As we conclude this year’s National Small Business Week, the United States has some good news – Americans are starting to register new small businesses. In fact, according to the BFS, the U.S. In the first half of 2021, nearly 3 million new business applications were submitted – 60 percent increase compared to the same period last year.
There is a warning for this good news.
As long as Congress does not expand equitable capital access to these local entrepreneurs through better-built laws, most of these new startups will not exist in the next five years.
Don’t just take my word for it. from Bureau of Labor Statistics, 20 percent of small businesses close at the end of the first year. By the time they were five years old, they were half closed. Of these, only 30 percent live for 10 years.
The main reason for the closure – lack of capital access.
Nearby 75% of American small businesses They say the current tax system supports large businesses to prevent them from getting enough capital to start or expand operations. They are on this fact Long-term differences prevent color owners and female entrepreneurs from receiving equitable financing From both private banks and the government.
As a former small business owner, I know how access to capital – from bank loans, federal grants or mergers – can hire new employees, provide health insurance, stay competitive and meet demand. And now that I am a representative of the United States and a member of the House Committee on Small Business, I know Congress can do a lot of helluva.
When Democrats pass, look no further than the $ 50 billion spent on entrepreneurs and workers President BidenJoe Biden’s Capitol Fence Begins “Justice for J6” Senate Convenes Democrats’ Refugee PlanThe historic American rescue plan last spring. From the retention of workers through the Labor Protection Program to the protection of restaurants and bars, the package has been a lifeline for millions of small businesses that have been permanently closed without significant support.
Although temporary COVID-19 pandemic relief programs passed small businesses through the storm, they were the only ones: temporary relief. In the middle of the summer, funds from these programs ran out and loan groups began shortening their application deadlines. Other options, such as the Small Business Administration (SBA) 504 / CDC Loan Program, will go beyond their historic lending authority and close for the rest of the year. I introduced it Legislation To top up the 504 program so you don’t have to leave small businesses without getting the loans you need to live.
We need real, long-term solutions that will bring financial stability to small businesses for years to come. Fortunately, House Democrats are working to promote that.
At the end of this month, Congress Votes to pass an additional $ 25 billion investment Go back in small business programs using better law. This investment will not only increase capital access to small businesses in the United States through important SBA programs. Tax deduction for nearly 4 million highway entrepreneurs Finally, by making billions of dollars worth of corporations on Wall Street pay their due taxes.
This should not be biased. In fact, more than 60 percent of all voters – Democrats, Republicans and Neutrals – already Support The construction of President Biden’s back is a better law. However, due to the very small number of elected members in the Senate, this law faces challenges such as divisiveness and worsening political climate, replacing the needs of pop-shops, family-owned restaurants, and our local retailers. Communities.
Small businesses in the United States account for one-third of all new jobs and about half of all economic growth in the country. If Congress fails to pass better legislation and provide long-term capital access to small businesses, they are achieving not only a fresh start but also the health of the entire US economy.
Representative Marie Newman represents the third district Illinois is a member of the Small Business Council.