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Today’s hearing serves as a reminder that the immigrant story is the American story. For centuries, the United States has welcomed immigrants from all around the world.

These migrants often risked their safety and well-being to get here. They crossed vast desserts, tumultuous oceans, and rugged terrain—all in the pursuit of a better life and the American dream.

In turn, these immigrants have made our country better. For generations, they have fueled American small businesses and embodied the entrepreneurial spirit that helps make our country great.

Immigrant entrepreneurs are a dynamic group, starting businesses at a higher rate than the general population and accounting for 28 percent of Main Street business owners.

These immigrant business owners run many of the institutions that serve as the pillars of local communities. They own over 50 percent of businesses that supply necessities like gas stations, dry cleaners and laundromats, and grocery stores. These entrepreneurs are force multipliers in local economies. They buy local products, create local jobs, and make communities more attractive places to live.

Immigrants also have an outsized impact in the world of big business. Immigrants founded 44% of 2020 Fortune 500 companies, employing more than 13.7 million people worldwide.

Despite the great success that immigrant entrepreneurs have enjoyed, 2020 presented monumental setbacks and obstacles.

The pandemic closed immigrant-owned businesses at disproportionate rates. At its lowest point in April 2020, COVID had lowered the number of active immigrant business owners by approximately 36 percent. In other words, we lost over a million immigrant business owners between February and April.

The pandemic created new challenges for immigrant entrepreneurs, but it also exacerbated familiar obstacles that have hounded them for a long time.

When it comes to foundational areas like business mentorship and accessing capital, immigrants are at a disadvantage.

Non-native Americans often lack the professional networks used by many entrepreneurs for guidance and support.

They also struggle to access the capital needed to start and run a business. Whether due to poor credit history, limited financial literacy, or a lack of access to mainstream financial services, immigrant-owned firms have a harder time obtaining the funding needed to be successful.

The SBA offers resources for immigrant entrepreneurs to combat these obstacles. SBA resource partners like SBDCs, WBCs, and SCORE counsel and advise immigrant businesses so they can overcome these barriers. Community Development Financial Institutions offer lending and microlending to service low- to moderate-income borrowers from diverse backgrounds.

These organizations do vital work, but the road to recovery is long, and we must do more to support immigrant businesses.

Because if our economy is to recover, we need immigrant businesses operating at full strength.

As was the case in the aftermath of the Great Recession, the businesses that suffered the most during COVID will play a significant role in our recovery. As increased vaccinations diminish the severity of the public health crisis and return to normalcy, new businesses started by immigrants will drive local economic growth.

Our witnesses today are a testament to what is possible when immigrant business owners receive adequate support.

I look forward to hearing your testimony and discussing how we can harness the power of immigrant entrepreneurs to help rebuild our economy.