WASHINGTON — The U.S. Department of the Treasury reports it has approved seven additional state plans for up to $1.5 billion in funding under the State Small Business Credit Initiative (SSBCI). This brings the approved amount of state plans to a total of up to $6.3 billion in funding.
“This is an 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,” says Secretary of the Treasury Janet L. Yellen. “These SSBCI funds will promote equitable economic growth across the country.”
The American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010 to increase access to capital for small businesses and entrepreneurs. The new SSBCI builds on this model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic.
SSBCI 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.
The seven additional state plans approved come from:
- Florida, approved for up to $488.4 million, will operate five programs: a collateral support program, a loan participation program, a loan guarantee program, an equity/venture capital program, and a capital access program.
- Georgia, approved for up to $199.6 million, will operate five programs: a loan guarantee program, two loan participation programs, and two equity/venture capital programs.
- Illinois, approved for up to $354.6 million, will operate four programs: one new loan guarantee program; two loan participation programs, one through the existing Advantage Illinois structure and one new program focused on supporting emerging businesses in the green energy sector; and a new equity/venture capital program for small businesses.
- Louisiana, approved for up to $113.0 million, will operate five programs; a loan guarantee program, a loan participation program, a collateral support program, and two equity/venture capital programs.
- North Dakota, approved for up to $58.6 million, will operate two equity/venture capital programs.
- Oklahoma, approved for up to $81.6 million, will operate two programs: a loan participation program and an equity/venture capital program.
- Virginia, approved for up to $230.4 million, will operate five programs: two loan participation, one loan guarantee, and two equity/venture capital programs.
To learn more about the SSBCI and how to seek funding through the Initiative, visit the Department of Treasury’s website: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci.
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