Treasury approves $940 million in small business investment funds for 9 states

0

WASHINGTON — The Treasury Department said it approved nine state plans for the state’s Small Business Credit Initiative worth $940 million, bringing total capital program approvals -COVID-19 recovery risk at $1.5 billion.

The $10 billion SSBCI program aims to address a shortage of capital for starting new businesses and growing other small businesses, especially in disadvantaged communities, by attracting $10 of private investment for every $1 of taxpayer funding. It was reauthorized and expanded as part of last year’s $1.9 trillion American Rescue Plan Act.

State plan approvals announced July 18 include a variety of venture capital funds, loan participation programs, loan guarantees, collateral support programs and portfolio insurance to make capital more accessible to small businesses and entrepreneurs.

Connecticut has received up to $119.4 million to launch two new venture capital funds supporting entrepreneurs from “underserved and diverse backgrounds” and a climate tech fund for “clean energy, responsible manufacturing environment and climate resilience”.

Pennsylvania was approved up to $267.8 million, Alabama up to $111 million, South Carolina up to $101.3 million, Indiana up to $99.1 million $, Maine up to $62.2 million, New Hampshire up to $61.5 million, South Dakota up to $60 million and Vermont up to $57.9 million of dollars.

Funds are released in installments, with each subsequent disbursement dependent on the achievement of performance targets from previous funds.

A Treasury official said there is now a ‘strong pipeline’ of additional state plans that are close to approval, and the Treasury hopes to complete the review of all state applications by the end of summer.

Follow

Share.

About Author

Comments are closed.