The following letter offers recommended policy proposals to drive small business growth developed by the Bipartisan Policy Center and JPMorganChase. This content was originally posted by the Bipartisan Policy Center website, with support from JPMorganChase.

Dear Administrator Loeffler:

Small businesses are integral to the fabric of the U.S. economy. We share the common goal of supporting a vibrant economy – in large part powered by the millions of small businesses across the country. We recognize that every business is as unique as its owner – varying in size, products and services, and goals. Their differences make them invaluable to their communities and consumers they serve, but they can also make it more challenging to identify policies that amplify their success. While there is no “one-size-fits-all" approach, we have identified a set of recommended policy proposals that, when taken together, we believe can help drive that growth. As National Small Business Month comes to an end, we offer our support to work with you on economic revitalization and on efforts to champion small businesses across America.

Entrepreneurship in the U.S. continues to grow, with 5.2 million new business applications filed in 2024, following a record-breaking nearly 5.5 million new business applications in 2023.1 These applications are just the first step to creating successful small businesses. What comes next – scaling and sustaining businesses – is where many entrepreneurs face the steepest challenges. Notably, JPMC Institute research finds only a small share of small businesses reaches $1 million in annual revenue in the first five years.2 We want to tackle the question of what is holding them back and offer solutions to fill gaps that traditional financing cannot fill. We look forward to the opportunity to work with the Administration on policies that will build businesses, alleviate financial hurdles, and help small businesses thrive.

The Bipartisan Policy Center and JPMorganChase have identified three areas, with bipartisan recommendations, where federal policy would provide catalytic support of small businesses. These businesses need access to the 3Cs:

  1. Capital,
  2. Customers, and
  3. Connections.


CAPITAL: Expand Access to Capital for All Small Businesses, at All Stages

Capital, both credit and equity, is critical to fuel small business growth. With lender or investor dollars, small businesses can expand, purchase equipment, attract more customers, hire additional employees, or fulfill other needs. Unfortunately, lack of access to capital too often holds small businesses — and the economy — back. Among small businesses that sought financing in 2023, 41% sought $50,000 or less. To help close the gaps, microloans and the other funding programs listed below are critical to ensure early success and sustaining – then growing – small businesses. In addition to these programs, there is ample opportunity to modernize and streamline Small Business Administration operations, ensuring small businesses have access to critical capital while strengthening the accountability and transparency of these loan programs.

  • Strengthen the SBA’s Microloan and Community Advantage Programs
    • We encourage the Administration to work with Congress to support new legislation that would improve availability of microloans and Community Advantage Programs, especially for startups and rural small businesses. We also think it would be helpful for SBA to provide data and insights into the Microloan program’s efficacy and engagement with businesses. This added transparency is essential for informing policymakers of how the federal government can effectively address any existing financing gaps and make the program more effective. The Community Advantage Small Business Lending Company (CA SBLC) license program for nonbank, mission-driven lenders, has been available to lenders since 2011, now as a variation of the SBLC license. Congress has yet to support it through legislation, and we encourage the SBA to work with members to ensure this program is codified in statute. Such action will increase the availability of loan funds for entrepreneurs in rural and underserved communities, boosting local economic growth.
  • Expand the Small Business Investment Company (SBIC) Program
    • SBICs are privately-owned investment funds, licensed and regulated by the SBA to invest in small businesses across different industries and sectors. The Administration can support legislation that boosts the capital available to small businesses in rural and low-income areas by exempting investments in these businesses from counting against the SBIC leverage cap. This approach, coupled with the creation of new SBIC license designations targeting rural and other communities that struggle to attract private investment capital, would increase funding opportunities for small businesses.
  • Support Targeted Local Investment through the State Small Business Credit Initiative (SSBCI)
    • The SSBCI 1.0 and 2.0 helped more small businesses access capital by providing funding for localities to invest in job creation and entrepreneurship, and by improving technical assistance to get business owners “credit ready,” especially in rural or low-income communities. Through continued support for concentrated and tailored programs like SSBCI, the Administration can advance the competitiveness of small manufacturers, provide microloans to rural entrepreneurs, and support Community Development Financial Institutions (CDFIs).
  • Encourage Efforts like the ‘‘Made in America Manufacturing Finance Act of 2025’’ 
    • Bipartisan efforts like the “Made in America Manufacturing Finance Act of 2025” would raise the threshold for being a small manufacturer and raise the loan limits that these small businesses could receive (S.1555).
    • Doubling the individual loan limit for 7(a) and 504 small manufacturing loans would offer critical capital to enable small manufacturers to build and expand their businesses, hire more employees, boost employee benefits, and compete with larger more capitalized firms.

CUSTOMERS: Support Acquisition of New Customers through Public Procurement

Fewer small businesses are recipients of federal contracts than at any point in recent history. Federal contracts are often a critical jump-start for small business development. The federal procurement process is time-consuming and complicated but provides access to larger markets and more stable revenue streams, which can help businesses grow and build capital and mitigate adverse shocks. Under this Administration’s leadership, meaningful changes can be made to reduce the red tape preventing more small business owners from securing federal contracts.

