Plans for over $8 billion in State Small Business Credit Initiative funding have been approved to support small business and entrepreneurship in communities across the nation
WASHINGTON — Today, the U.S. Department of the Treasury announced the approval of Mississippi’s state plan for up to $86 million in funding under the American Rescue Plan’s State Small Business Credit Initiative (SSBCI), part of President Biden’s Investing in America agenda. The Treasury Department has now announced the approval of state, territory, and Tribal government plans corresponding to over $8 billion in SSBCI funding to support small business and entrepreneurship and expand access to capital.
“Support for small business growth and access to capital is a key component of President Biden’s Investing in America agenda,” said Deputy Secretary of the Treasury Wally Adeyemo. “The State Small Business Credit Initiative is helping to unlock the potential of entrepreneurs in underserved communities in Mississippi and across the nation who may have otherwise never had the support needed to pursue their business ideas and ambitions.”
The American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010 and was highly successful in increasing access to capital for small businesses and entrepreneurs. The new SSBCI builds on this successful 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. This includes $2.5 billion in funding and incentives to support underserved businesses. 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.
Mississippi, approved for up to $86 million, will operate four programs: a loan participation program, a loan guarantee program, and two equity/venture capital programs. Mississippi allocated $45 million to the Mississippi CDFI Small Business Loan Fund, a loan participation program that will provide funds in the form of a loan to CDFIs to support lending to Mississippi small businesses. Mississippi allocated $15 million to the Mississippi Venture Capital Program, a program that will provide equity support to small businesses by investing in venture capital funds that support startups, and $11 million to a program that will directly invest in startups, particularly those in the manufacturing and supply chain sectors. In addition, the state will operate a $15 million loan guarantee program that will provide guarantees of up to 80% and is focused on expanding access to capital for underserved small businesses.
SSBCI investments are a key part of the Biden-Harris Administration’s strategy to strengthen the small business boom we’ve seen since the start of this Administration by expanding access to capital and by providing entrepreneurs the resources they need to succeed. In January, the Census Bureau released data which showed that over the last two years Americans have applied to start 10.5 million new businesses, making 2021 and 2022 the strongest two years on record for new business applications. Last month, the White House released a report card demonstrating across-the-board progress on commitments designed to maintain the nation’s historic momentum in fostering new businesses that’s led to the small business boom seen over the last two years. The investments being made through SSBCI are a key part of this strategy to keep this small business boom going by expanding access to capital and by providing entrepreneurs the resources they need to succeed. The work the Treasury Department has done through SSBCI’s implementation process to help these funds reach traditionally underserved small businesses and entrepreneurs will continue to be critical to ensuring the small business boom lifts up communities disproportionately impacted by the pandemic.
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