Isabella Guzman, The Administrator for the United States Small Business Association

Isabella Guzman, The Administrator for the United States Small Business Association, speaks with John Hope Bryant about how the SBA is helping people start small businesses all across the nation. 

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Episode Transcript

Speaker 1 (00:00):
Building the Good Life with John Hope Bryant is brought
to you by Credentials Financial. I'm really proud that I
have a very eclectic background. There's a little mix of everything,
and I think that speaks to the melting poppets America.
But you know also the you know my my passion
for being as inclusive as possible. All. This is John
Hope Bryant on I Heart Radio and welcome to Building

(00:22):
the Good Life. Today's my guest is Isabella goose Mark.
I love saying the name, but I also love saying
she is America's voice for small business. You would know
her as the Administrator of the United States Small Business Administration,
the voice for America Small Business community, the largest economy

(00:42):
on the planet, the United States of America, which I
don't believe it's a exaggeration at all to say that
that's really driven largely by small business GDP. We're gonna
unpack that this is where most people work. I don't
know if you guys and ladies knew that is where
every big business was once a small one. I don't

(01:04):
know if you knew that. We're gonna unpack some of that.
I don't know if you knew that the Small Business
Administrator is the voice of small business in the President's
cabinet for the White House. Under the Biden administration, your
voice thirty two million plus businesses, three fifty million plus
Americans in the large economy on the planet eight billion

(01:25):
plus people is heard through ladies and gentlemen. My friend,
administrated Goose, thanks for having me. I'm honored, honored to
have you with me. We last saw each other rolling
on a bus. Were not last, but we were in
Atlanta rolling on a bus. Because uh it's part of
your UH tour, which I'm gonna join you on later

(01:48):
this year as you tour across America, because you're really
you're really like connecting with people. But I'm excited to
say here on my podcast talking about building things that
we have built a part gonna ship between Operation Hope
and the U S Small Business Administration under one Million
Black Business Initiative. It also includes financial literacy for all

(02:10):
but one. MBB seeks to create a million new black
businesses across this country by twenty thirty, part of what
I call the third Reconstruction. UH and UH that strikes
a nerve with you. It strikes a nerve obviously with me,
and it's super charges the hundred and thirty million dollar
commitment from Shopify and others into this initiative and allows

(02:34):
us to reach these businesses where they are all across
the country. We're super excited about it. Tell us a
little bit about why you felt, I know why I'm
passionate about it. Why didn't you feel this was something
that was worthy of your in the agency's time? And
then I want to get into your personal story because
you're in my story. Are actually aligned? Um? And yeah,

(02:56):
So first, first of all, you know, it's it's it's
my honor really to leave the SBA because it is
the federal agency that's committed to delivering on the promise
of the American dream of business ownership to more Americans,
and under President Biden and Vice President Harris, that's about inclusivity,
making sure that we can get all our great ideas

(03:18):
across this Greek nasion to UH six feed and have,
you know, build successful businesses, build wealth for communities. You know,
I know that now more than ever, it's critical that
the s b A, which is the agency that just
delivered one point to trillion dollars in COVID release to
support small businesses. It's yeah, we're the agency that deliver

(03:44):
one point to trillion dollars in relief to America's small
businesses and and you know through the paycheck Protection program
that that covid ID all, the Economic Injury Disaster Loan program,
and then those specialized grants for restaurants and venues and
theaters and hard hit industries. You know, we you know,
we've we've been transformed by that. But you know, as

(04:06):
the agency that's committed to helping safe businesses and make
sure that they can survive and thrive into the future,
you know, we know that this is an inflection point
for American small businesses and uh, you know, partnering with
Operation Hope and ensuring that we have pathways into communities
to ensure that we're reaching all of our small businesses

(04:27):
with the SBA's core products offerings that are on the table,
you know, it's really critical. As you know, we've seen
our economy um really withstand uh enormous impact from the
COVID pandemic, and in President Biden's first year, we saw
historic economic recovery with record job creation, and small businesses
are the ones underpinning that success. We had a small

(04:49):
business boom with five point four million new business applications
in one alone. And you know, we know that small
businesses are the ones creating the jobs to create two
thirds of that new jobs. And since they're out there creating,
we want to make sure that they have the tools
to you know, to sustain that growth, increased that growth.
And especially because what's important is in that boom, it's

(05:11):
women and people of color that are starting businesses at
the highest rates, and they have been for the past
ten years. Black women, black women are one of the
highest or the highest group of people starting businesses. Black
businesses were one of the top business creators during the pandemic.
And where you and I hail from, California, uh, of

(05:36):
all business activity in one of the largest economies on
the planet, are small businesses with a hundred employees are less. Um,
you and I have something in common, lot things in common,
but we're both passionate. I believe we're both authentic, we
both care deeply. We both could be doing something else
with our time. To choose the public sector to try

(05:57):
to make a difference. We both I think, are living
for something are the more important than ourselves. UM and
and I commend you, uh for your selflessness frankly uh
and committing to help others when you could just really
really be focused on helping yourself. UM. Tell us a
little bit about your story. UM. Your dad had a

(06:20):
business I believe in California. Um. And and you grew
up in that business. I grew up in the business
with my father in California. UM. You are more authentic
and that than me. I didn't want to do my
dad's business. I don't know about you, but my dad
had a construction company and I wasn't trying to get
no you know, get calluses on my hands and and

(06:44):
heat stroke. Uh. And so I tried. I moved to
a business that was about pushing paper and not pushing shovels.
But that gave me a great work ethic as a
young man and gave me a role model my father
as the first businessman I'd ever saw. It was my dad,
and we model what we see. What was that like
for you, not only seeing your dad, but as a uh,

