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SBA’s Isabella Guzman says shop small and local this season

Diane Davis

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Last week, the U.S. Small Business Administration (SBA) reported that it has awarded just shy of $300 billion in COVID-19 recovery loans to nearly 4 million businesses. In the spring of 2020, one of America’s tiniest federal agencies found itself at the center of the biggest economic crisis in a generation, and it has been a lifeline for many Americans navigating how to stay afloat financially.

Like the rest of the country, though, life at the SBA is slowly returning to normal: Most federal pandemic funds are now used up (R.I.P., Paycheck Protection Program) or about to be (with Economic Injury Disaster Loans), and the agency is gearing up to launch new programs that continue helping U.S. small businesses transition back.

Meanwhile, the year’s busiest shopping months have arrived, and a profitable season is make-or-break for many of them. The SBA argues that makes this particular holiday season vital, and it’s urging Americans to think beyond Amazon—to venture back out and shop locally—by promoting events like Small Business Saturday, the shopping holiday wedged between Black Friday and Cyber Monday, invented (unironically) by American Express to encourage people to patronize local brick-and-mortar stores.

Earlier this week, SBA Administrator Isabella Guzman, who’s run the agency under President Biden since mid-March, called Fast Company to discuss the post-pandemic SBA, from a flower shop in Washington, D.C.’s Shaw neighborhood, apparently already doing her part.

Fast Company: Large companies are reporting record earnings this year, but this is sort of a sink-or-swim time for smaller businesses that are fighting to make comebacks. You’ve met with small business owners nationwide in recent months. What are the biggest obstacles they’re still facing?

Isabella Guzman: Well, definitely always capital. The relief the federal government has been able to provide has been critical for them to survive the decreased revenues or the supply-chain disruptions or the workforce shortages. They definitely needed that additional support to carry them through this period of time. And they’ve had to pivot and change their models in many cases, like bring in digital technology to improve operations or attract more customers. Those are some of the biggest challenges in terms of what businesses are facing, and that’s across the board.

All of this is underpinned by COVID, which is why it’s so important to make sure we increase vaccinations. That’s why Small Business Saturday is exciting this year, because more people are vaccinated than ever, and they’re starting to feel more confident about going out. We’re hopeful that people will want to get out and have that experience of shopping on Main Street or at their local mom-and-pops again.

FC: All Americans are about to benefit from the administration’s spending bill. The latest version of Build Back Better includes a lot of things that benefit small businesses, but also leaves a few things out. For instance, there was talk of SBA’s flagship 7(a) loan program receiving “billions of dollars,” but it only got $950 million. Could you give a quick cheat sheet to the key provisions in the current bill that should help small business owners?

Guzman: First off, of course we’re very excited about the Bipartisan Infrastructure Deal because it’ll really help small businesses on the infrastructure front. They rely on public transportation and our ports and our roadways. Some of those bottlenecks that have pressured us this season will hopefully be addressed with these key investments. And the same with climate, because when natural disasters affect communities, they impact small businesses disproportionately, for sure.

With Build Back Better, just from a broader perspective in the workforce, the investments will be really important, obviously, with the workforce shortages I mentioned. It’s always a challenge for small businesses to get a skilled workforce. In addition, we’re looking forward to making sure their workers have affordable child care, healthcare, and elder care that’ll go a long ways towards bringing people back to the the workforce.

But there are also critical investments to help better fund small businesses. You mentioned the investments in our 7(a). The money that will go toward our core 7(a) program to allow the SBA to do direct lending of small-dollar loans will be transformational. Other investment will expand our mission-based lenders, which we know are the institutions that go out and support underserved communities. The expansion of the Community Advantage program, making it permanent and funding it, will be critical for those lenders.

The bill should expand the number of investors that are participating in our small business investment companies. Growth with micro-funds in our small business company portfolio as well as emerging managers will go a long way toward funding our future businesses.

And we are excited about the investments in accelerators and business incubators that will help small businesses. Especially those that are growing and contracting, because, again, the bill will benefit small businesses, but we also know they’re going to benefit from the infrastructure spend—the contracts that will be available to address climate change and our infrastructure.

FC: We know the pandemic’s economic toll has disproportionately hurt disadvantaged communities. You’ve made empowering underserved small businesses a priority, and even before Build Back Better, you had already introduced new programs that tackle that gap specifically, right?

