The latest round of relief from the U.S. Treasury Department is being offered to small businesses as recession fears continue to spread across the country.
On Friday the U.S. Department of the Treasury announced plans to roll out the 6th State Small Business Credit Initiative (SSBCI) to Colorado, Montana, New York and Oregon from the reauthorized State Small Business Credit Program (SSBCI). Three rounds of funding. In total, four other states were approved for relief of up to $751 million.
SSBCI is a small business assistance program that has been around since 2010, but is due to the $1.9 trillion US Rescue Program Act signed into law by President Joe Biden.
$10 billion grant program to expand access to funding for underserved communities. SSBCI funds are not distributed directly to companies, but rather to lenders. Eligible small businesses and start-ups — usually defined as companies with 500 or fewer employees — can seek loans or investments as usual through banks, community lenders or equity investors.
The news follows the release of funds to five states earlier in May: Hawaii, Kansas, Maryland, Michigan and West Virginia. The five states received up to about $639 million in relief.
In July, the Treasury Department approved another $1.5 billion in funding after approving nine state plans in Arizona, Connecticut, Indiana, Maine and Maine. New Hampshire, Pennsylvania, South Carolina, South Dakota and Vermont. To date, the agency has announced approval of more than $2.25 billion in funding, nearly a quarter of the $10 billion plan.
The Treasury Department estimates that the program could bring in $10 in private investment dollars for every $1 in the federal government — bringing total state lending to $100 billion.
SSBCI provides businesses with a range of resources, including venture capital, capital access, mortgage support, loan participation and loan guarantee programs. The state governments previously submitted their individual plans to the Treasury Department, describing how they would allocate funds to small businesses. Expand opportunities for rural and Native American entrepreneurs in the state. Colorado is expected to oversee three different small business-focused programs and earmark $10 million from its SSBCI grant to help businesses recover from the pandemic. Colorado Gov. Jared Polis praised the announcement at a news conference Friday, saying the funding will help support more than 11,000 jobs in the centennial state.
U.S. Treasury Secretary Janet Yellen agrees: , small business growth and innovation that will help reduce traditionally underserved communities, including rural areas,” Yellen said in Friday’s statement.
The roadmap and amount of relief for future releases are unclear. Details are expected to be announced as funding is approved.
