The U.S. Department of the Treasury announced on Tuesday the approval of 11 additional state plans for up to $1 billion in funding under the “State Small Business Credit Initiative” (SSBCI 2.0).
With that announcement, a total of 31 state plans involving approximately $4.8 billion in SSBCI 2.0 funding have been approved. It’s interesting that of the 19 states whose plans have not been approved, more than one-third – seven in all – are in the Southeast. In addition to Tennessee ($117 million), the others are Alabama ($98 million), Arkansas ($81 million), Georgia ($200 million), Kentucky (also $117 million), Louisiana ($113 million), and Mississippi ($86 million). Two other states with Southeastern Conference schools – Missouri ($95 million) and Texas ($472 million) – are also awaiting approval.
Tennessee’s proposal that was submitted by the Tennessee Department of Economic and Community Development proposes three allocations under the “BuildTN” banner. The largest amount is $40 million to the “BuildTN Tech Fund” followed by nearly $29 million to the “BuildTN Regional Seed Program” and $2 million to the “BuildTN Multi-Fund Program.”
The “American Rescue Plan” reauthorized and expanded SSBCI, which was originally established in 2010 and was highly successful in increasing access to capital for small businesses and entrepreneurs. The new SSBCI 2.0 builds on this successful model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic. SSBCI funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, amplifying the effects of this funding and providing small business owners with the resources they need to sustainably grow and thrive.