Thriving small businesses mean thriving communities.
ACCESS TO CAPITAL
Small businesses thrive in places where people can live, work and prosper. For too long, the rules set for our economy have favored big corporations, encouraging extraction from communities instead of investment in them. Nearly half of all small business owners have experienced problems obtaining credit.
The problem is especially dire for people of color and woman-owned businesses. With smart public investment and fair access to capital, small businesses can contribute to economic equity and help communities thrive.
Watch Rashad’s story.
When MSA member Rashad Davis opened his business, he didn't have much outside support. With savings, investments and advice from a network of local business owners he opened Plantivia Wellness. But finding access to capital and technical assistance was difficult, and he's got ideas on how the city of Newark could further support businesses like his.
Support federal access to capital efforts by emailing your representative (below).
Email Your Federal Representative >
With the passage of the American Rescue Plan, we must move from immediate rescue to building a more resilient and equitable economy. Email your representatives to let them know you support the Build Back Better plans that includes many of these essential small business priorities.
Letter Copy - Can be Edited >
SUPPORT EXAMPLE: Thank you for supporting the American Rescue Plan. These are critical small business supports that will help get us through the pandemic. But we must never be caught in a situation like this again. The inequities that were exacerbated by the small business loan programs must be solved.
The small business sector is the mainstay of local economies and a necessary piece in a more just, democratic future. Yet Covid has revealed our country’s profound disinvestment in small businesses, particularly BIPOC-owned businesses, very small businesses, and rural businesses. Though Covid relief programs saved many small businesses, the federal Covid response showed that the U.S. lacks a public infrastructure for fostering a thriving small business economy – much less a small business economy that builds long-denied generational wealth in Black and Brown communities.
The economic recovery will be long and hard. To ensure small businesses recover and thrive we need:
- A Bolder, More Effective Public Infrastructure for Small Business. Coordinated across federal, state and local agencies, with funding and technical assistance scaled to grow with the business.
- New Public Investment Accessible to Small Business. Expanded public investment through programs such as Community Advantage (Small Business Administration) and Minority Business Development Agency (Commerce Department), and new entities such as a public investment bank scaled to the needs of small businesses.
- Financial Reform and Oversight. Expand consumer protections and oversight for small business borrowers to expand access to affordable credit, identify credit gaps and protect small businesses from usury financial practices.
- Rein in monopolies and reverse corporate concentration. Stronger antitrust rules and enforcement to break up Amazon and other giant corporations - who are using their market power to squeeze out small business.
The work of Covid relief and recovery is far from over. We must continue that work while laying the foundation for post-Covid resilience and a just, equitable small business economy. Please support the Build Back Better plans.
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One of the major challenges entrepreneurs confront is lack of quality, affordable capital. Banks favor large corporations over independent businesses -- and, with racial and gender discrimination widespread, they are making it especially hard for entrepreneurs of color and women entrepreneurs of all races to launch and expand their own businesses. Add your name to a set of principles to support equitable access to capital for small businesses.