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WASHINGTON – The Economic Opportunity Coalition (EOC), launched by Vice President Kamala Harris in July 2022, is a group of more than two dozen companies that have committed to making investments in small business underserved communities to address economic disparities and jumpstart local economic activity. To date, the EOC has announced $1 billion of deposits with Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) through partnerships with private companies. 

Alongside the efforts of the Economic Opportunity Coalition to support underserved communities, the Treasury Department released new data on lending activity by participants of the Emergency Capital Investment Program (ECIP). ECIP was established to support the efforts of community financial institutions to provide financial products and services for low- and moderate-income and underserved communities that disproportionately suffered from the impacts of the pandemic, by providing capital investments in CDFIs and MDIs with track records of serving these markets. 

In about 18 months, ECIP participants originated a total of $58.3 billion in loans, of which more than one third was to individuals and communities that have traditionally lacked access to capital, deemed “Deep Impact Lending.” In addition to Deep Impact Lending in underserved places such as persistent poverty counties, ECIP participants also provided $4.5 billion in capital for small businesses, $1.2 billion in financing for affordable housing, and $2.6 billion in mortgages to minorities and other targeted populations. A list of resources for individuals or small businesses seeking assistance is available on the ECIP website. 

Success Stories of how Public-Private Partnerships are Supporting Communities: 

• First Independence Bank (MDI), Detroit, MI
  • Total ECIP Investment: $45,260,000
  • Kenneth Kelly, Chairman & President: “ECIP funding has been instrumental for First Independence Bank, enabling us to enhance our services and partnerships, growing our assets to nearly $600 million. This support enriches our customers’ financial well-being and strengthens our community.” 
  • Success Story: Through Q2 2024, First Independence Bank provided $316,000 in small business loans and $236,000 in loans to underserved businesses, including East Coast Food Management, which provides high-quality food services to schools and community organizations; Wow Me Web Design, a firm that offers digital marketing solutions to help local businesses thrive online; and Quest Diagnostic Nichols Institute, Inc., a critical provider of diagnostic services that support healthcare in underserved areas. These loans have empowered these businesses to grow and continue serving their communities effectively.
• Asian Bank (CDFI and MDI), Philadelphia, PA
  • Total ECIP Investment: $66,069,000
  • James Wang, President & CEO: “Asian Bank is profoundly grateful for the transformative impact of ECIP and EOC funding, enabling us to expand our reach and positively impact more people in our communities.”
  • Success Story: Asian Bank provided a $75,000 Small Business Booster Loan to a borrower in Kensington, PA. The loan helped preserve a vital food retail store called Manba Mini Market in a majority-minority area with a 33% poverty rate.
• Locus Bank (CDFI), Richmond, VA  
  • Total ECIP Investment: $36,400,000
  • Clyde Cornett, Interim CEO & CFO: “ECIP funding has significantly bolstered Locus Bank’s capital base, enabling us to expand lending in affordable housing and clean energy. With this support, we’ve increased lending by 131% and financed critical community projects.”
  • Success Story: Locus Bank provided a $7.5 million predevelopment line of credit for the Somos at McLean project in Tysons, VA. This project will provide 231 new affordable rental units near essential amenities and transportation.
• M&F Bank (MDI), Durham, NC
  • Total ECIP Investment: $80,000,000
  • James H. Sills III, CEO: “M&F Bank is deeply grateful for EOC’s support, which empowers individuals, businesses, and communities, fostering economic resilience and opportunity.”
  • Success Story: M&F Bank provided $6.5 million in debt financing to an NC-based HBCU, Shaw University. This financing facilitated debt restructuring and improved the university’s financial condition.
• Self-Help Credit Union (CDFI and MDI), Durham, NC
  • Total ECIP Investment: $243,000,000
  • Martin Eakes, CEO: “Treasury’s ECIP investments are transformative, enabling us to double our annual lending and serve more families and businesses.”
  • Success Story: Self-Help Credit Union provided a $796,500 loan to A Safe Place Child Enrichment Center in Southeast Raleigh. This loan enabled the center to acquire and upgrade an existing five-star childcare facility, greatly expanding its capacity. The enhanced facility now integrates traditional education with innovative outdoor experiences, significantly improving educational quality and promoting healthy lifestyles for both children and their families.
• Native American Bank (CDFI and MDI), Denver, CO 
  • Total ECIP Investment: $37,414,000  
  • Tom Ogaard, President & CEO: “The ECIP funding has provided Native American Bank with the capital to provide much larger loans to projects serving Tribal communities.  NAB has deployed much of its ECIP award to provide low-cost construction and permanent financing for on-reservation Tribal Health Facilities.”
  • Success Story: Native American Bank, N.A., a tribally owned, Native CDFI and MDI bank headquartered in Denver, Colorado, closed two loans totaling $10.9 million to finance the expansion of a critical healthcare facility located in Burney, CA. The healthcare facility is located on the reservation and will serve Pit River Tribal members as well as the surrounding rural community. The Indian Health Service funded non-profit facility will expand its family medicine, dental, and behavioral health outpatient services, as well as add optometry and a pharmacy, which will increase service capacity and reduce the need for patients to travel to other areas for providers. The loans were provided in concert with equity from the CDFI Fund’s New Market Tax Credit program as well as grant and loan funding from the USDA’s Community Facilities program. 
• Optus Bank (CDFI and MDI), Columbia, SC
  • Total ECIP Investment: $70,923,000
  • Dominik Mjartan, CEO: “ECIP and EOC investments have enabled Optus Bank to deploy nearly $400 million in loans to underserved communities, significantly increasing our assets and loan originations.”
  • Success Story: Optus Bank supported Dream Team Consulting, a company founded in 2018, in developing a solar farm. By funding the acquisition of 65 acres, the bank facilitated the transition to renewable energy, created local jobs, and fostered economic growth. This partnership highlights Optus Bank’s commitment to impactful and innovative investments that benefit both the environment and underserved communities.
• Southern Bancorp (CDFI), Arkadelphia, AR
  • Total ECIP Investment: $250,000,000
  • Darrin Williams, CEO: “ECIP’s impact is both transformational and generational, allowing us to scale our work, reach underserved communities, and lay a stronger financial foundation for future generations.”
  • Success Story: In March 2024, Southern Bancorp helped an African-American first-time homebuyer in Memphis secure a mortgage. Over several months, the bank assisted in rebuilding his credit from 620 to 700 and helped him save for a down payment and closing costs. This support enabled him to achieve homeownership, providing stability for him and his elderly mother and advancing his financial independence.
• Liberty Bank (CDFI and MDI), New Orleans, LA 
  • Total ECIP Investment: $133,000,000 
  • Alden McDonald, Jr , CEO: “Because of the ECIP investment, we were able to launch new initiatives that allow more people and small businesses to access funding during the economic stress of inflation and high interest rates. Daily, we see loans that would have otherwise been turned down by other institutions. Yet, ECIP allows us to fund those loans and get repaid. With our history and experienced team, we understand how to lend in untraditional ways that are safe and profitable for the bank.  Our primary goal is to provide fair, competitive structure and pricing to small businesses so they can grow and thrive well into the future.”  
  • Success Story: Recently, Liberty Bank funded a business loan for the purchase of a commercial vehicle. This company currently has 10 employees and is growing. After a few months of earning more revenue due to the initial loan, the business returned to Liberty seeking to purchase commercial space for its expansion. 

