The U.S. Department of the Treasury has released a new analysis highlighting significant growth in small business and entrepreneurship during the Biden-Harris Administration. The report indicates that small businesses have been responsible for over 70 percent of net new jobs since 2019, with an average of 430,000 new business applications per month in 2024, marking a 50 percent increase from 2019.
Vice President Kamala Harris emphasized the administration's commitment to supporting small businesses. "President Biden and I know that small businesses are the backbone of our communities," she stated. "Thanks to our Administration’s historic investments in the success and growth of small businesses, there have been a record-breaking 19 million new small business applications since President Biden and I took office — including in overlooked and underserved communities."
Deputy Secretary of the Treasury Wally Adeyemo underscored this sentiment, noting that supporting small businesses has been a central priority from day one. "This report underscores the historically fast and broad growth of small businesses during the Biden-Harris Administration," he said. He attributed this growth to programs like the State Small Business Credit Initiative (SSBCI) and Emergency Capital Investment Program (ECIP), which provide crucial funding for entrepreneurs.
Under Secretary Janet Yellen's leadership, Treasury established the Office of Capital Access to facilitate financial support for small businesses through initiatives such as SSBCI. This program allocates billions to states, territories, and Tribal governments, including $3 billion specifically for equity and venture funding. For instance, North Carolina received $32 million from SSBCI funds under the American Rescue Plan (ARP), benefiting firms like Nex Cubed's HBCU Founders Fund.
Key findings from the analysis include:
- Small businesses created over 70 percent of net new jobs since 2019.
- Business optimism is rebounding as inflation decreases.
- Entrepreneurship continues to surge with an average of 430,000 new business applications per month in 2024.
- Forty-three percent of self-employed Americans are female, with increasing diversity among Black, Asian, and Hispanic entrepreneurs.
Treasury’s ECIP has also played a pivotal role by enabling community lenders to extend more loans to underserved borrowers. In just 18 months since its announcement by Vice President Harris and Secretary Yellen in 2022, ECIP participants have originated over $58 billion in loans.
The implementation of recent legislative measures such as the Inflation Reduction Act, CHIPS and Science Act, and Bipartisan Infrastructure Law aims to channel public capital into economically disadvantaged areas while encouraging private investment. Additionally, efforts by agencies like SBA and CFPB seek to enhance transparency in lending practices and support smaller enterprises.
The full text of the analysis is available on the U.S. Department of Treasury's website.
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