Jeanette Quick, Deputy Assistant Secretary for Financial Institutions Policy at the U.S. Department of the Treasury, addressed attendees at the 2024 AAPISTRONG Annual Conference on September 4, 2024. In her remarks, she expressed gratitude to National ACE President and CEO Chiling Tong for her leadership and partnership as a member of the Treasury Advisory Council on Racial Equity.
Quick shared personal reflections on her Asian heritage and highlighted the importance of small businesses within the Asian American Native Hawaiian and Pacific Islander (AANHPI) community. She noted that these businesses not only contribute to economic growth but also enrich cultural diversity in the United States.
In her role at Treasury, Quick oversees the Office of Financial Institutions Policy and the Federal Insurance Office. She emphasized that access to capital is crucial for small business growth and innovation. "Small businesses face several key challenges when it comes to accessing capital," she said, citing limited funding sources, high barriers to access, complex application requirements, and limited resources.
Quick referenced a recent Treasury report indicating a surge in US small business startup applications in 2024, with an average of 430,000 new applications per month. The report also revealed that small businesses now provide 70% of net new American jobs. Of the 33 million small businesses in the U.S., over three million are owned by AANHPI individuals.
The pandemic underscored existing disparities in financing for women- and minority-owned businesses. Quick pointed out that many such businesses had less than a month's worth of payroll reserves in 2022. Surveys indicated significant unmet demand for financing among minority women business owners.
Treasury's initiatives supporting small businesses include the State Small Business Credit Initiative (SSBCI) and the Community Development Financial Institutions (CDFI) Fund. These programs aim to improve access to financing and support economic development in underserved communities.
Despite these efforts, AANHPI small business owners continue to face hurdles in securing necessary financing. Only 34% were able to secure all requested financing last year. Quick stressed that financial technology firms present both opportunities and risks that require careful monitoring.
Looking ahead, Treasury plans further stakeholder engagement with financial institutions, chamber members, fintech companies, small businesses, and advocacy groups to enhance access to capital for underserved communities.
In closing, Quick reaffirmed Treasury's commitment to supporting AANHPI small businesses: "The road ahead may have challenges," she said, "but this community has proven its ability to be important drivers of employment and economic growth."
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