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This week, Democrats of the House Committee on Small Business turned to local communities for insight on how to best help small business owners secure capital and create jobs. From towns and cities across America, municipal level initiatives are helping to spur entrepreneurship and boost Main Street businesses. During the hearing, Democrats examined what makes a town, city or county a place for diverse small businesses to thrive.  

“A mom-and-pop shop is more than just a business, it is a place for neighbors to gather and it is a generator for local economic growth,” said Ranking Member Rep. Nydia M. Velázquez (D-NY). “From finding a business location, to developing the skills of young workers, municipal small business initiatives fill a crucial gap in bolstering local businesses.” 

While the Small Business Administration (SBA) offers a multitude of small business development and mentorship services throughout the country, Democrats argued that examining local programs can also inform federal policymaking. Testifying in front of the panel were representatives from several municipalities including Gregg Bishop, the commissioner of the New York City Department of Small Business Services (SBS). A branch of the New York City government, SBS helps small businesses secure loans, train new employees and compete for government contracts. 

“Small business ownership and entrepreneurship can help uplift generations of families while providing goods, services and quality jobs for local communities,” said Commissioner Bishop. “Our small businesses serve their neighbors as well as visitors from around the world, making New York City one of the best cities in the country.”

To tear down the obstacles that cause nine out of ten start-ups to fail, Democrats advocated for expanding municipal incentives that make fostering a new business easier. Such incentives include: offering tax incentives for apprenticeships and on-the-job training; providing site selection services to help firms identify target markets; and expand an array of assistance from business planning to legal counsel. 

As Democrats continue their fight to increase opportunities for disadvantaged business owners, Ranking Member Velázquez highlighted the success that New York City SBS has had in bolstering women and minority owned businesses. Serving over 9,400 businesses last year, SBS specifically helped over 1,500 immigrant entrepreneurs access services, while helping to certify over 5,000 minority and women-owned enterprises. Specifically, SBS offers a loan program, the Contract Financing Loan Fund which offers low-interest loans of up to $500,000 to minority and women owned businesses working on City contracts. 

“As you can see, New York City has made small businesses a priority and as a result we have seen them flourish,” said Commissioner Bishop. “We hope municipalities from across the country use New York City as a model and replicate our successes. By recognizing the strength of diversity in our city, and helping immigrant, women, black entrepreneurs and other entrepreneurs of color to grow thriving businesses and careers, we are ensuring every New Yorker has access to economic security while growing our city’s economy.”

Recognizing that municipal programs are vital to growing Main Street businesses, Democrats pressed for sustained investments in similar programs at the federal level. In addition to working to expand access to capital for small firms, Democrats have proposed A Better Deal to double federal investments in apprenticeships and create ten million new jobs. 

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