 

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WASHINGTON – Today, Deputy Secretary Wally Adeyemo and Deputy Assistant Secretary Todd Conklin met with Bank Policy Institute leaders and Chief Executive Officers to discuss cybersecurity and the operational resilience of the broader financial sector. The group discussed opportunities to continue to scale Treasury’s Project Fortress to leverage the support of larger institutions and federal government assets to provide support to smaller financial institutions. The group also discussed ongoing public/private partnership work specific to bolstering the resilience of critical federal government operated systems.

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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning three individuals, five companies, and two vessels that are involved in smuggling oil and liquified petroleum gas (LPG) to generate revenue for Hizballah. The network, comprised of Lebanese businessmen and companies and overseen by a senior leader of Hizballah’s finance team, has facilitated dozens of LPG shipments to the Government of Syria and channeled the profits to Hizballah. Illicit oil and LPG smuggling operations generate hundreds of millions of dollars for Hizballah and support the group’s terrorist activities.

“Hizballah continues to launch rockets into Israel and fuel regional instability, choosing to prioritize funding violence over taking care of the people it claims to care about, including the tens of thousands displaced in southern Lebanon,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury will continue to disrupt the oil smuggling and other financing networks that support Hizballah’s war machine.”

Today’s action is being taken pursuant to counterterrorism authority Executive Order (E.O.) 13224, as amended. The U.S. Department of State designated Hizballah as a Specially Designated Global Terrorist group (SDGT) pursuant to E.O. 13224 on October 31, 2001.

HIZBALLAH FINANCE NETWORKS AND OPERATIONS

Treasury has taken consistent action to target individuals directly or indirectly involved in Hizballah’s finance operations that provide critical revenue for the organization. Two prominent Hizballah officials involved in these efforts include Muhammad Qasir (Qasir) and Muhammad Qasim al-Bazzal (al-Bazzal), who manage a channel for transporting LPG and other oil distillates on behalf of Hizballah and directly receive payment for their sale. On May 15, 2018, OFAC designated Qasir pursuant to E.O. 13224, as amended, for acting for or on behalf of Hizballah as a critical conduit for financial disbursements from Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) to Hizballah. On November 20, 2018, OFAC designated al-Bazzal, an associate of Qasir, pursuant to E.O. 13224 for his support to Hizballah. OFAC has also taken a series of actions targeting Hizballah petroleum smuggling operations, including a January 31, 2024 action that targeted a Hizballah and IRGC-QF network that generated hundreds of millions of dollars’ worth of revenue through the sale of Iranian commodities including petroleum, much of it to the Syrian government. 

The network designated today includes another senior Hizballah finance team official, and two Lebanese businessmen providing a seemingly legitimate front to facilitate Hizballah’s oil smuggling efforts. This network has facilitated dozens of LPG shipments to the Government of Syria, working with Syrian regime official Yasser Ibrahim, who was designated by the Department of State on August 20, 2020 for his role in corrupt business deals that benefitted Syrian President Assad. 

HIZBALLAH OIL SMUGGLING NETWORK KEY FIGURES

As of late 2023, Hizballah official Muhammad Ibrahim Habib al-Sayyid (al-Sayyid) assumed responsibility for some of Hizballah’s commercial businesses from al-Bazzal. Al-Sayyid previously travelled with al-Bazzal to Southeast Asia to coordinate potential oil deals in the region for Hizballah’s finance team. He has also acted as an interlocutor between al-Bazzal and Lebanese businessman Ali Nayef Zgheib (Zgheib) on an oil project at a refinery site in Az-Zahrani, Lebanon. 

Since at least late 2019, Zgheib, a petroleum chemistry expert, has advised and assisted Hizballah’s finance team behind the scenes, and has met with Qasir and al-Bazzal to coordinate their activities. As a member of Hizballah’s oil smuggling network, Zgheib secured storage tanks, likely for oil, on behalf of Hizballah. Senior Hizballah officials Qasir and al-Bazzal have made a profit from the LPG deals with Zgheib. Zgheib has met with at least one Hizballah-affiliated Lebanese Member of Parliament to discuss the financing of Hizballah oil projects and has also coordinated with Hizballah financier Muhammad Ibrahim Bazzi (Bazzi) regarding business negotiations. On May 17, 2018, OFAC designated Bazzi pursuant to E.O. 13224 for his support to Hizballah. 

Lebanese businessman Boutros Georges Obeid (Obeid) is also involved in Hizballah’s energy deals, and jointly owns several companies, described below, with Zgheib. 

Al-Sayyid, Zgheib, and Obeid are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah. 

ZGHEIB AND OBEID BUSINESS NETWORK

Zgheib and Obeid own and manage Heavy Oil Distribution Company S.A.L. (HODICO) and several subsidiaries that have been involved in Hizballah’s energy deals, many of which have been coordinated by al-Bazzal. Zgheib serves as the Director of HODICO, while Obeid serves as the Chairman. Zgheib and Obeid also jointly manage Heavy Oil Distribution Company SAL Offshore (HODICO Offshore). Another HODICO subsidiary managed by Zgheib and Obeid, Heavy Industrial Fuels SAL HIF (HIF SAL), received a $1 million payment in 2022 from Yasser Ibrahim that was arranged by al-Bazzal, likely for LPG shipments to Syria. 

Obeid is the primary owner of O.H.G. Holding SAL, another company within the HODICO group of companies, for which Zgheib serves as a director and member of the board. In 2020, Zgheib requested al-Bazzal’s assistance to manage payments for O.H.G. Holding SAL, which had encountered difficulties in transferring payments. 

HODICO and HIF SAL are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah. 

HODICO Offshore is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Obeid and Zgheib.

O.H.G. Holding SAL is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, Obeid. 

