US Treasury approves up to $750 million in small business capital funds for four states

A statue of former Senator Albert Gallatin stands at the Treasury Department in Washington, U.S., April 25, 2021. REUTERS/Al Drago

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WASHINGTON, Aug 19 (Reuters) – The U.S. Treasury Department said on Friday it had approved four additional state plans for the State Small Business Credit Initiative worth $750 million, bringing the total $2.25 billion COVID-19 stimulus venture capital program approvals.

The $10 billion SSBCI program aims to address a shortage of

capital for new business start-ups and other small business development, especially 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.

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State plan approvals announced Friday for New York, Colorado, Oregon and Montana include a variety of venture capital funds, loan participation programs, loan guarantees and collateral support programs for making capital more accessible to small businesses and entrepreneurs.

New York State has been approved for up to $501.5 million, including an access to capital program, loan guarantees, loan participation and venture capital programs, the Treasure. The state has allocated $154 million for programs to provide equity support to small businesses through private venture capital funds and accelerators.

Colorado has been 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.

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Reporting by David Lawder; Editing by Jacqueline Wong

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