Guzman: Yeah, through the American Rescue Plan, we were funded to launch a Community Navigator pilot program. During COVID, we saw how quickly small businesses were able to get relief really depended on the networks they had established. So this is $100 million distributed to 51 grantees across the country to build those connections, with the focus being underserved communities to make sure that women and people of color who are starting businesses at such high rates are aware of all the capital resources, technical assistance resources, and market connections that the SBA and other local ecosystems have to offer.

FC: Almost two years in, one thing that’s clear is that the pandemic’s problems don’t have one-size-fits-all solutions. Now we’re seeing other problems too—inflation, the labor shortage. How can small business owners become better aware of the federal resources available to them? I know the SBA oversees dozens of different programs for business owners.

Guzman: Through our district offices and our resource partners, small businesses can connect and build this team of free resources from the federal government. Starting with SBA.gov and finding those local entities around you is really what’s needed.

But on the other side, consumers can also support small businesses. Strategies like Small Business Saturday help them compete during the busy holiday season. It was designed to try to help them get a bigger share of that spending each year. These additional programs or strategies are ones that SBA teams can help small businesses prepare for—you know, what’s your pricing strategy, and what’s your inventory look like, and how to navigate supply chains.

A significant portion of businesses say they’re still struggling, there’s still uncertainty. This holiday season will be a big indicator for a lot of them of whether they’ll be able to remain open into the next year.

FC: It’s well known that the Paycheck Protection Program was plagued by fraud and suffered technical glitches that frustrated business owners. What lessons did the agency take from observing the bumpy rollout earlier in the pandemic?

Guzman: It’s definitely been my priority to make sure we’re getting these programs out efficiently. With speed, but also with the certainty that they’re going into the hands of the businesses they were intended to serve. Across all our programs, we’ve made process improvements and adopted technology to be able to scale and more efficiently meet businesses where they are, which is oftentimes being more mobile- and tech-friendly.

We wanted to deliver on the promise of PPP and that forgiveness. So we launched a direct forgiveness portal, which can be done, you know, in less than six minutes. Sixty percent of the people who are processing through our direct forgiveness portal are doing it on a mobile device.

The other important program to mention is the COVID Economic Injury Disaster Loan program, because there are still billions of dollars available through this year.

FC: I was going to mention that. One early snag with EIDL was simply that the number of people trying to get the loans overwhelmed the system. But in September, you announced some changes.

Guzman: There were challenges with processing times and people getting stuck in the process. A lot of it had to do with 2020 and some of the challenges that they had in terms of fraud and implementation. But we’ve addressed all those issues. We’ve gone from processing 2,000 applications to over 37,000 a day to clear the backlog. And now we’re able to process these loan applications—or increases, because we also increased the maximum loan amount to $2 million for businesses. So they can position themselves to take advantage of some of these opportunities in the future, and recover from COVID in the process.

The fact the EIDL program still has billions of dollars untapped is a little-known fact. But what’s even less known is that the deadline for applying for them is imminent. Guzman and the SBA encourage people interested to complete their applications before December 10—and to shop small and local in the meantime.


Technology & Innovation

The Download: Trump’s potential climate impact, and the end of cheap helium

Diane Davis

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This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology.

Trump wants to unravel Biden’s landmark climate law. Here is what’s most at risk.

President Joe Biden’s crowning legislative achievement was enacting the Inflation Reduction Act, easily the nation’s largest investment into addressing the rising dangers of climate change. 

Yet Donald Trump’s advisors and associates have clearly indicated that dismantling the landmark law would sit at the top of the Republican front-runner’s to-do list should he win the presidential election. 

If he succeeds, it could stall the nation’s shift to cleaner industries and stunt efforts to cut the greenhouse-gas pollution warming the planet. The IRA’s tax credits for EVs and clean power projects appear especially vulnerable. But lots of other provisions could also come under attack. Read the full story. 

—James Temple

The era of cheap helium is over—and that’s already causing problems

Helium is excellent at conducting heat. And at temperatures close to absolute zero, at which most other materials would freeze solid, helium remains a liquid. That makes it a perfect refrigerant for anything that must be kept very cold.

Liquid helium is therefore essential to any technology that uses superconducting magnets, including MRI scanners and some fusion reactors. Helium also cools particle accelerators, quantum computers, and the infrared detectors on the James Webb Space Telescope. 

