The Trump administration on Monday unveiled a new federal initiative that would provide financial assistance for business start ups that create more than 10 jobs in their home states.
The Federal Workforce Development program, or FWD, would provide up to $500,000 in grants to up to 25 businesses for up to 10 years.
The program will be administered by the Treasury Department and will be available to firms in all 50 states.
President Trump has called for more than $100 billion in business investments, including infrastructure, to help create new jobs and economic growth, and the Trump Administration has signaled it is looking to create up to 500,000 jobs.
FWD is part of a larger economic development initiative, the JOBS Act, that Congress approved last year to expand the availability of low-wage and part-time work.
The law would provide an incentive to hire workers and increase wages for workers in low-skilled jobs.
It also seeks to help companies with higher-than-expected unemployment by encouraging companies to expand hiring.
The Trump Administration on Monday announced that it would provide $500 million in grants and loans to encourage firms to hire more Americans and invest in their local communities.
The administration said the funds would be used for the development of programs to support businesses in their communities, including by creating a federal workforce development office, expanding apprenticeship opportunities, increasing apprenticeship training and improving worker training.
Fwd grants are a key part of the JOBs Act, which President Trump signed into law in December.
The JOBS act was signed into the Federal Register on Jan. 12 and takes effect in 2019.
The White House said the FWD program would support business investment in the United States and provide a pathway to new businesses to thrive.
The goal is to create 10,000 new jobs a year and increase GDP by an average of $3.2 trillion over the next decade.
In the first year, the program would be administered through the National Economic Council and would be available only to firms that have already made commitments to invest in local communities, as required by the JOB Act.
The National Business Development Center, which was established in September to administer the Fwd program, will also provide training and mentoring to companies on job creation.
“FWD is a critical component of the President’s Jobs Strategy, which includes a comprehensive plan to create and create more jobs and growth,” the White House statement said.
“This plan will give small businesses the tools they need to expand, create and grow, and ensure that the country’s jobs and economy are growing and diversifying.”
The White’s statement did not elaborate on how much money the F.D.D.-sponsored programs would provide to start-up companies.
A White House official told The Washington Examiner that the administration will continue to use the JObs Act to help encourage new businesses, as the Administration has done for the past several years.
“The President believes that small business owners, small investors and small business taxpayers should be able to access the funds they need as part of this broader plan to spur job creation,” the official said.
But the White’s official statement said that the funds provided would be allocated to start up firms that meet certain criteria, including having an annual revenue of $2 million or more and having more than 50 employees, as well as having no employees with a demonstrated history of unemployment.
For example, the White is encouraging small start-Ups to focus on recruiting people from the highest-paid occupations, like nurses and teachers, as opposed to the low-paying fields of retail, restaurant and retail trade.
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Of course, there is the broader economic benefit of the FHD grant program, said Josh Blackman, a senior fellow at the Economic Policy Institute.
“There is an economic benefit to having the funding that you can provide to help them succeed,” Blackman said.
Blackman added that the JOBCommerce Act also has a strong incentive to provide support to small start ups, given the strong relationship that exists between businesses and Congress.
“It’s not just the JOBG Act,” Black, an expert on small business and entrepreneurship, said.
For instance, the Commerce Department has long supported the JOBIO Act, the bipartisan bill that was signed by President George W. Bush in 2005.
The Commerce Department and other federal agencies have supported JOBS since the early days of the recession, helping to promote the passage of the 2010 JOBS Bill.
The government also has continued to support the JOBBorhood Act, an economic development package that was enacted in 2013, aimed at providing jobs and infrastructure to the region.
“We think that this program will have a lot of benefit to small businesses,” Black said.