11 additional states approved for federal funding through SSBCI

The U.S. Department of the Treasury announced 11 additional states whose SSBCI plans have been approved: Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio, and Utah. This is in addition to the 20 states that have been approved this year: California, Hawaii, Kansas, Maryland, Michigan, West Virginia, Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, Vermont, Colorado, Montana, New York, North Carolina and Oregon. Funds aim to make capital more accessible for underserved communities and increase economic growth and opportunity.

Alaska has been approved to receive $59.9 million across four state programs. The largest program of the four is the Alaska Loan Guarantee Program, which will receive $32 million and aims to provide funding to small businesses that have decreased revenue, according to Alaska’s News Source. In addition to the loan guarantee program, $15.9 million will be allocated toward a loan participation program, $10 million will go towards an equity and venture capital program and $2 million will be allocated to a collateral fund program.

Idaho has been approved for $65.6 million to operate two state programs. $26 million will go toward a loan participation program in order to assist small businesses in securing senior loans. The remainder of Idaho’s SSBCI funding will go toward a collateral support program to increase access to capital in underserved communities.

Iowa has been approved for $96.1 million across four state programs. The state plans to focus on economic growth through venture capital and investment in small businesses with growth potential. Iowa’s Venture Capital Innovation fund program will be allocated $22 million, which will provide funding for gaps in startup development. Further, $28 million will be allocated to a loan participation program that will help manufacturers in the state invest in new technologies. Of the remaining funding, $31 million will go toward a venture capital co-investment fund, in order to process and hold qualified equity investments in private companies. The remaining $15 million will support the small business collateral support program to help small businesses secure loans.

Massachusetts has been approved for $168.5 million to operate five state programs. $30 million will be allocated toward a venture capital program administered by MassVentures to help provide early-stage equity investments for underserved technology companies based in the state. The remaining funds will be allocated to four other state programs, two loan participation programs and two loan guarantee programs.

Minnesota has been approved for $97 million to operate six state programs. $12.5 million will go toward a new loan participation program that will provide loans to small businesses in the state purchasing technology to improve productivity and automation. Another $12.5 million will be allocated toward a multi-fund program, Growth Loan Fund, that will invest in venture capital funds to provide early-stage funding in information technology, software, life sciences, agriculture, clean technology, and manufacturing start-ups. Finally, $34.5 million, administered by the University of Minnesota Office of Investments and Banking, will go toward two additional venture capital programs that will support small business through co-investments alongside private investors.

Missouri has been approved for $94.8 million, which will be managed by the Missouri Technology Corporation. Funding will support a venture capital program, IDEA Fund, which makes direct equity investments in promising small businesses to catalyze growth and encourage future investments.

Nebraska has been approved for $64 million, split equally between a loan participation program and a venture capital program. The loan participation program will provide up to 50% of principal loans through the Nebraska Growth Loan Fund. The venture capital program will make early-stage direct investments and will support companies through the Nebraska Seed and Development Fund. 

Nevada has been approved for $112.9 million to operate five programs. Three loan participation programs, which will receive $66 million combined, are projected to create almost 2,000 jobs in the state. Further, the loan participation programs will support debt financing by purchasing participations in loans over $250,000 for small enterprises and manufacturers, as well as another program aimed at strengthening the state’s CDFIs by purchasing participation for loans under $250,000. The state will also operate venture capital programs. One, according to the state’s plans, is a pre-seed and seed-stage fund through StartUpNV, a nonprofit incubator and accelerator with related angel and venture capital funds.

New Mexico has been approved for $74.4 to operate a collateral support program and an equity capital program. $65 million of the funds has been allocated to a new venture capital program that supports small businesses by committing capital to VC funds in order to support small businesses in early-stage funding.

Ohio has been approved for $182.3 million to operate four state programs: two venture capital programs, one collateral support program and one loan participation program. One of the state’s venture capital programs will focus on investing in early-stage funds while another effectively is an extension of the Ohio Third Frontier’s existing pre-seed program.

Utah has been approved for $69 million to operate three programs: a loan participation program, a loan guarantee program and a capital access program. The loan participation program will receive $27.6 million to provide companion loans in order to lower interest rates and extend credit for small businesses. The loan guarantee program will receive $31.1 million to increase access to credit by providing up to 80% loan guarantees.