobs” Partnership Will Reach Hundreds of Thousands of Businesses, Inform and Connect Federal Investments & Pilot Programs to Strengthen Employers & Workers WASHINGTON, D.C. [June 21, 2023] – Today, Public Private Strategies Institute (PPSI) and the U.S. Department of Commerce announced a new collaboration to expand public awareness of the Department’s programs, priorities, and new initiatives. The historic economic investments made over the past two years include tens of billions of dollars in funding opportunities flowing through the Department of Commerce. These resources have the potential to transform communities and strengthen our economy, but only if business owners have access to information about new programs and are connected with the tools to take advantage of them. That’s why Public Private Strategies Institute and the Department of Commerce will jointly host a series of events that bring together senior administration officials, business leaders, nonprofit leaders, and small employers – these events will reach hundreds of thousands of business owners across the PPSI and Department of Commerce networks. In addition, Reimagine Main Street , a project of PPSI, and the Department of Commerce will engage small employers on job quality and design pilots to advance “Good Jobs.” Ultimately, the partnership seeks to accelerate small business awareness and adoption of Good Jobs Principles through the DOC’s Job Quality Toolkit . U.S. Secretary of Commerce Gina Raimondo: “Thanks to President Biden we have seen a historic small business boom over the past two years, and the Department of Commerce is committed to ensuring this boom translates into high-quality job opportunities for workers across the country. As the Department and entire Administration continue to make investments in America, including in our small businesses, we are taking steps like this collaboration and our Job Quality Toolkit to ensure small business owners have the tools and knowledge they need to create good jobs and grow economic opportunity in every community.” Rhett Buttle, President, Public Private Strategies Institute: “Major investments like the Bipartisan Infrastructure Law, CHIPS & Science Act, and Inflation Reduction Act have enabled the Department of Commerce to rapidly develop and deploy new programs and funding opportunities for businesses across the country. For these opportunities to be implemented efficiently, effectively, and equitably, there needs to be dedicated and consistent outreach and education to help diverse constituencies of business owners access these generational investments. “That’s why PPSI is so excited about this partnership to engage our diverse network of hundreds of thousands of business owners to expand public awareness of these historic economic opportunities.” Tammy Halevy, Executive Director of Reimagine Main Street, a project of the Public Private Strategies Institute: “Reimagine Main Street looks forward to our partnership with the Department of Commerce to improve job quality among small employers. More than half of the nation’s 134 million employees work for firms with fewer than 100 employees. These firms and workers are the lifeblood of MLK Boulevards, Cesar Chavez Ways, Chinatowns, and Main Streets across the country. However, research shows these workers are less likely to be in ‘good jobs’ compared to workers employed by larger firms, and represent a significant share of low-wage workers. “Our collaboration with the Department of Commerce will leverage our network to engage diverse business owners across the country and pilot strategies to increase the quality of all jobs.” Earlier this year, Reimagine Main Street launched a project to improve job quality with support from The Bill & Melinda Gates Foundation. Reimagine Main Street’s previous research on Good Jobs and small employers found that job quality is a significant driver of business performance. As a result, efforts to advance good jobs should accelerate growth and increase the profitability of small businesses, create incentives for already strong small companies to improve job quality, and stimulate innovations across markets and policy to make affordable benefits available at scale. This partnership between Reimagine Main Street and the Department of Commerce builds on the insights from that work. # # # About Public Private Strategies Institute The Public Private Strategies Institute (PPSI) is an independent research and education organization. PPSI engages in educational activities concerning the public and private sectors’ roles in advancing societal change. PPSI explores best practices and trends through research, publications, and educational events. Additionally, it produces educational and informational content that will educate public and private sector actors about their capacity to be agents of social change; and conduct research into the existing landscape of public and private social responsibility and the potential for the future. For more information, please visit ppsi.org . About Reimagine Main Street Reimagine Main Street , a project of the Public Private Strategies Institute, is a multi-stakeholder, cross-sector initiative that brings small business leaders, investors, experts, and policymakers together with business owners and the people they employ. We engage diverse stakeholders and develop data-driven insights to shape and inform market opportunities and policy. Together, we are working to ensure MLK Boulevards, Cesar Chavez Ways, Chinatowns, and Main Streets prosper, and that the benefits ripple across communities and throughout the economy. About the U.S. Department of Commerce The Department of Commerce’s mission is to create the conditions for economic growth and opportunity for all communities. Through its 13 bureaus, the Department works to drive U.S. economic competitiveness, strengthen domestic industry, and spur the growth of quality jobs in all communities across the country. The Department serves as the voice of business in the Federal Government, and at the same time, the Department touches and serves every American every day.

