Black business ownership is growing at the fastest pace in 30 years. Photo via Getty Images

In recent years, our small business community has weathered a global pandemic, persistent supply chain issues, sometimes volatile prices, and a tight labor market—and Black-owned businesses in our state have faced disproportionate impacts from these pandemic challenges.

Despite those headwinds, Black-owned businesses across Texas are fueling one of the largest and most diverse waves of new business creation America has ever seen—what President Biden calls America’s Small Business Boom.

As we mark America’s 48th national celebration of Black History Month, the SBA is highlighting Black-owned businesses’ achievements here in Texas and throughout the nation. The past three years have been the three strongest years of new business formation in American history.

The 16 million new business applications filed during this period show Americans starting businesses at nearly twice the rate—86 percent faster—compared to the pre-2021 average. During that time, U.S. small businesses have created more than 7.2 million net new jobs. And Black-owned businesses are responsible for some of the most significant gains.

The Invest in America agenda is powering the Biden Small Business Boom, and unlike many economic recoveries of the past, this one includes entrepreneurs of color. One of the reasons for that is the SBA’s Community Navigator Pilot Program (CNPP). This innovative hub-and-spoke partnership connected hundreds of community organizations around the country - like the U.S. Black Chambers of Commerce and the National Urban League - with entrepreneurs, helping them make the most of SBA resources. “The SBA CNPP allowed the

Houston Area Urban League Entrepreneurship Center to leverage existing partnerships with organizations that offered services to socially and economically disadvantaged business owners and women-owned businesses,” states Eric Goodie, Executive Vice President of the Houston Area Urban League. “Through the CNPP we provided comprehensive business planning and support, e-commerce technical assistance, financial and credit education, opportunities for business networking, access to capital and procurement opportunities,while providing assistance with obtaining various business certifications. We also found theSBA Lender match portal to be a critical resource in the capital acquisition process."

Under Administrator Isabel Guzman, the SBA has also delivered record-breaking government contracting for small businesses—including the most federal contracting dollars going to Black-owned businesses in history. And we’re addressing longstanding gaps in access to capital for Black entrepreneurs, more than doubling our small business loans toBlack-owned businesses since 2020.

These investments are making a big impact. Black business ownership is growing at the fastest pace in 30 years. The share of Black households owning a business doubled between 2019 and 2022. In 2023 alone, Census data showed Americans filed 5.5 million new business applications across the country, including over 500,000 here in Texas. That success is creating a rising tide. Black wealth is up a record 60 percent from before the pandemic, and Black unemployment has reached historic lows since 2021.

The SBA also understands that the work must continue. Black entrepreneurs and other historically underserved communities still face obstacles accessing capital. That's why President Biden and the SBA are committed to ensuring that anyone with a good idea can pursue that opportunity, and the Small Business Boom speaks to that success. We're helping more Americans than ever access the funds they need to realize their dreams of small business ownership – and that means more jobs, more goods and services, and more resilient communities, no matter the zip code.

To learn more about SBA resources, entrepreneurs are invited to join the SBA Houston District Office as it teams up with the Emancipation Economic Development Council and dynamic community organizations to celebrate Black History Month. The organizations will host the Resources to Empower Entrepreneurs event at the Emancipation Cultural Center on Wednesday, February 28, and will feature discussions surrounding resources, funding, and training available for small business owners.

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Mark Winchester is the SBA Houston District Office's acting district director.

The Houston SBA has joined forces with various organizations across a 32-county footprint to align with SBA’s goal of supporting small businesses. Photo via Unsplash

Houston small biz organization expands strategic partnerships

more support

In alliance with their mission of supporting Houston small businesses the Small Business Administration Houston District Office has expanded its partnerships.

The Houston SBA has joined forces with various organizations across a 32-county footprint.

“Small businesses represent an important and valuable resource in our community and our robust SBE program shows just how much small businesses can contribute when given the chance, and what it can mean in terms of overall economic benefits to the economy," Sabeeta Bidasie-Singh, director of business equity for Port Houston, says in a news release. “Collaborating with partners like the SBA is a key part of our success in supporting the small business ecosystem.”

Organizations signed a Strategic Alliance Memoranda to collaborate to further the interests of small businesses. In 2023, strategic partnerships included Greater Houston Partnership, Indo-American Chamber of Commerce, Houston Hispanic Chamber of Commerce, Fort Bend County Economic Opportunity & Development, Port Houston, Harris County Department of Economic Equity and Opportunity, Harris County Department of Education, Ion, Impact HUB, and Vision Galveston.

