The U.S. Department of Treasury approved up to $750 million in funds for four state plans through the State Small Business Credit Initiative (SSBCI).
The funding is part of a $10 billion initiative through the American Rescue Plan to expand access to capital for small businesses.
The latest round of funding goes to four states, including Colorado ($104.7 million), Montana ($61.3 million), New York ($501.5 million), and Oregon ($83.5 million). These recipients under the SSBCI program plan to target key industries and small businesses in need of access to capital.
“This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” Secretary of the Treasury Janet Yellen said. “I’m excited to see how SSBCI funds will promote equitable economic growth across the country.”
There has been a boom in new businesses in recent years. A White House report released in June found that Americans applied to start 5.4 million new businesses in 2021 – 20 percent more than any other year on record. Further, it found that small businesses are creating more jobs than ever before. Specifically, businesses with fewer than 50 workers created 1.9 million jobs in the first three quarters of 2021 — the highest rate of small business job creation ever recorded in a single year.
The investments made through SSBCI are a part of the Biden Administration’s strategy to keep this small business boom going by expanding access to capital and providing them with the resources they need to succeed.