(07:06):
a woman seeing your dad? And I also want to
get into your cultural background because people was fascinating. People
just assume you're just Latino Latino, as they say, today.
But there's it's such more, it's so more complex and
beautiful than that your your background, So tell us both
of those stories. Yeah, no, I'm happy to. And you know,
my father was an inspiration to me. He opened his

(07:29):
first veterinary hospital and s Los Angeles when I was
one year old, and uh, you know, I loved of
course it was dogs and cats, not shovels, so it's
more fun, uh conditioning to I loved. I love being
at his business and in fact I worked for him,
um officially when after schools and on weekends, and you know, really,

(07:50):
and I think what what was so striking to me
is that I witnessed, you know, as every person walking
in that door, you know, knew his name and they
knew each other. The impact that he on his neighborhood,
and then the impact that he had on his community
with how he would give back and whenever. You know,
we talked about the small businesses being the backbone of
the economy. It is about the job creation and the
GDP output um, but it is also about just the

(08:14):
importance that they have on main streets in the neighborhoods
uh as the vice president always says that they're the
ones that support the little leagues. And you know, but
it's true, you know, and I think that's what was
striking to me. And I loved being in the space
of small business, uh, you know, and I he definitely
taught me that same work ethic. But you know, beyond that,
you know, small business owners have to be so agile

(08:36):
and open to change and willing to evolve, to to
constantly compete and constantly you know, drive their business forward.
And so I think, you know, that's what I think
that it was the great gift that he gave me.
And you know, with that passion, you know, I've started
my own businesses that I've I've always been in the
sphere of working with founders as well, and you know,
that's what eventually took me down the line of policies.

(08:57):
I happened to be working with Ader who started a
small business bank in Los Angeles as well. Uh and
you know that that who then got selected by person
Obama to lead the swamp as this administration that was
Maria contur Suite and so oh yes, yes, So with
that um I joined her as a senior advisor and

(09:18):
deputy cheaper staff and that's what really got me into
policy and hooked on how can we help open up
the opportunities of entrepreneurship two more, because I saw the
impact it had in the wealth creation capability it has,
and so you know, I wanted to help deliver it.
Two more. Did you ever think you'd be the adminished
when you were, when you were the aide to all

(09:41):
the way from East l A. Did you ever think
you'd actually be the administrator for the U S Small
Busines Administration a member of the cabinet. No, No, it
wasn't something I thought about. And honestly, you know, as
soon as I left and find administration, I went back
to you know, starting another firm, until again, I you know,
I got asked to serve and I think it's just
you know, once you know, I took that bite, I

(10:01):
wanted to take another and worked and govern the use
of leading on small business in this um and you
know that was also of course during the time pandemic
when not hit and so I was then my honor
to be able to come back and serve in the
biteing Hairs administration and use my experience both as a
small business owner but as well working in policy. Knowing

(10:23):
the agency, I was tasked with leading uh to really
move forward and it's an exciting time. How do you
deal with chauvinism? So you know your dad owned this
business uh doctor proper doctor in the veterinarian venarian doctor
business owner East l A, South c l A. You know,
uh man's world supposedly, how did you deal with the

(10:47):
chauvinism that you must have run into? This is not
for a woman, uh either why she here or be
seen but not heard and all that kind of stuff.
And then to make sure your voice was was heard?
Was that something your father in courage as some of
your your mother and father encouraged or where'd you get
that confidence from in spite of the challenges? You know,
I think most definitely from from my parents. I mean,

(11:09):
I think our family give us that boost and that
confidence that we need to to be able to believe
that we can achieve anything. And he always instilled in
us the beliefs that we can achieve anything we wanted
to do. Um. You know he um he worked really
hard to become a veterinarian, to stay in college and
and get to that school. Um, you know, left Texas,

(11:31):
went to to Skegee Institute and then came to California
to pursue his dream of business ownership, and so, um,
you know, he always believed in in you know, the
American dream and the ability to to just move and
and fight onward to achieve something. But you know, I
think my mom was, you know, the definitely the one
who gave me my voice and my advocacy. Side. Um,

(11:51):
she's a she was a teacher, but I remember, you know,
first she was for a few years, she was a
stay at home mom, and I just recall how much
of a big advocate she had to be on our
behalf in schools, um, you know, speaking up to to
make sure that we were getting the best education possible.
And um, you know, at a very young age, I
I started to find my voice, you know, through her

(12:12):
advocacy as well. And you know, I'm thankful to her
always for giving me that confidence and that you know,
strength of knowing that you when you can, you speak
up on others. Behind Ye, That's what I'm talking about.
You know, man gets so much credit, some rightly some
wrongly deserved, but behind every successful man is an exhausted woman.
So I'm glad to hear your mother, uh did not

(12:36):
she earned her exhaustion. She she was a voice to
be working with inside the family and gave you that
courage in confidence. I see that this. You have a
beautiful um native American, I think Indian. Uh jewelry around
your neck if I get that right. Actually, yeah, I
actually got to a farmer's market. I love to support

(12:56):
some of these small makers. But yeah, I'm um. You
did ask me another question about my background. But you know,
I'm really proud that I have a very eclectic background.
My you know, my father, um, you know, discovered later
in life that he uh, you know, he comes from
a line of it's both Mexican and Chinese. You know,
we're in Texans seven Texas, but yeah, Mexican Chinese. I

(13:22):
love that in and then on my you know, mom's side,
she's diversed as well, but you know, comes from from
Mexico and lived in Texas for multi generations as well.
But you know, has a German background. So you know, there's, um,
there's a little mix of everything, and I think that
speaks to the melting puppets in America. But you know,

(13:43):
also the you know, my my passion for being as
inclusive as possible, building the good life is brought to
you by Prudential Financial. For over one and forty five years,
millions of people have counted on Prudential to help solve
for life's most important financial needs. Because that Prudential, they
live their purpose to make life better by solving for

(14:04):
the financial challenges of our changing world. Prudentials Who's Your
Rock campaign is also about helping people reach new heights
and providing a platform for people to reach their financial goals.
The administrators a walking United Nations cultural lesson and a
very powerful voice for the thing that's driving the US economy.

