The U.S. Department of the Treasury approved up to $86 million in funding for Mississippi via the American Rescue Plan’s State Small Business Credit Initiative (SSBCI).
Mississippi will operate four programs through this funding: a loan participation program, a loan guarantee program, and two equity/venture capital programs.
Specifically, Mississippi allocated $45 million to the Mississippi CDFI Small Business Loan Fund, a loan participation program that will provide funds in the form of a loan to CDFIs to support lending to Mississippi small businesses. In addition, the state set aside $15 million for the Mississippi Venture Capital Program, which provides equity support to small businesses by investing in venture capital funds that support startups. Also, $11 million will go to a program that will directly invest in startups, particularly those in the manufacturing and supply chain sectors. Finally, the state will operate a $15 million loan guarantee program that will focus on expanding access to capital for underserved small businesses.
The initiative is part of President Joe Biden’s Investing in America agenda.
“Support for small business growth and access to capital is a key component of President Biden’s Investing in America agenda,” Deputy Secretary of the Treasury Wally Adeyemo said. “The State Small Business Credit Initiative is helping to unlock the potential of entrepreneurs in underserved communities in Mississippi and across the nation who may have otherwise never had the support needed to pursue their business ideas and ambitions.”
The American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010. The new SSBCI builds on the program by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities.
The Treasury Department has now announced the approval of state, territory, and Tribal government plans corresponding to over $8 billion in SSBCI funding to support small business and entrepreneurship.