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5/5/2020 Remarks by Treasury Secretary Jacob J. Lew at the Access to Capital Conference in Los Angeles, California U.S. DEPARTMENT OF THE TREASURY Press Center Remarks by Treasury Secretary Jacob J. Lew at the Access to Capital Conference in Los Angeles, California 5/3/2016 As Prepared for Delivery LOS ANGELES - Good morning. Thank you, Mayor Garcetti and Councilmember Price, for hosting this outstanding forum as a part of National Small Business Week. I am pleased to be in Los Angeles in support of small businesses and access to capital, two top priorities for Treasury and the Obama Administration. Coming together as a community to exchange ideas and best practices is essential to strengthening this important work. So, thank you to the forum organizers and to everyone here for joining in this important discussion. We know well that America’s small businesses are the backbone of our economy. Twenty-eight million small businesses employ half of our country’s private sector workforce and have created nearly two out of every three new jobs over the last two decades. We also know small businesses were hit very hard by the dramatic tightening of credit during the recession and through a long recession. Today, our economy tells a very different story. As a result of our efforts to stabilize the U.S. financial system and grow the economy, access to credit and confidence for small businesses have improved. Treasury played a key role in shaping the Administration’s policies to help small businesses and individuals gain access to critical capital and financial resources. Whether it is a small business owner seeking a loan to expand operations, an entrepreneur looking to improve their credit, or an individual trying to save for retirement, Treasury is committed to connecting more Americans to the financial products and services they need to succeed. That is why, last year, we launched myRA, a starter retirement savings option designed to remove the barriers that make it hard to save for millions of Americans. It is simple, safe and affordable. There are no minimum balances or fees. There is no risk of losing money because savings are invested in risk-free U.S. Treasury bills. All you need to do to get started is go to myRA.gov to sign up. But even in 2016, many Americans, especially low-income and minority families, remain virtually locked out of the financial system. Without a credit or banking history, it can be difficult, if not impossible, to qualify for the most basic access to a home mortgage or small business loan. And without financial education, many do not even understand the tools they need to build their future. Many do not show up in statistics as being denied services because they have no contact with the financial system to record. This is why we launched the Financial Empowerment Innovation Fund at Treasury. The explosion in technological innovation has provided new ways to manage money and provide less costly administrative platforms. The Fund supports research and evaluation of these critically important new technologies. Critically, Treasury also provides credit and capital to small businesses through our own programs. The Small Business Lending Fund, or SBLF, provides capital to community banks and Community Development Loan Funds to help expand their lending capacity to small businesses. Through SBLF, Treasury has invested over $4 billion in more than 300 institutions. These institutions operate in over 3,000 locations across 47 states and the District of Columbia. And, since the program’s inception, total small business lending reported by current and former participants has increased by $18.4 billion. The State Small Business Credit Initiative is another innovative program that enables states to tailor programs to local economic conditions and priorities, including credit and equity programs. The Initiative has made a real difference at the local level by providing access to capital that allows small businesses to grow and create jobs. Nationally, from 2011 to 2014, its funds spurred more than $6.4 billion in private sector lending and investments to small businesses. States have generated $7.36 in private sector lending and investments for every $1 of federal support. Importantly, business owners reported that these funds will help them retain or create more than 140,000 jobs. California is one of the states that has deployed the greatest amount of State Small Business Credit Initiative funds. Treasury allocated $168 million in funds to California for three programs: the California Collateral Support Program; CalCAP, a Capital Access Program; and the California Small Business Loan Guarantee Program. As of the end of last year, California had used nearly $120 million in federal funds to attract over $640 million in private capital for California’s small businesses. Because of this program, 7,700 businesses were helped creating or retaining 70,000 jobs for California’s economy. SSBCI reaches both start-ups and Main Street businesses in diverse communities across the country that often have trouble accessing capital. These communities need SSBCI to continue, which is why President Obama has proposed extending the program with an additional $1.5 billion in funding. And, for twenty years now, Treasury has worked through the Community Development Financial Institutions Fund to fund and support mission-driven financial institutions in some of our nation’s most distressed communities. I was proud to work on the launch of CDFI and am pleased that it has grown in scope and reach. CDFI promotes access to capital and local economic growth through grant, tax credit, and loan programs. In that time, the Fund has awarded more than $2 billion to community development organizations and financial institutions to support their lending and investments in underserved communities; it has awarded $43.5 billion in allocations of New Markets Tax Credits, which will attract private-sector investments to revitalize communities in need; and it has guaranteed $852 million in bonds that provide CDFIs with access to substantial capital that is used to reignite our communities. Small businesses are critical to our economy, and, in many ways, they are also the anchors of our communities. Quite simply, in order to start, grow, and expand their businesses, entrepreneurs need capital. Just this morning, I had the opportunity to see Treasury’s programs at work. I visited L.A. Kitchen, a nationally recognized culinary training program for atrisk individuals that uses food donated by hospitality businesses and farms. It was difficult for L.A. Kitchen to find conventional financing, but through a combination of SSBCI funding and New Markets Tax Credit investments, L.A. Kitchen was able to open a 20,000 square foot facility, that not only provides job training, but also feeds the hungry, continuing the cycle of giving back to its community. https://www.treasury.gov/press-center/press-releases/Pages/jl0448.aspx 1/2 5/5/2020 Remarks by Treasury Secretary Jacob J. Lew at the Access to Capital Conference in Los Angeles, California Small business leaders provide opportunities for America’s future and demonstrate the diverse pathways that can be taken to achieving the American dream. I wish each of you the best of luck as you learn about how Los Angeles can continue to create those important pathways today and into the future. Thank you. ### https://www.treasury.gov/press-center/press-releases/Pages/jl0448.aspx 2/2
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