Roanoke, VA. – Nearly three years into the pandemic, the majority of businesses are still struggling to get back to their pre-pandemic business activities and operations. Strict pandemic measures, closures, lockdowns, supply chain issues, and a worker shortage were some of the biggest problems business owners had to face in recent years. Many businesses during the pandemic had no options left but to close. And just when the country reopened after the pandemic and business owners were confident that things would finally improve, skyrocketing prices on almost everything and record-high inflation hit, preventing future growth.
During the pandemic, state and local leaders were forced to make drastic budget cuts to education, youth programs, arts and culture, parks, libraries, housing services, and more. Funds were repurposed and used to directly support residents through different programs, fueling inflation for an extended period of time. Meanwhile, businesses, especially those small and locally-owned, were heavily struggling.
Small businesses are an essential part of every economy, and they represent the backbone of a healthy economy. This is also the case with the American economy. According to recent data, there are more than 33 million small businesses in the U.S. that employ more than 61 million people. Since the early 2000s, small businesses have created more than half a million new jobs every year. The pandemic, however, heavily impacted this growth, and nearly a quarter of the small businesses have been closed since the pandemic began.
But small businesses are bouncing back. Despite the fear of a recession that experts say will happen sometime next year and the current inflation problem, small businesses are expected to boost the economy, both locally and nationally. And the creation of new job opportunities is only one of the many advantages.
The U.S. Department of the Treasury announced on Tuesday that Virginia was granted more than $230 million to support locally-owned small businesses and start-ups under the State Small Business Credit Initiative (SSBCI). Virginia will use the funds through five programs, including two loan participations, one loan guarantee, and two equity/venture capital programs.
The pandemic changed everything, including how Americans work, the criteria when looking for a job, and risk assessment and management. A White House survey from earlier this year found out that Americans applied to start 5.4 million new businesses during 2021 despite facing all the challenges that came with the pandemic.
Per the report, the number of applications for small businesses last year was by far the highest on record since data has been collected. According to the same report, small businesses with fewer than 50 employees created nearly 3 million jobs, which is also a record high. SSBCI aims to further support current and future entrepreneurs, potentially boosting the economy now when that is needed the most.
The U.S. Department of the Treasury expects that business owners will invest $10 for every SSBCI dollar spent, but more importantly, the department hopes that SSBCI support will provide much-needed stability to investors in the long run.
“Start-ups and small businesses are critical to our future and job creation. This initiative will expand our existing funding programs for companies with high potential for rapid growth and significant economic development,” said Governor Glenn Youngkin. “We must have an economy that encourages innovation and entrepreneurship across the Commonwealth because new businesses create opportunities that lift up all Virginians.”
The SSBCI is an important part of the White House administration’s strategy to assist small businesses, and it is expected to continue in the coming years, according to US Treasury officials.