(14:26):
Let's get into the details here, um. But the things
that people don't know, like in this times a disaster,
people don't know that the in God's God bless everybody
dealing with Kentucky right now and the the tragedy there
and we're gonna be there for them, the flooding that
people experience there, but whatever the disaster. People don't realize

(14:48):
that the that they think the money comes from FEMA,
it actually backstops through the US Small Business Administration the
s b A. That's why the SBA was at backstop
also for this this this this this natural disaster which
was COVID this year old pandemic. People don't realize how
many different roles the SBA plays. But really one of

(15:11):
the reasons that Congress goes to you so often is
that you can be relied upon your stable, you're consistent. Um,
you're almost like the people's bank, if you will. Um,
let's talk about yeah, the people, but you can use that. Uh,
let's talk about some of the things people don't know.
Is it true that many of America's biggest businesses administrator
came from small business? And can I call you Isabella? Yes?

(15:36):
Please please? Do you know I'm thank you know, it's
it's fine, my Yeah. It has a really strong history
of supporting entrepreneurs and uh, you know, our core programs
are about funding. Most of a lot of people know
us as as uh SBA leans um. In addition, we
have investment capital, uh you know through our small Business

(15:58):
Investment Companies, and we helped direct the federal spend around
research and development to small businesses, so innovative research grants
through the s b i R program Small Business Innovation Research.
So does that mean in English that the universities colleges
historically Black College University is hispanically Hispanic serving and others
can get grants. Well, we have, we directed we helped

(16:21):
direct those funds to the small businesses. So maybe the
investigator at that HBCU who has this idea, who wants
to actually commercialize that, they can get grants through the
federal government for their science or technology based innovation, further
develop it if alliance with the federal government's research goals
and so um. That's all around the capital side, and

(16:43):
in addition, we try to help our businesses around the
revenue side of the equation as well. When you have
strong balance sheets, that means we want to help you
boost your sales UH to the government. In the federal
government where the largest buyer in the world. We buy
everything from flowers to are you the largest buyer in
the world. That's right, federal Government's the largest buyer in
the world. And you know, we we focus on trying

(17:05):
to ensure that small businesses participate in that supply chain,
federal supply chain um and and it goes beyond just
the revenue growth opportunities and contracting. You know, that's why
we've partnered of course around the digital network. But we
want small businesses to grow their revenues. Right now, oftentimes
that means e commerce and digital um you know, streams

(17:26):
of of of revenue growth and so UM or that
could be trade abroad. And so the SBA is about
trying to provide you with the networks and the technical
assistance to help grow your business. And we've had some
incredible success stories. Apple had an SBA loans at Jenny's
ice Cream started her her first bricks and mortar at
Jenny Splitted ice Cream with a three five thousand dollar

(17:48):
SBA loans she proudly shared. And you know, there's been
great success stories on the innovation research grants. Qualcom received
those grants twenty three and me uh. And so there's
a great history of the SBA helping propel our large
businesses and so we want to see you know, our
our from our micro our solo preneurs, to the micro

(18:09):
business to those growth oriented employer based firms. We support
all those small businesses with products of the SPA. And
there's a venture capital arm or function of the SBA
as well that people may not know about um before
you can get equity money right. Well, we're trying to
even develop that further, but we do. We have three
hundred small business investment companies around the country who provide

(18:34):
sb i c s and they provide debt and equity
UH to growth orientto businesses, but you know, they've been
focused more on debt. We're trying to push more to
venture capital where we know that there's an underserved needs,
an unmet need, and that's the especially early stage patient
capital that so many industries, critical industries that we want

(18:55):
to see the US lead in UH evolved. So I
you know, we're very excited about the pro grams and
the and the focus that the Biden Hairs administration has
on investing in American innovation and building our supplied James
and making more in America because that means we need
to invest in those early stage businesses, invest in those
small businesses that are going to create that global leadership.

(19:17):
There used to be something called s s v i
c s back in the day, which I think we're
called Specialized Small business Investment corporations were minority lad and
I know there was a seven J program where you
may not know this Isabelle, Yeah, but Operation Hope is
a success story itself of the Yes, our first government

(19:38):
grant ever in a seventy thousand dollar grant from the
seven J Program, and it was bipartisan because Mayor Tim Bradley,
a Democrat, went to President George H. W. Bush, Republican
during the Rodney King riots and said, helped this young man.

(19:59):
He trying to start a nonprofit social investment bank. We
don't know what that is, but he's trying to start it.
We believe in him. Can you help out in the government,
said where the it was outgoing administration. The coverage are
sort of bear here, but you believe in him. Tom Bradley,
Mayor Bradley UM. And by the way, he was pre internet.
Somebody people listening to this Washington don't even know what

(20:20):
I'm talking about. But he was mayor of l A
for twenty years. Your dad was coming up in business.
He was mayor. He was the first black man to
run a major city. And he was the first black
man to go to Asia as a leader from municipality.
Really incredible goutten mentword of me. Anyway, Uh, he got
this seventy thousand dollar grant to help us start Operation Hope.

