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With over 13 million women-owned businesses, Women entrepreneurs are unstoppable

Today, there are over 13 million women-owned businesses and women are starting businesses at double the national average rate, according to the 2019 State of Woman-Owned Businesses Report. Additionally, women of color make up the majority of new business owners, making them the fastest growing group of entrepreneurs. The month of October is National Women’s Small Business Month, which celebrates women-owned businesses and their effect on the country’s economy. 

In 1972, there were only 400,000 women-owned businesses and until 1988 women needed a male relative to co-sign business loans. Since then we have come so far. 

According to the 2019 report, women-owned companies grew 3.9% annually from 2014 to 2019, 2.2% more than all businesses at the time. By 2019, women-owned businesses represented 45% of all U.S. businesses and generated $1.9 trillion worth of revenue. Despite these great advancements, there are still many hurdles women entrepreneurs face when starting new businesses.

This week, from October 18 – 22, marks Women’s Entrepreneurship Week (WEW) where colleges and organizations across the country host events and share resources to help women entrepreneurs grow and succeed. Berkeley College is one of many institutions that will be hosting a WEW event. The virtual event, The Future is Women, will take place tomorrow, Tuesday, October 19 and will feature panels of diverse women leaders and entrepreneurs. See here more information and to register

(Image source: Berkeley College)

Additionally, the U.S. Small Business Administration  (SBA) offers plenty of resources for women business owners and entrepreneurs to help women entrepreneurs launch new businesses and compete in the marketplace.

The Office of Women’s Business Ownership is one branch within the SBA that specifically works to enable and empower women entrepreneurs through advocacy, outreach, education and support. Established in 1979, the Office of Women’s Business Ownership has fostered the participation of women entrepreneurs in the economy, especially those who have been historically under-served or excluded. It supports programs through each of the SBA’s 68 district offices, providing business training and counseling, access to credit and capital, and marketing opportunities.

Resources and further reading for Women Business Owners and Entrepreneurs 

Women have made tremendous leaps and bounds in the area of business and entrepreneurship in recent decades. With over 13 million women-owned businesses and counting and the fastest growing group of business owners, women are an unstoppable force. To continue to foster this growth, we must continue to share resources and support initiatives that support women entrepreneurs. Below are a few resources and articles for further reading to help women entrepreneurs get started and succeed. 

Good news for small business from the Economic Injury Disaster Loan Program

The Small Business Administration (SBA) has announced improvements to the COVID Economic Injury Disaster Loan (EIDL) program to better meet the needs of small businesses, and industries hit hardest by the pandemic. With the Delta variant, the struggle is far from over and many small businesses across the country are still in need of financial relief.  

The COVID Economic Injury Disaster Loan program is on of many SBA programs offering assistance to businesses in need. The program is a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. 

SBA Administrator Isabella Casillas Guzman. (Photo Source)

“The SBA’s COVID Economic Injury Disaster Loan program offers a lifeline to millions of small businesses who are still being impacted by the pandemic,” SBA Administrator Isabella Casillas Guzman said in a press release

“We’ve retooled this critical program – increasing the borrowing limit to $2 million, offering 24 months of deferment, and expanding flexibility to allow borrowers to pay down higher-interest business debt. We have also ramped up our outreach efforts to ensure we’re connecting with our smallest businesses as well as those from low-income communities who may also be eligible for the companion COVID EIDL Targeted Advance and Supplemental Advance grants totaling up to $15,000.  Our mission-driven SBA team has been working around the clock to make the loan review process as user-friendly as possible to ensure every entrepreneur who needs help can get the capital they need to reopen, recover and rebuild,” Guzman continued. 

The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes.

Changes to the COVID EIDL program

The low-interest and long-term COVID EIDL program has helped millions of small business owners survive the impacts of the pandemic with its flexibility and affordability – allowing entrepreneurs to hire and retain employees, and purchase needed equipment and inventory.  

The SBA’s newest improvements will make the program even more flexible to meet the needs of struggling business owners. New improvements include: 

  • The SBA has increased the amount of funding that can be borrowed from $500,000 to $2 million for qualified applicants.  
  • The SBA has authorized COVID EIDL funds to be used to pay and prepay commercial debt and make payments on federal business debt in recognition of the financial reality many small businesses are facing during this crisis.
  • Small businesses will have time to recover from COVID-19 impacts by further deferring payments – up to two years after your loan origination date. 
  • Additionally, to help ensure the smallest businesses can access this crucial capital, the SBA has created a one-month exclusive window for businesses requesting $500,000. During this time, approvals and disbursements will focus 100% on loans $500,000 or less until October 8th, upon which approvals and disbursements will be opened up to all loan sizes.
  • Finally, to ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.