LPG SHIPMENT VESSELS

European Lebanese International Trade S.A.R.L. (ELIT) is represented by al-Bazzal and was responsible for dozens of LPG shipments made by the LPG tankers ALPHA GAS (IMO: 8817693) and MARINA (IMO: 9005493) to Baniyas port in Syria for Hokoul SAL Offshore Company (Hokoul), which was designated on September 4, 2019, pursuant to E.O. 13224, for being owned or controlled by al-Bazzal. Since al-Bazzal procured the MARINA in 2020, he and other Hizballah officials received payments from Yasser Ibrahim and Hokoul for shipments made by the tanker. In early 2022, al-Bazzal reached an agreement to pay for the purchase of the ALPHA GAS vessel via Hokoul. ELIT was used by al-Bazzal to cover the operating expenses for the ALPHA GAS and MARINA; Bazzal was at one time owed approximately $4 million for shipments made by the tankers. Both vessels have transported LPG to Baniyas port in Syria for Hokoul since their acquisition. 

ELIT is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah.

The ALPHA GAS and MARINA are being identified as property in which Hizballah has an interest.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

Non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

In addition, non-U.S. financial institutions and other persons that engage in certain transactions or activities with sanctioned entities and individuals may expose themselves to sanctions risk. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today.

Additional Treasury resources on countering the financing of terrorism:

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Funding will support rural and Tribal businesses, healthcare businesses, and advanced manufacturers in the clean energy sector.

WASHINGTON – Today, the U.S. Department of the Treasury announced that the Nevada Governor’s Office of Economic Development has been awarded more than $4 million to help small businesses in key sectors of the economy grow and hire through the State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP). 

Part of the Biden-Harris Administration’s economic agenda, this program provides funding to connect underserved and very small businesses to the financing needed to participate in key Investing in America supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, clean energy generation, and more. The SBOP was designed to catalyze additional private sector investment by supporting small business technical assistance services. 

“The Biden-Harris Administration is committed to expanding access to capital and creating opportunities for entrepreneurs to grow their businesses in thriving sectors,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “With these resources, Nevada will be able to provide critical legal and financial services to small businesses, including to manufacturers, that are fueling Nevada’s booming clean energy economy.”  

“Nevada’s small businesses are key to our economy, and I will always work to ensure they have the resources they need to succeed,” said U.S. Senator Catherine Cortez Masto. “This federal funding will help small businesses throughout our state access financing and support economic growth in Nevada, and I am proud to support it.” 

“As Nevada’s economy continues to grow, it’s critical that we support our small businesses and entrepreneurs,” said U.S. Senator Jacky Rosen. “I’m glad to see millions of dollars are coming to our state to help small businesses flourish in industries like health care, clean energy, and advanced manufacturing. I’ll keep working across the aisle to get Nevada’s small businesses the resources and support they need.”

“By providing clean energy companies better access to capital, we are laying the groundwork for the Nevada economy of tomorrow. These funds will allow companies involved in clean energy generation, electric vehicle manufacturing, and semiconductor production to expand. Already 10,000 jobs have been created producing clean energy in Nevada and another 40,000 jobs are expected in the next 10 years. Investing in these businesses now means more opportunity and better-paying jobs for Nevadans in the future,” said U.S. Congresswoman Dina Titus. 

“This federal funding is an important step forward in our goal to build a resilient and inclusive economy that works for all Nevadans,” said U.S. CongressmanStephen Horsford. “By investing in our small businesses through the State Small Business Credit Initiative, we empower entrepreneurs, especially in underserved areas, to create growth in sectors like clean energy and healthcare. This investment will not only support job creation but will also strengthen Nevada’s position as a leader in the clean energy economy, ensuring that our state’s economic future is bright and sustainable.” 

“We are thrilled by being selected for this competitive SBOP award which will reinforce our Nevada SSBCI program in critical areas such as the acceleration of highly scalable startups, providing technical assistance for health care businesses, expanding a tribal entrepreneurial development program, and supporting small business manufacturers,” said Karsten Heise, Senior Director of Strategic Programs & Innovation at the Nevada Governor’s Office of Economic Development and SSBCI program manager. “We will be partnering again with the Nevada Small Business Development Center and utilizing their deep expertise in counseling our state’s small businesses. Furthermore, through its program design Nevada’s SBOP will strengthen Nevada’s leading CHIPS Act projects such as the NSF Engines and EDA Tech Hub.”

The Nevada Governor’s Office of Economic Development submitted this application, which was selected through a competitive process. Using this $4.2 million award and partnering with planned subrecipient Nevada Small Business Development Center (Nevada SBDC), Nevada will provide technical assistance services to both high growth potential companies and Main Street small businesses to reach very small and underserved businesses across the state. These services will help rural and Tribal businesses, startups, healthcare businesses, and advanced manufacturers (particularly those producing lithium batteries and other electric vehicle components) to access the legal, financial advisory, and accounting services necessary to apply for loan or investment support. This award will enable small business growth in Nevada which will power the state’s electric, innovative, and connected future. Partners in this initiative will include the Nevada SBDC, the Nevada Tech Hub, and the National Science Foundation Engines.

Selected jurisdictions will build or expand technical assistance programs focused on connecting very small and underserved businesses to financing available through SSBCI, or other state or federal small business programs, including in the infrastructure, manufacturing, clean energy, or climate resiliency space. Jurisdictions have been selected based on their plans to create innovative, high-impact models of small business technical assistance delivery that demonstrate a vision to improve access to capital for historically overlooked businesses across the nation. 

The American Rescue Plan Act reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 280 Tribal governments. 

In addition to today’s announcement, Treasury has announced the approvals of SSBCI Technical Assistance grants allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing $145 million for 48 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of approved programs here.

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1 in 7 U.S. residents covered through Affordable Care Act health insurance marketplaces over the last decade, with all-time high enrollment under Biden-Harris Administration

WASHINGTON – Today, the U.S. Department of the Treasury released new data showing that nearly 50 million Americans, or 1 in 7 U.S. residents, have been covered through the Affordable Care Act marketplaces since January 2014. Under the Biden-Harris Administration, which has lowered the cost of marketplace coverage by expanding the premium tax credit, the number of Americans covered through the marketplaces has significantly increased, reaching an all-time high of 20.8 million following open enrollment for 2024—18.2 million Americans have enrolled for the first time since January 2021.

“Nearly 50 million Americans have been covered through the Affordable Care Act’s health insurance marketplaces over the last decade. The marketplaces have benefitted nearly 1 in 7 Americans by expanding access to affordable coverage for Americans who could not get health insurance or had previously struggled with the cost,” said U.S. Secretary of the Treasury Janet L. Yellen. “Marketplace enrollment has surged under the Biden-Harris Administration, which has especially helped American families with their monthly bills and entrepreneurs who are looking for coverage as they start new businesses.” 

