With the economy the top issue for many voters in the final stretch of the election, Vice President Kamala Harris announced record loans from the federal government to small business owners in a statement to ABC News on Thursday.
The Small Business Administration (SBA) provided a record $56 billion in loans to small businesses between October 2023 and September 2024, according to a White House fact sheet shared exclusively with ABC News, with more than 100,000 small businesses receiving these loans – the highest number in 16 years – while loans to Black-owned businesses have tripled in the past four years.
The SBA lends money to small businesses to enable them to start, expand, or rebuild – especially when other financing options are not available – and businesses must meet eligibility criteria, such as being based in the United States or only having a certain number of employees, to qualify for the loans.
“Small businesses are the backbone of our economy. And we know that small business owners need access to capital to hire more employees, grow their businesses and advance innovation,” Harris said in a statement to ABC News. “Today, I am proud to announce that the U.S. Small Business Administration has provided record loans to more than 100,000 small businesses over the past year, the most granted by the agency in over 15 years old. When small businesses thrive, our local economies thrive.”
Democratic presidential candidate Vice President Kamala Harris speaks during a campaign rally at the Erie Insurance Arena on October 14, 2024 in Erie, Pennsylvania.
Michael M. Santiago/Getty Images
The agency has been under pressure after the White House said last week that its disaster loan program, which provides low-interest loans to disaster survivors, was running out of funds as a result hurricanes Helene and Milton.
Harris’ announcement comes as she seeks to dispel voters’ doubts about the Biden-Harris administration’s handling of the economy and inflation. Polls consistently show former President Donald Trump outperforming Harris in handling the economy.
The latest report from the National Federation of Independent Business, which represents small businesses nationwide, finds that uncertainty among its members is at an all-time high as the election approaches.
Last month, Vice President Harris unveiled a proposal to increase the tax deduction for new small businesses tenfold, from $5,000 to $50,000.