You might be interested: How to still apply for Covid-19 Business Tax Credits ending Sept. 30

How to apply

Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to learn more about eligibility and application requirements. The last day that applications may be received is December 31, 2021. All applicants should file their applications as soon as possible.

For additional information on COVID EIDL and other recovery programs please visit www.sba.gov/relief.

“As your SBA Administrator and a former small business owner myself, my goal is to make you, America’s small businesses, feel like the giants you are in our economy with programs that meet you where you are,” said Guzman.  

All business owners who have received previous loans through the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), or Shuttered Venue Operators Grant (SVOG) can still benefit from COVID EIDL. For no-cost assistance for the COVID EIDL program, and every other SBA program, go to www.sba.gov/local-assistance and connect with a local resource partner near you.

National Small Business Week delivers virtual summit for post-COVID renewal resources

National Small Business Week commences with three-day free virtual summit from September 13 – 15, 2021. 

Hosted by the U.S. Small Business Administration (SBA), virtual summit will focus on the resilience and renewal of small businesses as they build back from the economic crisis brought on by the COVID-19 pandemic. 

Photo by Sigmund on Unsplash

The National Small Business Week virtual summit will feature a variety of virtual events and activities including educational panels providing tools and practices for entrepreneurs and small businesses looking to pivot and recover post-COVID. With panels such as “The Importance of Black and Brown Community: Coming Together to Support Hispanic Heritage Month, Black History Month, and Small Business Day”, “Empowering the Veteran and Military Small Business Community”, “Unlocking the Doors to Access for Black-Owned Businesses: Funders and Founders Share Their Real-Life Stories” and more on the agenda, the diverse and inclusive summit offers resources and tools to support all business owners expand and succeed. 

Register now for the free three-day virtual summit. 

SBA Administrator Isabella Casillas Guzman. (Photo Source)

“Over the last 16 months, we have seen the incredible determination and ingenuity of small businesses across the nation.  During NSBW, we will honor and celebrate their impact on our economy and strengthening of communities as we look towards recovery,” said SBA Administrator Isabella Casillas Guzman in a video message

As the 27th Administrator of the U.S. Small Business Administration, Guzman represents the more than 30 million U.S. small businesses and is committed to helping small business owners and entrepreneurs start, grow and be resilient. 

The SBA works to empower entrepreneurs and small business owners by providing the resources and support they need to start, grow or expand their businesses, or recover from disaster. The organization delivers services through its extensive network of SBA field offices and partnerships with public and private organizations. 

You might be interested: Latina Leaders share small business post-Covid recovery resources 

“NSBW is the perfect time for small businesses across the nation to network and learn about the many services and programs at the U.S. Small Business Administration, including our no-cost business counseling and mentoring opportunities available via our district offices and resource partners. We look forward to celebrating with you as we rebuild our economy and help our small businesses build back better,” Administrator Guzman added. 

About SBA

The U.S. Small Business Administration (SBA) works to ignite change and spark action so small businesses can confidently start, grow, expand, or recover. Created in 1953, the U.S. Small Business Administration continues to help small business owners and entrepreneurs pursue the American dream. SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation’s only go-to resource and voice for small businesses.

restaurant, covid-19 worker

Applications for the SBA’s Restaurant Revitalization Fund are now open

The Small Business Administration’s Restaurant Revitalization Fund is now accepting applications. This program will provide emergency assistance for eligible restaurants, bars, and other qualifying businesses impacted by COVID-19.

restaurant, covid-19 worker, businesses impacted by COVID-19, RRF

Photo by dapiki moto on Unsplash

About the Restaurant Revitalization Fund 

During the Covid-19 pandemic, small businesses have been impacted the most, with many facing tremendous losses in revenue and others forced to shut down. Of these businesses, restaurants and food establishments have been hit the hardest, as Covid-19 safety restrictions have limited business flow. 

Under President Biden’s American Rescue Plan Act, the Restaurant Revitalization Fund (RRF) has been established to provide funding to help restaurants and other eligible businesses recover from pandemic-related losses and stay open. The program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Applications for the RRF are now open as of May 3, 2021. Apply now!

