The U.S. Department of the Treasury recently announced the approval of four additional state plans under the State Small Business Credit Initiative (SSBCI) in President Biden’s American Rescue Plan.
The funding will total up to $353.4 million, which brings the total of Treasury-approved state and territory plans to over $7 billion in SSBCI funding. The funds are intended to support small businesses and entrepreneurships by expanding access to capital.
Reauthorized Plan to Help Small Businesses
The SSBCI was originally established in 2010 and was very successful in expanding access to capital for small businesses and entrepreneurs. It has now been reauthorized and expanded by the President’s American Rescue Plan.
This comes after the Census Bureau released data in January that revealed that Americans have applied to start 10.5 million new businesses over the last two years, which makes 2021 and 2022 the strongest two years on record for new business applications.
‘Historic Investment’ in Small Businesses
Referencing the original model of the SSBCI, a statement on the Treasury website explained: “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.”
The Secretary of the Treasury, Janet L. Yellen, added: “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. These SSBCI funds will promote equitable economic growth across the country.”
Key Programs of SSBCI
There are many key programs as part of the new SSBCI, including four in Delaware which will receive funding of $60.9 million. Both Kentucky and Tennessee will also have four programs apiece, with both states receiving well over $100 million in funding each. Wyoming’s two programs will receive up to $58.4 million in funding.
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