As 2024 comes to a close, small businesses are reflecting on a historic year of growth and opportunity. With over 20 million new business applications and a record-breaking monthly average of over 440,000 filings in the last four years, American entrepreneurship is thriving. The presidential administration has played a pivotal role in supporting this momentum with groundbreaking legislation and initiatives tailored for small businesses.
Record Levels of Capital Through the SBA
In 2024, the Small Business Administration (SBA) provided an unprecedented $56 billion in capital to small businesses through loans, investments, and surety bonds. The SBA doubled the availability of loans under $150,000, significantly increasing access for underserved groups, including but not limited to:
Black-owned businesses
Latino-owned businesses
Women-owned businesses
Native-owned businesses
Veteran-owned businesses
Lowering Costs for Small Businesses
The Inflation Reduction Act introduced key savings for small business owners. These include:
A 30% tax credit for solar power adoption.
Energy-efficient upgrade deductions of up to $1.00 per square foot.
Health care savings of $700 annually on premiums for millions of small business owners and self-employed individuals.
State Small Business Credit Initiative (SSBCI)
With nearly $10 billion allocated, the SSBCI is fueling small business loans and venture capital programs nationwide. In 2023, this initiative generated $3.1 billion in financing, benefiting underserved businesses (75%) and those with fewer than 10 employees (78%).
Federal Contracting Opportunities
Small businesses received $178.6 billion in federal contracts in 2023, accounting for 28.4% of
all eligible contracts. Of this, $76.2 billion was awarded to small disadvantaged businesses, supporting over one million jobs in industries like manufacturing, construction, and defense.
Expanding Access to Capital
The federal government has bolstered support for small businesses through the Community Navigators Pilot Program and the Minority Business Development Agency’s Capital Readiness Program. These initiatives provided training to over 350,000 entrepreneurs and one-on-one counseling to 33,000 small business owners.
Driving Growth in Emerging Industries
Historic investments in clean energy, infrastructure, and innovation have created new opportunities for small businesses. The CHIPS and Science Act allocated $54 million to help small businesses enter the microelectronics market, while the Inflation Reduction Act incentivized participation in the green energy transition with tax credits for sustainable products and commercial clean vehicles.
Conclusion
2024 has been a landmark year for small businesses, marked by record capital access, cost reductions, and expanded opportunities in federal contracting and emerging industries.Â
Is your small business ready to seize the opportunity with current SBA rates before the year ends? In 2024, Capital Infusion has helped thousands of business owners secure funding. Apply now to discover customized financing solutions to support your growth!
Comments