“Every small business deserves the chance to prosper,” Tim Jeffcoat, district director for Houston SBA, says in a news release. “SBA Houston strategically chose to partner with these important organizations so that small businesses of all kinds, everywhere in the 32-county Houston district, will benefit.”

SBA works with small business owners to assist with resources and support business growth and development. SBA also assists with businesses that need recovery from a declared disaster. SBA field offices and partnerships with public and private organizations like Ion help the city’s entrepreneurs.

“As a premiere destination for entrepreneurs to make their ideas a reality, we’re delighted to collaborate with the Small Business Administration to help Houstonians start, maintain and grow businesses,” Deanea LeFlore, senior director of Strategic Alliances at Ion, says in a news release. “We're excited to expand our relationships with the SBA to empower Houston’s small business community to scale their businesses, contributing to greater economic growth in the city.”

This innovative Houston company has the national spotlight this week. Courtesy of re:3D

Houston 3D printing company selected inaugural competition

winner, winner

A Houston company has been announced among the winners of an inaugural seed fund expo competition.

Twelve startups were announced across four categories in the U.S. Small Business Administration's inaugural America’s Seed Fund Startup Expo 2022, which is taking place virtually Wednesday, May 25, from 11:30 am to 3:30 pm. Each of the 12 companies have developed innovative technologies with the help of SBIR grants.

“Every day, in communities across America, entrepreneurs are solving our nation’s most pressing challenges from climate change to feeding and healing the world. The SBA is committed to helping ensure that those ideas receive the necessary support from federal programs and innovation ecosystems so that they can commercialize and grow into resilient businesses,” says Administrator Isabella Casillas Guzman in a news release.

“With the launch of America's Seed Fund Expo, we will showcase exceptional entrepreneurs who have leveraged federal research and development funding through the SBIR Program in key industries and connect them to resources to advance their game-changing innovations right here in America,” she continues.

Houston-based Re:3D is among the companies selected to present at the expo. The complete list of participating companies is as follows:

  • AgTech and Food Security
    • General Probiotics (Saint Paul, MN)
    • Nucleic Sensing Systems (Saint Paul, MN)
    • Shellfish Solutions d/b/a Blue Trace (Castine, ME)
  • Climate and Energy
    • Amorphic Tech (Allentown, PA)
    • FGC Plasma Solutions (Middleton, MA)
    • Hydroplane (Lancaster, CA)
  • National Security and Defense
    • BadVR (Pacoima, CA)
    • Enduralock (Lenexa, KS)
    • PSYONIC (Champaign, IL)
  • Supply Chain Resiliency
    • Chromatic 3D Materials (Golden Valley, MN)
    • Delta Development Team (Tucson, AZ)
    • Re:3D (Houston, TX)

“The giants of future industries so often start as small business startups with big ideas," says Bailey DeVries, associate administrator of the office of investment and innovation, in the news release. "We know the public and private sectors must work together to nurture these small businesses with big ideas over many years so they may sustain and grow. America’s Seed Fund Startup Expo will lift up big ideas and provide a platform for our national innovation community to support the businesses of tomorrow."

The event is free to attend virtually, and anyone can register online at https://bit.ly/SeedFundExpoRSVP. The America’s Seed Fund is among the Small Business Innovation Research and Small Business Technology Transfer programs and is collaborates with 11 federal agencies, that collectively support more than $4 billion a year in federal research and development funding.

The U.S. Small Business Administration has been facilitating more loans than ever before. Image via Getty Images

By the numbers: Houston sees rise in small business loans received

annual report

The U.S. Small Business Administration’s Houston district saw a nearly 25 percent increase this year in the dollar amount of the most popular type of SBA loan compared with the pre-pandemic year of 2019.

A new report from the SBA shows small businesses in the 32-county district received $1.3 billion in 7(a) loans in fiscal 2021 compared with almost $1.05 billion in pre-pandemic 2019. Borrowers in the SBA-backed 7(a) program can obtain loans of up to $2 million. The length of each loan is 25 years for real estate deals and seven years for working capital.

“The SBA continues to make headway in helping small businesses access much-needed capital, but much more work remains to be done,” Patrick Kelley, associate administrator for the SBA’s Office of Capital Access, says in a news release.

In terms of the number of 7(a) loans extended in the Houston district, the top lenders for fiscal 2021 were:

  • Wallis-based Wallis Bank
  • San Francisco-based Wells Fargo
  • Columbus, Ohio-based United Midwest Savings Bank
  • Birmingham, Alabama-based BBVA USA (now part of Pittsburgh-based PNC Bank)
  • Wilmington, North Carolina-based Live Oak Bank, the country’s most active 7(a) lender.

