In a bid to bolster economic equity and foster entrepreneurship among historically marginalized communities, the U.S. Small Business Administration (SBA) has announced its updated 2023 Equity Action Plan. This strategic roadmap, spearheaded by Administrator Isabel Casillas Guzman, underscores the agency’s commitment to advancing the Biden-Harris Administration’s agenda of promoting inclusivity and fairness in the small business landscape.
The renewed Equity Action Plan, unveiled today, outlines a series of actionable steps aimed at expanding access to capital and entrepreneurial support services, creating economic opportunities, and propelling the national economy forward. Administrator Guzman emphasized the transformative role played by diverse entrepreneurs in driving job creation, fostering innovation, and enhancing both domestic and international competitiveness.
Aligned with President Biden’s Executive Order mandating comprehensive assessments of federal programs to ensure equitable service delivery, the SBA’s plan identifies underserved communities as those systematically denied full participation in economic, social, and civic spheres. To address these disparities, the plan delineates key strategies, including:
- Improving Access to Loan Capital: By enrolling new lenders, simplifying lending rules, and proposing policies conducive to lending to justice-involved entrepreneurs, the SBA aims to facilitate broader access to loan capital, particularly in underserved markets.
- Enhancing Procurement Opportunities: Leveraging resources to support Small Disadvantaged Businesses (SDBs) and collaborating with federal agencies to identify contracting opportunities for SDBs, thereby amplifying their access to government procurement.
- Streamlining Disaster Assistance: Modernizing technology, simplifying application processes, and bolstering support for underserved disaster survivors navigating assistance programs, thus ensuring equitable access to critical aid.
- Tailoring Business Counseling and Training: Customizing outreach, training, and educational resources to address the specific needs of underserved communities, fostering their entrepreneurial growth and resilience.
- Facilitating Investment Capital: Implementing new rules for the Small Business Investment Company (SBIC) Program to enhance diversity among fund managers and increase investment capital directed towards underserved entrepreneurs.
The SBA’s engagement with the small business community and stakeholders has been instrumental in shaping the Equity Action Plan. Through its extensive network of field and program offices, the agency directly engages with entrepreneurs, gathers insights, and fosters partnerships to drive equitable growth.
Additionally, the SBA highlighted the accomplishments of its previous Equity Action Plan, underscoring initiatives such as the creation of Community Advantage Small Business Lending Companies (CA SBLCs), expansion of SBIC financing to marginalized entrepreneurs, negotiation of contracting goals to benefit SDBs, and the launch of various outreach and assistance programs targeting underserved communities.
As the SBA continues its mission to empower small businesses as engines of economic prosperity, the updated Equity Action Plan reaffirms its unwavering commitment to fostering a more inclusive and equitable entrepreneurial ecosystem.
Read the complete SBA Equity Action Plan here.