Small Business Majority Applauds Today’s Announcement from the White House to Prioritize Access to Capital for Vulnerable Small Businesses

For Immediate Release: 
Tuesday, June 15, 2021

Statement from John Arensmeyer, Founder & CEO of Small Business Majority, on the importance of investing in Community Development Financial Institutions that serve under-resourced small businesses

"We are pleased the Administration is dedicating $1.25 billion to Community Development Financial Institutions (CDFIs) because these lenders are critical to supporting small businesses in underserved communities. 

Many small businesses, particularly those owned by people of color, women and immigrants are still struggling to recover from the pandemic and they urgently need this financial relief. Our recent poll shows that 22% of small businesses say their business operations are still declining. Additionally, more than 1 in 4 small businesses reported they may not survive past three months without funding or market changes, and 10% of small businesses are temporarily closed. It is clear that significant resources are desperately needed and today’s announcement will be critical to supporting small businesses in underserved communities that face a long road to recovery and position them to withstand the next crisis. 

We have long known that small businesses can thrive with substantial support, leading to stronger communities and breeding community leaders. Small businesses are often at the center of economic growth and are critical to a community’s economic value. However, for far too long, small businesses in underserved communities have been left behind and have faced uphill battles when trying to overcome systemic barriers to funding. Until now, Congress has not taken enough steps to remove the barriers this community faces when trying to access capital. With this substantial investment in the new CDFI Rapid Recovery Program, the Administration has proven that it wants to ensure equitably and expanded access to capital for those businesses that have long been shut out of federal funding programs. 

This is an important step and we encourage the Administration to continue prioritizing vulnerable small businesses with these types of commonsense programs."

About Small Business Majority

Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,000 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on TwitterFacebook and Instagram.

Press State: