New state-federal program designed to help MS small businesses
A new initiative by the U.S. Department of the Treasury will help some small businesses in Mississippi, officials said Thursday in a call with reporters.
“Small business is the backbone of the Mississippi economy, and these federal funds will further enhance Mississippi’s already strong support of this part of our economy,” said Mississippi Development Authority Executive Director Bill Cork.
The Mississippi Development Authority was awarded $4.8 million to support small business growth. The state also will provide $2.2 million in matching funds from Innovate Mississippi.
“The Biden-Harris Administration’s economic agenda is focused on continuing the historic small business boom by helping entrepreneurs across the country succeed,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo.
MDA will work alongside the Mississippi Small Business Development Center Network and Innovate Mississippi to assist Mississippi companies in preparing for growth funding through ConnectMS, a project aimed to address gaps in the state’s entrepreneurial ecosystem, focusing on helping very small businesses and underserved businesses prepare to raise capital.
The Mississippi venture is one of 14 recently announced through the Biden-Harris Administration’s State Small Business Credit Initiative Investing in America Small Business Opportunity Program. The $75 million nationwide program provides funding to connect underserved and very small businesses to the capital needed to participate in key Investing in America’s supply chains, Treasury Department officials said in a news release.
The purpose of the funds is to help small businesses by providing technical assistance, including accounting and legal services — something many small businesses need but can rarely afford.
“As you know, small business is the lifeblood of most communities in Mississippi,” Rep. Bennie Thompson, D-Mississippi, said. “We have far more small businesses than we have anything else. It’s important that people fall in the right direction.”
According to the Small Business Administration, small businesses in Mississippi make up 99.3% of all businesses in the state. These businesses employ 45.5% — nearly half — of the people working in Mississippi.
“That small business can be a one- or two-person business, but it is putting food on the table,” Thompson said. “It’s supporting families. It’s the economy.”
Sharon Nichols, state director of the Mississippi Small Business Development Center, said the money will be used to help small business owners prepare for growth and be able to manage their company finances. In addition, the funds will help provide legal services.
These are all behind-the-scenes assistance that will allow small businesses to focus their efforts on growing their businesses and subsequently their income, Nichols said.
Access to the program will be available statewide, with an emphasis on women and people of color in underserved communities, Thompson said.
The ConnectMS will use regional clusters to scale business programming and increase access to capital for startups and very small businesses.
The project will include a five-step approach that includes entrepreneurial education and weekly webinars; a multi-week virtual program to support access to venture capital for startups. The program will also establish a Virtual Small Business Incubator to help traditional businesses access funding through workshops, one-on-one counseling, pitch events and tailored technical assistance.
Assisting small businesses is key to building a healthy economy, not just for Mississippi, but for the country, Adeyemo.
“We believe deeply that building up this ecosystem is key not only to the success of communities of colors, but it is key to the success in growth of our overarching economy,” he said.
Lici Beveridge is a reporter for the Hattiesburg American and Clarion Ledger. Contact her at [email protected]. Follow her on X @licibev or Facebook at facebook.com/licibeveridge.
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