“It’s a critical element for the future,” says Richard Clarke, a UK-based helium resources consultant. However, it’s also played a critical role throughout the history of technology development, while remaining in tight supply. 

As part of MIT technology Review’s 125th anniversary series, we looked back at our coverage of how helium became such an important resource, and considered how demand might change in the future. Read the full story.

—Amy Nordrum

How Antarctica’s history of isolation is ending—thanks to Starlink

“This is one of the least visited places on planet Earth and I got to open the door,” Matty Jordan, a construction specialist at New Zealand’s Scott Base in Antarctica, wrote in the caption to the video he posted to Instagram and TikTok in October 2023. 

In the video, he guides viewers through the hut, pointing out where the men of Ernest Shackleton’s 1907 expedition lived and worked. 

The video has racked up millions of views from all over the world. It’s also kind of a miracle: until very recently, those who lived and worked on Antarctic bases had no hope of communicating so readily with the outside world. 

That’s starting to change, thanks to Starlink, the satellite constellation developed by Elon Musk’s company SpaceX to service the world with high-speed broadband internet. Read the full story. 

—Allegra Rosenberg

Wikimedia’s CTO: In the age of AI, human contributors still matter

Selena Deckelmann is the chief product and technology officer at the Wikimedia Foundation, the nonprofit that hosts and manages Wikipedia.

There she not only guides one of the most turned-to sources of information in the world but serves a vast community of “Wikipedians,” the hundreds of thousands of real-life individuals who spend their free time writing, editing, and discussing entries—in more than 300 languages—to make Wikipedia what it is today. 

It is undeniable that technological advances and cultural shifts have transformed our online universe over the years—especially with the recent surge in AI-generated content—but Deckelmann still isn’t afraid of people on the internet. She believes they are its future. Read the full story.

—Rebecca Ackermann 

The two stories above are from the next issue of MIT technology Review, all about hidden worlds. It’s set to go live on Wednesday—subscribe now to get your copy!

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 The Supreme Court will decide whether states can control social media 
It’ll start hearing arguments today about whether laws aimed at controlling online platforms in Texas and Florida are constitutional. (WP $)
Here’s what you need to know. (NYT $)
Texas’s law is dangerous. Striking it down could be even worse. (The Atlantic $)

2 Celebrities are being ‘deepfaked’ for adverts
AI-generated videos have them endorsing and promoting things they’ve never even heard of. (BBC)
+ These companies show why the next AI wave won’t revolve around chatbots. (Fast Company)

3 Inside TikTok’s live money-making machine
Live streaming can be hugely lucrative—for both the creator and TikTok itself—but there’s a dark side too. (ABC)
+ Influencers are getting younger and younger. (NBC)

4 A vending machine was secretly scanning undergrads’ faces
As privacy violations go, this is a pretty insidious and unnecessary one. (Ars Technica)
Computer scientists designing the future can’t agree on what privacy means. (MIT technology Review)

5 China is set to dominate the future of electric cars 
Thanks, at least partly, to years of careful investment and planning by its government. (Insider $)
Why the world’s biggest EV maker is getting into shipping. (MIT technology Review)

6 People are reporting cracks in their Apple Vision Pros
Bad news about these headsets just keeps on coming. (Engadget)
Apple is exploring developing even more wearable devices. (Bloomberg $)

7 Digitally resurrecting your loved ones might be bad for you
Researchers claim it could create unhealthy dependence on the technology. (New Scientist $)
technology that lets us “speak” to our dead relatives has arrived. Are we ready? (MIT technology Review)

8 Could you endure living on Mars? 
Physical concerns aside, it’d wreak havoc on most people’s minds. (NYT $)
These scientists live like astronauts without leaving Earth. (MIT technology Review)

9 A man allegedly made $1.8 million eavesdropping on his wife’s calls 
US regulators claim he traded on confidential information he overheard during her remote meetings. (The Guardian)

10 Meet the man whose job is to keep an ice cream factory cool ????
Engineering challenges don’t come much more delicious than this. (IEEE Spectrum)

Quote of the day

“I understand that SpaceX is possibly withholding broadband internet services in and around Taiwan — possibly in breach of SpaceX’s contractual obligations with the U.S. government.”

—Republican Representative Mike Gallagher makes an explosive claim in a letter to Elon Musk, CNBC reports. 

The big story

ChatGPT is about to revolutionize the economy. We need to decide what that looks like.

