May is Asian American, Native Hawaiian and Pacific Islander Heritage Month, and we celebrate the contributions AANHPIs have made to our nation’s economy and cultural fabric. Asian Americans are one of the fastest growing ethnic groups. From railroad workers, farm workers like my father, to Main Street small business owners seeking better opportunities, history shows that the resilience, work and entrepreneurial spirit of AANHPIs helped build this country.
History is being made. The Biden-Harris Administration’s economic policies have led to a “small business boom” with nearly 18 million new business applications to date – more than any presidential administration, with over 218,000 in Minnesota alone. Small business owners are confident in the economy. Asian Americans are driving this startup boom through family-owned restaurants, home health services, retail stores, tech startups, engineering and construction companies, manufacturing, skilled trades and more.
However, for many entrepreneurs, lack of access to capital remains, decreasing between 2017 and 2020. However, under President Biden, funding for AANHPI-owned businesses has increased, with AANHPI loan volume increasing by a whopping 44% and loan value increasing by 36%. Additionally, here in Minnesota, SBA lending to Asian Americans has increased by nearly 20%. SBA Administrator Isabel Casillas Guzman has led SBA reforms that reduce capital access barriers for underserved and disadvantaged communities. Members of the AANHPI community are betting on themselves and their ideas because they are empowered.
SBA is committed to enabling AANHPI entrepreneurs to innovate and sustainably launch, run, and grow businesses that solve global problems. I see this every day as I meet small businesses that are thriving using SBA’s affordable loans, free counseling, online resources, and tools (including language support) from SBA staff and trusted partners like nonprofits, state and city governments, academia, incubators, and accelerators.
President Biden’s “Invest in America” economic policy is based on equity and will strengthen the foundations of an inclusive economy from the bottom up through diverse working-class and middle-class entrepreneurs. Small businesses are the engines of our economy that drive prosperity for all, including the 3 million AANHPI small businesses in the United States that support 5.2 million jobs and generate approximately $958 billion in annual sales. In May, the SBA is proud to support the living legacy of Asian American small businesses that create good jobs, economic stability, and generational wealth.
Jeri Sanchez Aglipay is the Great Lakes Regional Administrator for the U.S. Small Business Administration.
