TLDR: Public-Private Partnership Bring Billions To Diverse-Owned Businesses
Key points from the article:
- The Biden administration expanded the State Small Business Credit Initiative (SSBCI) with $10 billion in funding, focusing 40% on socially and economically disadvantaged businesses.
- The Initiative for Equitable Entrepreneurship (IEE) aims to bridge the funding gap for diverse-owned businesses through public-private partnerships.
Public-private partnerships are bringing billions of dollars to diverse-owned businesses in an effort to promote equity and foster economic development. The State Small Business Credit Initiative (SSBCI) was expanded with $10 billion in funding from the Biden administration, with a focus on socially and economically disadvantaged businesses. The Initiative for Equitable Entrepreneurship (IEE) seeks to unlock massive funding through a 1:1 private investment match requirement, with support from corporate and philanthropic investors such as JPMorgan Chase and Wells Fargo.
Diverse-owned businesses face challenges in accessing traditional capital products and venture capital, which results in higher interest rates and limited funding opportunities. The IEE program aims to address these challenges by leveraging public and private funds to maximize impact and provide funding for diverse entrepreneurs. Founders First Capital Partners and JumpStart are among the organizations focused on supporting diverse small businesses through the SSBCI program.
In addition to supporting diverse-owned businesses, the SSBCI program aims to create jobs, drive economic upward mobility, and narrow the wealth gap for people of color. Matching private and public funds, Hyphen Partnerships is leading efforts to address social issues through co-investment and collaboration. Through initiatives like Connecting to Capital and Boosting Venture Capital, the IEE program is working to provide financing options for government and corporate suppliers as well as support diverse fund managers and founders in accessing venture capital.
