C-Suite Wednesday – 7 States to Receive up to $1.5 Billion Through State Small Business Credit Initiative
December 7, 2022
Delaney Sexton
Contributing Editor
C-Suite Wednesday – 7 States to Receive up to $1.5 Billion Through State Small Business Credit Initiative
“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,” says Secretary of the Treasury Janet L. Yellen. “These SSBCI funds will promote equitable economic growth across the country.”
The U.S. Department of the Treasury approved seven state plans for up to $1.5 billion in funding through the State Small Business Credit Initiative (SSBCI). So far, the Treasury has announced the approval of up to $6.3 billion in state plans for SSBCI funding. For every dollar of SSBCI capital funding, there is expected to be up to $10 of private investment to match it.
The new states that were approved to receive federal funding through the SSBCI are Florida, Georgia, Illinois, Louisiana, North Dakota, Oklahoma, and Virginia. These are the programs and plans each state was approved for:
Florida: The Treasury approved the state for up to $488.4 million for five programs. The programs are a collateral support program, a loan participation program, a loan guarantee program, an equity/venture capital program, and a capital access program.
Georgia: They were approved for up to $199.6 million for five programs: a loan guarantee program, two loan participation programs, and two equity/venture capital programs.
Illinois: The Treasury approved up to $354.6 million for four programs including a new loan guarantee program, two loan participation programs (one through the existing Advantage Illinois structure and one new program that will support emerging businesses in the green energy sector), and a new equity/venture capital program.
Louisiana: The state was approved for up to $113 million for the operation of five programs: a loan guarantee program, a loan participation program, a collateral support program, and two equity/venture capital programs.
North Dakota: The Treasury approved up to $58.6 million to operate two equity/venture capital programs. Both will provide equity support directly to small businesses and startups by co-investing with private investors.
Oklahoma: Approved for up to $81.6 million, the state will operate a loan participation program and equity/venture capital program through the Oklahoma Center for the Advancement of Science and Technology.
Virginia: They were approved for up to $230.4 million to operate five programs: two loan participation programs, one loan guarantee program, and two equity/venture capital programs.