SBA Hot Topic Tuesday – Treasury Allocates SSBCI Funds to Four More States

February 28, 2023

Delaney Sexton
Contributing Editor

SBA Hot Topic Tuesday – Treasury Allocates SSBCI Funds to Four More States

“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 Treasury announced that four additional state plans for the State Small Business Credit Initiative (SSBCI) were approved. More than $7 billion in SSBCI funds has been approved for state and territory plans thus far.

Delaware is approved for up to $60.9 million and will operate four programs. Those programs include a capital access program, a loan participation program, and two equity/venture capital programs:

• The loan participation program will be allocated $27.5 million and offer up to 50% participation in small business loans for equipment and working capital.
• The Delaware Early Stage Venture Capital program which is receiving an allocation of $22.5 million.
• The Delaware Accelerator and Seed Capital Program is allocated $7.5 million to support an estimated three accelerator programs.

Kentucky is approved for up to $117.1 million to operate four programs. The Kentucky Cabinet for Economic Development (KCED) is the entity that will implement the programs:

• The Kentucky Science and Technology Corporation will administer two equity/venture capital programs.
• KCED will administer a loan participation and collateral support program. These programs will use existing initiatives to expand capital access for underserved communities.

Tennessee is approved for up to $116.9 million and will operate a loan participation program and three venture capital programs:

• The state is allocating $46.9 million for a debt program that will participate in loan transactions with CDFIs and Minority Depository Institutions (MDIs).
• $70 million is allocated to the equity program.

Wyoming is approved for up to $58.4 million to operate two programs that will provide access to venture capital investments for Wyoming entrepreneurs:

• The funds program is allocated $23.4 million and will provide limited partnership investments in Wyoming seed/early-stage venture capital funds.
• The direct program, receiving $35 million, will provide equity co-investments in Series A or growth-stage technology companies in Wyoming.

Source:
Treasury Press Release