The small business provisions of the Build Back Better Act—a $3.5 trillion fund that will invest $25 billion in small businesses in the next ten years recently passed. The highlighted inequities during the pandemic have shown that underserved individuals, specifically minority women entrepreneurs, need more access to funding (and support) to start, maintain, and grow their businesses. This proposal will increase capital, foster entrepreneurial development, expand federal procurement opportunities, and drive innovation. All businesses need to certify their small businesses. Head to NAICS to understand the qualifications. Then register as a government contractor.
Split into 7 sections; the bill addresses the following:
Subtitle A: Increasing Federal Contracting Opportunities for Small Businesses
Subtitle B: Empowering Small Business Creation & Expansion In Underrepresented Communities
Subtitle C: Encouraging Small Businesses To Fully Engage In The Innovation Economy
Subtitle D: Increasing Equity Opportunities For Small Manufacturers
Subtitle E: Increasing Access To Lending & Investment Capital
Subtitle F: Supporting Entrepreneurial Second Chances
Subtitle G: Administrative Oversight Funding
Calling All Veterans
$35 million in grants will be available to nonprofits to operate federal procurement entrepreneurship training programs to assist veteran small business contractors.
Uplift Accelerator & Business Development Academy (IncludesHBCUs)
This proposal will focus on investing in small business contractors and the development of Minority Serving institutions.
$1.75 billion in funding for an uplift accelerator program and business development academy at Historically Black Colleges and Universities (HBCUs), Minority Serving Institutions (MSIs), and community colleges for underrepresented small businesses seeking to contract with the government.
Pathway To Prime Grant Program
$525 million to provide more assistance to small subcontractors to enhance their ability to become prime government contractors. $75 million will be held for HBCUs & MSI grantees, while the remaining will be available to state, local, and Tribal government grantees.
Grants For Business Incubators
$1 billion will support incubator spaces for Main Street small businesses to spur economic development in underrepresented communities and grow the nation's next generation of entrepreneurs across the country.
Rural & Emerging Markets
$20 million each to enhance the SBA's Office of Native American Affairs, Office of Rural Affairs, and create an Office of Emerging Markets.
State Trade Expansion Program (STEP)
$120 million to assist small businesses in export development.
Growth Accelerator Competition
$400 million to help growth accelerators expand their capabilities to assist small businesses focused on technology, research, and development.
Building A National Innovation Support Ecosystem Network
$525 million to establish a national innovation support ecosystem network by making grants to or entering into contracts or cooperative agreements with universities, resource partners, growth accelerators, and business incubators to address the needs of eligible businesses to expand, accelerate, and grow the pipeline of innovative startups.
$150 million to facilitate fellowships and internships in science, technology, engineering, and mathematics, prioritizing underrepresented individuals through partnerships with or supplemental grants or awards to provide opportunities at the Undergraduate, Baccalaureate, Graduate, and Postdoctoral levels.
Small Business Investment Company
$9.5 billion to establish a subprogram to provide patient capital to underserved markets and small manufacturers.
Funding For Community Advantage Loan Program
$600 million over 10 years to enhance, improve, and expand the Community Advantage program. It gives SBA authority to partner with mission-oriented, nonprofit lenders to deliver capital through the 7(a) Loan Program. $5 million to= free or low-cost program training.
Funding For Credit Enhancement & Small Dollar Loan Funding
$4.465 billion to fund a direct loan product under the SBA's current 7(a) lending program.
Funding For Cooperatives
$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.
Re-Entry Entrepreneurship Counseling & Training For Incarcerated & Formerly Incarcerated Individuals
$70 million to Women Business Centers, Small Business Development Centers, and other entities for formerly incarcerated individuals through training(s) covering how to start or expand a small business and the tools, skills, and knowledge necessary to identify a business opportunity. Funding for mentoring in their small business ventures and connecting them to local resources and SBA programs.
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