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The American Jobs Plan's Pledges to Small Businesses

The American Jobs Plan’s Pledges to Small Businesses

The American Jobs Plan is just the latest in a string of Washington initiatives designed at least in part to help small businesses recover from the economic strain of COVID.

A year ago, Congress passed the CARES Act, which among other things started up the Paycheck Protection Program so small businesses could keep their employees on board. Since then, two additional Congressional measures kept the PPP going, with a total of nearly $1 trillion allocated to the program over all three phases.

More recently, in March, President Joe Biden unveiled his American Jobs Plan. While the $2.25 trillion plan is primarily focused on infrastructure, several measures are designed with small businesses specifically in mind.

The following is a quick look at the small business-friendly measures outlined in the American Jobs Plan.

How the American Jobs Plan Will Help Small Businesses

Better Access to Financing

The American Jobs Plan would invest in programs designed to open up credit, venture capital and R&D dollars to small businesses. It would invest $15 billion in the Small Business Administration’s 7(a) loan program and $5 billion in the Small Business Investment Company program.

The plan also would include funding to build a “national network of small business incubators and innovation hubs,” including those that would support entrepreneurship in communities of color and undeserved communities.

New Financing for Small Manufacturers

The American Jobs Plan would create a new financing program that would support debt and equity investments by private capital in small manufacturing firms. It also would create a grant program through the Minority Business Development Agency aimed at helping “small, Brown- and Black-owned manufacturers access private capital.”

Innovation Capital

The plan calls for a $5 billion investment in federal programs that empower small businesses to participate in federal R&D initiatives with the potential for commercialization.

Federal Contracting Opportunities

As part of its pledge to heavily invest in America’s infrastructure, the American Jobs Plan will “extend opportunities to small businesses to participate in the design, construction, and manufacturing of new infrastructure and component parts.”

If Congress passes the American Jobs Plan, in its current form or a modified one, McManamon & Co.’s professional consultants can help you better understand whether your small business qualifies for any of its various opportunities. And naturally, we can also help your business find other forms of financing, be it loans, grants, venture capital and more.

Stay on top of every funding avenue your small business might have access to. Call McManamon at 440.892.8900 or contact us online today!

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