(20:42):
Little known fact. So we are the largest nonprofit financial
inclusion organization in America. UH four billion dollars invested four
million clients, et cetera. Two hundred officers is the result
of the s b A. That's incredible. I did not
know that. But that's the that's the mad trick of
the s b A is that we power private partners

(21:02):
to help us support the ecosystem. Whether that's the financial
partners who get guarantees from the SBA to do loans,
you know, or that the investment capital for our sb
I C s or you know, or if it's funding
for the nonprofit networks that provide free advisory support and
technical assistance to small technical assistance seven day. And you know,

(21:26):
I think that's um. I mean, I think that's what
is always on top of minds of people is that
you know, they were so impressed with the supports that
they got, the assistance that they got. It was just
with a group of black women founders yesterday in Philadelphia,
UM talking about you know, digital skills acquisition and and
you know the importance of those advisors that they received

(21:48):
assistance from that helps them really advanced their social media
campaigns or you know, get on e commerce, and so
you know, it's value invaluable to so many small businesses
and so glad to see that it's part of your foundation.
Oh my god, yes, no, the coincidences gods were remaining
anonymous and now full circle coming back to the Biden administration,

(22:09):
Harris administration, working with you on us Biden Harris Guzman
administration UH and working with you UH now as a
mature operation Hope giving back into and finding that the
next John Hope Bryant's and the next Isabella Guzman in

(22:29):
these communities, we're gonna tour together and bringing them up
from nothing to find the next Steve Jobs working in
a garage somewhere, but not in Silicone Valley. Maybe maybe
it's in an alley now of Silicone Valley. Maybe it's
on the south side of Detroit. Maybe it's in Chicago,
maybe it's in Atlanta, maybe it's in Denver, all these
places Miami where you've got all this untapped talent. Before

(22:53):
we get into the meat of technology and commerce and
and I'm gonna challenge you on on something uh and
get you either confirm or reject my thesis of the
power of business today. But um help for those listening
to this, this is a fascinating conversation. I'm learning. This
is cool, But give me something to build, Like, give

(23:15):
me something tangible. I like PhD When I say on
this podcast is PhD is a good? PhDs are better?
What can people do right now with this information? How
can explain the demystify an s B a loan in banks?
Like if somebody's listening to this, they have a great idea,

(23:37):
they don't, you know, how do they go to the
debt door or the equity door? From this podcast? What
do they do and where do they do it? H Well,
I think it's it starts with the basics, right. We
need to ensure that your capital ready because it's it's
you know, we're about filling gaps in the marketplace and

(23:58):
working with lenders who who want to support small businesses
with them with either you know, loans for working capital,
you know, loans to buy your buy your buildings that
your businesses in or uh, you know, our investment to
continue to grow your operation, your manufacturing facility, or your
or your technology company or your you know, your your

(24:18):
your future hopes for a franchise chain of restaurants, whatever
the case may be. And so we want to make sure, um,
you know that that first and foremost you're able to
connect with our district offices. We have to cate district
offices around the country where there are economic development specialists,
business opportunities specialists, you know, folks who are skilled in

(24:38):
s b AS offerings and the partners that are in
those local communities UM to connect you to. And so
I think you need to to start by UM finding
that advisor that connects to you UH. And you know,
it's just like anything in life. You know, you might
have to UM call a few different people before you
get to the one that fits. But you know, I
encourage people to you know, talk to our either our

(25:00):
network of of centers around the country UM or our
offices to find that advisor and make sure that you
are uh presents yourself strong to our financial partners. And
so that's what we offer for free. They can also
and as a score program senior core retired executives that
can give some advice and council. They can go to

(25:20):
Operation Hope offices and be directed. They can also just
go to a bank, right, they can just go drink
me to a bank to get an SBA guaranteed loans.
That right. So a lot of our we have, you know,
an incredible network of banks that offer our loans as
well as nonprofit mission lenders those c I community development
financials okay, community development corporations, and so we have a

(25:44):
great tool. We'll be developing this further and investing in
the next year to make it easier to navigate. But
we have a tool at SBA dot gov forward slash
lender Match, which is basically you know, matchmaking for you
and lenders around the country. Uh. Oh, that's power. We'll
say that again. You're helping to do lender matching, borrowing match.

(26:04):
If you if you googled SBA lender match, it'll take
you to it, but you can go to SBA dot
gov forward slash lender match. Um, and it's it's matchmaking
for businesses and lenders, and it's our those nonprofit lenders
who are there to try to provide you with that
assistance and capital to grow your business. So um, definitely,

(26:25):
you know, start with our network and connect to capital
and connect to technical assistance to grow your business. So
SBA dot gov is a place if people are driving
they can't write stuff down. Uh, they either go to
Operating Sorry, you can go to operational dot org. But
you can also just go to SBA dot gov and
and search from that, assuming you have a pretty robust website, right,

(26:48):
Yes we do, and you know I was just one
a recent podcast with a successful copy shop owner who
actually you know, referenced SPO. You do a podcast with
somebody other than me, I'm jealous. It's not just what
what is that you talk to somebody other than me?
Is this? I'm definitely one of your partners actually next Door,
but we are excited. I love next Door fantastic. Yes,

(27:12):
I'm on their board exactly. So we did a podcast
and the web site being a resource, you know. So
whatever it is you're looking for, maybe you want to
start exploring markets abroad, you want to start learning about
government contracting. You just want some advisers to help you
understand how to better market your business or higher employees,

