Delaware Just Launched a Program to Level the Playing Field for Small Businesses

In a packed room buzzing with ambition, Delaware Governor Matt Meyer stood before a crowd of entrepreneurs, policymakers, and community leaders to herald the relaunch of the State Small Business Credit Initiative. The air crackled with possibility as two local companies, Carbon Reform and WhipFlip, shared stories of grit and growth, their journeys intertwined with state support that turned dreams into reality. This wasn’t just a policy rollout; it was a declaration that Delaware is doubling down on its smallest businesses to build a fairer, stronger economy.

For too long, the promise of the American Dream has felt out of reach for many, especially those locked out of traditional financial systems. Small businesses, the backbone of local economies, face towering hurdles: soaring interest rates, tightened credit, and a labyrinth of red tape. In Delaware, where innovation meets opportunity, the state is rewriting the rules to ensure that every entrepreneur, from every corner of society, has a shot at success. The SSBCI relaunch is a beacon of hope, a testament to what government can achieve when it prioritizes people over profit.

Yet, not everyone sees it this way. Some argue that government intervention distorts markets, wastes taxpayer dollars, or picks winners and losers. These voices, often rooted in a rigid belief in unfettered capitalism, miss the point: markets aren’t neutral. They’ve long favored the connected and the privileged, leaving women, minorities, and rural entrepreneurs scrambling for scraps. Delaware’s initiative isn’t about handouts; it’s about leveling a playing field tilted by decades of systemic inequity.

The stakes couldn’t be higher. With small businesses creating nearly half of America’s private-sector jobs, their success is our collective triumph. Delaware’s bold move signals a broader truth: government has a moral and economic duty to invest in those who power our communities, especially when private markets fall short.

The numbers tell a compelling story. Since its expansion under the American Rescue Plan, the SSBCI has channeled nearly $10 billion nationwide, sparking over 3,600 small businesses into action and safeguarding 46,200 jobs. In Delaware, the program’s relaunch builds on this momentum, offering loans, equity investments, and technical assistance tailored to local needs. For every dollar of federal funding, up to $10 in private investment flows, amplifying the impact. Companies like Carbon Reform, which innovates in sustainable tech, and WhipFlip, a platform streamlining auto sales, embody the potential unleashed when capital meets creativity.

This isn’t abstract policy; it’s personal. Take the case of minority-owned businesses, which have doubled in ownership rates over the past decade yet still face loan denial rates 20% higher than their white counterparts. Delaware’s targeted approach, emphasizing underserved communities, directly confronts this disparity. By prioritizing seed-stage ventures and very small businesses—those with fewer than 10 employees—the state ensures that the most vulnerable entrepreneurs aren’t left behind.

Critics, often aligned with market-first ideologies, warn of government overreach or fraud, pointing to past missteps in programs like the Economic Injury Disaster Loan initiative. Their solution? Slash public funding and let the market sort it out. But this ignores reality: private lenders have tightened credit standards, approving just 14.6% of small business loan applications at large banks. Without public intervention, countless businesses would vanish, taking jobs and innovation with them. Delaware’s SSBCI, with its rigorous oversight and local focus, proves that government can be both effective and accountable.

The broader context bolsters this case. Since 2021, the U.S. has seen a historic surge in small business creation, with 21 million applications filed, driven largely by women and minorities. These entrepreneurs aren’t just surviving; they’re reshaping the economy. States like Delaware, leveraging SSBCI funds, are fueling this renaissance, proving that public investment can ignite private-sector dynamism while advancing equity.

At its core, Delaware’s initiative is about justice. Access to capital isn’t just a financial issue; it’s a civil rights issue. Women-owned businesses, for instance, receive less than 5% of venture capital funding, despite comprising nearly 40% of small businesses. Black and Latino entrepreneurs face similar barriers, often forced to rely on high-cost alternative lenders that drain their resources. Delaware’s SSBCI, by prioritizing these groups, challenges a status quo that has excluded too many for too long.

This approach yields tangible results. Nationwide, 75% of SSBCI transactions have supported underserved businesses, creating pathways to wealth-building in communities long denied them. In Delaware, technical assistance programs ensure that entrepreneurs aren’t just handed funds but are equipped to navigate the complexities of growth. This holistic strategy—funding plus support—sets the state apart as a model for others.

Skeptics may argue that such targeted programs risk inefficiency or favoritism. But the data refutes this: SSBCI’s focus on underserved communities has generated outsized returns, with every job created rippling through local economies. The alternative—leaving these entrepreneurs to fend for themselves—would only deepen inequality and stifle innovation. Delaware’s leaders understand that an economy that works for everyone isn’t built by accident; it’s built by intention.

Delaware’s SSBCI relaunch is a triumph, but it’s only a start. The unmet need for small business financing remains vast, with over half of owners citing unaffordable loans as a barrier. Nationally, programs like the Community Development Financial Institutions Fund and the Small Business Administration must expand to meet this demand, with a relentless focus on equity and accountability. States, too, must innovate, blending capital access with workforce training and infrastructure investment to create ecosystems where small businesses thrive.

As America stands at a crossroads, Delaware’s example shines bright. By investing in its smallest businesses, the state is betting on a future where opportunity isn’t hoarded but shared. This vision—of an economy that lifts every voice—demands courage and commitment. It’s a vision worth fighting for, one that redefines prosperity not as the privilege of a few but as the right of all.