Booker, Menendez, 17 Senators Urge Appropriators to Support Small Business Accelerators

WASHINGTON, D.C. — U.S. Senators Cory Booker (D-NJ), a member of the Small Business and Entrepreneurship Committee, and Robert Menendez (D-NJ) urged the appropriations committee to support the Small Business Administration’s Growth Accelerator Fund, which provides founders of early-stage companies with education, mentorship, financing, and training.
In a letter to the Chair and Ranking Member of the Subcommittee on Financial Services and General Government, Booker and Menendez touted the Fund’s success in growing startups, particularly in underserved areas.
Accelerators “offer invaluable support to startups during a vulnerable stage in their lifecycle by giving entrepreneurs a chance to immerse themselves in intense learning,” the Senators said. “Despite the success of the Growth Accelerator Fund since its inception, President Trump’s budget blueprint eliminates funding for the program.”
“Entrepreneurial ecosystems rely on robust accelerators as anchor institutions for innovation and creativity,” the Senators added. “We cannot afford to eliminate an important source of operating capital for accelerator programs.”
The letter also noted well-known companies that had benefited from accelerators, such as Airbnb, Dropbox, and Stripe.
In addition to Booker and Menendez, the letter was signed by Senators Ed Markey (D-MA), Kirsten Gillibrand (D-NY), Mark Warner (D-VA), Ron Wyden (D-OR), Gary Peters (D-MI), Mazie Hirono (D-HI), Tammy Duckworth (D-WI), Maggie Hassan (D-NH), Al Franken (D-MN), Angus King (I-ME), Jeanne Shaheen (D-NH), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), Debbie Stabenow (D-MI), Bob Casey (D-PA), Maria Cantwell (D-WA), and Kamala Harris (D-CA).
Senator Booker has been a champion for small businesses since his days as the mayor of Newark, when he ushered in the largest wave of economic development in the city in 50 years. In the Senate, he has led efforts to reduce burdens for those starting businesses, increase investment in startup accelerator programs, and spur economic development, especially in underserved communities, through legislation such as the Startup Opportunity Accelerator Act and the Investing in Opportunity Act.
The full text of the letter is below.
May 5, 2017
The Honorable Shelley Moore Capito
Chairman
Subcommittee on Financial Services and General Government
U.S. Senate Appropriations Committee
Washington, DC 20510
The Honorable Christopher Coons
Ranking Member
Subcommittee on Financial Services and General Government
U.S. Senate Appropriations Committee
Washington, DC 20510
Dear Chairman Capito and Ranking Member Coons:
As the Subcommittee begins its consideration of the FY2018 Financial Services and General Government bill, we urge the Subcommittee to support emerging small businesses and entrepreneurs through the Small Business Administration’s (SBA) Growth Accelerator Fund (GAF).
Accelerator programs provide the founders of early-stage companies with education, mentorship, financing, cohort-based training, and technical assistance. They offer invaluable support to startups during a vulnerable stage in their lifecycle by giving entrepreneurs a chance to immerse themselves in intense learning. Accelerators have grown at the rate of 50 percent since 2009 with 172 such entities investing in 5,000 companies. There are many accelerator success stories, among them are well-known companies like Airbnb, Dropbox and Stripe.
In years past, the program has been successful in spreading the growth of startups to places across the country that typically do not receive funding from private capital. GAF fills the void by making awards to accelerators in underserved regions.
Last year, the GAF awarded a total of $3.4 million in prizes to accelerators across 32 states and the District of Columbia. In 2015, the program awarded $50,000 to 88 accelerators in 39 states providing support to communities and geographies that have limited access to capital and expertise. The GAF’s 2014 class had 50 accelerators that funded 1,458 companies. The SBA reported that the two earlier classes in 2014 and 2015 funded 138 accelerators that supported 5,000 companies that raised around $1.5 billion and employ nearly 20,000 people.
Despite the success of GAF since its inception, President Trump’s budget blueprint eliminates funding for the program. Given the need to develop new small businesses across the country, we believe that an appropriation of $5 million for FY 2018 is appropriate. Entrepreneurial ecosystems rely on robust accelerators as anchor institutions for innovation and creativity. We cannot afford to eliminate an important source of operating capital for accelerator programs.
New small businesses create countless economic opportunities for our constituents and ensure that the American economy continues to innovate. By sustaining the GAF, we can continue to invest in the next generation of American entrepreneurs and support the growth of new ideas and jobs. We urge you to increase funding for SBA’s unique and effective accelerator program for FY 2018.We are grateful for your consideration.
Sincerely,