The Engine of America: Expanding the SBA to Secure Our Economic Future

Part I: The Hometown Economy 

I believe in the American Dream—ownership, independence, and opportunity. I want to empower more Americans to start a small business and rebuild Main Street because small businesses create the jobs our communities rely on. Because I want to rebuild Main Street, I support expanding the Small Business Administration, promoting entrepreneurship, and encouraging more Americans to own their future. And I will show you why and how in a three-part series. 

Congressional District Four comprises 14 counties, and each is dominated by small towns. Small towns like Wayne in McClain County, Noble in Cleveland County, Healdton in Carter County, and Tuttle in Grady County. And small businesses are the lifeblood of these communities. Investing in small business means investing in communities across Oklahoma and the United States. When small businesses succeed, they reinvest locally and fuel the hometown economy. Small business owners, entrepreneurs, and dreamers are not just chasing ideas; they keep local dollars in our communities. 

There are over 33.2 million small businesses in the U.S., which account for 99.9% of all U.S. businesses. Small businesses employ nearly half of the American workforce—61.6 million Americans. But, according to the Bureau of Labor Statistics, more than two-thirds of all small businesses fail within 10 years. If we want strong communities that can sustain themselves, then we must invest in rebuilding Main Streets across the United States. But let’s take a step back. Before we get to the solution, we must first understand the problem. 

The federal government defines “small business” very broadly. A small business can have hundreds of employees and generate millions in revenue, but that is not the type of small business that I am discussing today. Instead, I am talking about the independent mechanic down the street offering the best prices in town, the family-owned restaurant that serves food you can't find anywhere else, and the local feed store that supports local farmers. The U.S. is dominated by micro-businesses—those with fewer than 20 employees. 

Large corporations dominate the news cycle every day, and the United States already invests heavily in supporting them. Thus, my concern lies with building economic opportunity for the People. We must prioritize small businesses that keep our communities thriving, because the revenue and profits they generate tend to stay in the local community. When you spend money at places like Walmart, Starbucks, or Target, the profits are paid to shareholders—they do not remain in the local community. But when you spend money locally, at a small business, that money recirculates back into the local economy. Personally, I want my money to support my local community rather than be dispersed to shareholders. Big corporations are designed to maximize profit, not build local economies. When the local branch of a major corporation fails, life goes on, but when a small business fails, it can deeply affect our smaller communities. 

When small businesses fail, it is not due to a lack of effort. Small businesses fail for a variety of reasons: cost barriers, market pressures, limited access to capital, and uneven support. For example, current banking regulations discourage loans of less than $250,000. They prioritize low-risk, high-return lending, which leaves many first-time and small-scale dreamers out of the picture. The SBA’s Microloan Program attempts to fill this gap. While it is well-intentioned, it is outdated. Currently, the maximum loan amount is capped at $50,000. As we know, in today’s economy, this cap is insufficient. Additionally, private banks make these SBA loans, not the SBA directly. They must go through multiple layers of bureaucracy, slowing down the deployment of funds. 

To truly support the hometown economy, we need an SBA expansion that reflects the reality of modern inflation and banking deficits. For starters, I propose doubling the microloan cap. Instead of $50,000, the statutory limit for SBA Microloans should be raised immediately to $100,000. This adjustment accounts for inflation and rising business costs, allowing entrepreneurs to properly capitalize their startups without resorting to personal credit cards. 

Next is what I like to call “Main Street Direct” Lending. We must propose a bold new authority for the SBA. Instead of begging banks to make “unprofitable” small loans, the SBA should underwrite these microloans directly. An underwritten loan reduces the lender's risk and allows businesses to be evaluated based on their cash flow and potential, not just the collateral they can offer. With the help of the SBA, Main Street Direct Lending can bypass the barriers banks create and put money back into the communities that need it most. 

Expanding the SBA to properly fund micro-businesses is not a handout; it is an investment in our “Hometown Economies.” In Part II, we will examine the other end of the spectrum. Businesses that are too big for microloans, but too small for the stock market. the “Middle Market” companies. 

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Stephanie Ferguson Melhorn, Makinizi Hoover & Isabella Lucy. See the data behind America’s small businesses. See the data behind America’s small businesses. | U.S. Chamber of Commerce (2025), https://www.uschamber.com/small-business/small-business-d,ata-center 

Microloans, U.S. Small Business Administration, https://www.sba.gov/funding-programs/loans/microloans