The Federal Reserve's Uneven Outcomes in the Labor Market Conference highlights the role of small businesses and entrepreneurship in the U.S. labor market and the importance of access to capital in creating and maintaining jobs. Small businesses currently employ nearly half of America's private sector workers and have accounted for over 60% of net new jobs since 1995. However, Small businesses struggle with hiring, retaining employees, and sourcing capital. Policymakers must understand potential unintended consequences of changes to funding sources to support their operations. The Federal Reserve supports small businesses through community banks, focusing on relationship banking and investing in lending, which are crucial for underrepresented businesses during the COVID-19 pandemic. The Federal Reserve supports small businesses through the Paycheck Protection Program Liquidity Facility and Emergency Capital Investment Program, originating over 20,000 PPP loans during the pandemic.