U.S. Department of Treasury has now approved nine more state programs to receive funding through the State Small Business Credit Initiative (SSBCI) with a total of over $1.5 billion available. Find out which states now have eligible programs and how much funding is available. If you have small business clients in the first group of five states (Hawaii, Kansas, Maryland, Michigan and West Virginia), more details about their programs are now available.
The SSBCI was authorized for an additional $10 billion in funding available to small businesses through The American Rescue Plan Act. The funds are available to states, territories, the District of Columbia, and Tribal Governments on a rolling basis, with each entity administering programs approved by the Treasury. SSBCI was created to maximize the effects of the federal monies by leveraging every $1 of SSBCI capital program funding into $10 of lending and investment.
NOTE: To learn more about the SSBCI, read the June 6, 2022 article here.
Ongoing news about SSBCI can be found on the Department of Treasury's website, including information on which states, territories, the District of Columbia, and Tribal Governments have been approved for the program; potential funds available for areas that have not yet been approved; and, as of last week, a full list of Proposed SSBCI Programs with contact information.
Here are the states who were approved during the first round of Treasury approvals. Since first reporting these approvals in June, more information has become available.
Hawaii was approved for up to $62,021,957. The Hawaii Technology Development Corporation (HTDC) will partner with the Hawaii Green Infrastructure Authority to jointly administer the program. Hawaii's program is designed to diversify the state's economy and lessen its dependence on tourism. The program includes loans (HI-CAP Loans), collateral support (HI-CAP Collateral) and a venture capital program (HI-CAP Invest) and is expected to run until 2030.
Hawaii anticipates all programs will be up and running from mid-August, 2022. More information can be found here.
Kansas was approved for up to $69,596,847. The funding will be used to advance sectors identified through the Kansas Framework for Growth, including underserved geographies, underserved populations and targeted business sectors.
All entrepreneurs/small businesses interested in applying will need to be connected with a NetWork Kansas-approved partner. NetWork Kansas has begun training GROWKS partners; however, an estimated date of when businesses will be able to apply is not yet available. To receive email updates directly from GROWKS, go to this link and click the "For More Information" button.
Maryland was approved for up to $198,404,958. Three Maryland agencies will administer these funds. The Maryland Department of Housing and Community Development will lead the administration in partnership with the Maryland Department of Commerce and the Maryland Technology Development Corporation. The funds have been allocated between the three agencies and each agency has its own identification of targeted communities and sectors. The programs include loan and equity funding.
To receive updates about the programs, including when funds will become available, click here and fill out the form on the page.
Michigan was approved for up to $236,990,950. The Michigan Capital Access program will administer the state's program. The Michigan Strategic Fund anticipated receiving funds this summer.
For more information, you can learn more about Michigan's Capital Access Programs for small businesses. According to the MEDC website, "Small businesses seeking new financing should contact their local bank, credit union, or CDFI to discuss possible financing including SSBCI support."
West Virginia was approved for up to $72,104,79. The WVCAP plans to leverage the $72 Million in Treasury funds to create $130 million in new lending and investment activity in West Virginia over the next five years. The West Virginia Economic Development Authority now has oversight of the West Virginia Jobs Investment Trust, the agency that will be administering the WVCAP.
At this time, there are few details available.
For more information about any of the lending programs available through WVCAP, please contact Michele O’Connor at amo.jit@wvjit.org.
Department of Treasury approved these states on July 18, 2022. More information about these states will be available in our next article about the SSBCI, which will be published when the third round of approvals is made.
Arizona was approved for up to $111 million which will fund three different funds - two venture capital programs and a loan guarantee program. These programs will focus on underserved businesses.
Connecticut was approved for up to $119.4 million. The state will launch two major new initiatives - The Connecticut Future Fund and The ClimateTech Fund.
Indiana was approved for up to $99.1 million and will have two different programs. The first is a venture capital program with an allocation of $70 million. This program is designed for seed to early-stage innovators and startups looking for $500,000 to $5 million in equity capital. In addition, the state will launch a loan fund.
Maine was approved for up to $62.2 million. Two venture capital programs will be established to generally target startups with fewer than 10 employees. A loan program will also be set up to launch long-term growth focused on the state's economic development plan. Finally, a loan guarantee program will be available in partnership with local lending institutions.
New Hampshire was approved for up to $61.5 million. The state has partnered with the New Hampshire Business Finance Authority to administer five different programs.
Pennsylvania was approved for up to $267.8 million. The state's three programs include an equity capital investments program, a venture capital investments program and a loan participation program.
South Carolina was approved for $101.3 million which it will use to fund a loan participation program and a venture capital program. Both programs include at least 20% of the allocations for underserved communities.
South Dakota was approved for up to $60 million. The state will use the entire amount for a loan program to expand capital to underserved communities.
.Vermont was approved for up to $57.9 million. The state will operate three programs - two venture capital programs and a loan program.