The US Treasury Department has announced it has approved additional support for underserved small business entrepreneurs in nine states through the State Small Business Credit Initiative (SSBCI). Treasury Department had earmarked more than $1o billion in funding to promote small business growth across the US.
Nine More States Approved for SSBCI Funding
In this round, the states of Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, and Vermont have been allotted $940 Million as part of SSBCI.
The American Rescue Plan had reauthorized and expanded SSBCI, which was originally established in 2010. At that time it helped increase access to capital for traditionally underserved small businesses and entrepreneurs. As part of this reauthorization, $10 billion in funding is being allocated by SSBCI to states across the United States.
How Will Small Businesses in These States Benefit?
This latest Treasury department funds now stand at more than $ 1.5 billion across 14 states. In total the nine states will receive some $940 Million in small business capital funds. In their application for the SSBCI program, the states plan to target key industries and small businesses looking for access to capital. Some of the key programs that the Treasury has approved for these states include:
- Arizona will receive up to $111.0 million, to run three different programs, including two venture capital programs, to which the state has allocated $87 million, and a loan guarantee program. The venture capital programs will invest in seed and Series A-stage focused venture funds and early-stage technology startups.
- Connecticut has been awarded up to $119.4 million to operate two different programs and will launch two major new initiatives. The Connecticut Future Fund and The ClimateTech (CT) Fund.
- Indiana has been approved up to $99.1 million to operate two different programs, including a venture capital program to which it has allocated over $70 million.
- Maine was approved up to $62.2 million to operate four different programs, including two venture capital programs to which it has allocated $20 million.
- New Hampshire is approved for up to $61.5 million. It will operate five different programs, including a loan participation program to which it has allocated $40 million.
- Pennsylvania is approved for up to $267.8 million. It will operate three different programs, including an equity capital investments program and venture capital investments program to which it has allocated a combined $142 million.
- South Carolina is approved for up to $101.3 million. It will operate a loan participation program to which it has allocated $50 million and a venture capital program to which it has allocated $51 million.
- South Dakota is approved for up to $60.0 million. It will operate one loan participation program, to which it has allocated its entire $60 million amount, to provide companion loans to financing provided by financial institutions such as banks and CDFIs.
- Vermont is approved for up to $57.9 million. It will operate three different programs, including two venture capital programs to which it has allocated nearly $29 million.
More SSBCI Funding Available to Spur Small Business Success and Job Creation
This is the second round of funding. In May the initiative provided funds to Hawaii, Kansas, Maryland, Michigan, and West Virginia. SSBCI’s funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, amplifying the effects of this funding and providing small business owners with the resources they need to sustainably grow and thrive.
State governments had submitted plans to Treasury for how they will use their SSBCI allocation to provide funding to small businesses. This includes venture capital programs, loan participation programs, loan guarantee programs, collateral support programs, and capital access programs.
“This is a historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” said Janet L. Yellen, Secretary of the Treasury.
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