Under the American Rescue Plan and Inflation Reduction Act, health insurance through the marketplaces has been made significantly more affordable through an expansion of the premium tax credits. This expansion has reduced premiums of available plans to $10 or less per month for four in five customers in the federal marketplace, HealthCare.Gov, according to the U.S. Department of Health and Human Services.

In addition to improving affordability at all income levels, families over 400% of the federal poverty level (FPL), about $58,000 for a single person and $120,000 for a family of four for 2024 enrollment, gained access to the Affordable Care Act premium tax credit for the first time under the Biden-Harris Administration. Previously, financial assistance was only available to those with an annual income under 400% FPL. 

The number of people ever covered through the Affordable Care Act’s health insurance marketplaces substantially exceeds the number of people covered at any point in time, reflecting the Affordable Care Act’s role in providing coverage during life transitions like periods between jobs. 

The Affordable Care Act’s health insurance marketplaces have been especially critical to residents of states that have not expanded their Medicaid programs or recently expanded their Medicaid programs. On average, 20% of the population in non-expansion states have enrolled in an Affordable Care Act marketplace plan at some point in time, compared to 12% of the population in expansion states. 

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United States and Partners Respond to Iran’s Escalatory Decision to Provide Ballistic Missiles to Russia for its War Effort

WASHINGTON — Today, in response to Iran’s ongoing military support, including the recent delivery of ballistic missiles, to Russia for its war of aggression against Ukraine, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating ten individuals and six entities based in Iran and Russia and identifying four vessels as blocked property that are enabling Iran’s delivery of weapons components and weapons systems, including unmanned aerial vehicles (UAVs) and close-range ballistic missiles (CRBMs), to Russia. In late 2023, Iran and Russia signed a contract for the supply of hundreds of missiles. In the summer of 2024, Russian military personnel were trained on the use of Iran’s Project 360 CBRMs by Iranian personnel, and as of early September 2024, Russia received the first shipment of these CBRMs from Iran. 

Concurrent with this action, international partners are announcing measures which will not allow Iran Air to operate in their territory in the future and are pursuing further designations of Iran- and Russia-based individuals, entities, and vessels involved in the transfer of Iranian lethal aid to Russia. The Department of State is concurrently designating three entities, including Iran Air, and identifying five vessels as blocked property involved in the proliferation of Iranian weapons systems to Russia.  

“Today, the United States and our allies are taking concerted action in response to Iran’s reckless decision to proliferate ballistic missiles to Russia for use in its war of aggression against Ukraine, despite the censure from the international community in response to Iran’s provision of one-way attack UAVs to Russia, and the ample evidence of the destruction of civilian infrastructure caused by Russia’s use of such UAVs,” said Deputy Secretary of the Treasury Wally Adeyemo. “Iran has opted to intensify its involvement in Russia’s illegal war, and the United States, along with our partners, will continue to stand with Ukraine.”

Treasury’s action today is being taken pursuant to the counterterrorism authority, Executive Order (E.O.) 13224, as amended; the WMD counterproliferation authority, E.O. 13382; and E.O. 14024, which targets Russia’s harmful foreign activities. 

IRAN AIR

Tehran-based Iran Air is Iran’s flagship airline and operates both passenger and cargo flights. Iran Air has a history of transporting goods on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense and Armed Forces Logistics (MODAFL). Iran has also provided freight shipping services to Russia, including shipments of electronics and aircraft parts.

Iran Air was previously identified as meeting the definition of Government of Iran pursuant to Executive Order (E.O.) 13599 on November 5, 2018, for being owned or controlled by the Government of Iran. Concurrently, Treasury also identified 67 Iran Air-operated aircraft as blocked property on the Specially Designated Nationals and Blocked Persons List (SDN List). 

Today, Iran Air is being designated pursuant to E.O. 14024 for operating or having operated in the transportation sector of the Russian Federation economy. The Department of State is concurrently designating Iran Air pursuant to E.O. 13949, the Iran conventional arms authority, for materially contributing to the transfer, directly or indirectly, to or from Iran, or for the use in or benefit of Iran, of arms or related materiel, including spare parts.

IRGC and MODAFL OFFICIALS

Russia-based Ruhollah Katebi (Katebi) is the Russian government’s point of contact for Iran’s MODAFL in Moscow. In this capacity as a MODAFL official, Katebi has contributed to Russia’s preparations to take receipt of MODAFL’s Fath-360 CRBMs. On October 25, 2007, the Department of State designated MODAFL pursuant to E.O. 13382 for having engaged, or attempted to engage, in activities or transactions that have materially contributed to, or pose a risk of materially contributing to, the proliferation of weapons of mass destruction or their means of delivery. 

Iran-based Ebrahim Bahrami (Bahrami) is an employee of Shahid Kharrazi Industries, a subordinate organization of Iran’s Shahid Bakeri Industrial Group (SBIG), and has been a point of contact in Iran for the Russian government and the training of Russian military personnel in Iran. On January 4, 2018, the Department of the Treasury designated Shahid Kharrazi Industries pursuant to E.O. 13382 for being owned or controlled by, directly or indirectly, SBIG, which the President included in the Annex to E.O. 13382 on June 28, 2005. 

Iran-based Ali Ja’farabadi (Ja’farabadi) is the Commander of the IRGC Air Force’s Salman Farsi Space Command. As commander of the IRGC Air Force’s Salman Farsi Space Command, Ja’farabadi has overseen satellite launches in Iran. On June 16, 2010, the Department of the Treasury designated the IRGC Air Force pursuant to E.O. 13382.

Katebi is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, MODAFL. Bahrami is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, Shahid Kharrazi Industries. Ja’farabadi is being designated pursuant to E.O. 13382 for acting or purporting to act for or on behalf of, directly or indirectly, the IRGC Air Force.

TRANSMORFLOT UPDATE AND MG-FLOT VESSELS

On May 8, 2022, the Department of State designated Russia-based TransMorFlot LLC for operating or having operated in the marine sector of the Russian Federation economy. At the time of designation, vessels owned and managed by TransMorFlot LLC transported weapons for the Russian government. Concurrently, the Department of State identified Russia-flagged ETIM EMIN (IMO: 8700010) as property in which TransMorFlot LLC has an interest. On June 27, 2022, TransMorFlot LLC changed its name to MG-FLOT Limited Liability Company (MG-FLOT). In July 2022, MG-FLOT renamed the ETIM EMIN to the SAPFIR. This vessel regularly transits the Caspian Sea, bringing cargo between Iran and Russia. OFAC is updating TransMorFlot LLC and ETIM EMIN’s entries on the SDN List to include their new primary names, as well as updating other identifying information. 

