This week, Treasury posted key dates for the State Small Business Credit Initiative, a $10 billion program funded in the American Rescue Plan Act. Per its website, Treasury intends to release the amount of funding available to each state by April 12; states will be required to submit a letter of intent to participate by May 10; and, final applications from states will be due by Dec. 11. The amount of funding available to Tribal governments will be released on May 10, with notices of intent to apply due June 11.

In its effort to support a more diverse tech talent pipeline in the state, the Delaware Prosperity Partnership (DPP), in partnership with JPMorgan Chase, has outlined a plan to boost the tech workforce in the state and help diverse populations’ access pathways into IT.

While the new administration is rolling out a new infrastructure proposal that includes $100 billion over an 8-year period for greater broadband coverage and affordability, the states have been busy in 2021 with their own broadband proposals. Governors across the country are responding to the digital divide that became even more obvious during the pandemic as students struggled to access online learning, individuals turned to the internet for telehealth appointments, and much of the workforce pivoted to remote work arrangements.

A total of $29 million in grants will be awarded to 44 organizations across the country as part of the Scaling Pandemic Resilience through Innovation and Technology (SPRINT) Challenge provided by the Economic Development Administration. The SPRINT Challenge, with grants ranging from between $200,000 to $750,000, was developed last year with the goal of addressing the health and economic risks brought on by the COVID-19 pandemic through investments in entrepreneurship and innovation.

The most recent annual report from the Small Business Administration (SBA) concludes that a majority of participating federal agencies did not comply with the mandated minimum spending requirements for the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs.

The overall employment outlook for the recipients of doctorate degrees earned at U.S. institutions has improved from 2015 to 2019, while the research activities conducted by these highly trained and educated individuals has started to shift away from basic and applied research activities towards activities focused on design and development. Doctorate recipients play an essential role in developing the knowledge base leveraged in creating new technologies and companies in the innovation economy.

Throughout the past decade, the Latino entrepreneurial landscape has experienced both a growth in average annual revenue and an increase in the establishment of new employer businesses. However, Latino business owners remain significantly less likely than white business owners to receive loan approvals from major banks, resorting instead to financing options that expose the business owners to more personal financial risk including personal and business lines of credit and personal home equity loans.

In a previous article, SSTI detailed the limitations of public funding in solving the country’s rural broadband issue. While increased public funding is certainly part of the equation to bring internet capabilities to the near 14 million people who do not have access, there is potential to leverage new innovative technologies to bridge the broadband gap across America.

Venture development organizations (VDOs) increasingly serve as the Swiss Army knife of small business growth and innovation throughout the country due to their diverse range of entrepreneurial programs, direct financing options, and commitment to local economic development. Their unique roles in the entrepreneurial ecosystems and regional public-private partnerships have allowed for startup success despite the financial instability brought on by the COVID-19 pandemic.

As the new administration settles in, the Economic Development Administration (EDA) has updated its investment priorities — the guiding principles behind all of its competitive grants. Changes to the priorities are outlined below so that participants in local innovation economies are better able to align their proposed programs to these federal priorities.

As state budgets move into the legislatures for final negotiations and approvals, the last of the governors have addressed their constituents and put forth their proposals. While a renewed sense of hope is seeping into the latest addresses, governors are still cautious and guarded in proposing new programs. Broadband, small business, education and workforce initiatives continue to be among the innovation-related initiatives announced by the state leaders, with the intent that those efforts will also boost the economic recovery of the states.

President Joe Biden has nominated Alejandra Y. Castillo to serve as the next assistant secretary for economic development in the U.S. Department of Commerce. If confirmed, she will have a unique opportunity to leave a significant imprint on regional efforts toward growing prosperity as a result of the $3 billion appropriated to the Economic Development Administration in March through the America Rescue Plan Act. 

In 2014, Tennessee’s Republican governor, Bill Haslam, created the nation’s first program to ensure high school graduates could attend community and technical college tuition-free, Tennessee Promise.  While several states have followed suit in one form or another, President Joe Biden wants to take the concept nationwide with the federal government footing $109 billion of the bill through his American Families Plan.

Last week, a bipartisan, bicameral group of legislators reintroduced the Endless Frontier Act, a bill that would authorize more than $112 billion over five years for new research and commercialization activities within the National Science Foundation (NSF) and the Department of Commerce. This proposal would establish multiple tools at each agency to support regional innovation economies. Sen.

SSTI is making Addressing Capital Access in 2021, which had previously been available only to SSTI member organizations, publicly available. The paper is focused on helping states and their partners make the most of the opportunity presented by the newly-refunded State Small Business Credit Initiative (SSBCI 2.0), which provides $10 billion to states to support capital access.

The Department of Homeland Security has recently announced its withdrawal of the previously proposed removal of the International Entrepreneur Parole Program. The program allows for DHS to use its parole authority to grant foreign entrepreneurs a period of authorized stay within the United States with the aim that their start-up business can serve as a public benefit through job creation and economic development.

Independent contractors notched a win as the U.S. Department of Labor (DoL) this month announced the withdrawal of the “Independent Contractor Rule.” The rule, which was issued two weeks before the change in presidential administrations, would have made it easier for employers to classify workers as independent contractors and would have provided employers more security from challenges by contract workers for minimum wages and overtime pay.

“The Achilles Heel of Reputable VCs,” a recent paper by Nuri Ersahin et al., finds that the most successful venture capital (VC) funds make fewer and smaller investments in states after investment tax credits go into effect. These VCs also co-invest with fewer firms, are less likely to invest in “serial” entrepreneurs and experience fewer positive exits after the introduction of the tax credit.

According to Governing, if 2020 was the year of the governor, 2021 is shaping up to be its end, as lawmakers across the country begin to curtail the sweeping powers of their state executives, following a pandemic and concurrent economic shutdown that led governors to flex their authority in historic new ways.

Armed with new data and new methodology, researchers at the Federal Reserve Bank of St. Louis revisited earlier findings on the generational wealth gap and found that “millennials may not be as ‘lost’ as we once thought.” The researchers analyzed data to calculate an estimated life cycle of wealth, mapping out the general path that wealth accumulation tends to follow, with low levels among young families, accumulated savings as people age, and drawdowns in retirement.

As support for efforts to increase diversity, equity, and inclusion (DEI) continue to ramp up at organizations in sectors across the country, policy-makers and program designers must carefully consider the dynamics underlying the persistent disparities faced by women, minorities, and persons with disability in obtaining education and employment in science and engineering (S&E).

The Census Bureau is requesting public input on the Economic Census. Conducted every five years, the survey serves as the most comprehensive source of information about American businesses. According to the Census, the survey establishes data for nearly 1,000 industries and more than 20,000 regions, including company revenues, and is used to support measures of gross domestic product and standard industry classifications (i.e. NAICS).

In nearly every research institution, there are individuals who achieve oversized impacts. In the academic environment, publications and citations were the traditional standard bearers for advancing science, engineering and discovery — unfortunately, tenure and title are still stubbornly tied to these measures in universities. Patents became the next tier for measuring performance many years ago.

The incoming Biden administration continues to outline its priorities for the Federal Communications Commission. According to the Brookings Institution, net neutrality, broadband access and 5G security will be among the next administration’s top policies. Executing on these priorities will require both a new FCC chair and legislative action.