It is an honor to join the 2021 SelectUSA Summit. The fact that we are bringing together representatives from more than 70 international markets and every U.S. state and territory – virtually – is a testament to the value we all place on continued global collaboration.
Thank you, Secretary Raimondo, for inviting me to join this important event that promises to be a vital impetus for foreign direct investment that creates jobs and sparks economic development across our nation. I know you share my commitment to our nation’s small businesses and I look forward to our continued collaboration as the SBA works to bring small businesses back, create jobs and build a more equitable economy for everyone.
We often talk about the American entrepreneurial spirit and how it fuels our nation’s economy.
Today, that willingness to be innovative –adapt to changing marketplaces, meet customers’ needs and develop new ways to deliver products and services -- has never been stronger. During the past year as the world weathered this pandemic and economic crisis, small businesses pivoted to survive. And our federal, state and local governments moved quickly to provide relief to small businesses – because of their outsized role in our national and global economy.
The incredible ingenuity I witnessed … as the small business leader in California and now nationally … makes me proud to stand before you as the voice for America’s 30 million small businesses and innovative startups.
Small business ownership is an important pathway to opportunity and wealth creation – generational wealth that can transform families and communities. It defines the American dream.
And here in America, we recognize that our diversity contributes greatly to our entrepreneurial success as the incredible range of cultures, the diaspora, helps fuel the sparks of innovation – bringing new ideas and ways to solve problems.
That diversity is reflected in our small businesses. In fact, immigrant entrepreneurs start businesses at higher rates than the rest of the U.S. population -- representing 28 percent of our small business owners.
Entrepreneurship is about fostering what is best about us…our ability to build community, create, solve problems… and using it to forge a path forward for all of society.
And, if we’re going to build on the strength of our diversity, we must continue to put out the welcome mat for entrepreneurs and investors looking to tap into the wealth of opportunities we have to offer.
From ag tech to high tech, fashion to food … … clean energy to life-saving medical advancements … we have opportunities in every realm imaginable.
The SBA was created to support that entrepreneurial spirit and ensure that small businesses remain the driving force of our nation’s economy. We connect small businesses and startups with the capital, markets and networks they need to start and grow.
And the Biden-Harris Administration is committed to equity to ensure SBA’s small business support networks and startup ecosystems remain vibrant and inclusive of everyone.
Throughout the pandemic, the SBA has scaled up to meet the enormity of this crisis – and its impact on all of our small businesses.
We have evolved from a 40 billion portfolio to deliver more than a trillion dollars in relief to small businesses – through forgivable loans, disaster loans, and billions more in debt relief and grants targeted to the hardest-hit industries such as food&beverage and performing arts venues – all to help small businesses stay afloat after millions were shuttered through no fault of their own.
At the same time, we understand that the best thing we can do for our small businesses is to help our nation recover from COVID. Thanks to the Biden-Harris administration’s whole-of-government response and the hard work of partners on the ground, we have vaccinated 63 percent of adult Americans. The virus is in retreat. And, President Biden recently launched a month of action to mobilize an all-of-America sprint to get more people vaccinated by Independence Day on July 4.
Now, as we look toward a post-COVID economy, we’ll be leveraging our programs and services to help small businesses recover and sustain.
Global partnerships and foreign-direct investment will be a big part of our post-COVID effort, as we build back better, together.
We are working diligently to make the American dream of business ownership -- a dream shared by people across the world – accessible to ALL.
We know that small and medium firms comprise the vast majority of foreign direct investment in the U.S.
The jobs they produce, the taxes they contribute have a big impact.
They have become part of the rich tapestry of our American economy.
In this unprecedented moment for our nation and our world, we need to build on that trend and help more foreign companies access our nation’s unparalleled consumer market … and benefit from our spirit of entrepreneurship and innovation, our incredible diversity, and the reputational advantage that comes with the Made in America label.
President Biden has made small business a key focus of the rebuilding and reimagining of a new economy that works for everyone and addresses the needs of an aging infrastructure and invests in innovation for the future.
As part of building back better, I’ve directed my staff to look at every program, every service, every resource we provide and ask this question: Is this opportunity accessible to all?
In order to ensure that we’re reaching every entrepreneur who needs our help, we must meet small businesses where THEY are – putting the customer-first and understanding their needs. And we must look forward - to leverage technology, streamline, automate for speed and efficiency -- so that we can give more small businesses the ability to connect to and access our services.
Ultimately, I want the SBA to be as entrepreneurial as the small businesses we serve.
I grew up in a small business family. I watched my father build his chain of veterinary hospitals in California. I witnessed the power of entrepreneurship to build wealth and transform families and communities. I’ve spent my career starting small businesses, advising founders, and advocating on behalf of small businesses and startups.
I understand the grit and determination it takes to launch, sustain and grow a small business. I learned the entrepreneurial mindset – the ability to be agile and learn continuously … the willingness to refine the path … adapt and sometimes reimagine your dream to deal with ever-changing realities around you.
Taking the leap to do all that in another country is the epitome of that spirit.
StarWater Solutions – an Australian company that produces and implements stormwater and waste water treatment solutions for municipalities – took that leap.
RT safe – a Greek medical device company – took that leap.
RelateCare – an Irish company that provides telecom contract services – took that leap.
These companies were featured in the SelectUSA “Small But Mighty” report that looks at the challenges and opportunities for small businesses looking to launch in the U.S. market.
I know you’ll hear from them later in the program, but I’d like to note how each one highlighted the fact that U.S. based networks – created by the federal government, state economic development organizations, accelerators, universities or nonprofits – made the difference for them.
STAR Water Solutions got their U.S. start through water technology-focused accelerators that opened doors to business in Nevada, Wisconsin, and California.
RtSafe won awards through the Hellenic Initiative, a group of Greek Americans that donated funds to support Greek companies during the economic crisis, and the Massachusetts Institute of Technology, that opened doors to business in U.S. hospitals.
RelateCare, worked closely with JobsOhio, a private nonprofit economic development organization that helps businesses relocate, expand and prosper in Ohio, after a successful contract with the Cleveland Clinic opened doors to business in the healthcare contact center market.
These relationships – these helping hands – spelled the difference between success and failure for these businesses. The SBA is here to facilitate relationships for every entrepreneur who sees the potential – and the abundant opportunity – of the U.S. market.
With 68 district offices across the country, partnerships with mayors and state economic development organizations, a network of resource partners and growth accelerators across every state in our nation … we’re working hard to better connect ALL our small businesses and startups to capital and markets and networks.
SBA also offers opportunities to invest in America’s small and medium enterprise economy in the form of SBA licensed and regulated investment funds.
The SBA currently manages a portfolio of more than 300 Small Business Investment Companies – or SBICs – with more than $33 billion dollars in cumulative capital and leverage – the largest fund of fund for the lower middle market. Our SBICs invest in a portfolio of multiple U.S. small businesses, in the form of debt and equity.
For foreign investors looking to diversify risk, SBICs can be a great opportunity. We’re continuously building pipelines for new licensees – and we can connect you to SBICs raising funds or looking for limited partners.
As we build back from the COVID pandemic and fight to defeat this virus, our world has never been more interconnected. Today’s summit – and the collaboration and innovation that will undoubtedly grow from it, give me hope for the future.
The SBA is here to help build a better future for all of us. We look forward to working together to support small businesses, strengthen the entrepreneurial spirit, and help propel our global economy.
Thank you.