  • Prioritize Small Business Procurement and Agency Accountability
    • The SBA is tasked with ensuring small businesses get the fair chance to compete for federal contracting dollars. The Administration can partner with Congress to advance new legislation to increase the government-wide small business procurement goal from 23% to 25%, providing a catalyst for future growth while preventing further erosion in the number of firms engaged in federal procurement.
    • When expanding government-wide small business procurement goals, particular emphasis should be placed on businesses located in low-income and historically underused business (HUB) zones. These investments have the opportunity to create outsized economic outcomes for these underserved communities.
    • Agencies have the ability to count individual small business contracts toward multiple contracting goals. Limiting that accounting practice will improve reporting and help policymakers hold agencies accountable for actual achievements of small business support.
  • Eliminate Burdensome Bureaucracy in Procurement Applications and Strengthen Support for New Entrants
    • Stringent requirements for compliance can exclude interested small business owners, meaning some small business contracting targets go unmet. SBA should improve technical assistance and make contract solicitations easier to understand. Such additional outreach, clarity, and support services are necessary to help small businesses overcome initial hurdles to winning their first government contracts.
    • The SBA can also choose to track data on new entrants to the federal procurement marketplace to better understand where further work is necessary to reduce barriers.

CONNECTIONS: Promote Technical Assistance and Connections to Necessary Resources

It is critical that small businesses have access to informative, relevant, and reliable resources and technical assistance to grow their knowledge, workforce, and ultimately their businesses.

  • Link Small Businesses to Private Capital Connections
    • In addition to increasing the flow of capital described above, SBA can work to enhance relationships between private capital providers and small business owners, varying with stages of development (i.e., early-stage, high-growth, etc.). Following state-level models and hosting more events across the country that link small businesses and entrepreneurs with new private resources could assist with expanding capital access.
  • Establish Metrics and Accountability to Enhance Effectiveness of Small Business Support
    • We think the SBA can increase its focus on improving technical assistance and training programs, including specifically those that fail to track outcomes, contain outdated information, or only collect one metric of impact.
    • Agencies that work with small businesses, and their local partners, should establish standardized metrics that gauge outcomes and performance, including those areas not measured by current data. Standardized and increased interagency data sharing with necessary privacy protections between the SBA and the Census Bureau, IRS, or Social Security Administration, could provide key insights into revenue and employment gains. 
    • The SBA could also clarify existing guidance and streamline metrics to improve lender behavior and ensure alignment with the SBA’s goals in supporting the various financing needs of small businesses.
    • The SBA’s Office of Advocacy—an independent office charged with representing the interests of small businesses in the federal regulatory process—should be used to ensure federal agencies are complying with the Regulatory Flexibility Act. By strengthening the Office of Advocacy’s ability to make sure the small business perspective is included in agency rulemaking, regulations will better incorporate the impact on small businesses.
  • Increase Small Business Technical Assistance
    • The SBA has the opportunity to consider new ways to ensure that resource partners are equipped to educate small businesses with the latest information on regulations, tax credits, retirement plan options for workers, and more. The SBA offers valuable support to assist in accessing capital by identifying the right CDFIs and/or CA SBLCs. With important changes, the SBA can improve the availability and effectiveness of financial resources for startup and emerging small business owners. For example:
      • Explore the SBA's Lender Match Tool: The SBA's Lender Match program is designed to connect small business owners with suitable lenders. The SBA should review this tool to ensure it effectively links small business owners with the appropriate CDFI/CA SBLC to increase access to capital for startup and emerging businesses.
      • Aggregate and Improve Existing Resource Databases: Through collaboration with other agencies, the SBA could enhance its existing directories to a more  user-friendly solution that would offer a database detailing which banks, grants, CDFIs, and other funding opportunities are available in the businesses’ zip code. This would greatly assist business owners in finding the right resources tailored to their location.
  • Support for SBA Field Offices and Small Business Development Centers (SBDCs)
    • We encourage the SBA to reimagine the role and support provided by SBA field offices and SBDCs, including through collaboration with state and local partners, such as small business counselors and financial centers, to further the reach of administrative connections.  
    • We appreciate the SBA’s travel and events throughout the country to date and look forward to helping reach small businesses where they reside.
  • Boost Specific Industry Sectors to Increase Skilled Labor and Job Training
    • To further invigorate jobs in the face of declining trade workforce participation, the SBA should collaborate with federal, state, and local partners, such as the Department of Labor, SBDCs, state small business advocates, trade schools, community colleges, and manufacturing employers to increase connectivity on job training and skilled labor opportunities to better address worker shortages and improve employee retention – a critical small business need.
    • On the federal level, working with the Department of Labor on workforce skills and Department of Education on training and trade schools could help amplify the impact.
    • To the extent there are local barriers to addressing small business workforce needs, the SBA should work closely with policymakers to address these concerns.
    • Such federal and local collaboration can also educate business owners on how to establish work-based learning, create new apprenticeship programs, and enhance management skills, to offer more employees, especially younger generations, the opportunity to work for a small business.

Focusing on Capital, Customers, and Connections would bolster the economy and reward the entrepreneurial spirit that is foundational to America. By implementing sound policies, we can effectively remove the obstacles to growth, expand the U.S. economy, and uplift communities across the nation.

We hope to be a resource to the SBA and look forward to working together to strengthen small businesses now and for generations to come.

Bipartisan Policy Center

JPMorganChase

References

1.

Business Formation Statistics, U.S. Census Bureau

2.

https://www.jpmorganchase.com/institute/all-topics/financial-health-wealth-creation/1-million-annual- revenues-as-a-small-business-milestone

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