The top 7(a) lenders by total dollar amount of loans were:

  • Wallis Bank
  • Live Oak Bank
  • Humble-based Plains State Bank
  • San Antonio-based Frost Bank
  • Kingswood-based The Mint National Bank

The SBA’s Houston district is home to more than 600,000 small businesses in a 32-county region that includes the nine counties in the Houston metro area: Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller.

Nationwide, the SBA backed $36.5 billion in 7(a) loans in fiscal 2021. Nearly $11 billion went to minority-owned businesses, $5 billion to woman-owned businesses, and $1.2 billion to veteran-owned businesses.

SBA lending could experience an uptick in fiscal 2021 due to inflation. An October 2021 survey conducted for the U.S. Chamber of Commerce and MetLife found 45 percent of small businesses had taken out loans to cope with rising inflation; among retailers, that figure was 58 percent. In the survey, 74 percent of small business owners expressed concern about inflation.

“Small business owners’ optimism is plowing through economic uncertainty, but they now face new obstacles with rising inflation, labor shortages, and supply chain challenges,” Tom Sullivan, vice president for small business policy at the U.S. Chamber of Commerce, says in a news release.

Following Winter Storm Uri, the United States Small Business Association has launched recovery resources for Texas small businesses. Photo via Getty Images

SBA launches Virtual Business Recovery Center to assist Texas loan applicants after winter storm

funds for small biz

Texas small businesses impacted by Winter Storm Uri are now eligible for up to $2 million in low-interest loans from the U.S. Small Business Administration as a result of President Joe Biden's major disaster declaration last week.

"Getting our businesses and communities up and running after a disaster is our highest priority at SBA," says SBA's acting Administrator Tami Perriello.

According to a release from the SBA, businesses in 77 counties are covered under the declaration for damages incurred during the storm, starting February 11. Loans can be used to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. The funds can also be used to make improvements that will protect, prevent, or minimize damage from any future freezes.

Interest rates for businesses start at 3 percent. Loans to private nonprofit organizations will start at 2 percent and homeowners and renters will incur interest at 1.25. All loans are set with 30 years terms.

Loan amounts and terms are determined by the SBA based on each applicant's financial condition.

The SBA will also launch a Virtual Business Recovery Center on February 23 — similar to the Women Business Centers it launched across the country in 2020, but all virtual due to COVID-related health concerns.

Applicants can call or email the virtual center to receive personalized assistance in their online loan applications at 800-659-2955 or FOCWAssistance@sba.gov, from 8 a.m. to 8 p.m.

Assistance will also be provided to help homeowners and renters through a similar Virtual Disaster Loan Outreach Center, which applicants can reach through the same number and email address.

Homeowners are eligible for up to $200,000 to repair or replace damaged or destroyed real estate.Renters and homeowners are also eligible for up to $40,000 for destroyed personal property.

To get started, applicants must contact FEMA at disasterassistance.gov. To download an application visit disasterloanassistance.sba.gov. Individuals who are deaf or hard‑of‑hearing can call 800-877-8339.

Re:3D is one of two Houston companies to be recognized by the SBA's technology awards. Photo courtesy of re:3D

2 Houston startups win national technology award from SBA

winner, winner

A couple of Houston startups have something to celebrate. The United States Small Business Administration announced the winners of its Tibbetts Award, which honors small businesses that are at the forefront of technology, and two Houston startups have made the list.

Re:3D, a sustainable 3D printer company, and Raptamer Discovery Group, a biotech company that's focused on therapeutic solutions, were Houston's two representatives in the Tibbetts Award, named after Roland Tibbetts, the founder of the SBIR Program.

"I am incredibly proud that Houston's technology ecosystem cultivates innovative businesses such as re:3D and Raptamer. It is with great honor and privilege that we recognize their accomplishments, and continue to support their efforts," says Tim Jeffcoat, district director of the SBA Houston District Office, in a press release.

Re:3D, which was founded in 2013 by NASA contractors Samantha Snabes and Matthew Fiedler to tackle to challenge of larger scale 3D printing, is no stranger to awards. The company's printer, the GigaBot 3D, recently was recognized as the Company of the Year for 2020 by the Consumer Technology Association. Re:3D also recently completed The Ion Smart and Resilient Cities Accelerator this year, which has really set the 20-person team with offices in Clear Lake and Puerto Rico up for new opportunities in sustainability.