(27:32):
you know, whatever the task. Maybe you know we have
resources at the SPA to support you. And by the way,
just seriously, I'm on the board of the organization next Door.
It just so happened she just did a podcast with
next Door, and I believe Sarah Fryar and maybe a
small business success story, complete coincident. I was jealous, like
a jealous lover, like who's she who's she talking to
other than me? I want the administrator just to talk

(27:54):
to me. You know, I thought she wakes up every
day for the last two years, I gotta do this
podcast with John O'Brien just so happen. That's what I get.
She's talking as about it. That's exactly what I get.
Who's connected to me in a very powerful way? Who
I want her to talk to you? I'm just kidding everybody.
I wanted to talk to everybody. I want her to
help get the word out. I want to help her
get the word out. Yeah, and that's what we appreciate

(28:16):
because it's really about um, you know, trying to build
those bridges. You have. Many of our businesses out there
got to know us through COVID relief, and you know,
whether they were successful or had challenges or not. Like
this is the time to ready your business for capital
and the opportunities on the horizon. I mean, we haven't
even talked about some of the investments that are coming

(28:37):
down the pipe, but the bi partisan infrastructure, the infrastructure
that would be building around the country, those are contract
opportunities that the SPA can help you ready for or
connect to through our sotisfication programs at the federal level.
And you know, the Chips Act that's going working its
way to the President for signature is also an exciting

(28:58):
opportunity more the computer chips, trying to manufacture them in
the US. Right. So there's there's you know, there's there's
gonna be opportunity and investments, uh and innovation in the future.
And we want to make sure that our small businesses
are capital ready, contract ready, market ready, ready to pounce
on these opportunities. So let's let's say I'll go deep

(29:21):
um because I want to Then I want to pivot
back to some of the things that you're both passionate
about that are coming down the pike, and and some
some parting words that you can give of inspiration to
young girls looking at you how they can succeed small
business owners who don't relate to success because they believe
it's beyond their reach. But let me step back from it.

(29:41):
I got I got a pretty audacious thing that I
want to put before you. I actually think administrator, I said, Isabella,
but I'm gonna call you administrator because I think you
work your whole career to give up all of your
private or opportunities to come work for the government for
no credit. And I call you Isabella's I'm gonna call

(30:01):
you administrator Goose money. Well, I'll call you the Bella
in private. But uh, I think I think we both
do have a love affairness with America. And I think
we have a love affair with small business. I think
we have a love affair with people's aspiration and their opportunity.
And I and I and I think that America is
a love story. Like she's not a country, she's an idea.

(30:21):
We can make her whatever we want. And here's my idea.
I think we're sitting in a moment in history, but
history does not History does not feel historic when you're
sitting in it. It just feels like another day. I
think that that this is what the civil rights felt
are felt like in the nineteen sixties, this moment that's
really posting with problems and opportunities. Um. I think that

(30:43):
that we've gone from civil rights as a main issue
to silver rights as a main issue. Economics, opportunity, wealth creation,
job creation, that is social justice through an economic lens. Today,
the color is green, not black, or it is in
race or red or blue as in politics. It's green
for ancial. Literacy is I think arguably a civil rights

(31:06):
issue for this generation. Yes, why we've agreed we put
into literacy for all embedded in our agreement for one MBB.
I think that that small business creation is the royalty
of this country. We left Europe and left all the
titles behind, created celebrity in America so we'd have something
to bling about because it was we didn't have royalty

(31:27):
American small businesses, where all legitimate wealth comes from, is
where most jobs come from. People don't know these know
the things you're not talking about here, But I've I'm
challenging Black America as an example, and my black and
my brown friends in Latino America and Asian America, and
and and my poor white brothers and sisters in rural America,

(31:49):
because I think this relates to everybody. I'm saying, we
need generation entrepreneur. We need to create a generation of
small business owners and entrepreneurs up from nothing the name
of my last book, and I think this is how
we rise. This is how we America also retains this
place in the world for the next twenty or thirty
years as a as a global leader because we're an

(32:11):
economic leader. How I mean, what do you think of
I mean, and going back to the Freeman's Bank, lasting
I'll say, uh, administrator, is this harks back to me
the Freedom's Bank of eighteen after the Civil War, Abraham
Lincoln created a bank and to teach free slaves about money,
and unfortunately he was murdered assassinated the next month. Of
the bank, the history of it fell apart. Of course,

(32:33):
as you now know, it's located across from the White House,
we have to rename it. Um. And I think that
that what you're doing in the s b A is
you're again you're a bit of America's bank, a bit
of America's gateway to aspiration and opportunity. And I think
he will underestimate the power of what what I just said.
But let me listen to you. What do you think

(32:55):
of what I just said? Is hyper bowl, over the top, misdirected? Um?
I mean, you set me straight, and when you do it,
give us also some as you're setting me straight, some
statistics about the power of small business in this country.
M Well, I I am just as passionate about small
businesses you, so I do believe wholeheartedly that it's such

(33:16):
a powerful way to build wealth in community, generational, multigenerational wealth. Uh.
And you know, small businesses, as I said, create treats
of net new jobs. They produced you know, forty percent
of our output. Uh and uh you know it's ninety
nine percent of all businesses are small businesses. Uh. And
they employ half the private workforce. Uh. You know, but

(33:38):
they also are the ones that deliver all the products
and services that we come to depend on. You know,
they're the creators, they're the innovators, They create new industries.
They make sure that we are globally competitive uh in
uh in innovation and uh yeah, So they do have
such an outsized role in ensuring our economy can continue

