Please Mr. President, More Support for Microloans
“The true engine of job creation in this country will always be America’s businesses,” said President Obama in last night’s State of the Union address.
While I couldn’t agree more, I wished that the President drew increased focus to America’s microbusinesses — the “mom-and-pop” establishments (typically with fewer than five employees) that are the lifeblood of communities nationwide. These are the businesses that start when “an entrepreneur takes a chance on a dream, or [when] a worker decides its time she became her own boss.”
Mom-and-pop microbusinseses are the true drivers of job creation.
Eighty-seven percent of all American businesses are, in fact, microbusinesses, which represent 18 percent of all U.S. private employment (according to the Association for Enterprise Opportunity). These are the businesses that have proven to support job creation in previous economic downturns, and will be the businesses that guide America out of the current recession.
President Obama’s pledge of $30 billion in funding to help community development banks get critical capital into the hands of small business owners is a step in the right direction for American microbusinesses. It will be a bigger, stronger step in the right direction if microlenders like ACCION USA are included as part of the solution along with community banks. We are ready, and a proven path to deploy loans to deserving business across the country.
Regardless, the President’s commitment to small businesses was abundantly clear, and the importance of ACCION USA’s work with small businesses in good and bad economic times was reinforced. We’ll renew our focus on getting more attention in Washington for microlending programs, and remain committed to the small businesses we serve.
January 28th, 2010 at 1:43 pm
Obama hit the nail on the head in terms of jobs! And these mom and pop shops are the saviors in this economy. Let’s continue to invest in the little guys/gals…
January 28th, 2010 at 1:44 pm
President Obama described ACCION USA’s clients exactly when he referenced workers and dreamers who wanted to create their own employment opportunities. So many of our borrowers start businesses after reaching glass ceilings, or after realizing their true passion. Microloans are a way to help them reach their goals–job creation, community engagement, and other ripple effects are the amazing icing on the cake.
January 28th, 2010 at 2:07 pm
Great post! Let’s increase federal support for community development financial institutions of ALL types.
January 28th, 2010 at 2:27 pm
For the record, 91% of all U.S. businesses are microbusinesses, if by “microbusiness” we mean firms with fewer than five employees. See the SBA Office of Advocacy’s firm size data for 2006 at http://www.sba.gov/advo/
(New firm size data is due out any day now, btw.)
January 28th, 2010 at 2:29 pm
EZ hardware- I know that store! Micro-entrepreneurs need more support from above, this gives more traction to the incredible work that is being done at ACCION USA.
January 28th, 2010 at 6:52 pm
Great news for small business and potentially great news for the organizations that serve them. They are actually putting money out on the street when it’s needed most.