By The Observer
WASHINGTON – Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee and the U.S. Department of the Treasury (Treasury) announced that the California Office of the Small Business Advocate (CalOSBA) is being awarded $10 million to support small business growth through the State Small Business Credit Initiative (SSBCI), a $10 billion program Congresswoman Waters secured as part of the American Rescue Plan Act in 2021. These funds will be used to support very small businesses and minority-owned businesses across California access billions of dollars in new loans and investments, which is supported by $1.2 billion in Federal funds allocated to the state under the SSBCI.
SSBCI is an initiative Congresswoman Waters helped to create in 2010 to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. Since then, Waters has led the effort to renew and expand the initiative to further promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. The federal funding for this initiative will also be supported by $16.25 million in matching state funds.
California small businesses should contact CalOSBA (1-877-345-4633) to explore the financing options and support services available to them.
“This funding will go a long way in making sure that small businesses across California not only know about billions of dollars in low cost federal and state financing available to them, but also receive any technical assistance necessary to apply for these funds.” said U.S. Congresswoman Maxine Waters.“I am particularly pleased that this award is coming from the State Small Business Credit Initiative, an initiative I helped to create in 2010 and later led the effort to renew and expand in partnership with the Biden-Harris Administration in 2021. California’s small businesses, and especially its diverse-owned businesses, are too often ignored by our traditional banking system, but through this program can receive critical capital financing to better serve their communities. I look forward to working with the Treasury Department and state agencies to spread the word about these resources.”
“The Biden-Harris Administration’s economic agenda is focused on continuing the historic small business boom by helping small businesses across the country grow and hire,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. With this new funding, California will be able to provide one-on-one support to help entrepreneurs seize new opportunities created by state investments in infrastructure and innovation.”
“Today’s announcement to fund critical small business technical assistance programs will help ensure that more small businesses can thrive, as part of the Biden-Harris Administration plan that is powering a small business boom with a record 19 million new business applications so far,” said National Economic Advisor Lael Brainard.
“This $10 million investment is a huge win for California’s small businesses, helping them grow, create jobs, and lead in industries that drive our future,” said Lieutenant Governor Eleni Kounalakis. “By supporting California’s efforts to provide essential resources, technical support, and access to capital, this investment will ensure our state remains at the forefront of economic growth and innovation, especially for small businesses owned by women and people of color. I am grateful for the Biden-Harris Administration’s commitment to fostering inclusive economic opportunity and supporting the backbone of California’s economy.”
“Reauthorized and expanded by Congressional Democrats and the Biden-Harris Administration through the American Rescue Plan, SBOP supports small businesses nationwide receive the access to capital and technical assistance they need to succeed–barriers disproportionately impacting businesses owned by women and people of color, said U.S. Representative Judy Chu. With today’s announcement, entrepreneurs in the San Gabriel Valley and around California will be able to take advantage of the new PINNACLE program’s wealth of resources, training, and other forms of assistance to help them not just stay afloat but thrive and magnify their contributions to their communities.”
“CalOSBA is honored and grateful that the U.S. Treasury has chosen our application through this competitive process,” said CalOSBA Director Tara Lynn Gray. “Our proposal is designed to complement both the existing federal investment in our Technical Assistance for Capital Readiness Program and state-level investment from Governor Newsom’s administration in our Accelerate California program. The team at CalOSBA is tasked with diversifying California’s innovation economy and increasing small business participation in state contracting – both of which will be greatly assisted by this new funding.”
California small businesses should contact CalOSBA (1-877-345-4633) to explore the financing options and support services available to them.
Background:
Congresswoman Waters has a long record of supporting small businesses, including:
- After Congress passed the CARES Act in March 2020, launching the Paycheck Protection Program (PPP), Congresswoman Waters worked with then chair of the Small Business Committee Congresswoman Nydia Velazquez to secure a $60 billion set aside for community financial institutions in the PPP, including community development financial institutions (CDFIs) and minority depository institutions (MDIs), to ensure diverse and truly small businesses could quickly access the relief they need to keep their doors open and survive.
- In December 2020, Congresswoman Waters and Senator Warner worked together to secure an unprecedented $12 billion in capital investments and grants for CDFIs and MDIs to allow them to expand and provide the support that all communities deserve, including small businesses and businesses owned by people of color, which were the hardest hit during the COVID-19 pandemic.
- In April 2021, Congresswoman Waters and Senator Warner organized a Community Development Advisory Group with key stakeholders they periodically have met with, in coordination with Vice President Kamala Harris, to monitor the implementation of the programs supporting CDFIs and MDIs and identify opportunities for additional reform.
- Whenever Waters meets with big bank CEOs, she asks what they are doing to help CDFIs and MDIs and Congresswoman presses them for updates to make sure those commitments are fulfilled.
- In June 2022, Congresswoman Waters worked with Senator Warner to send a letter to the Government Accountability Office, requesting a study to identify the technology needs that CDFIs and MDIs have and policy options to address those challenges.
- In May 2023, Congresswoman Waters and several other colleagues led a letter to the Environmental Protection Agency, urging them to ensure that investments through the new Greenhouse Gas Reduction Fund are administered in a way that collaborates with and empowers CDFIs and other community financial institutions to ensure we bring clean energy investments to underserved communities, especially communities of color.
- In September 2024, Congresswoman Waters announced the reintroduction of H.R. 9767, the “Promoting and Advancing Communities of Color Through Inclusive Lending Act” to support CDFIs and MDIs in honor of the 30th anniversary of the creation of the CDFI Fund.
- In October 2024, Congresswoman Maxine Waters (D-CA) and Senator Mark Warner sent a letter to U.S. Secretary Treasury Janet Yellen, urging the Department to provide dedicated financial and training resources to improve the technology capabilities and capacity of CDFIs and MDIs.
