Initiative for Inclusive Entrepreneurship
Small businesses are the heartbeat of our economy. They account for almost half of our GDP and employ nearly half of all private-sector workers. Entrepreneurs of color represent the fastest growing segment of the small business market, yet they have the least access to capital. They are more likely to be denied credit; more likely to pay high interest rates; and less likely to apply for loans out of fear of being denied.
The Initiative for Inclusive Entrepreneurship (IIE) is a national effort to expand access to capital for small businesses owned by people of color. IIE harnesses the power of public-private collaboration to ensure the equitable implementation of the U.S. Department of the Treasury’s $10 billion State Small Business Credit Initiative (SSBCI), 40% of which is designated for businesses owned by socially and economically disadvantaged individuals (SEDI).
The Initiative for Inclusive Entrepreneurship Has a New Home at the Milken Institute
IIE Pilot Impact Numbers
- Deployed over $10M in direct funding
- Secured over $177M in loans, loan matches, grants, and private capital
- Reached 3,172 small businesses to date
- Provided 2,067 hours of training and technical assistance to 836 staff
- Launched investment vehicles to address the need for match capital to underserved entrepreneurs, including the Indigenous Futures Fund in partnership with Mission Driven Finance
- Assisted with the launch of the California Small Business Loan Match, which has had 5.8M impressions in just two months.
About IIE
Announced in October 2022, the Initiative for Inclusive Entrepreneurship (IIE) is a national effort to expand access to capital for small businesses owned by people of color. IIE harnesses the power of public-private collaboration to ensure the equitable implementation of the U.S. Department of the Treasury’s $10 billion State Small Business Credit Initiative (SSBCI), 40% of which is designated for businesses owned by socially and economically disadvantaged individuals (SEDI). With leverage as a built-in strategy, every SSBCI dollar deployed is designed to catalyze $10 in private investment, with a 1:1 match required.
Authorized under the American Rescue Plan, SSBCI is primed to be the most significant small business program in US history. And its full potential can only be realized through public-private collaboration. Through IIE, the corporate and philanthropic investors can support capacity building, fuel innovative strategies and products, and invest the required matching capital that will ultimately strengthen the small business ecosystem, advance racial equity, and transform communities.
IIE’s 18-month pilot was incubated by Hyphen, a leading national public-private partnership accelerator. The initiative’s implementation partners include: Aspen Institute’s Business Ownership Initiative, Founders First Capital Partners, JumpStart, Mission Driven Finance, Next Street, Nowak Metro Finance Lab, and Scale Link.
Starting in July 2024, the Milken Institute began serving as IIE’s new home.
- Deployed over $10M in direct funding
- Secured over $177M in loans, loan matches, grants, and private capital
- Reached 3,172 small businesses to date
- Provided 2,067 hours of training and technical assistance to 836 staff
- Launched investment vehicles to address the need for match capital to underserved entrepreneurs, including the Indigenous Futures Fund in partnership with Mission Driven Finance
- Assisted with the launch of the California Small Business Loan Match, which has had 5.8M impressions in just two months.
For More Information
To learn more about the Initiative for Inclusive Entrepreneurship, please contact us at [email protected].