"We're keen to start to explore strategic pilots and partnerships with groups thinking about close-loop economies and sustainable manufacturing," Snabes recently told InnovationMap on the Houston Innovators Podcast.

Raptamer's unique technology is making moves in the biotech industry. The company has created a process that makes high-quality DNA Molecules, called Raptamers™, that can target small molecules, proteins, and whole cells to be used as therapeutic, diagnostic, or research agents. Raptamer is in the portfolio of Houston-based Fannin Innovation Studio, which also won a Tibbetts Award that Fannin Innovation Studio in 2016.

"We are excited by the research and clinical utility of the Raptamer technology, and its broad application across therapeutics and diagnostics including biomarker discovery in several diseases, for which we currently have an SBIR grant," says Dr. Atul Varadhachary, managing partner at Fannin Innovation Studio.

This year, 38 companies were honored online with Tibbetts Awards. Since its inception in 1982, the awards have recognized over 170,000 honorees, according to the release, with over $50 billion in funding to small businesses through the 11 participating federal agencies.

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New Houston venture studio emerges to target early-stage hardtech, energy transition startups

funding the future

The way Doug Lee looks at it, there are two areas within the energy transition attracting capital. With his new venture studio, he hopes to target an often overlooked area that's critical for driving forward net-zero goals.

Lee describes investment activity taking place in the digital and software world — early stage technology that's looking to make the industry smarter. But, on the other end of the spectrum, investment activity can be found on massive infrastructure projects.

While both areas need funding, Lee has started his new venture studio, Flathead Forge, to target early-stage hardtech technologies.

“We are really getting at the early stage companies that are trying to develop technologies at the intersection of legacy industries that we believe can become more sustainable and the energy transition — where we are going. It’s not an ‘if’ or ‘or’ — we believe these things intersect,” he tells EnergyCapital.

Specifically, Lee's expertise is within the water and industrial gas space. For around 15 years, he's made investments in this area, which he describes as crucial to the energy transition.

“Almost every energy transition technology that you can point to has some critical dependency on water or gas,” he says. “We believe that if we don’t solve for those things, the other projects won’t survive.”

Lee, and his brother, Dave, are evolving their family office to adopt a venture studio model. They also sold off Azoto Energy, a Canadian oilfield nitrogen cryogenic services business, in December.

“We ourselves are going through a transition like our energy is going through a transition,” he says. “We are transitioning into a single family office into a venture studio. By doing so, we want to focus all of our access and resources into this focus.”

At this point, Flathead Forge has seven portfolio companies and around 15 corporations they are working with to identify their needs and potential opportunities. Lee says he's gearing up to secure a $100 million fund.

Flathead also has 40 advisers and mentors, which Lee calls sherpas — a nod to the Flathead Valley region in Montana, which inspired the firm's name.

“We’re going to help you carry up, we’re going to tie ourselves to the same rope as you, and if you fall off the mountain, we’re falling off with you,” Lee says of his hands-on approach, which he says sets Flathead apart from other studios.

Another thing that's differentiating Flathead Forge from its competition — it's dedication to giving back.

“We’ve set aside a quarter of our carried interest for scholarships and grants,” Lee says.

The funds will go to scholarships for future engineers interested in the energy transition, as well as grants for researchers studying high-potential technologies.

“We’re putting our own money where our mouth is,” Lee says of his thesis for Flathead Forge.

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This article originally ran on EnergyCapital.

Houston-based lunar mission's rocky landing and what it means for America's return to the moon

houston, we have a problem

A private U.S. lunar lander tipped over at touchdown and ended up on its side near the moon’s south pole, hampering communications, company officials said Friday.

Intuitive Machines initially believed its six-footed lander, Odysseus, was upright after Thursday's touchdown. But CEO Steve Altemus said Friday the craft “caught a foot in the surface," falling onto its side and, quite possibly, leaning against a rock. He said it was coming in too fast and may have snapped a leg.

“So far, we have quite a bit of operational capability even though we’re tipped over," he told reporters.

But some antennas were pointed toward the surface, limiting flight controllers' ability to get data down, Altemus said. The antennas were stationed high on the 14-foot (4.3-meter) lander to facilitate communications at the hilly, cratered and shadowed south polar region.

Odysseus — the first U.S. lander in more than 50 years — is thought to be within a few miles (kilometers) of its intended landing site near the Malapert A crater, less than 200 miles (300 kilometers) from the south pole. NASA, the main customer, wanted to get as close as possible to the pole to scout out the area before astronauts show up later this decade.