Who can apply? 

Eligible businesses who have experienced pandemic-related revenue loss as listed on the SBA site include: 

  • Restaurants
  • Food stands, food trucks, food carts
  • Caterers
  • Bars, saloons, lounges, taverns
  • Snack and nonalcoholic beverage bars
  • Bakeries (onsite sales to the public comprise at least 33% of gross receipts)
  • Brewpubs, tasting rooms, taprooms (onsite sales to the public comprise at least 33% of gross receipts)
  • Breweries and/or microbreweries (onsite sales to the public comprise at least 33% of gross receipts)
  • Wineries and distilleries (onsite sales to the public comprise at least 33% of gross receipts)
  • Inns (onsite sales of food and beverage to the public comprise at least 33% of gross receipts)
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

How to apply? 

All eligible businesses can apply directly though the SBA’s application portal: https://restaurants.sba.gov or through SBA-recognized Point of Sale (POS) vendors. Participating POS providers include: Square, Toast, Clover, NCR Corporation (Aloha), and Oracle. 

If you need assistance preparing your application, check out the following resources: 

 Watch a Webinar: Learn how to apply for RRF

RRF Application Dates

Priority Period 

Applications open today at noon, Monday May 3, 2021. Throughout the first 21 days from the opening of the Application portal, the SBA will accept applications from all eligible applicants, but only process and fund priority group applications.

Priority groups are defined as a small business that is at least 51% owned by one or more individuals who are: women, veterans, or socially and economically disadvantaged. 

Socially and economically disadvantaged individuals are those “who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities…and whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area.” 

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Open to All 

From days 22 through funds exhaustion the SBA will accept applications from all eligible applicants and process applications in the order in which they are approved by SBA.

How funds can be used

Funds may be used for specific expenses including:

  • Business payroll costs (including sick leave)
  • Payments on any business mortgage obligation
  • Business rent payments (note: this does not include prepayment of rent)
  • Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
  • Business utility payments
  • Business maintenance expenses
  • Construction of outdoor seating
  • Business supplies (including protective equipment and cleaning materials)
  • Business food and beverage expenses (including raw materials)
  • Covered supplier costs
  • Business operating expenses

For more information, access to forms and other specifications visit: sba.gov 

How American Rescue Plan Act will help minority-owned small businesses recover post-COVID

The American Rescue Plan Act will help small businesses recover post-COVID by providing critical assistance to businesses across the country and delivering $50 billion in aid and relief. 

Minority-owned businesses have struggled to get small-business relief loans 

The COVID-19 pandemic brought on great financial difficulties for businesses across the nation. Small businesses were greatly affected, with women- and minority-owned small businesses hit the hardest. 

Photo by Gene Gallin on Unsplash

Since last April, workers of color have faced the highest rates of pandemic-related unemployment. Data shows that Black and Latino people are now facing greater rates of unemployment than during the 2008 Great Recession. Minority-owned small businesses have also faced greater difficulties accessing capital and relief loans. 

The Paycheck Protection Program, which launched in March 2020, has now become the largest small-business support program in U.S. history, sending $734 billion in forgivable loans to struggling companies. It has helped nearly 7 million businesses stay afloat, but it has also been plagued by complex, ever-changing rules that have hindered many businesses from getting much needed relief loans. 

Many of the businesses affected by the changing rules and confusion have been minority-owned businesses. From language barriers to unfair biases, minority business owners have struggled to gain access to capital and bank loans from major banks. Many have since turned to their communities and smaller, local banks to find relief, but new changes to the program under President Biden are now pushing to funnel more money toward women- and minority-led businesses. 

You might be interested: PPP Loan forgiveness: $50,000 loans for small business and self-employed

Changes to PPP and SBA loans under the American Rescue Plan 

New Funding and Changes to the Paycheck Protection Program (PPP). The bill includes $7.25 billion in additional funding for the Paycheck Protection Program (PPP) and changes eligibility for the PPP, including:

  • Expanding eligibility for 501(c) nonprofits. It also makes local offices of larger nonprofits eligible for PPP assistance as long as those locations are not larger than 500 employees for first PPP loans or 300 employees for second PPP loans, expanding access to vital relief for nonprofit organizations that are critical to local services and the economy.
  • 1st PPP Draw loan deadline: on or before 31 May 2021 (businesses must have been in business from 15 Feb 2020)

