The United States will provide $ 10 billion in aid to start-ups with the aim of stimulating business in disadvantaged companies and broadening the recovery from the pandemic, the Wall Street Journal reported on Saturday (January 8th).
The state’s Small Business Credit Initiative will leverage funding from states, territories and tribal governments to help raise venture capital and guide private lenders in providing small business loans. The funding will come from last March’s $ 1.9 trillion COVID-19 assistance program.
The program will revive a policy put in place after the 2007 recession, when banks stopped lending so much. However, the new $ 10 billion program is six times the size of the previous one.
According to Adair Morse, assistant undersecretary for access to capital at the Treasury Department, the goal is to get more money for disadvantaged groups, including racial minorities, rural communities and veterans.
President Joe Biden’s economic agenda has faced slowdowns amid disagreements over how much to spend on his spending plan on things like health, education and climate change. Some Democratic allies also want the White House to do more work to address issues of wealth and racial inequality.
Meanwhile, Republicans have said a $ 10 billion program is unnecessary due to previous pandemic aid for small businesses.
Disbursement of funds will likely begin in the first quarter of this year, and states and other recipients will be able to use the funds as they see fit within Treasury Department parameters.
So far, not all small businesses have weathered the pandemic – with the economy on the move, landlords have had to choose between offering breaks to retail tenants or simply losing them altogether as some businesses close. .
In San Francisco, homeowners have faced increased financial pressure from the introduced vacant home tax, which hits homeowners who have empty commercial space for more than 182 days a year.
Read more: Homeowners Find New Ways to Fill Vacant Retail Space