""

STEPHANIE ARNETT/MITTR

March 2023

Whether it’s based on hallucinatory beliefs or not, a gold rush has started over the last several months to make money from generative AI models like ChatGPT.

You can practically hear the shrieks from corner offices around the world: “What is our ChatGPT play? How do we make money off this?”

But while companies and executives want to cash in, the likely impact of generative AI on workers and the economy on the whole is far less obvious.

Will ChatGPT make the already troubling income and wealth inequality in the US and many other countries even worse, or could it in fact provide a much-needed boost to productivity? Read the full story.

—David Rotman

We can still have nice things

A place for comfort, fun and distraction to brighten up your day. (Got any ideas? Drop me a line or tweet ’em at me.)

+ If you want to be happy, fill your days with ‘firsts’
+ May these chatty cats bless your morning. 
+ Please, don’t make tea in an air fryer.
+ This writing exercise could help you to better understand what you want from life.


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How Antarctica’s history of isolation is ending—thanks to Starlink

Diane Davis

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a smiling person in a t-shirt types at a telex

Helpful hams and secret codes

By 1957,Admiral Byrd was recognized as the world’s foremost expert in Antarctic exploration and was leading America’s Operation Deep Freeze, a mission to build a permanent American presence on the continent. The US Naval Construction Battalions, known as the Seabees, were deployed to build McMurdo Station on the solid ground of Ross Island, close to the first hut built by Captain Robert Scott in 1901. 

Deep Freeze brought a massive military presence to Antarctica, including the most complex and advanced communications array the Navy could muster. Still, men who wanted to speak to loved ones at home had limited options. Physical mail could come and go on ships a few times a year, or they could send expensive telegrams over wireless—limited to 100 or 200 words per month each way. At least these methods were private, unlike the personal communications over radio on Byrd’s expedition, which everyone else could listen in to by default.

In the face of these limitations, another option soon became popular among the Navy men. The licensed operators of McMurdo’s amateur (ham) station were assisted by hams back at home. Seabees would call from McMurdo to a ham in America, who would patch them straight through to their destination through the US phone system, free of charge. 

Some of these helpful hams became legendary. Jules Madey and his brother John, two New Jersey teenagers with the call sign K2KGJ, had built a 110-foot-tall radio tower in their backyard, with a transmitter that was more than capable of communicating to and from McMurdo Sound. 

To save money, a code known as “WYSSA” offered a broad variety of set phrases for common topics. WYSSA itself stood for “All my love, darling.”

From McMurdo, the South Pole, and the fifth Little America base on the Ross Ice Shelf, ham operators could ring Jules at nearly any time of day or night, and he’d connect them to home. Jules became an Antarctic celebrity and icon. A few of the engaged couples he helped to link up even invited him and his brother to their weddings, after the men returned from their tours of duty in Antarctica. Many Deep Freeze men still remembered the Madey brothers decades later. 

In the early 1960s, continued Deep Freeze operations, including support ships, were improving communication across American outposts in Antarctica. Bigger antennas, more powerful receivers and transmitters, and improvements to ground-to-air communication systems were installed, shoring up the capacity for scientific activity, transport, and construction.  

Around this time, the Australian National Antarctic Research Expeditions were improving their communications capacity as well. Like other Antarctic programs, they used telex machines, sending text out over radio waves to link up with a phone-line-based system on land. Telex, a predecessor to fax technology, text messaging, and email, was in use from the 1960s onwards as an alternative to Morse code and voice over HF and VHF radio. On the other side of the line, a terminal would receive the text and print it out.

The Australian National Antarctic Research Expeditions sent text over radio waves and developed a special code known as “WYSSA” to save money on the expensive telex rates.

MALCOLM MACFARLANE ©ANTARCTICA NEW ZEALAND PICTORIAL COLLECTION

In order to save money on the expensive per-word rates, a special code known as “WYSSA” (pronounced, in an Australian accent, “whizzer”) was constructed. This creative solution became legendary in Antarctic history. WYSSA itself stood for “All my love, darling,” and the code offered a broad variety of predetermined phrases for common topics, from the inconveniences of Antarctic life (YAYIR—“Fine snow has penetrated through small crevices in the huts”) to affectionate sentiments (YAAHY—“Longing to hear from you again, darling”) and personal updates (YIGUM—“I have grown a beard which is awful”). 

