Obama Administration Announces $2 Billion In Resources For Startups
The White House has announced an investment today that will benefit entrepreneurs. The White House will be increasing capital and resources for entrepreneurs through the U.S. Small Business Administration by moving forward with a $1 billion Early Stage Innovation Fund, which was originally announced as part of Startup America.
Startup America will provide matching capital to Small Business Investment Companies (SBICs), which targets early-stage businesses seeking private institutional capital.
On December 8th, the White House hosted the first board meeting for the Startup America Partnership where board members had announced commitments from over 50 private-sector partners. These partners will provide free software, free consulting, and legal services to 100,000 startups over the next 3 years.
President Obama also renewed his call for Congress to work on a bipartisan basis for developing ideas from the American Jobs Act plan by increasing limits on miniofferings and allowing crowdfunding.
“Today, we’re announcing $2 billion in public and private resources to help entrepreneurs start and grow their businesses. Now it’s time for Congress to do its part. It was encouraging to see members of both parties in the House come together to pass legislation that will help small businesses get ahead, and I’m calling on the Senate to do the same. But America’s small businesses can’t wait for these important tools to grow and hire faster,” stated President Obama.
Startup America is a nonprofit alliance of entrepreneurs and major corporations. Startup America is led by Steve Case and Reid Hoffman.
Miniofferings are for small business owners seeking private capital of less than $5 million and they would be exempt from various regulations. Crowdfunding is the concept of nonprofits using online fundraising and social media.