NASA's Lunar Reconnaissance Orbiter will attempt to pinpoint the lander's location, as it flies overhead this weekend.

With Thursday’s touchdown, Intuitive Machines became the first private business to pull off a moon landing, a feat previously achieved by only five countries. Japan was the latest country to score a landing, but its lander also ended up on its side last month.

Odysseus' mission was sponsored in large part by NASA, whose experiments were on board. NASA paid $118 million for the delivery under a program meant to jump-start the lunar economy.

One of the NASA experiments was pressed into service when the lander's navigation system did not kick in. Intuitive Machines caught the problem in advance when it tried to use its lasers to improve the lander's orbit. Otherwise, flight controllers would not have discovered the failure until it was too late, just five minutes before touchdown.

“Serendipity is absolutely the right word,” mission director Tim Crain said.

It turns out that a switch was not flipped before flight, preventing the system's activation in space.

Launched last week from Florida, Odysseus took an extra lap around the moon Thursday to allow time for the last-minute switch to NASA's laser system, which saved the day, officials noted.

Another experiment, a cube with four cameras, was supposed to pop off 30 seconds before touchdown to capture pictures of Odysseus’ landing. But Embry-Riddle Aeronautical University’s EagleCam was deliberately powered off during the final descent because of the navigation switch and stayed attached to the lander.

Embry-Riddle's Troy Henderson said his team will try to release EagleCam in the coming days, so it can photograph the lander from roughly 26 feet (8 meters) away.

"Getting that final picture of the lander on the surface is still an incredibly important task for us,” Henderson told The Associated Press.

Intuitive Machines anticipates just another week of operations on the moon for the solar-powered lander — nine or 10 days at most — before lunar nightfall hits.

The company was the second business to aim for the moon under NASA's commercial lunar services program. Last month, Pittsburgh's Astrobotic Technology gave it a shot, but a fuel leak on the lander cut the mission short and the craft ended up crashing back to Earth.

Until Thursday, the U.S. had not landed on the moon since Apollo 17's Gene Cernan and Harrison Schmitt closed out NASA's famed moon-landing program in December 1972. NASA's new effort to return astronauts to the moon is named Artemis after Apollo's mythological twin sister. The first Artemis crew landing is planned for 2026 at the earliest.

3 female Houston innovators to know this week

who's who

Editor's note: Welcome to another Monday edition of Innovators to Know. Today I'm introducing you to three Houstonians to read up about — three individuals behind recent innovation and startup news stories in Houston as reported by InnovationMap. Learn more about them and their recent news below by clicking on each article.

Emma Konet, co-founder and CTO of Tierra Climate

Emma Konet, co-founder and CTO of Tierra Climate, joins the Houston Innovators Podcast. Photo via LinkedIn

If the energy transition is going to be successful, the energy storage space needs to be equipped to support both the increased volume of energy needed and new energies. And Emma Konet and her software company, Tierra Climate, are targeting one part of the equation: the market.

"To me, it's very clear that we need to build a lot of energy storage in order to transition the grid," Konet says on the Houston Innovators Podcast. "The problems that I saw were really on the market side of things." Read more.

Cindy Taff, CEO of Sage Geosystems

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. Photo courtesy of Sage

A Houston geothermal startup has announced the close of its series A round of funding.

Houston-based Sage Geosystems announced the first close of $17 million round led by Chesapeake Energy Corp. The proceeds aim to fund its first commercial geopressured geothermal system facility, which will be built in Texas in Q4 of 2024. According to the company, the facility will be the first of its kind.

“The first close of our Series A funding and our commercial facility are significant milestones in our mission to make geopressured geothermal system technologies a reality,” Cindy Taff, CEO of Sage Geosystems, says. Read more.

Clemmie Martin, chief of staff at The Cannon

With seven locations across the Houston area, The Cannon's digital technology allows its members a streamlined connection. Photo courtesy of The Cannon

After collaborating over the years, The Cannon has acquired a Houston startup's digital platform technology to become a "physical-digital hybrid" community.

Village Insights, a Houston startup, worked with The Cannon to create and launch its digital community platform Cannon Connect. Now, The Cannon has officially acquired the business. The terms of the deal were not disclosed.

“The integration of a world-class onsite member experience and Cannon Connect’s superior virtual resource network creates a seamless, streamlined environment for member organizations,” Clemmie Martin, The Cannon’s newly appointed chief of staff, says in the release. “Cannon Connect and this acquisition have paved new pathways to access and success for all.” Read more.