WASHINGTON, D.C. [April 3, 2023]– On March 30, the Consumer Financial Protection Bureau (CFPB) finalized a new rule to increase data transparency in small business lending. The rule , section 1071 of the Dodd-Frank Act, was mandated by Congress and requires lenders to collect and report information about the small business applications they receive, including geographic and demographic data, lending decisions, and the price of credit. Tammy Halevy, Executive Director of Reimagine Main Street, released the following statement: “The rule finalized by the Consumer Financial Protection Bureau will create much-needed transparency in small business lending. “Transparency in small business lending is critical for investors, policymakers, advocates, and all other market participants to track funds flows, assess lending patterns, and empower data-driven decision-making. Today, there is limited available data on credit access for entrepreneurs, and no comprehensive information available about small business lending. This rule provides for a near-complete view of the small business credit market by including a range of credit products from virtually all lenders. “This rule is an important step forward to ensure small businesses and the people they employ on MLK Boulevards, Cesar Chavez Ways, Chinatowns, and Main Streets can access credit to fuel their growth and participate in a prosperous economy.” ###

WASHINGTON, D.C. [March 29, 2023]– This week, the U.S. Small Business Administration hosted the second annual Women’s Business Summit. President Biden and U.S. Small Business Administrator Guzman kicked off the proceedings on Monday at the White House and announced new investments in women small business owners. In reaction to this week's news, Tammy Halevy, Executive Director of Reimagine Main Street, released the following statement: “ Women started nearly half of all new businesses in the United States in 2021. This embrace of the entrepreneurial spirit is an act of hope and a signal of opportunity in our economy. But women-owned businesses are generally undercapitalized and report they are less likely than their male peers to access financing. Women entrepreneurs receive less than 2 percent of all traditional venture capital dollars. Expanding access to capital and ensuring that capital flows to women-owned small businesses on MLK Boulevards, Cesar Chavez Ways, Chinatowns and Main Streets is critical to growing a strong and equitable economy. We are committed to working with partners at the Women’s Business Summit and across the country to expand access to capital flows for women business owners.” ###

WASHINGTON, D.C.– Today, President Biden officially nominated Deputy Labor Secretary Julie Su to be the next Secretary of Labor. Following today’s announcement, Tammy Halevy, Executive Director of Reimagine Main Street, released the following statement: “The past two years have been the strongest period of new business formation on record in the United States, with more than 10.5 million new applications filed. Latino and Black entrepreneurs are launching businesses at high rates. Twelve million jobs have been created, including over 800,000 manufacturing jobs. GDP is growing, and unemployment is at the lowest rate in nearly 50 years. “Deputy Secretary Su has played a critical role in fostering this economic expansion by supporting American workers. We are confident that as Labor Secretary, she will build upon these successes and continue to deliver for American workers and the economy. “As we evaluate the labor market and look for opportunities to grow a stronger and more equitable economy that includes MLK Boulevards, Cesar Chavez Ways, Chinatowns, and Main Streets, we must continue to advance good jobs, particularly among small employers. More than half of the nation’s 134 million employees work for firms with fewer than 100 employees, and low-income workers are more likely to be employed by small firms. As Reimagine Main Street and our partners work to identify scalable opportunities to improve job quality at small firms, we look forward to sharing findings and collaborating with the Department of Labor under the leadership of Julie Su." ###

Reimagine Main Street Receives Commitment to Improve Small Business Job Quality Grant from Bill & Melinda Gates Foundation for Project to Quantify Job Quality Among Small Employers, Test Scalable Interventions to Improve Economic Mobility for Low-Wage Workers Commitment Builds On Reimagine Main Street’s Research and Engagement to Advance “Good Jobs” Among Small Employers on Main Streets, MLK Boulevards, Cesar Chavez Ways, and Chinatowns WASHINGTON, D.C. [February 16, 2023]– Today, Reimagine Main Street , a project of the Public Private Strategies Institute , announced that the initiative was awarded a new multi-million dollar grant for a project to improve job quality for employees of small firms . Over the course of the next year, Reimagine Main Street will develop a robust segmentation of small employers and the people they employ in order to work with partners to design and test effective and scalable interventions that improve job quality tailored to the needs, priorities, and constraints of small employers and their workers. The grant comes from the Bill & Melinda Gates Foundation. In addition to the segmentation analysis, the project will also form a representative Small Employer Advisory Council, in order to capture real-time feedback and guidance from the lived experience of representative small employers. The Small Employer Advisory Council will be complemented by a Reimagine Main Street Network working group on Good Jobs. More than half of the nation’s 134 million employees work for firms with fewer than 100 employees. Research shows these workers are less likely to be in Good Jobs compared to workers employed by larger firms, and represent a significant share of low-wage workers. By partnering to design and test targeted interventions that can meet the needs of both small employers and their workers at scale, this project seeks measurable long-term improvement in job quality for low-wage workers employed by small employers. “Reimagine Main Street is grateful for support from the Bill & Melinda Gates Foundation to expand our work to improve job quality among small employers,” said Tammy Halevy, Executive Director of Reimagine Main Street & Senior Advisor at Public Private Strategies. “Small employers are the lifeblood of communities throughout the country. Finding effective and efficient ways to strengthen these businesses and improve the financial health of the people they employ is imperative to strengthen economic resilience, support equitable wealth creation, and ensure that the benefits of entrepreneurship and hard work are rewarded.” “Reimagine Main Street’s research to advance job quality is a central part of the Public Private Strategies Institute’s work to bring the public and private sectors together, finding innovative solutions that strengthen the American economy and improve outcomes for business owners, their employees, and the communities they serve. PPSI is excited to expand this work to advance job quality in 2023, and grateful for the support from the Bill & Melinda Gates Foundation,” said Rhett Buttle, President of Public Private Strategies Institute & Founder of Public Private Strategies. Reimagine Main Street’s previous research on good jobs and small employers found that business performance drives job quality. As a result, efforts to advance Good Jobs should accelerate growth and increase profitability of small businesses, create incentives for already strong small companies to improve job quality, and stimulate innovations across markets and policy to make affordable benefits available at scale. ###

