SSTI Digest

A job market that was struck an unprecedented blow with the pandemic became the focus of a recovery built on better jobs, not simply maintaining the status quo. And for workers across the country, myriad programs exist, or are being developed, to help them upskill or reskill as they seek new opportunities and adjust to changing demands of the labor market. Even as National Apprenticeship Week is underway this week, change is evident as the U.S.

The U.S. Department of the Treasury will be meeting with SSTI members on Nov. 22 to discuss the State Small Business Credit Initiative (SSBCI). States, venture development organizations and numerous other tech-based economic development entities around the country are looking for information on how to best use the program to effectively support small business capital access in their regions. SSTI has produced multiple resources to aid these efforts, including an introductory video that is available to the general public.

In addition to joining Monday’s meeting, SSTI members can participate in SSTI “office hours” for small group assistance, access additional reports and videos, or receive customized technical assistance (for State and Sustaining level members).

As the Economic Development Administration (EDA) continues to award its $3 billion allotment of pandemic relief funding made available by the American Rescue Plan Act of 2021 (ARPA), many states are taking aim at several specific areas of economic concern — while others are maintaining a broad perspective. Under the Statewide Planning, Research & Networks program (“planning grants”), EDA provides $1 million grants to states to use in forming coordinated state-wide plans for economic development as well as developing the data, tools, and capacity to evaluate and scale evidence-based economic development efforts. SSTI’s analysis of the funded projects’ brief descriptions shows that states were split between those focusing on broadly-scoped planning projects and those focusing on a few specific areas of interest.

Congress passed the bipartisan infrastructure framework, formally, the Infrastructure and Investment Jobs Act, and President Joe Biden is expected to sign it the week of Nov. 15. While small as a percentage of the trillion-dollar total, there are a number of proposed items that can support regional innovation economies, with broadband being the highest funded. Other proposals of interest include funding that will stimulate demand for clean energy innovations, further cybersecurity development and reauthorizing the Minority Business Development Agency (MBDA).

Technology and innovation highlights from the bill include the following:

The U.S. Department of the Treasury released long-awaited guidance on the new implementation of the State Small Business Credit Initiative (SSBCI). The rules provide preliminary guidance to states, territories and Tribal governments on permissible uses of $9.3 billion in funds to support small business capital access. SSBCI 2.0, which was authorized by the American Rescue Plan Act, provides $2.5 billion of the total for businesses owned and controlled by socially- and economically-disadvantaged individuals — these rules are the first time Treasury has defined these businesses. Treasury is expected to release additional guidance and clarifications in the coming weeks, and SSTI is working with our members to interpret the guidance and determine how the rules will affect optimal SSBCI strategies going forward.

This edition of SSTI’s Useful Stats examines the expected allocation of approximately $8.5 billion in State Small Business Credit Initiative (SSBCI) funding by state and allocation category based on the Department of the Treasury’s recent guidance update. For the first time, these allocation amounts include how much a state is receiving for the program’s new funds to support businesses owned and controlled by socially and economically disadvantaged individuals (SEDI).

The interactive map below shows how much funding states are likely to receive — as indicated by the degree of blue shading. California stands to receive the greatest amount of funding ($1.182 billion), followed by New York ($502 million), Florida ($489 million), Texas ($472 million), and Illinois ($355 million). All combined, Tribal governments, which are newly-eligible to the program, are also estimated to receive more than $709 million in total SSBCI funding.

Gov. J.B Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) have announced a new project for interactive broadband mapping and speed test tools that is intended to help expand access to high-speed internet in communities across Illinois. The project entails the creation of the interactive Connect Illinois Broadband Map and the Illinois Broadband Lab. DCEO has partnered with stakeholders including the University of Illinois System, Illinois Innovation Network, and the Benton Institute for Broadband & Society for this project.

A $7.17 billion Emergency Connectivity Fund (ECF) was established by the 2021 American Rescue Plan Act to help ease the educational impact on students of school closures in response to the Covid-19 pandemic. While much instruction transitioned to an online environment, many students were inadequately equipped to properly participate. To address issues with access to technology, the program provides funding to schools and libraries across the nation to purchase connected devices and equipment needed for students to use off-campus. The Federal Communications Commission’s (FCC) latest commitment of $421 million brings the program’s total funding to more than $3 billion.

The U.S. Small Business Administration is hosting its first innovation ecosystem summit, a free virtual event that is open to all. The summit is expected to connect entrepreneurial support organizations (ESOs) that work with startups and small businesses — particularly those serving underrepresented communities — that are trying to build out and commercialize their technologies. The three-day summit takes place next week, Nov. 15-17.

SBA says attendees will learn how to navigate the SBIR/STTR world; leverage each other’s strengths on how to best connect entrepreneurs working on advanced technologies to the country’s largest source of early- stage funding; discover ways to build a network that is inclusive of underrepresented communities; and more.

Sessions will cover a variety of entrepreneurial topics including SBIR Catalyst and collaborative partnerships; funding for ecosystem builders; entrepreneurship in regional innovation economies, which will be led by SSTI Policy and Development Director Jason Rittenberg; and more.

As the manufacturing sector rebounds, it is expected to need over two million new workers over the next decade to meet supply shortages and increasing demand in sectors such as infrastructure, energy efficiency, and medical equipment. To help recruit and support a more diverse workforce, the Urban Manufacturing Alliance (UMA) and The Century Foundation (TCF) are seeking proposals to participate in the Industry and Inclusion Cohort 2.0, a national initiative focused on community colleges delivering impactful credentials and addressing barriers in manufacturing careers. Impactful credentialing includes credential programs (both non-degree and degree) that are well-aligned and developed in partnership with industry and situated within a broader ecosystem of support partners.

Participants will engage in an “18-month, tailored technical assistance program focused on building knowledge and capacity, expanding networks, sharing best practices with a national audience, and increasing program impact.”

Last week, the Small Business Administration (SBA) announced $100 million in grants for the Community Navigator Pilot Program that will be distributed to 51 organizations to connect entrepreneurs with government resources to help recover from the COVID-19 pandemic.

As a part of the American Rescue Plan, the program’s objective is two-fold. It aims to (1) address barriers to small business growth and “supercharge” recovery and (2) “close historic and current resource gaps and advance equity” by focusing aid toward disadvantaged populations across the country including “veterans, women, rural communities and communities of color.”

National Apprenticeship Week (NAW) will see its 7th annual celebration from Nov. 15 to 21 this year. Key individuals in areas such as government, industry and education will host events that highlight the importance of apprenticeship in the workforce. These events will showcase how apprenticeship programs can address challenges such as supply chain demands, public health issues, and advancing initiatives in diversity and equity — especially amid the COVID-19 pandemic.

According to the U.S. Department of Labor (DOL), there has been a 70 percent increase in new apprentices since 2011. While the number of new apprentices fell 12 percent from FY 2019 to FY 2020 — likely due to the COVID-19 pandemic — DOL found that 3,143 new apprenticeship programs were established nationwide in FY 2020, representing a 73 percent growth from 2009 levels.