Dzhamaldin Emirmagomedovich Pashaev (Pashaev) owns or controls а network of Russian shipping companies that operate in Olya Port, Russia. Pashaev’s enterprises have been involved in Russian military exports since 2021, and have completed over 200 agreements related to the maritime transport of military goods around the world. Pashaev and his companies have been integral to the ongoing transfer of lethal aid to U.S.-designated Russian Joint Stock Company Special Economic Zone of Industrial Production Alabuga (SEZ Alabuga), which has been one of the primary assembly plants of UAVs for the Russian Ministry of Defense, with support from Iran. Pashaev is the current chairman of the board of МG-FLOT.

Russia-flagged BORIS KUSTODIEV (IMO: 9103817), PORT OLYA-3 (IMO: 9481910), PORT OLYA-4 (IMO: 9481934), and KOMPOZITOR RAKHMANINOV (IMO: 8606616) are vessels that are owned and operated by MG-FLOT. The BORIS KUSTODIEV, PORT OLYA-3, PORT OLYA-4, and KOMPOZITOR RAKHMANINOV regularly transit the Caspian Sea, bringing cargo between Iran and Russia. The Russian Ministry of Defense used the vessel PORT OLYA-3 to transport CRBMs from Iran to Russia. 

Today, Pashaev is being designated for operating or having operated in the defense or related materiel sector of the Russian Federation economy. BORIS KUSTODIEV, PORT OLYA-3, PORT OLYA-4, and KOMPOZITOR RAKHMANINOV are being identified pursuant to E.O. 14024 as property in which MG-FLOT, a person whose property and interests in property are blocked pursuant to E.O. 14024, has an interest. 

AZADEGAN TRANSPORTATION COMPANY NETWORK

Iran-based Azadegan Transportation Company is an IRGC-affiliated company critical to the logistics operations of the IRGC. As of 2018, Azadegan Transportation Company was part of the portfolio of companies owned, controlled, or directed by U.S.-designated Bonyad Taavon Sepah, also known as the IRGC Cooperative Foundation. Azadegan Transportation Company conducts ground cargo transportation operations for the IRGC, including the transportation of lethal aid in the Middle East and providing logistical services related to ammunition for IRGC facilities. 

Iran-based Amad Behineh Saz Engineering Company (Amad Behineh Saz), Sanjesh Gostar Dana Engineering and Quality Control Inspection Company (Sanjesh Gostar Dana), and Talieh Sabz Jehan Group Company (Talieh Sabz Jehan) are legal entities that are members of the board of directors of Azadegan Transportation Company. Amad Behineh Saz is an IRGC-affiliated company responsible for the design and production of mechanical and electronic parts and is represented on Azadegan Transportation Company’s board by Ali Zare (Zare), who also acts as the Chairperson of the Board of Directors of Azadegan Transportation Company. Sanjesh Gostar Dana is an IRGC-affiliated company responsible for quality inspection and supervision, and is represented on Azadegan Transportation Company’s board by Gholamreza Eini Sarkalleh (Sarkalleh), who also acts as the Vice Chairperson of the Board of Directors of Azadegan Transportation Company. Talieh Sabz Jehan is an IRGC-affiliated company responsible for providing design and project management guidance, and is represented on Azadegan Transportation Company’s board by Masoud Noorahmadi (Noorahmadi), who also acts as the Managing Director of Azadegan Transportation Company.

Azadegan Transportation Company is being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, directly or indirectly, the IRGC. Amad Behineh Saz and Talieh Sabz Jehan are being designated pursuant to E.O. 13224, as amended, for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Azadegan Transportation Company. Zare, Sarkalleh, and Noorahmadi are being designated pursuant to E.O. 13224, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, Azadegan Transportation Company. Sanjesh Gostar Dana is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or providing financial, materiel or technological support for, or goods or services to or in support of, the IRGC.

FARZANEGAN PROPULSION SYSTEMS DESIGN BUREAU AND COMPANY OFFICIALS

Iran-based Farzanegan Propulsion Systems Design Bureau (Farzanegan) has supplied Russian weapons makers with samples of Farzanegan’s engines in support of Russian cruise missile development. Farzanegan manufactures numerous types of engines, including turbojet engines, and claims to have designed Iran’s first ramjet engine. Farzanegan has long been involved in the development of engine technology for Iranian defense research entities, and Farzanegan’s engines have been presented in person to Iran’s Supreme Leader, Ayatollah Ali Khamenei. 

Hossein Pourfarzaneh, Zahra Pourfarzaneh, and Hassan Pourfarzaneh are leaders or officials of Farzanegan, with Hossein Pourfarzaneh taking a public-facing and highly publicized role as the lead engineer at Farzanegan. 

Farzanegan is being designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy. Hossein Pourfarzaneh, Zahra Pourfarzaneh, and Hassan Pourfarzaneh are being designated pursuant to E.O. 14024 for being or having been a leader, official, senior executive officer, or member of the board of directors of Farzanegan. 

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as from engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation. 

In addition, persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. Furthermore, any foreign financial institution that knowingly facilitates a significant transaction or provides significant financial services for any of the or entities designated today could be subject to U.S. sanctions. For additional guidance specific to E.O. 14024, as amended, please see the updated OFAC advisory, “Updated Guidance for Foreign Financial Institutions on OFAC Sanctions Authorities Targeting Support to Russia’s Military-Industrial Base,” as well as OFAC Frequently Asked Questions (FAQs) 1146–1157. For additional guidance specific to Iran authorities, please refer to OFAC’s Iran Sanctions. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Any persons included on the SDN List pursuant to E.O. 14024 may be subject to additional export restrictions administered by the Department of Commerce, Bureau of Industry and Security (BIS).

For identifying information on the individuals and entities sanctioned today, click here. 

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CJNG Fuel Theft Network Deprives Mexico of Revenue while Strengthening Cartel

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned nine Mexican nationals and 26 Mexico-based entities linked to a fuel theft network that generates tens of millions of dollars benefiting the Cartel Jalisco Nueva Generacion (CJNG), a violent Mexico-based drug trafficking organization responsible for a significant proportion of fentanyl and other deadly drugs trafficked into the United States. Mexico-based drug trafficking cartels such as CJNG have turned to fuel theft in recent years, resulting in billions of dollars in lost revenue to the Mexican government. Today’s action was coordinated closely with the Drug Enforcement Administration and the Government of Mexico, including La Unidad de Inteligencia Financiera (UIF), Mexico’s Financial Intelligence Unit.

“President Biden, Vice President Harris, and the Treasury Department are committed to taking decisive action to disrupt the funding and operations of deadly fentanyl-trafficking cartels like CJNG,” said Deputy Secretary of the Treasury Wally Adeyemo. “CJNG’s diverse revenue streams, including fuel theft, ultimately strengthen its ability to traffic fentanyl and other deadly drugs into the United States. Treasury will continue to use its expertise and tools to target relentlessly drug trafficking gangs to make our communities safer and keep poisonous drugs like fentanyl off our streets.” 

