Small Business Administration Makes Improvements that Will Benefit Historically Underrepresented Small Business Owners
Photo by Ketut Subiyanto
The Biden-Harris Administration’s small business loan program launched improvements on August 1, 2023. The U.S. Small Business Administration’s (SBA) website lists a summary of the key changes in the program here, citing the shifts between the pre and post August 1, 2023 policies.
The SBA's policy improvements are meant to "address long-standing persistent capital access gaps for rural, veteran, women and minority-owned businesses," as stated in a press release on the SBA website. These policies are designed to improve access to small business loans by simplifying the loan application process and giving borrowers a larger portion of operational and growth funding.
Another group that will benefit from these changes are those with criminal backgrounds; these individuals can now apply for small business loans with less requirements hindering their application approval. The background check went from including three questions, a lengthy character determination process and fingerprinting to one question and no criminal background check.
Han Nguyen, a spokesman for the SBA, told Business Insider, “By leveling the playing field and fostering inclusive opportunities through these actions, we are paving the way for diverse and dynamic small businesses and innovative startups to grow, creating a stronger and more resilient economy for all.”
To help more small businesses gain access to capital, there are also streamlined lender procedures with less paperwork and more flexibility in credit criteria for loans under $500,000. Standards, definitions and eligibility determinations are clearer and more streamlined to assist with qualification processes for loans under $500,000.
The SBA is using its outreach and education program to support stakeholders in the new processes. Find local assistance information here.