Fully Funding CDFI, SBA Will Help Small Businesses Succeed
Statement by John Arensmeyer, Founder & CEO of Small Business Majority, in response to a U.S. Senate vote to fully fund the Community Development Financial Institutions Fund and the Small Business Administration
We’re glad the U.S. Senate voted today to fully fund the Community Development Financial Institutions (CDFI) Fund as well as the Small Business Administration (SBA) as part of appropriations for 2019 given how important these are to small business owners who need funding.
Today’s vote will likely ensure the CDFI Fund receives as much as it did under the FY2018 budget. Maintaining the CDFI Fund helps increase investment in small businesses in underserved communities; for every $1 awarded by the CDFI Fund, $12 in financing is generated. Small business owners—particularly women, entrepreneurs of color and other underserved populations—already face significant hurdles accessing capital. In fact, Small Business Majority’s scientific opinion polling found the lack of access to capital is a serious concern for virtually all small firms, with 90 percent of small business owners agreeing that the availability of small business loans is a problem. Cutting the CDFI Fund will only exacerbate this issue.
The Senate also voted to increase the Small Business Administration (SBA) budget by $41 million over FY2018. The SBA is a vital resource for America’s small businesses, providing invaluable technical assistance and support.
Given the critical nature of both the CDFI Fund and SBA to America’s small firms, we hope Congress moves acts quickly to finalize the budget for both of these critical programs.
About Small Business Majority
Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. We actively engage our network of more than 58,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.