Treasury plays a leading role in countering the trafficking of fentanyl and other illicit drugs as part of President Biden’s Unity Agenda, leveraging its expertise to fight illicit financing and financial crimes to disrupt the flows of money that criminal organizations rely on to operate. Over the past two years, Treasury has sanctioned more than 300 targets for involvement in drug trafficking activities at all stages of the supply chain, from major cartel leaders to under-the-radar labs, transportation networks, and chemical suppliers. Last year, Secretary Yellen launched the Counter-Fentanyl Strike Force, which brings together Treasury’s expertise and resources in fighting financial crime, led by the Office of Terrorism and Financial Intelligence (TFI) and IRS Criminal Investigation (CI). Secretary Yellen has also engaged with international partners to combat fentanyl trafficking, including during her travel to Mexico last year. In April, Secretary Yellen also announced the launch of an exchange with the People’s Republic of China to enhance cooperating in combatting money laundering associated with drug trafficking and other crime.

Today’s action is taken pursuant to Executive Order (E.O.) 14059, which targets persons involved in the Global Illicit Drug Trade. On April 8, 2015, OFAC sanctioned CJNG pursuant to the Kingpin Act for playing a significant role in international narcotics trafficking. On December 15, 2021, OFAC also designated CJNG pursuant to E.O. 14059. In other actions, OFAC has sanctioned numerous CJNG-linked individuals and companies pursuant to both the Kingpin Act and E.O. 14059 that were engaged in various commercial activities and multiple individuals who played critical roles in CJNG’s drug trafficking, money laundering, timeshare fraud, and corruption.

THICK AS THIEVES: MEXICAN CARTELS AND FUEL THEFT

Fuel theft, colloquially referred to in Mexico as huachicol, is the most significant non-drug revenue source for Mexican cartels and other illicit actors. Thieves in Mexico (or huachicoleros) steal fuel from Mexico’s state-owned petroleum company, Pemex, through numerous means, including illegally drilling taps into fuel pipelines, stealing from refineries, and hijacking tanker trucks. They also use bribery and violence in support of these illicit activities. Stolen fuel is then sold on the black market around Mexico and even in the United States and Central America. In recent years, as Mexican cartels have become more involved in fuel theft, the Mexican government has reported billions of dollars in lost revenue due to huachicol. 

DISRUPTING CJNG FUEL THEFT 

Ivan Cazarin Molina (a.k.a. “El Tanque”—meaning the storage tank) is a senior member of CJNG, reporting directly to CJNG leader Ruben Oseguera Cervantes (a.k.a. “El Mencho”) as part of his inner circle of trusted associates. Involved in the rise and consolidation of CJNG, El Tanque operates in the Mexican states of Jalisco and Veracruz. Although primarily involved in fuel theft, El Tanque has also engaged in drug trafficking, extortion, and homicide. El Tanque’s fuel theft generates tens of millions of dollars per year for himself and CJNG. El Tanque steals fuel through illicit taps of Pemex pipelines and stores it near the city of Veracruz in storage tanks capable of holding millions of liters. Through family members and associates acting as front persons, El Tanque manages a network of ostensibly legitimate retail gas stations where he sells stolen fuel. El Tanque also sells stolen fuel to third parties in Mexico, who in turn sell it to the U.S. market, often in Texas.  

_{Fuel storage tanks used by El Tanque located in Veracruz, Mexico} 

OFAC designated El Tanque pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, CJNG, a person designated pursuant to E.O. 14059.

TARGETING EL TANQUE’S TEAM

In addition to El Tanque, OFAC also designated his family members, who are linked, directly or indirectly, to CJNG fuel theft.

Often mistaken for one another, El Tanque is the younger brother of senior CJNG member Cesar Cazarin Molina (a.k.a. “Tornado”). Both El Tanque and Tornado have been identified as using the alias “Victor Hugo Delgado Renteria.” Like El Tanque, Tornado was a founding member of CJNG and is close friends with El Mencho. Involved in homicide and recognized as a member of the armed wing of CJNG, Tornado was arrested in 2013 but remains involved in CJNG activities in Veracruz from within prison. El Tanque shares his fuel theft profits with Tornado.

El Tanque’s father-in-law, Domingo Medina Diaz (a.k.a. El Mingo), is also known to be a member of the armed wing of CJNG and has been involved in Mexico’s fuel industry since the late 1980s. Like Tornado, El Mingo is also incarcerated in Mexico yet remains active in CJNG and receives shares of fuel profits from El Tanque. 

Jahir Cazarin Ramos, nephew to El Tanque and son of Tornado, acts as a front person or officer in fuel-related companies in El Tanque’s network. Additionally, OFAC designated El Tanque’s associates who, directly or indirectly, play important roles in his fuel theft activities which benefit CJNG.

Gerardo Alvarado Castillo is a trusted associate of El Tanque and acts as a front person for a hazardous materials transportation company in El Tanque’s network.

Jose Saul Rodriguez Hernandez is an important front person for El Tanque, holding various positions in, and serving as the public face of, several fuel-related companies in El Tanque’s network.

El Tanque’s other associates acting as officers or front persons in fuel-related companies in his network include Brandon Ernesto Herrera Medina, Santos Aldair Estrada Medina, and Patricia Rivera Garcia.

OFAC designated Tornado, El Mingo, and Gerardo Alvarado Castillo pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, CJNG, a person designated pursuant to E.O. 14059.

OFAC designated Jahir Cazarin Ramos, Jose Saul Rodriguez Hernandez, Brandon Ernesto Herrera Medina, Santos Aldair Estrada Medina, and Patricia Rivera Garcia pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, El Tanque.

EXPOSING OSTENSIBLY LEGITIMATE BUSINESSES

El Tanque’s business network is particularly vulnerable to disruption given his use of seemingly legitimate retail gas station companies to sell stolen fuel.

Accordingly, OFAC sanctioned eleven retail gas station companies in El Tanque’s network and based in Veracruz, Mexico, namely Biocombustibles El Jicaro, S.A. de C.V.; Dos Oceanos Paso del Toro, S.A. de C.V.; Etanofuel, S.A. de C.V.; Rapicombustibles de Veracruz, S.A. De C.V.; Magnocombustibles de Veracruz, S.A. de C.V.; Ahorrocombustibles de Veracruz, S.A. de C.V.; Econocombustibles de Veracruz, S.A. de C.V.; Carburantes Dos Oceanos, S.A. de C.V.; Dos Oceanos Combustibles y Carburantes, S.A. de C.V.; Combustibles Evolutivos y Alternativos Dos Oceanos, S.A. de C.V.; and Suministros Combustibles Oceanos, S.A. de C.V.

