small business

America’s Seed Fund Week aims to educate and connect in SBIR’s 40th year

Entrepreneurs learned more about small business funding opportunities from federal agencies with Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs during America’s Seed Fund Week last week. The $4 billion funding program, which is currently up for reauthorization, is celebrating 40 years of providing funding to small businesses each year in a variety of technology areas. Videos, including advice from program managers, and resources from each participating federal agency are available online.

Fed finds fintech lenders may create more inclusive financial system

A new working paper by the Federal Reserve Bank of Philadelphia used loan-level data from two fintech lenders, Funding Circle and LendingClub, to assess how the companies’ pre-pandemic lending patterns differed from those of traditional banks. The report finds fintechs contribute to a “more inclusive” financial system, expanding credit to more companies and at a lower cost.

Recent Research: Did PPP actually save businesses or jobs?

A research team including members from MIT and the Federal Reserve Board assessed the Paycheck Protection Program (PPP) to determine if the initiative was able to keep businesses from closing and people from becoming unemployed. The authors present the highlight finding, which has been covered in multiple publications, as indicating that only about 23-34 percent of PPP funds went to workers who would have lost their jobs otherwise. This rate of effectiveness implies a cost of $170,000-$257,000 per job-year[1] of employment. The outcome seems surprising, given the program’s requirement that at least 60 percent of funds be spent on payroll. A dive into the results and policy implications bears lessons for future emergency program design.

Arkansas report offers possible template for public-private capital access analysis

An inaugural report looking at the landscape of capital resources in Arkansas may be useful to others who are interested in examining the capital access in their state or region. The report will serve as a baseline for trends in public, private and philanthropic investments in entrepreneurship across the state and may be a useful resource as the state plans its State Small Business Credit Initiative strategy.

Small Business Pulse Survey Phase 7 announced

The U.S. Census Bureau has recently announced that data collection has begun for Phase 7 of the Small Business Pulse Survey (SBPS). The SBPS measures the effects of changing conditions for small businesses (businesses that have a single location and under 500 employees) during the COVID-19 pandemic. This phase of the survey also includes new questions on changes in the use of digital technologies and in business, production, and management practices. Aside from surveying strictly business metrics, Phase 7 will also include questions that assess workplace COVID-19 vaccination and testing statistics and the overall well-being of business owners.

IL and IN create innovation voucher programs to increase small business prospects

Indiana and Illinois are two of the most recent states to implement innovation voucher programs, adding another tool to their efforts to increase economic activity among innovators and entrepreneurs.

Want companies that have higher long-term job stickiness, survival rates and sales? If so, read this

Regardless of the approach used, the goal of every economic development program in the country is to create economic opportunity within a specific geographic area. If more local, state and federal policy makers and practitioners were aware that empirical research has revealed certain types of companies were 235 percent better than others at maintaining long-term job “stickiness,” would we shift more resources and priorities in their direction?  Would knowing these same companies also were shown to be more profitable, had higher sales, and had greater survival rates than others help persuade skeptics? Should more companies with these business models be part of your region’s portfolio of innovation-based firms?

TBED response to the pandemic helped pave way to recovery, save businesses

When the full impact of the COVID-19 virus was just beginning to be realized in spring of 2020, small businesses across the country were faced with nearly insurmountable challenges and emergency orders, shutting down operations in many instances and choking off funding sources. Many in the technology-based economic development (TBED) community stepped in and pivoted their own organizations and plans to help others. We reached out to our SSTI members to hear about how they responded. While we can’t include all of the many success stories, below we feature a sampling of some of the stories that SSTI members shared regarding how they responded to help guide small businesses through the pandemic. And check back next week when we will share more from members who responded about their science and education pivots that helped the country navigate the pandemic.

Census survey reveals majority of small businesses expect long-term challenges

Concluding its final phase of the Small Business Pulse Survey (SBPS), the U.S. Census Bureau released findings comparing responses from early in the pandemic to those collected the first week in January. From early responses collected in April 2020 to those collected this winter, business expectations of a return to normal level of operations have shifted so that there are many businesses with expectations at opposite extremes: businesses with expectation of a short-term return to normal and those facing long-term challenges.

Newest COVID relief package provides some aid; short on true relief for states

The relief bill passed last night falls short of assisting states that face strains on their budgets and increasing demand for assistance from their constituents. However, the bill does provide $900 billion for the first broad COVID-19 relief package to pass since the CARES Act was signed into law on March 27th. The major items in this legislation are the extension of unemployment insurance benefits, direct payments to individuals, and a new round of loans through a modified Paycheck Protection Program. No broad funding for state and local funding is included, but there are several provisions that will support specific activities.

Pages

Subscribe to RSS - small business