Dec 18, 2024

EIW Today - December 18th, 2024

Prism Group's Daily Summary

GOVERNMENT FUNDING BILL IS THE LAST TRAIN LEAVING THE STATION... Yesterday, the House released draft text of its negotiated Continuing Resolution bill to fund the federal government through mid-March 2025. The legislation includes several policy riders. Most notably for the small business community, a one-year delay of the Corporate Transparency Act’s filing requirements. However, the legislation only applies to “existing entities,” or those incorporated before 2024, meaning those created in the current calendar year would not be covered. The distinction adds to the ongoing confusion around the new statute, particularly in the wake of a Texas court’s nationwide injunction against the CTA, which is currently being litigated.

PARAFIN RAISES $100M SERIES C TO REDEFINE SMALL BUSINESS FINANCIAL SERVICES... Parafin, which builds embedded finance infrastructure, has announced the close of its $100 million Series C financing at a $750 million valuation. The financing was led by Notable Capital, with significant participation from Redpoint Ventures. Existing investors Ribbit Capital, Thrive Capital, and GIC also participated in the round. This funding reflects growing confidence in Parafin’s approach to embedded financial services, an area that continues to transform how small businesses access capital and manage their operations. Parafin has seen a remarkable trajectory, funding nearly $1 billion annually for tens of thousands of small businesses in the U.S. and Canada. Since its Series B round in September 2022, the company has grown volumes by 400% and expects to reach profitability within six months.

WIOA REAUTHORIZATION INCLUDED IN CR... A Stronger Workforce for America Act (ASWA), which reauthorizes the Workforce Innovation and Opportunity Act (WIOA), was included in the recently released CR. Emphasizing employer and industry partnerships, ASWA authorizes more than $6B in workforce development funding that employers can utilize to upskill potential and current employees.

THE STATE OF THE STATES

SESSIONS BY THE NUMBERS:

Six states are in regular session.

WHAT WE'RE WATCHING:

According to a new report from the Maine Department of Labor, Maine’s labor shortage is expected to persist through 2032, but will likely have minimal long-term effects on the state’s economy. While an aging population will shrink the workforce, productivity gains and steady GDP growth are projected to offset slower job growth.

Pennsylvania’s Historically Disadvantaged Business Assistance Program is now accepting funding applications through Jan. 22nd to establish Business Assistance Service Centers supporting small, diverse businesses. The initiative is part of Gov. Josh Shapiro’s budget (D). It will work to boost economic empowerment by increasing access to capital and providing technical support to historically disadvantaged business owners.

LAWMAKERS... IN OR OUT?

The House... convenes today at 10:00 AM. The full schedule may be found here.

The Senate... convenes today at 10:00 AM. The full schedule may be found here.

HAPPENING ON THE HILL

The House...