_{Etanofuel, S.A. de C.V. (a.k.a. “G Energy”), a retail gas station company owned, controlled, or directed by, directly or indirectly, El Tanque} 

OFAC also sanctioned a Veracruz-based hazardous materials transportation company, Traver Permisionarios, S.A. de C.V., and construction company, Maquinas EDJA, S.A. de C.V., supporting El Tanque’s illicit fuel activities.

OFAC designated Biocombustibles El Jicaro; Dos Oceanos Paso del Toro; Etanofuel; Rapicombustibles de Veracruz; Magnocombustibles de Veracruz; Ahorrocombustibles de Veracruz; Econocombustibles de Veracruz; Carburantes Dos Oceanos; Dos Oceanos Combustibles y Carburantes; Combustibles Evolutivos y Alternativos Dos Oceanos; Suministros Combustibles Oceanos; Traver Permisionarios; and Maquinas EDJA pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, El Tanque.

Finally, OFAC also sanctioned 13 Veracruz-based companies pursuant to E.O. 14059 for being owned, controlled, or directed by, or having acted or purported to act for or on behalf of, directly or indirectly, Jose Saul Rodriguez Hernandez, namely, 3D Modern Printing Press; Aceites y Lubricantes Maye, S.A. de C.V.; Aditivos y Suministros Etanofuel, S.A. de C.V.; Combustibles y Lubricantes Maye, S.A. de C.V.; Comercializadora Baguette Klic, S.A. de C.V.; Comercializadora Coffe Klic, S.A. de C.V.; Constructora Jjesa S.A. de C.V.; Etanoplus, S.A. de C.V.; Maxi-Gasoil Servicios, S.A. de C.V.; Mayegas, S.A. de C.V.; Multiservicios en Combustible Maye de Veracruz, S.A. de C.V.; Super Tiendas Klic, S.A. de C.V.; and Veracruzana de Servicios Hoteleros y Gastronomicos Los Angeles, S.A. de C.V.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. persons may face civil or criminal penalties for violations of E.O. 14059 and the Kingpin Act. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

Today’s action is part of a whole-of-government effort to counter the global threat posed by the trafficking of illicit drugs into the United States that is causing the deaths of tens of thousands of Americans annually, as well as countless more non-fatal overdoses. OFAC, in coordination with its U.S. government partners and foreign counterparts, and in support of President Biden’s Unity Agenda, will continue to hold accountable those individuals and businesses involved in the manufacturing and sale of illicit drugs.

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

To view the chart on the individuals designated today, click here.

Additionally, to view the chart on the entities designated today, click here.

For more information on the individuals and entities designated today, click here.

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WASHINGTON – Today, the U.S. Department of the Treasury announced that the Maryland Technology Development Corporation (TEDCO) is being awarded $10 million to support small business growth through the State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP). 

Part of the Biden-Harris Administration’s economic agenda, this program provides funding to connect underserved and very small businesses to the financing needed to participate in key Investing in America supply chains, including electric vehicle manufacturing, semiconductor manufacturing, construction, transportation, clean energy generation, and more. The SBOP was designed to catalyze additional private sector investment by supporting small business technical assistance services. 

“The Biden-Harris Administration is committed to expanding access to capital for communities across the country and creating opportunities for entrepreneurs to grow their businesses in thriving sectors of our economy,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “With this federal funding, the Maryland Technology Development Corporation will be able to provide critical services to small businesses in the region to help them succeed.” 

“Turning an idea into a job-creator takes time, money, and support. By working together across the state and federal levels, we are helping entrepreneurs and small business owners access all three,” said Maryland Governor Wes Moore. “Maryland is grateful for the strong leadership of the Biden-Harris Administration, as we continue moving in partnership to make our state more competitive and leave no one behind.”

“During my time as Chair of the Senate Small Business and Entrepreneurship Committee, I worked closely with the Biden-Harris administration to ensure that Congress not only helped small businesses make it through the pandemic but were able to succeed afterwards. The State Small Business Credit Initiative (SSBCI) is a key tool in the success of small businesses. This $10 million investment in TEDCO’s BRIDGE Program will help Maryland small businesses and entrepreneurs with the resources that are the most costly for them: financial and legal expertise,” said U.S. Senator Ben Cardin. “Team Maryland continues to leverage our strong partnership with the Biden-Harris administration to increase access to and the affordability of financial and legal resources, technical assistance, lending, and other opportunities for small businesses, especially underserved small businesses. A strong small business ecosystem is the backbone of a strong Maryland.”

“In passing the American Rescue Plan we committed not only to keeping our small businesses afloat amid the pandemic, but also to position them for long-term success. As our Investing in America agenda continues to generate new opportunities across our state, this $10 million investment in TEDCO’s BRIDGE Program will help connect our local entrepreneurs with these opportunities and boost the resources available for them to capitalize on this moment to innovate and compete,” said U.S. Senator Chris Van Hollen. 

“The historic investments that Democrats made last Congress in manufacturing, infrastructure, research and development, green technology, and other key industries have fueled the greatest period of small business growth in American history,” U.S. Congressman Steny H. Hoyer said. “With Americans submitting a record 18.6 million applications to start new businesses under the Biden-Harris Administration, it’s crucial that we help connect these entrepreneurs to the many economic opportunities that our Investing in America agenda continues to create across Maryland and America. This $10 million grant will help Maryland small businesses take full advantage of the programs and policies we secured last Congress and stay competitive in the twenty-first century global economy.” 

“Working with our partners in Delaware, the District of Columbia, Virgina and Maryland, it is our privilege to lead the Mid-Atlantic regional BRIDGE Program supported by Treasury’s SSBCI SBOP Program,” said Troy LeMaile-Stovall, TEDCO CEO. “In a close-knit region like the Mid-Atlantic, state and district boarders should not constrain access to programs supporting business growth because the economic impact of that growth does not recognize those boarders. BRIDGE will benefit each of our districts by strengthening our broader region.” 

Maryland applied for this SBOP award in close coordination with Delaware, Virginia, and the District of Columbia, and the award will be used to fund technical assistance throughout the region. Through this award, Maryland will establish the Business Resource Information, Development, and Guidance Ecosystem (BRIDGE) program to provide tailored legal, accounting, and financial advisory services to help small businesses build capacity and apply for loans or investments. The BRIDGE Program is designed to support both Main Street small businesses that provide crucial goods and services and also high-growth, innovation-focused companies, offering programming to meet a range of business types and needs. TEDCO will partner with the University of Maryland for development and execution of the BRIDGE program. Maryland has also obtained a commitment of nearly $2.2 million in matching funds from TEDCO and the University of Maryland to support and leverage the SBOP award. 