PPP loans have:

  • A fixed interest rate of 1% that is non-compounding and non-adjustable
  • No requirement for collateral or personal guarantees
  • No fees or prepayment penalties
  • A 5 year maturity

New Programs per the American Rescue Plan Act

Supplemental Targeted EIDL Advance Payment: 

  • A $5 Billion fund for $5k payments to those hardest hit

Restaurant Revitalization Fund & Grants – Coming soon

  • A $28.6 billion fund for grants to eligible entities in this hard-hit industry
  • Max $5 million grant/location and aggregate max $10mil grant

lack of access to capital

How to Apply 

If you have a small business and would like to apply for any of these SBA programs, visit www.sba.gov to learn more about COVID-19 Small Business Guidance and Loan Resources. Under SBA’s Coronavirus Relief Options page, you can learn about how to apply for a variety of programs including: 

  1. Paycheck Protection Program (PPP) 
  2. Economic Interruption Disaster Loan (EIDL) 
  3. SBA Express Bridge Loans 
  4. SBA Debt Relief for 7(a), 504, & Microloans 
  5. Shuttered Venue Operators Grant program

Steps to finding a lender:

Need more help? Check out our other PPP resources

Isabella Guzman, Isabel Guzman, first Latina SBA Administrator,

Isabella Casillas Guzman confirmed as new SBA Administrator, a big win for small businesses

Isabella Casillas Guzman has been confirmed as the 27th Administrator of the U.S. Small Business Administration. A Latina business leader, Guzman is among a group of high-caliber Latinos that were nominated by the Biden Administration. 

Latinos nominated to the Cabinet, Isabel Guzman, Isabella Guzman, first Latina SBA Administrator

Isabella Casillas Guzman, first Latina SBA Administrator. (State of California, Public domain, via Wikimedia Commons)

This past Tuesday, on March 16, the U.S. Senate confirmed President Joe Biden’s nominee with broad bipartisan support, 81-17 votes as Administrator of the SBA. In this position, Guzman will represent the more than 30 million U.S. small businesses and lead an agency committed to helping small business owners and entrepreneurs start, grow and be resilient.

Commenting on Guzman’s appointment, Senate Committee on Small Business & Entrepreneurship Chair Ben Cardin (D-MD) said: 

 “SBA must continue to be a lifeline for small businesses in the months ahead, and I am confident that Isabel Guzman is the best person to lead the agency out of the pandemic and through the economic recovery to follow. Mrs. Guzman’s commitment to equity and her deep knowledge of the needs of small businesses will make her a strong advocate for all small businesses in the Biden Administration. I am looking forward to working with Mrs. Guzman as we in Congress work to fine-tune SBA to better meet the needs of small businesses in Black, Latino, Native, and other underserved communities.”

Administrator Guzman will lead a workforce of over 9,000 SBA employees and administer the SBA’s portfolio of loans, investments, disaster assistance, contracting, and counseling.  Additionally, she will implement critical financial relief for small businesses impacted by the pandemic through the Paycheck Protection Program, Economic Injury Disaster Loan Program, Shuttered Venue Operators Grant Program, and additional support recently passed in the American Rescue Plan.

Isabella Guzman, Isabel Guzman, first Latina SBA Administrator,

Isabella Guzman previously worked in the SBA during the Obama administration as Deputy Chief of Staff and Senior Adviser. (U.S Small Business Administration, Public domain, via Wikimedia Commons)

“Growing up in an entrepreneurial family, I learned firsthand the ins and outs of managing a business from my father and gained an appreciation for the challenges small business owners face every day.  Throughout my public and private sector career, I have been dedicated to helping small businesses grow and succeed,” said Administrator Guzman. “Now more than ever, our impacted small businesses need our support, and the SBA stands ready to help them reopen and thrive.”  

Previously, Guzman served as the director of the Office of Small Business Advocate in the California Governor’s Office of Business and Economic Development where she served California’s four million small businesses, which employ 7.1 million Californians, the largest state network of small businesses in the country. Prior to her work in California, she worked in the SBA during the Obama administration as Deputy Chief of Staff and Senior Adviser. Guzman has also started small businesses as an entrepreneur. 

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 “I am excited to return to the SBA and serve as the voice of small business in the Biden-Harris Administration. I am committed to championing the Agency’s mission and helping equitably build back the economy,” Administrator Guzman continued. “I also look forward to working with the dedicated team of SBA professionals to ensure that the SBA creates and sustains inclusive entrepreneurial ecosystems for all of our diverse small businesses across the nation to thrive.”

