Today, the White House announced administrative and private sector actions that will help entrepreneurs grow their businesses and create jobs by increasing their access to capital and resources. The U.S. Small Business Administration (SBA) is moving forward with launching a $1 billion Early Stage Innovation Fund, originally announced as part of Startup America, which will provide matching capital to Small Business Investment Companies (SBICs), targeting early-stage small businesses seeking private institutional capital. Today, the White House is also hosting the first board meeting of the Startup America Partnership, where board members will announce commitments from more than 50 private-sector partners to deliver over $1 billion in value – from free software to free consulting and legal services – to 100,000 startups over the next three years. The President also renewed his call for Congress to work on a bipartisan basis to develop ideas from his American Jobs Act plan that will help our small and growing businesses access capital while continuing to protect investors. Specifically, the President has called for increasing limits on “miniofferings,” allowing “crowdfunding,” and phasing in some requirements for small firms as they go public.
“Today, we’re announcing $2 billion in public and private resources to help entrepreneurs start and grow their businesses. Now it’s time for Congress to do its part. It was encouraging to see members of both parties in the House come together to pass legislation that will help small businesses get ahead, and I’m calling on the Senate to do the same. But America’s small businesses can’t wait for these important tools to grow and hire faster,” said President Obama.
The Early Stage Innovation Fund will leverage the successful SBIC program to allow privately managed investment funds to put more capital into the hands of small business startups. SBA is acting on this commitment by proposing a modification of its rules allowing private funds that invest in early stage companies to participate in the SBIC program. The proposed modifications are now up for public display, and the fund will be fully implemented in 2012. Today’s announcement is the latest in a series of executive actions the Obama Administration is taking to strengthen the economy and move the country forward because we can’t wait for Congress to act.
The Startup America Partnership is a nonprofit alliance of entrepreneurs, major corporations, and service providers committing private-sector resources to accelerate the growth of new companies. The Partnership, led by iconic entrepreneurs like Steve Case (AOL) and Reid Hoffman (LinkedIn), was launched earlier this year in response to the President’s call to action to dramatically increase the success of America’s high-growth entrepreneurs. New startup businesses create most of the net new jobs each year, in every industry and all across the country.
In September, when the President announced his American Jobs Act, he called on Congress to take steps to help small businesses raise the funds they need to innovate and grow. He urged Congress to work on a bipartisan basis to develop these ideas in ways that will help our small businesses while continuing to protect American investors.
Full Press Release On: Official White House Website