Financial Stability: Action Agenda Priority
Support small businesses, micro-enterprises, and the self-employed so that they can access capital, pilot innovation, and create high quality jobs
Change the VITA scope: Eligibility should be based on annual business revenues rather than the current annual expenses of $5,000. This would help many small businesses across the country. Currently, many are forced to go to private tax providers who do not file taxes correctly, which prevents them from being approved for credit. Expand the SBA micro-loan, SBA Community Advantage, and the CDFI programs: Mainstream banks will not give loans below $50,000 to the most innovative job creators. Include low-income AAPI populations as a priority for CDFI investments so that they can access capital to continue to grow and increase job creation. Invest in linguistically and culturally appropriate training and resources for micro-entrepreneurs that create jobs in neighborhoods, not just high tech fields. Create incentives for the development of affordable commercial spaces for micro-entrepreneurs to pilot innovation. Modernize the Community Reinvestment Act to include business lending and investment services to micro-businesses. Increase access to lower-interest rate products through an expanded SBA microloan program. Produce more frequent and disaggregated data on business lending among small businesses and micro-entrepreneurs. Increase tax assistance resources for low- to- moderate income (LMI) entrepreneurs through improving the EITC, creating a New Entrepreneur Tax Credit, and ensuring the VITA program remains available to all low- to moderate- income entrepreneurs. Expand funding for Minority Business Development Centers.