WASHINGTON—The Treasury Department said it approved nine state plans for the State Small Business Credit Initiative worth $940 million, bringing total approvals under the COVID-19 recovery venture capital program to $1.5 billion.
The $10 billion SSBCI program aims to address a shortage of capital for new business startups and other small business development, 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.
Connecticut was approved for up to $119.4 million to launch two new venture capital funds supporting entrepreneurs from “underserved and diverse backgrounds” and a climate technology fund for “clean energy, environmentally safe manufacturing, and climate resiliency.”
Pennsylvania was approved for up to $267.8 million, Alabama for up to $111 million, South Carolina for up to $101.3 million, Indiana for up to $99.1 million, Maine for up to $62.2 million, New Hampshire for up to $61.5 million, South Dakota for up to $60 million, and Vermont for up to $57.9 million.
The funds are released in tranches, with each subsequent disbursement dependent on meeting performance targets from prior funds.
A Treasury official said that there was now a “strong pipeline” of additional state plans that were close to being approved, and the Treasury hopes to be finished reviewing all state applications by late summer.