(33:59):
to grow and thrive into the future. Uh. And whatever
industry it may be, small businesses have an important role
to play, which is why it's so critical. You know
that President Biden has committed to increasing competition, leveling the
playing field. Uh. You know, he knows that, uh. You know,
this is an important pathway, uh you know, towards building

(34:19):
equity and making sure that the economy works for everyone.
And I think that's that's what I'm all in for
and why I wanted to join this most diverse cabinet
in history because you know, we all believe wholeheartedly in
making sure that we can you know, lift up all communities.
That helps us all. I think I often refer to

(34:40):
as a Morgan Stanily study that showed that there was
a four point for a trillion dollar opportunity gap because
women and people of color faced these historic barriers in
capital or networks or you know, market opportunities that limit
their ability to create the jobs and create the revenue
output of their white peers. And so you know, when

(35:00):
black women and Latino women are constantly leading the charge
in terms of business new business creation, you know, we
need to solve for those barriers. And you know, I
think that now is the time we need. We have
the right leadership and President Biden, the Vice President, herity
and me. Thank you so much. I appreciate that, um
to you know, making sure that we solved for some

(35:22):
of those historic barriers and really you know, fix our
capital markets to incentivize uh and strength and investment in
these entrepreneurs who are our future. Um you know, and
and that grosses around the country. Uh. You know, I
think that it's not just a phenomenon in the Southwest
with Latino entrepreneurs and and and and you know, black

(35:43):
owned businesses and Latino and businesses or are growing in
all states nearly and so we want to we want
to solve for that because it's such a terrible inefficiency
in our economy. Uh. And if we don't celebrate and
embrace and also only leverage our diversity, you know, then
our economy is not going to be globally competitive. And

(36:05):
so that's you know, I am completely all in on
the impact that we can have by empowering small businesses.
And you know, I think that you know, we we
launched our Council and Underserved Communities, uh, you know recently,
that's right. We wanted to make sure that we're held
accountable at the s b A to all communities that
are underserved, and that we can transform our programs uh

(36:28):
to meet the needs and meet businesses where they are
um as um as as we need to. So uh,
you know, I I know that uh these are all
you know, lost the ideas, but there's actually actions that
we can take to transform our programs. And we started
to with Vice President Harris, we announced the overhaul of
an important pilot program called Community Advantage where we get

(36:50):
small dollar loans through mission based lenders into communities and
with the growth of that program and they can borrow
up to me infty dollars through what's the lowest amount though, uh,
you know, we're we're trying to drive to that ten
thousand and underland so you go, our landers can go low.
We also have micro lenders, um that we incentivize, but

(37:14):
you know, we want to we want those small dollar loans.
We know that especially in understood communities. You know, women,
people of color, people of color and particular have have
had to rely on their credit cards, have had to
rely on family and friends without started credit cards. Okay,
that's right, and so we want to, you know, make
sure that we can position these businesses to be capital

(37:36):
ready and access those lanes through the SPS. It strikes me,
Administrator that this is uh, we're having a one hundred
year moment, like in the early nineteen hundreds. I'm thinking
about the Jewish brothers and sisters who came in America
running from the horrors of Hitler's Europe. Uh, in the

(37:57):
early part of the twentieth century. This is mid twenties
sury now actually, but even before that, in the early
nineteen hundreds, just trying to find opportunity here. They couldn't
find jobs. They couldn't find jobs in corporate America or wherever,
because people tend to hire people that they know, relate
to whatever may not have been active discrimination, but anyway,
they started their own businesses, like one of them was

(38:20):
called Goldman Sachs guy named Goldman and a guy named
Sacks selling financial services. Do at a door with a
briefcase that nobody wanted to buy and uh, and it
just strikes me that we're at this inflection moment again
where you have these entrepreneurs coming up from nothing, uh,
starting business at a rapid rate that one day will

(38:41):
become big businesses employing hundreds, if not tens of thousands
of people. UM. And they need support, active support right now,
which is what we're doing together with the One Man
Black Business Initiative. What you're doing with technology, because you
cannot be a growth industry or growth anything without technology
at the center of it. On talk a bit about
uh that as well, UH and connecting a lot of

(39:04):
these dots. Let's go back for just one moment, roll
back to the pandemic. What frustrated you there's a lot
of criticism for the SPA and the federal government around
the pandemic handling. Let me just say this, people listening
to this, you try to stand up America's six largest
bank in America in in thirty days, and see how

(39:26):
fast your website crash? See how see how quickly your
business plan falls apart when you had not one. No
one planned the pandemic. There was no pandemic UH manual
on the wall you pulled out the federal government did
I think an extraordinary job, uh, saving the largest economy
on the planet. But there was, my god, tons of
criticism of everybody in I had a small hand in

(39:49):
designing part of the p p P program, which I
thought was brilliant. Um. Your frustrations you are, I mean,
you had you had money administrator, the businesses didn't have
to pay back under the right conditions you if you
apply for a loan, and even if you were declined
for the loan, you still got a ten grant if
you were financially literate enough to know how to what

(40:10):
to ask for? What? What? What surprised you? What did
you like? What did you not like? What frustrated you about?
The one point to three in dollars of COVID relief
that you guys managed well. And then I was witnessing
it on the sidelines as well in when you know,
some of these programs were first stood up, but we
saw inequities. Uh. You showed that, you know, black and

(40:33):
brown and Asian businesses were unable to access the PPP
as an example at the same rate. And UH, and
it gave me great honor to be able to come
in and President Biden, UH, you know, his American Rescue
Plan allowed us to continue that relief. We were able
to get were your first quarter once your first quarter
twenty one twenty one, you know, we were able to

(40:56):
get a total of five billion and that president the
president's earst year in office of that calendar year. UM,
we were able to get five in a billion SPS
core programs and our relief programs out to businesses. UM
over indexing, trying to focus on the smallest of the
small and the underserved communities rural and and UH and
low income communities that were left out of early rounds

(41:18):
of relief. We allowed the sole proprietors to come into
PPP and get access to the programs. With some important
rule changes and those criminal backgrounds and uh, you know,
those who had that, those who have student learns debt.
And so we made some policy changes to try to
open up access to the programs and designed additional programs
like the Restaurant Rization Funds to focus on equity. Uh.