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Tackling long-haul diseases | MIT Technology Review

Diane Davis

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Tal, who has been obsessed with infectious disease since losing an uncle to HIV/AIDS and a cousin to meningococcal meningitis, wondered what this striking diversity could reveal about our immune response to infection. According to one hypothesis, the wide array of these receptors is the result of an evolutionary arms race between disease-causing microbes and the immune system. Think of the receptor as a lock, and the “Nothing to see here” message as a key. Pathogens might evolve to produce their own chemical mimics of this key, effectively hiding from the immune system in plain sight. In response, the human population has developed a wide range of locks to frustrate any given impostor key. 

Wanting to test this hypothesis, Tal found herself walking the halls of Stanford, asking colleagues, “Who’s got a cool bug?” Someone gave her Borrelia burgdorferi, the bacterium that causes Lyme disease. Previous research from Tal’s collaborator Jenifer Coburn, a microbiologist now at the Medical College of Wisconsin, had established that Lyme bacteria sport a special protein crucial for establishing a lasting infection. Knock this protein out, and the immune system swiftly overwhelms the bugs. The big question, however, was what made this protein so essential. So Tal used what’s known as a high-affinity probe as bait—and caught the Borrelia’s mimic of our “Don’t eat me” signal binding to it. In other words, she confirmed that the bacteria’s sneakyprotein was, as predicted, a close match for a healthy cell’s signal.  

Sex differences in Lyme infection

Until then, Tal says, she had never given Lyme disease much thought. But the more she learned, the more disturbed she grew. Even after timely antibiotic treatment, roughly 10% of all Lyme patients go on to develop chronic symptoms that can include crushing pain, debilitating fatigue, and cognitive changes that make basic tasks a struggle.  

This confocal micrograph depicts Borrelia burgdorferi bacteria, which cause Lyme disease when transmitted to humans by ticks. These Borrelia were genetically engineered to produce a green fluorescent protein.

COURTESY OF THE TAL RESEARCH GROUP

Perhaps even more alarming than the disease has been the medical community’s response to it. “I realized that there’s this public health debacle around Lyme, and it’s, for lack of a better word, obscene,” Tal says. Chronic Lyme patients skew female, and for decades, clinicians have dismissed their symptoms as signs of mental illness. The medical establishment has “done nothing but call them crazy,” Tal says, “instead of admitting that they just don’t understand what’s going on.” 

Today, there is no objective way to diagnose chronic Lyme, and no medically accepted therapy. For some patients, lengthy treatments with high doses of antibiotics can ease symptoms, but these come with their own serious risks. (They can, for example, damage the microbiome, leading to significant negative effects on health.) And because the antibiotic used currently only prevents bacteria from replicating, Tal notes, it’s up to the immune system to actually kill off the invaders. If immune cells can’t tell friend from foe, the utility of antibiotics may be limited. 

Chronic Lyme patients skew female, and for decades, the medical establishment has “done nothing but call them crazy,” Tal says, “instead of admitting that they just don’t understand what’s going on.”

For Tal, these revelations were electrifying. She dove into the immunology of Lyme disease, focusing in particular on sex differences. In one mouse experiment, she discovered that Lyme bacteria “completely disfigured” the uterus. Yet after delving through decades of Lyme research, she could find only one other study that even documented uterine infection. 

This shortfall mirrors larger problems in medical research. “We’ve let men dictate the direction of research funding for so long,” Tal says. Traditionally, studies focused on male subjects, and a 1977 FDA policy barred women from participating in most clinical trials in the US in the wake of birth defects caused by thalidomide. It wasn’t until 1993 that federal law required studies to include women and minorities. This, coupled with other sex- and gender-based medical biases, means that many female-dominated diseases remain under-researched. “So much of this research is being done on males, male mice—male, male, male,” Tal says. “And I’m like, no.” 

Tal suspects that the sex disparities seen in chronic Lyme and other pathogen-­triggered chronic diseases might come down to the fact that men mount a more robust response to acute infection. This no-holds-barred approach is risky—“Your immune system has the power to kill you,” she notes—but it may mean that men, on average, can kill off more viruses or bacteria in the critical first week of infection. After that window closes, the immune system largely settles back down, Tal says. Pathogens that escaped the initial blitz could take up long-term residence in the body, potentially causing persistent symptoms. And women have a higher chance of chronic illness.

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