The Minority Business Development Agency (MBDA) Capital Readiness Program (CRP) has awarded $57 million to 12 states.
The awards, announced by Vice President Kamala Harris, will be used to provide legal, accounting, and financial advisory services to very small businesses and underserved small businesses. It is funded by the U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI).
The largest grant, up to $25.3 million, went to the California Office of the Small Business Advocate (CalOSBA). CalOSBA anticipates reaching 113,000 small businesses with these financial services and supporting 40,000 small business loans for underserved and very small businesses using the technical assistance award.
Also, the Ohio Department of Development (ODD) was approved for up to $5.2 million. This funding will be used to connect underserved businesses to regional financial advisory, accounting, and/or legal services, as well as non-traditional financing sources like the state’s SSBCI-funded capital programs.
In addition, the Nevada Governor’s Office of Economic Development was approved for up to $2 million. The office will work with the Nevada Small Business Development Center to provide training – including a 10-week bootcamp – along with networking opportunities and counseling, to connect underserved and very small businesses with support for legal, accounting, and financial advisory services.
“The investments through the State Small Business Credit Initiative are a key part of the Biden-Harris Administration’s efforts to fuel the small business boom by providing small businesses and entrepreneurs the resources they need to succeed,” Deputy Secretary Wally Adeyemo said. “Today’s announcements are important steps in helping unlock the potential of entrepreneurs in underserved communities across the nation who may have otherwise never had the support needed to pursue their business ideas and ambitions.”
The Treasury Department has increased its previously announced support for the CRP, to a total of $125 million in SSBCI funding.
Also this week, the Treasury Department announced the approval of state, territory, and Tribal government plans corresponding to over $8 billion in funding under the SSBCI Capital Program to support small business and entrepreneurship.