By Enyichukwu Enemanna
At least four states in the US will benefit from the latest government intervention funds for small Business Credit Initiative under the COVID-19 recovery scheme worth $2.25 billion.
States expected to benefit from the Friday’s additional approval of $750 million include, New York, Colorado, Oregon and Montana, the US Treasury Department announce on Friday, stating that it also includes a variety of venture capital funds, loan participation programs, loan guarantees and collateral support programs to make capital more accessible to small businesses and entrepreneurs.
The $10 billion SSBCI program seeks to address a shortage of capital for new business startups and other small business developments, particularly in disadvantaged communities, by attracting $10 of private investment for every $1 of taxpayer funding. It was reauthorized and expanded as part of last year’s $1.9 trillion American Rescue Plan Act.
New York state was approved for up to $501.5 million, including a capital access program, loan guarantees, loan participation and venture capital programs, the Treasury said.
The state has allocated $154 million to programs to provide equity support to small businesses through private venture capital and accelerator funds.
Colorado was approved for up to $104.7 million, Oregon for up to $83.5 million and Montana for up to $61.3 million, the Treasury said.