Selected jurisdictions will build or expand technical assistance programs focused on connecting very small and underserved businesses to financing available through SSBCI, or other state or federal small business programs, including in the infrastructure, manufacturing, clean energy, or climate resiliency space. Jurisdictions have been selected based on their plans to create innovative, high-impact models of small business technical assistance delivery that demonstrate a vision to improve access to capital for historically overlooked businesses across the nation.  

The American Rescue Plan Act reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and democratize access to capital across the country, including in underserved communities. Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.7 billion and representing every state and territory, the District of Columbia, and 280 Tribal governments. 

In addition to today’s announcement, Treasury has announced the approvals of SSBCI Technical Assistance grants allocated by formula to states, the District of Columbia, territories, and Tribal governments, representing $145 million for 48 jurisdictions. Treasury anticipates additional approvals of applications to follow. See the full list of approved programs here. 

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$172 million recovered from 21,000 wealthy taxpayers who have not filed tax returns since 2017 in first six months of new initiative

WASHINGTON—Today, U.S. Secretary of the Treasury Janet L. Yellen and Commissioner of the Internal Revenue Service Danny Werfel are delivering remarks at the Austin, Texas IRS campus to announce new milestones under Inflation Reduction Act initiatives to ensure wealthy individuals pay taxes owed, improve service for taxpayers through the Digital First Initiative, and modernize foundational technology. 

Ensuring High-Income, High-Wealth Taxpayers Pay Taxes Owed

• The IRS in February 2024 launched an initiative to pursue 125,000 high-income, high-wealth taxpayers who have not filed taxes since 2017. These are cases where IRS has received third party information—such as through Forms W-2 and 1099s—indicating these people received income between $400,000 and $1 million or more than $1 million, but failed to file a tax return. Prior to the Inflation Reduction Act, the IRS non-filer program ran sporadically since 2016 due to severe budget and staff limitations that did not allow these cases to be pursued. With new Inflation Reduction Act funding, the IRS now has the capacity to do this core tax administration work. In the first six months of this initiative, nearly 21,000 of these wealthy taxpayers have filed, leading to $172 million in taxes being paid. 
• The IRS in the fall of 2023 launched a new initiative using Inflation Reduction Act funding to pursue high-income, high-wealth individuals who have failed to pay recognized tax debt, with dozens of senior employees assigned to these cases. This work is concentrated on taxpayers with more than $1 million in income and more than $250,000 in recognized tax debt.  The IRS was previously unable to collect from these individuals due to a lack of resources. After successfully collecting $38 million from more than 175 high-income, high-wealth individuals last year, the IRS expanded this effort last fall to around 1,600 additional high-income, high-wealth individuals. Nearly 80% of these 1,600 millionaires with delinquent tax debt have now made a payment, leading to over $1.1 billion recovered. This is an additional $100 million just since July, when Treasury and IRS announced reaching the $1 billion milestone.

Improving Taxpayer Service Through the Digital First Initiative

With Inflation Reduction Act resources, the IRS is significantly improving taxpayer service in person, over the phone, and online. The IRS is working to deliver the same modern online experience that taxpayers experience with their bank or financial institutions. Using Inflation Reduction Act resources, the IRS has created and enhanced popular and convenient online tools that save taxpayers time and money, while also reducing phone calls, paper processes, and other burdens on IRS employees. For example, in Filing Season 2024, IRS updated the “Where’s My Refund?” tool to provide more detailed refund status information in plain language, increasing use by nearly 30%. 

Thanks to Inflation Reduction Act resources, the IRS has launched more digital tools in the last two years than the previous 20 years, including:

• More than two dozen new features and enhancements to Individual and Tax Professional Online Account;
• The launch of Business Tax Account;
• The release of 30 digital mobile-adaptive forms;
• The ability for taxpayers to receive their refund status via a conversational hotline;
• A mobile-friendly web tool for Where’s My Refund; and
• Direct File, a new tool that allows taxpayers to file for free, directly with the IRS. 

Through the Digital First Initiative, the IRS is pursuing a vision where taxpayers can do all their transactions with the IRS digitally if they prefer. At the core of that improved digital experience for taxpayers are enhancements to Individual Online Account. Thanks to funding from the Inflation Reduction Act, taxpayers can now:

• View the status of refunds and certain audits.
• Access a complete overview of their account information, including detailed historical data.
• Access identity protection services, a lien payoff calculator, and the ability to complete the pending installment agreement process using smartphones or tablets—all critical as taxpayers prepare for Filing Season 2025.
• Retrieve tax related information from a single source, including digital copies of notices and letters—with more than 170 different types of notices and letters currently available in their Online Account. The agency’s goal is to make an additional 98 notices available for digital viewing, reaching a total of 268 notices digitally available by the end of 2024.

Through the Simple Notice Initiative, the IRS is also redesigning up to 200 individual taxpayer notices to be shorter and clearer, reducing taxpayer frustration and the number of phone calls requiring live assistance, for Filing Season 2025. The IRS has completed 109 notices as of the end of July 2024. 
Additionally, Tax Pro Online Account rolled out more self-service options for tax professionals, including easier navigation to secure two-way messaging where authorized tax professionals can digitally communicate with the IRS on behalf of their clients. The IRS is also continuing to expand the features within Business Tax Account, an online self-service tool for business taxpayers that now allows them to view and submit balance-due payments. The account is also now accessible in Spanish, with more translations planned. 

Modernizing 65-Year-Old Foundational Technology to Improve Taxpayer Service and Better Secure Taxpayer Data

For 65 years, the IRS has relied on the same foundational technology for many of its critical systems, including the Individual Master File (IMF), which houses taxpayer data and feeds into key systems. The core technology, based on ALC and COBOL coding, has become a liability due to the diminishing pool of experts proficient in this legacy language.

The IRS has reached a critical milestone in modernizing a core technology component of the Individual Master File, by porting the outdated Assembly-based codebase to Java, a more modern, more sustainable language. Reflecting the agency’s focus on technology best practices, this new system, Integrated Tax Processing Engine (ITPE), is now running simultaneously with IMF to verify accuracy of its data processing. The system’s data will be hosted in the Enterprise Data Platform, a modern, cloud-based system for managing data.

Making taxpayer history available in a modern data environment is a key step toward the IRS implementing real-time data processing with platforms that will enable transactions to be processed more quickly, transparently, and securely. These improvements are a critical enabler for the IRS’s Digital First Initiative. For example, it will improve taxpayer service by allowing taxpayers and customer service representatives to access real-time account information in the future just as any bank or financial institution does. These improvements will also empower IRS to implement tax code changes and emergency benefit programs more quickly, while reducing the costs of maintaining IRS systems. This project was delayed for years due to underfunding.

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