11 states will share $1 billion in funding for small businesses and entrepreneurs
WASHINGTON — The Biden administration announced Tuesday that 11 additional states will receive up to $1 billion to support small businesses and entrepreneurs.
Funding for the programs will come from the State Small Business Credit Initiative that Democrats reauthorized and expanded in their $1.9 trillion COVID-19 relief package, known as the US Bailout.
The new tranche of funding will go to Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio and Utah.
“We know that even when we have full credit checks, small business owners of color, women, face unfair loan denials and higher interest rates,” said Gene Sperling, senior advisor to the president and coordinator of the American rescue plan, during a briefing with journalists.
“We know that too much venture capital goes to a few cities and regions in our country,” he added. “And the SSBCI, the state’s Small Business Credit Initiative, is designed to ensure that … capital is flowing everywhere and going to those who have the best ideas, the best plans for their community, the best job growth.”
Nebraska is to get up to $64 million, split between a loan program and a venture capital program.
Under the Nebraska Growth Loan Fund, participants get a top-up loan of up to 50% of the principal loan amount. The venture capital program provides direct investment largely to underserved small businesses through the Nebraska Seed and Development Fund.
In Alaska, up to $59.9 million in federal funds will boost commercial fishing, mariculture, manufacturing and tourism lending, according to a statement from the US Treasury Department.
“The impact of Alaska’s programs is expected to be greatest in rural and remote communities that have struggled to attract capital in the commercial fishing and mariculture, manufacturing, and tourism sectors with high initial investment costs,” according to the summary.
Minnesota Democratic U.S. Senator Amy Klobuchar, whose state would receive up to $97 million, said on the call that the funding would go to “seed investments in key areas such as information technology.” information, software, agriculture, clean technology, manufacturing and more”.
In Nevada, five different programs will get up to $112.9 million for loan and venture capital programs. The funding is expected to create more than 2,000 jobs and improve the energy and water efficiency of commercial properties.
“It’s something that really makes a difference here in the desert – we’re the hottest, we’re the driest, we’re the sunniest state, so that will definitely help,” said Rep. Dina Titus. , a Nevada Democrat on the call for the press, said investments in energy and water efficiency.
Jacob Leibenluft, director of collections at the U.S. Treasury, said federal officials are directing funding to small businesses that have traditionally had a harder time accessing capital.
“We know that during the peak of the pandemic, small businesses that have too often been excluded from the financial system historically, including minority-owned small businesses, are often the hardest hit,” Leibenluft said. “And that’s why we intentionally designed the program to drive investment toward underserved entrepreneurs.”
Tuesday’s announcement of an additional $1 billion in federal dollars for 11 states brings the total amount approved for the program to $4.8 billion for 31 states.
Nebraska Examiner senior reporter Cindy Gonzalez contributed to this report.