Hair salons small business week

National Small Business Week Celebrates the American Entrepreneurial Spirit

Starting National Small Business Week, who better than our very best Latina Maria Contreras-Sweet, SBA Administrator, to address the importance of celebrating the drive, innovation and economic impact of the Latina entrepreneurial spirit. Please visit Our LIBizus section to get to know the Latina entrepreneurs we celebrate on LatinasinBusiness.us. Vamos, Latinas!

 

Hair salons small business week

Hair salons play an important role in the Dominican small business community.

By Maria Contreras-Sweet, SBA Administrator

What creates two out of three net new American jobs; produces close to half of our nation’s goods and services (nonfarm private GDP); and can be found, coast to coast, in every small town, big city and rural enclave?

The 28 million small businesses that propel our economy forward and define our national entrepreneurial spirit.

To be American is to have the freedom to innovate, take risks, create, transform and put in the hard work that has led to the successes – and failures – that define human progress. From May 1-6, the U.S. Small Business Administration (SBA) will recognize and honor the critical and  life altering contributions of America’s moms and pops, manufacturing enterprises, Main Street retailers and entrepreneurs during National Small Business Week.

Every year since 1963, the President of the United States has issued a proclamation setting aside one week to “recommit to advancing these vital enterprises, and celebrate their contributions to our collective American story.” As Federal Reserve Chair Janet Yellen said, it was small businesses that powered our recovery after the Great Recession.

Rosario Gamboa

Rosario Gamboa, Canela Bakery

This year’s National Small Business Week, themed “SBA: Dream Big, Start Small,” will include special events in Atlanta, New York, Denver, Phoenix, San Jose, Oakland and Washington, D.C.

Tune in all week for live-streaming, beginning at 7:30 p.m. ET Sunday as we officially kick off the week and join me at @MCS4Biz on Twitter (link is external) or Instagram (link is external), and #DreamSmallBiz.

America is one of the few countries that gives entrepreneurs a seat at the President’s cabinet table. This allows the SBA to provide an amplified voice for small businesses and represent their divergent interests.

The SBA also offers an extensive national network of small business lenders and counselors that is unmatched anywhere in the world. Many innovators with great ideas and great potential do not begin with great wealth, so they need a great government partner to support their success.

The SBA offers the “three Cs” to help aspiring entrepreneurs start up and scale up by making counseling available, providing more choices and chances to secure capital, and by helping them seize market opportunities to commercialize their ideas. These risk takers will help make our lives more productive, safer, healthier and benefit society overall.

Capital: SBA fills gaps in the commercial lending marketplace so success in the small business sector is based on merit, not family wealth. To inquire about a small business loan, click here.

Counseling: SBA provides free consultation and advice to help Main Street succeed. To find a counseling center near you, click here.

Cecilia Arce, Verde Cleaning Services small business week

Cecilia Arce, Verde Cleaning Services

Contracts: SBA levels the playing field with big business by helping small businesses capture new revenue and new customers by winning government contracts, joining corporate supply chains, and exporting beyond our borders. To learn about contracting opportunities, click here.

This year, during National Small Business Week, we recommit ourselves to those fearless entrepreneurs who plan well, work hard, and dream big. Every business starts small. Many of today’s most recognized brands were once small businesses until they found an SBA counselor, lender or investor.

I came to this country as a 5-year old immigrant who didn’t speak a word of English. Today, I serve in the cabinet of the President of the United States. My story is possible only because of America’s promise and its entrepreneurial spirit. I’m proud to lead an incredibly talented team assembled from across the country ready to serve you.

Success in business comes one small step at a time. So dream big, take that next small step today, because the next great American success story could be staring back at you in the mirror.

SBA Administrator Maria Contreras-Sweet started three businesses in Los Angeles, including a community bank, before joining President Obama’s cabinet in April 2014.

Published: April 26, 2016 Updated: April 26, 2016 on the Blog – SBA Administrator

 

Maria Contreras-Sweet  SBA Administrator Maria Contreras Sweet small business week

Maria Contreras-Sweet is Administrator of the U.S. Small Business Administration and a member of President Obama’s cabinet. The SBA helps both Main Street and high-growth small businesses get access to capital, counseling, federal contracts, disaster assistance and more.