(41:42):
You know, we we know that, you know, we we
draw all these great uh you know, people from all
these lands we have to provide and services in language. Uh,
and that's being done uh to ensure in one we
could reach more businesses and we could ensure that they
got some sort of release through the to be a program.
So I don't know if you guys, I don't know
if you guys heard that she slipped at It was

(42:03):
very smooth. She slipped in its like, hey, dude, I
was I was confirmed Mark seventeen one. That early drama
wasn't mind. I I was a rainbow after the store.
I was a solution I got it into. But it
was incredible. I mean, and the SBA is filled with
a lot of mission focused civil servants who have worked

(42:24):
around the clock for the last two and a half years,
really committed to helping more small businesses. So I'm so
proud of my team at the s b A and
all the work that they've done during the entire pandemic.
And you know, and especially as you know, they too
are are committed to making sure that we're serving the
future of entrepreneurship and UH and doing it an eclusive way.

(42:45):
That's what the SBA was created for, to fill those
gaps in the marketplace, UH and try to overcome barriers
and make sure that the undeserved entrepreneurs could also excel
and create wealth and create output and innovation in our country.
So what Okay, So we're gonna pivot now. We're about
to wrap towards the rap of this beautiful interview. And

(43:05):
I could talk to you all day, but if if you, if, if,
you're sort of just free to just to relate to
the audience because you come from a small business background.
You come from you know, two plus two weequals four.
You look used to things making sense. Uh, I mean,
I think, by the way, making sense. It's one of
the statistics you need to add. City Group reports show
that discrimination against blacks alone, in the last twenty years

(43:27):
alone accounted for sixteen trillion dollars of lost GDP trillion,
with the g O the team. Sorry, And if we
just knock off the discrimination the bias, that the economy
pick up another trillion dollars a year um immediately. So
that for anybody listening to this who thinks, who's thinking
that that social justice and economics don't go together, that

(43:49):
just blows that right up. That wasn't a report from
the a c P. Who I love or Lauras or whatever.
This was the city group that showed the economic impact
of racism and bias. And when you just we need
to knock it off. And I love having uh, somebody
like the administrator who is reflective with so much of
the broad based cultures that are left out in this

(44:11):
seat um of power and position. But what leg you know,
what can you share with us that that coming from
when you come from and you like problems at the beginning,
middle of the end, what can they atis relate to
some of your frustrations in this seat? You've got all
this power, which sometimes you feel powerless, you know, between
one March when you got here and now, what are

(44:32):
some things that just about federal government are about or whatever?
Running the agency is just well, I think that the
biggest challenges is that you know, I don't have a
CMO Chief marketing officer. I think, like every small business
in America, you have to wear multiple house. But we don't.
We don't have a huge marketing budget to constantly reach
our small businesses and they're you know, now we're thirty

(44:54):
three million small businesses in this country and there's constant
births and deaths and uh, you know, it's a it's
an enormous job to try to reach all uh and
make sure that everyone is able to access SBA resources
and so um. You know, truly that's a huge challenge
and why we're trying uh to solve for that by
partnering with the organizations like Operational Incredible Networks, because we

(45:18):
want to make sure that we're reaching as many businesses
as possible. In small businesses have done an incredible job
during the pandemic of sharing information with each other, you know,
making sure that their neighbors on main Street, UH, their
fellow manufacturers, whatever you have, you know, whatever industry you're in,
that you're you're sharing where there are resources and so
I think now more than ever, sp A brand recognition

(45:40):
is high. There was a recent recent study, UH that
showed that you know, three out of four small businesses
trusted the s B as well, so that you know
we've been able to really grow um um. You know
are our authentic relationships and community. But that's what we
need help with us. What's frustrating is that I need
to make sure that I'm partnering more, averaging every relationship,

(46:01):
every advocate and champion out there to get the word
out that the SBA and bite Hash administration really committed
uh to trying to build ups in communities through entrepreneurship. Okay,
I won't feel bad about you doing another podcasts, then
we gotta know if you're listening to this, help the
administrator get the word out. Go to SBA dot gov.

(46:21):
Send that link to your friends. Girl ladies, start a
girl's club about business and entrepreneurship. Use all these resources.
If you're if you're a minority dreamer or a mainstream dreamer,
you're in a rural dreamer, an urban dreamer, UH, you're
in school somewhere, start a club in school on business
and entrepreneurship or financial literacy and UH and financial literacy

(46:44):
and link and leverage all of these resources. You've heard.
The administrator is articulated into a network of your friends.
We need to think global and act local. UH, and
send her a note and let her note when you
have achieved a benchmark like, Hey, I've reached a hundred people,
I've gotten twenty five people to start a business. I've
had a fifty of my friends. Uh, you know, start

(47:07):
start a program based on something on your website, or
use one of your local offices. Tell her which local office,
Tell her who, Tell her somebody if somebody in her
local office helped you or hindered you. Let her know
that because she can't solve a problem she doesn't know about. UH,
communicate with her. Uh. You can reach her through the
SBA's website. UH, their office in Washington, d C. Social media.

