According to a recent study conducted by software company Gusto, there were 5 million new businesses created in the U.S in 2022—up 42% compared with pre-pandemic levels. Furthermore, while 71% of new businesses were founded by men in 2019, both 2022 and 2023 saw a near even split across gender lines. The share of Black entrepreneurs also tripled from 3% in 2019 to 9% in 2022, before backsliding slightly to 5% at the start of this year.

According to a recent study conducted by software company Gusto, there were 5 million new businesses created in the U.S in 2022—up 42% compared with pre-pandemic levels. Furthermore, while 71% of new businesses were founded by men in 2019, both 2022 and 2023 saw a near even split across gender lines. The share of Black entrepreneurs also tripled from 3% in 2019 to 9% in 2022, before backsliding slightly to 5% at the start of this year.

Capital Readiness Program supports the unrepresentative entrepreneurs

On August 4th , US Vice President Harris announced the recommended awardees for the MBDA Capital Readiness Program. The Capital Readiness Program is a $125 million technical assistance program to help underserved entrepreneurs grow and scale their businesses. Once final awards are made, the awardees will launch and operate business incubators or accelerators designed to prepare underserved entrepreneurs to secure capital from the historic $10 billion State Small Business Credit Initiative (SSBCI) and other capital sources.

The launch of the Capital Readiness Program marks a monumental milestone for MBDA, following the Agency’s enactment as a permanent Federal Agency in November 2021 as part of President Biden’s Bipartisan Infrastructure Law.

MBDA’s Capital Readiness Program is funded by the Department of Treasury’s State Small Business Credit Initiative (SSBCI) and was reauthorized under the American Rescue Plan Act of 2021. SSBCI is a nearly $10 billion fund designed to drive new investment and capital to small businesses across America. SSBCI provides funding to states, the District of Columbia, territories, and Tribal governments to promote entrepreneurship, increase access to capital, and help businesses grow—especially in traditionally underserved communities.

MBDA is the only federal government agency dedicated solely to supporting the growth and global competitiveness of minority business enterprises. The Capital Readiness Program awardees will join MBDA’s National Network of 88 business centers and other projects that provide technical assistance and business support services to minority business enterprises.