Rhode Island state officials are touting the benefits of a $61.7 million awarded through the Biden Administration’s State Small Business Credit Initiative (SSBCI).
The American Rescue Plan Act of 2021 amended the Small Business Jobs Act of 2010 to reauthorize and provide $10 billion to fund the SSBCI in response to the economic effects of the COVID-19 pandemic. States and territories submitted plans to the Biden-Harris administration outlining how they would use the allocation to provide small business funding.
Rhode Island joined Arkansas, Wisconsin, Guam, and the U.S. Virgin Islands in receiving funding allocations.
“We’re ready to continue Rhode Island’s economic momentum. This historic investment in small businesses from the Biden Administration will help us reach that goal,” Rhode Island Gov. Dan McKee said. “As a former small business owner, I know how important it is to deliver critical financing to our business community to ensure we address their greatest needs. I thank President Biden and our Congressional delegation for this award which will help further our state’s economic momentum.”
According to state officials, the funding is earmarked for a capital access program, a loan participation program, and an equity/venture capital program.
“This federal funding will help small business owners and entrepreneurs access the capital they need to grow their businesses,” Sen. Jack Reed (D-RI) said. “It offers seed funding to turn promising business ideas into action, jobs, and opportunities. This pool of small business financing can be leveraged to connect small businesses to additional private capital investment. It will have a positive impact on economic development, helping Main Street businesses, neighborhoods, and communities that need it most.”