Inside the SBA’s Updated Equity Action Plan

On his first day in office, President Biden signed an executive order requiring each federal agency to assess their programs, policies and practices and identify ways they could serve a more diverse audience, particularly those in traditionally underrepresented communities. From this executive order came the Equity Action Plan, an initiative aimed at minimizing the hurdles experienced by small business owners in underserved communities.

Recently, the Small Business Administration (SBA) unveiled an update to its 2023 Equity Action Plan that highlights steps the agency will take to further the Biden Administration’s commitment to equity, which includes expanding access to capital and revenue growth opportunities; updating business counseling, training, and other services; and increasing access to disaster assistance for underserved communities.

According to Administrator Isabel Casillas Guzman, head of the SBA, “The SBA’s updated Equity Action Plan recognizes the tremendous value that diverse entrepreneurs bring to our economy in terms of job creation, innovation, and domestic and international competition. As America continues to enjoy an unprecedented Small Business Boom, the SBA remains determined in its efforts to boost entrepreneurship among people of color, women, veterans, and those from rural communities, and this updated Equity Action Plan is a testament to that commitment.”

Per the SBA’s website, the revised Equity Action Plan lays out new goals and actionable steps to help achieve them:

• Improve Access to Loan Capital by:

1. Enrolling new lenders with the ability to reach underserved markets
2. Utilizing the SBA’s simplified lending rules to increase participation
3. Proposing a new policy aimed toward encouraging increased lending to justice-involved business creators

• Improve Access to Federal Government Procurement and Contracting Opportunities by:

1. Tapping into resources to support Small Disadvantaged Businesses (SDBs)
2. Working with federal agencies to advocate for and identify additional contracting opportunities for these SDBs

• Improve Access to Disaster Assistance by modernizing technology, making the application process simpler, and increasing support for underserved survivors attempting to navigate the application process.
• Improve Access to Business Counseling, Training, and Services by tailoring outreach, training, and educational resources to these underserved communities and their specific needs.
• Improve Access to Investment Capital by putting new rules into place for the Small Business Investment Company (SBIC) Program aimed at increasing diversity among participating fund managers, with could lead to additional investment money being granted to underserved communities.

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