POLICY POSITION
The recent passage of the Senate Appropriations Committee’s Fiscal Year 2025 Financial Services and General Government bill marks a significant milestone for economic equity and small business growth across the United States. The Association for Enterprise Opportunity (AEO) is encouraged by the robust funding allocated to both the Community Development Financial Institutions (CDFI) Fund and the Small Business Administration (SBA).
Supporting Underserved Communities through CDFIs
The Senate’s decision to allocate $354 million to the CDFI Fund—an increase of $30 million over the previous fiscal year—underscores the vital role these institutions play in providing access to credit and financial services to underserved communities. This funding will empower CDFIs to continue their critical work in fostering economic growth, supporting small businesses, and enabling communities to thrive. The inclusion of $35 million for the Native CDFI Assistance Program further ensures that Native American communities will have enhanced access to capital, a crucial step in promoting inclusive economic development.
Empowering Small Businesses through SBA Initiatives
Equally important is the $1.6 billion allocated to the SBA, which represents a $61 million increase over the previous year. This funding will bolster essential programs that directly support small business owners, including the State Trade Expansion Program, Small Business Development Centers, and the Microloan Program. These initiatives are indispensable in helping entrepreneurs access the resources they need to establish, grow, and sustain their businesses. The SBA’s commitment to enhancing technical assistance, particularly through the Microloan Program, will be instrumental in reaching underbanked markets and supporting the success of small businesses that may otherwise struggle to secure traditional financing.
AEO’s Continued Commitment
The passage of this appropriations bill is a clear indication of the bipartisan recognition of the importance of small businesses and community-based financial institutions in driving economic growth. At AEO, we remain steadfast in our commitment to advocating for policies and programs that promote economic inclusion and equity. We look forward to working alongside CDFIs, the SBA, and other stakeholders to ensure that these funds are utilized effectively to create lasting impact for the communities and entrepreneurs we serve.
In conclusion, the Senate’s approval of this funding is not just a financial commitment—it is a commitment to the vision of an inclusive economy where every entrepreneur has the opportunity to succeed. This moment is a pivotal step towards realizing that vision, and we are proud to be part of this journey.