WASHINGTON, D.C.– Today, Vice President Harris is in North Carolina to meet with small businesses and discuss small business growth. Ahead of the Vice President’s trip, leading advocates for small businesses are speaking out about the economic recovery and growing strength of MLK Boulevards, Cesar Chavez Ways, Chinatowns, and Main Streets. Tammy Halevy, Executive Director of Reimagine Main Street, said: “The past two years have been the strongest period of new business formation on record in the United States, with more than 10.5 million new applications filed. Latino and Black entrepreneurs are launching businesses at high rates. Starting a business reflects optimism about the future. And when MLK Boulevards, Cesar Chavez Ways, Chinatowns, and Main Streets thrive, so do their employees and the communities they serve – the record pace of small business formation is one of the reasons why GDP is growing and we’re seeing the lowest unemployment rate in nearly 50 years. “There have also been historic efforts to level the playing field for small businesses, including by investing much-needed resources into the IRS via the Inflation Reduction Act. This long-overdue funding to modernize the IRS will help the IRS provide new tools and resources to small businesses so that they can compete in a fair economy.” LeRoy Cavazos-Reyna, Senior Advisor at Public Private Strategies, said: “Vice President Harris’ trip to North Carolina highlights the growing strength of small minority-owned businesses across the country. In the United States, five million Hispanic-owned businesses contribute more than $800 billion to our economic vibrancy. According to Reimagine Main Street research , more than 60% of Hispanic-owned businesses lack confidence that they could fund an unexpected $5,000 expense – this small margin for error meant that many Hispanic-owned businesses were hit particularly hard during the unprecedented COVID-19 global pandemic. “But now, Hispanic-owned small businesses are bouncing back. The legislative accomplishments of the past two years – including the Bipartisan Infrastructure Law, American Rescue Plan, and Inflation Reduction Act – are helping fuel record minority small business growth, including by expanding access to capital and ensuring contracting opportunities are available to minority contractors.” Lenwood V. Long, Sr., President and CEO of the African American Alliance of Community Development Financial Institution CEOs: “Supporting Black-owned businesses is critical to building Black wealth, closing the racial wealth gap, and growing an equitable and dynamic economy in every community. Community Development Financial Institutions play an important role in supporting Black-owned businesses by providing financing and access to capital that hasn’t always been readily available to diverse small businesses. The Biden-Harris Administration has been a strong supporter of CDFIs and recognizes the importance of CDFIs to a strong economic recovery, including delivering over $8 billion in resources to 162 community financial institutions last year.” Gris Bailey, President and CEO of the Latin American Chamber of Commerce-Charlotte: “Diverse small business owners were hit particularly hard by the pandemic, and they’ve been slower to recover. But thanks to a growing economy and major bipartisan investments in infrastructure, workforce development, and improving access to capital, many businesses are bouncing back, revitalizing Main Streets in diverse communities across America."   Declaración de diversos defensores de los pequeños negocios antes del viaje de la vicepresidente Harris a Carolina del Norte para hablar sobre el crecimiento de los pequeños negocios WASHINGTON, D.C.– Hoy, la vicepresidenta Harris esta en Carolina del Norte para reunirse con pequeños negocios y analizar el crecimiento de los pequeños negocios. Antes del viaje de la vicepresidenta, los principales defensores de los pequeños negocios hablarán sobre la recuperación económica y la creciente fortaleza de MLK Boulevards, Cesar Chavez Ways, Chinatowns y Main Streets. LeRoy Cavazos-Reyna, asesor mayor de Public Private Strategies, dijo: “El viaje de la vicepresidenta Harris a Carolina del Norte destaca la creciente fortaleza de los pequeños negocios, de propiedad minoritaria, en todo el país. En los Estados Unidos, cinco millones de negocios propiedad de hispanos contribuyen con más de $800 mil millones a nuestra vitalidad económica. Según la investigación de Reimagine Main Street, más del 60% de las empresas de propiedad hispano no confían en poder financiar un gasto inesperado de $5,000; este pequeño margen de error significó que muchas empresas propiedad de hispanos se vieron particularmente afectadas durante la crisis global de la pandemia de COVID-19. “Pero ahora, los pequeños negocios propiedad de hispanos se están recuperando. Los logros legislativos de los últimos dos años, incluida la Bipartisan Infrastructure Bill, the American Rescue Plan y the Inflation Reduction Act, están ayudando a impulsar el crecimiento récord de los pequeños negocios minoritarias, incluso al ampliar el acceso a dinero en efectivo y garantizar que las oportunidades de contratación estén disponibles para los contratistas minoritarios”. ###