(47:30):
She pays attention. She actually responds to her social media. UH. Administrator.
As we wrap up here, what's the big idea? What?
What's something you can leave the audience with to give
them some hope in these challenging times? A rainbow after
a storm. What's a building idea? Uh that you can
leave this audience with. That you're the nation's voice for

(47:51):
small business in the largest economy on the planet. That's
a that's a big deal. So, as the CEO of
small business. It's for the large economy on the planet.
What do you have to say to this audience of
believers and dreamers and future builders. There's great hope for
our nation's future with entrepreneurship on the rise and with

(48:13):
more people taking that risk and jumping into pursue their
great idea or pursue their innovation. And I think that
where we know, uh, you know, businesses are successful is
when they have the capital to back them, when they
have the network of advisors and and insights uh shared
on a constant basis so that they can evolve as
a business and grow, uh you know, and then they

(48:35):
have access to markets and so you know know that
those are your critical success elements that you need a
team to achieve it. You can't do it alone. And
there are incredible resources like those through Operation Hope, you know,
and there and there you know, one million Black business
campaign to to get everybody online, or you know SBA's
core resources and all of our partners and so, uh

(48:57):
you know, the best way to have success entrepreneurship and
help advance America's economy is by armoring yourself with the team.
And that's what s B A and BYTE in Harris
administration is committed to doing especially as you navigate the
challenges of the COVID pandemic. We want you to be resilient,
So come to us and strengthen your business with our services.

(49:19):
And uh. In our last call, you talked a little
bit about technology and a couple initiatives that you were
excited about. There. Are you prepared to talk just a
little bit about that now before we wrap up? Yeah.
You know, during the pandemic, or of businesses had to
rethink the digital tools that they use, you know, three

(49:39):
out of four, so that they wouldn't have been able
to survive. What if it were not for those digital tools.
I mean obviously, you know everybody went online. More likely
businesses want to talk to our consumers want to talk
to you, uh, you know, online and they don't want
to talk to you on the phone. You know, that's
how they want to communicate with you. And so if
you're if you're a business operating today, you need to

(50:01):
engage uh with your consumers online through social media or
through platforms on e commerce as well. So uh, yeah,
I think that that is pre unlocked. Great opportunity is
as soon as the business this website is online. They're
now a many multinational with access to consumers world and

(50:22):
that's right. We need to power that more and ensure
that you have the resources, uh, you know, to succeed.
And so you know, I couldn't I couldn't endorse more heavily.
The program's operation, how has to ensure that you can
get your business online, get digital? Uh and uh you
set up your e commerce site. That's your second location

(50:42):
or maybe your locatitions. You're working out of your home,
but that's where in true way to the global marketplace.
That's right. If you're listening to this and you have
a restaurant, why don't you have an e restaurant. If
you're listening to this and you've got a barber shop
or beauty salon or Neil salon, why don't you have
an E version of that? Right parallel to whatever business
you have, you can have an E version to it.

(51:03):
A website based UH, payment based, scheduling based, twenty four
hour a day. Presidents, while you're sleeping people taking orders
and booking appointments online. You build wealth in your sleep.
You make money during the day. That's what the administrator
basically just talked about. That's one Mellian black business powered
by Shopify and other partners. The laddering system giving you

(51:23):
free UH coaching and counseling from attorneys and lawyers and bankers,
no cost to you, giving you a website, as she said,
a payment system, a scheduling system, no cost to you.
About twenty five dollar package per business of in kind resources,
licenses at no cost to you. That's separate from what
the s b A resources are, which are immense. Imagine

(51:44):
this as your public sector venture capital source. It really
is that robust. Go to SBA dot gov or one
MBB dot org or Operations dot org. Today this has
been building the good lie with the Administrator of the
U S Small Business Administration Guzman and her vision. This

(52:09):
is the master class with John O'Brien. But I just
spoke to the amazing Isabella Guzman, the administrator of the
U S Small Business Administration, and she had some magical
things to say. Did you know that the US government
is the largest funder in the world. You can become
a mini multinational just by creating and she said e

(52:31):
commerce right where you sit. Your little business can become
a big one just by creating a e commerce sister
of your company. Cast you nothing. Just go to one
m BB and sign up to one million Black Business
the ship. Go to the SPA and sign up to
the multitude of programs they have. They go to a
local office and connect with someone there who will connect

(52:51):
you with a bank or with a venture capital search source.
Did you know that the SBA was also a venture
capitalist That's right. S B I C also through their
CDM fine network, their bank networks, some banks provide equity
and debt. Did you know they had at one point
to trillion dollar impact during COVID, where literally the federal
government would allow you to walk away from obligation. Is

(53:13):
long issue, employed people and capt your promises. You gotta
do it honestly. Now this is this is a chance
for you to recreate your life, reimagine everything from the
bottom up. And we're going on tour. That's right, the
concert tour with Isabella and John, with Guzman and Bryant
with SPA and Hope. We're going to take this show
on the road because PhDs are good and PhD the

(53:35):
This is the master class. John O'Brien comptroller before this
and now sp administrator after this. The bookends of really
Development banking and business. We've you've heard from the controller
of the currency. Now you've heard from the s B
a administrator, part of the President's cabinet and the voice
the cabinet, voice for small business, for the large economy
on the planet. And she's a role model for women.

(53:58):
To check her out following on social media. Believe in
or I do. Building the Good Life with John Hope
Bryant is brought to you by Prudentials Financial h