CalOSBA Awarded $25.3 million from Biden-Harris Administration to Support Small Businesses and Entrepreneurs across California
The United States Department of Treasury’s State Small Business Credit Initiative Program will expand technical assistance to California’s underserved entrepreneurs and small business owners.
SACRAMENTO, CA – Last week, the California Office of Small Business Advocate (CalOSBA), an arm of the Governor’s Office of Business and Economic Development (GO-Biz), was awarded the State Small Business Credit Initiative Technical Assistance (SSBCI TA) Program by the U.S. Department of Treasury. The SSBCI TA Program award approved CalOSBA for up to $25.3 million for a period of five years, the largest investment to any one state by the Department. For the full U.S. Department of Treasury press release, click here.
With these new funds, CalOSBA will partner with the statewide network of small business technical assistance centers that represent geographic and service diversity, including services in over thirty different languages, to further reach and support small business and entrepreneurs navigate the funding landscape and successfully access capital they need to start and/or grow their business in California. CalOSBA is committed to reducing barriers to resources and information and will prioritize outreach and engagement with socially and economically disadvantaged individually (SEDI) owned businesses and very small businesses (VSB). The technical assistance services will include tailored free one-on-one counseling and no- to low-cost training.
“This is an important milestone for technical assistance to California’s 4.2 million small businesses. California is already home to the largest and most robust small business support network in the country. My office is excited to expand our partnerships with these providers to make sure that small business-owners in underserved communities get the support they need to become loan-ready and take advantage of the $1.1 billion SSBCI capital infusion,” said CalOSBA Director Tara Lynn Gray.
For more on Governor Newsom’s September 2022 announcement of the U.S. Treasury approval of $1.1 billion in SSBCI funding, click here.
The Biden-Harris Administration also recently announced the recommended awardees for the Minority Business Development Agency’s (MDBA) Capital Readiness Program, including awardees in California. The Capital Readiness Program represents the Commerce Department’s largest investment in support of underserved entrepreneurs. Awardees will launch and operate business incubators or accelerators designed to prepare underserved entrepreneurs to secure capital from the historic $10 billion SSBCI and other capital sources. For the full MBDA press release, click here.
“Access to capital for a small business starts with capital readiness. At the Small Business Development Centers in California, we assist thousands of entrepreneurs and small business owners to understand business financials, types of capital and lending, and put together complete loan packages. Post COVID-19, the capital markets and economy have made capital access even more complicated. The SSBCI Technical Assistance funding will allow the SBDCs to work more with small businesses to help navigate the changing lending landscape,” said Daniel Fitzgerald, Regional Director, San Diego & Imperial Valley Regional SBDC Network.
“The recent investment in SSBCI for CA Technical assistance centers is excellent and we are eager to train and advise businesses how to navigate and access the money they need to start and grow. We are thrilled to be working with CDFI’s, banks, credit unions, non-profit lenders to advise them on what underserved businesses need from them to ensure they can apply and get approved for capital,” said Kristin Johnson, Executive Director, Northern California Regional SBDC Network.
“Capital is one of the most critical components to assisting small businesses with starting and growing. The California SBDC’s are excited for the role the SSBCI program can play in assisting those small businesses that need it the most but struggle with accessing the capital they need through traditional channels. The California SBDC’s in partnership with CalOSBA will be able to provide financial education, loan packaging and lender matchmaking to small businesses throughout the state with an emphasis on supporting minorities, women and the most underserved businesses throughout the state of California to make sure that everyone has access to affordable capital,” said Mike Daniel, Regional Director, Orange County Inland Empire Regional SBDC Network.
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The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.