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Blog Category: Small Business Administration

Obama Administration Seeks Applicants for First Phase of ‘Investing in Manufacturing Communities’ Partnership

Effort will encourage an improved approach to economic development around the country

The Obama Administration today announced that it is accepting applications for the first phase of the “Investing in Manufacturing Communities” Partnership, a new initiative outlined in the President’s fiscal year 2014 budget that will help accelerate the resurgence of manufacturing and create jobs across the country.

Phase One of the “Investing in Manufacturing Communities” Partnership: In the first phase of this effort, the Departments of Commerce and Agriculture as well as the Small Business Administration and Environmental Protection Agency will award at least 25 grants of up to $200,000 each to help regions develop long-term economic development strategies intended to create a globally competitive environment that will attract, retain and expand investment and spur international trade and exports. These “Implementation Strategies” will encourage collaboration at the local level to identify the region’s comparative advantages and assets, and plan investments to expand the area’s appeal to manufacturers.  In addition, these grants can be used to help communities prepare for the second phase of this initiative, IMCP “Challenge” grants. 

Phase Two of the “Investing in Manufacturing Communities” Partnership: President Obama’s fiscal year 2014 budget includes funds for the Department of Commerce to award five to six IMCP “Challenge” grants, expected to be up to $25 million each.  These funds are intended to be supplemented by coordinated investments from several other federal departments and agencies. The 2014 challenge will reward communities for having the best long-term strategies for attracting private investment and increasing exports, and should combine many of the elements companies seek when they are deciding where to locate or expand, such as: specialized research centers at local universities; business incubators focused on targeted technology sectors; community college programs to train workers in targeted industries; public works projects to upgrade infrastructure or enhance energy efficiency; viable export promotion plans; well-integrated supply chains; and an engaged community of local government, education, workforce, and business leaders.  Full release

Federal Investments Catalyzing the Growth of the Critical, Job-Creating St. Louis Biosciences Cluster

Guest blog by Matthew S. Erskine, U.S. Deputy Assistant Secretary of Commerce for Economic Development

Today, I was pleased to join St. Louis Mayor Francis Slay and colleagues from the U.S. Small Business Administration (SBA) and the Department of Labor’s Employment and Training Administration (DOL/ETA) at an event to spotlight federal investments that are catalyzing the growth of the critical, job-creating St. Louis biosciences cluster.

The day was focused on the partnership between the St. Louis County Economic Council, the St. Louis Agency on Training and Employment, and the St. Louis Minority Supplier Development Council to establish the St. Louis Biosciences Jobs and Innovation Accelerator project.

With more than $1.8 million in federal investment, including $702,765 from EDA, $973,015 from SBA, and $150,000 from the DOL/ETA, this project will work to accelerate the growth of the region’s biosciences cluster and spur the formation of new companies and associated job creation.

EDA’s funding for the project will bring early-stage technologies into the commercialization pipeline by addressing identified gaps and challenges, including access to a skilled workforce of experienced entrepreneurs that are needed to enable companies to grow.

U.S. Census Bureau Announces Half of U.S. Respondent Businesses Were Home-Based

Two women at a store counter

The Census Bureau today released new national-level statistics on business owners including owner’s age, education level, veteran status and primary function in the business; family-owned and home-based business status; types of customers and workers; and sources of financing for start-up, expansion or capital improvements.

The survey found that more than half (51.6 percent) of all businesses that responded to the 2007 Survey of Business Owners (SBO) were operated primarily from someone’s home in 2007. In addition, only 6.9 percent of these home-based businesses had $250,000 or more in receipts, while 57.1 percent of home-based businesses brought in less than $25,000. About 23.8 percent of employer respondent businesses and 62.9 percent of nonemployer respondent businesses were home-based.

“Most businesses are started by people who dig into their own pockets for at least some of their start-up capital,” said Census Bureau Deputy Director Thomas Mesenbourg. “This is true for both firms with employees and those without them. Furthermore, more than one in five (20.8 percent) of respondent businesses used no start-up capital at all.”       

The two data sets released today are from the 2007 Survey of Business Owners: Characteristics of Businesses: 2007 and Characteristics of Business Owners: 2007. All findings are for respondent firms only.

Numerous organizations such as the MBDA , the Small Business Administration, the National Chamber of Commerce, the Urban League, the Hispanic Chamber of Commerce and others use these data to track the progress of minorities and women as entrepreneurs. Release  Estimates by Gender, Race and Veteran Status

Efforts to Support American Women Highlighted in Commerce and White House Reports

Sec. Locke Meets with Economic Team This week the National Economic Council released a report on the impact of the recession on women and how the Obama administration’s economic policies benefit American women. Some of these policies include a tax credit for college for working families, expanded and increased student aid, and more manageable loan repayment so women can get the education they need to succeed. The report lays out the economic landscape facing women today and details some of the many ways the administration is committed to making sure the government is working for all Americans, especially American women.

The Commerce Department’s Economics and Statistics Administration (ESA) further explored the state of American women and Women-Owned Businesses in the 21st Century in a report issued earlier this month for the White House Council on Women and Girls.  According to the report, women-owned businesses are steadily expanding and account for $1.2 trillion in economic output. Yet they continue to lag behind other companies in several key indicators.

To help reverse this trend, the Obama administration has invested in women’s education and expanded the capital available for women to start a business. The White House has already given out more than 12,000 Small Business Administration Recovery Act loans totaling more than $3 billion to women-owned small businesses.

Learn more about what the administration is doing on behalf of women and the economy and women-owned businesses, or read the reports.

Secretary Locke Announces Fishery Failure Determination in Gulf of Mexico

U.S. Commerce Secretary Gary Locke today determined there has been a fishery disaster in the Gulf of Mexico due to the economic impact on commercial and recreational fisheries from the ongoing Deepwater Horizon oil spill. The affected area includes the states of Louisiana, Mississippi and Alabama.

“We are taking this action today because of the potentially significant economic hardship this spill may cause fishermen and the businesses and communities that depend on those fisheries,” Locke said. “The disaster determination will help ensure that the Federal government is in a position to mobilize the full range of assistance that fishermen and fishing communities may need.”

Locke made the determination under Section 312(a) of the Magnuson-Stevens Act.  The declaration was made in response to requests from Louisiana Governor Bobby Jindal and Mississippi Governor Haley Barbour based on the loss of access to many commercial fisheries and the existing and anticipated environmental damage from this unprecedented event.

Since May 2, the National Oceanic and Atmospheric Administration (NOAA) has closed a portion of federal waters affected by the spill to commercial and recreational fishing. This closure area, which is based on the scientific trajectory of the spill, now includes nearly 20 percent of federal waters in the Gulf of Mexico, largely between Louisiana state waters at the mouth of the Mississippi and the waters off Florida’s Pensacola Bay.

Full release
Related NOAA release

Latest NOAA status release on oil spill