Fueling small business innovation: The Climate Capital Guidebook's role in green financing

By Shaundell Newsome 

Over the past three years, our country has witnessed an unprecedented small business boom with over 17 million small business applications filed, reflecting a deep optimism among American entrepreneurs about our economic future. Access to capital is crucial for these entrepreneurs to turn their innovative ideas into reality and to sustain their operations long-term. It’s encouraging that resources are now available to help small businesses access capital and address one of the most pressing issues of our time: the climate crisis.

The Biden-Harris Administration recently announced an expansion of access to capital for small- and medium-sized climate businesses. With the largest public investment in climate action in history included in the Inflation Reduction Act and Bipartisan Infrastructure Act, new doors are opening for small businesses to thrive while contributing to a sustainable future. These investments, including grants, loans, and tax incentives, are a lifeline for businesses looking to innovate and lead in the clean energy sector. 

In addition to the investments, the administration is also releasing new resources to expand access to climate capital since smaller enterprises often face greater challenges navigating federal programs than larger institutionally backed companies. The new Climate Capital Guidebook provides a comprehensive map of capital programs in the federal government that are available to climate-related start-ups, small- and medium-sized businesses, and their investors. 

The path to success for entrepreneurs is often paired with challenges and systemic barriers. I had very limited access to capital at the beginning of my entrepreneurial journey even though I did everything by the book. Historically, access to capital, especially for entrepreneurs of color, has been a significant barrier. Now we are seeing an inclusive push to ensure all communities benefit from these resources. 

As we look to the future, the commitment to catalyze investment for climate and clean energy companies will continue to be a driving force in our economic landscape.