HARRISBURG, Pa. (WHTM) – Governor Tom Wolf announced Monday that Pennsylvania has been awarded nearly $268 million in American Rescue Plan funding, through the State Small Business Credit Initiative (SSBCI), to spur small business success and job creation opportunities across the commonwealth.
The American Rescue Plan reauthorized and expanded the SSBCI, which was originally established by Congress in 2010 to provide loans and investments to underserved small businesses. As part of this reauthorization, $10 billion in funding is being allocated by SSBCI to states, including $267.8 million to Pennsylvania.
The Pennsylvania Department of Community and Economic Development (DCED) will distribute the new funds to eligible economic development partners who will then administer the funding to qualifying businesses in the form of equity investments and loans.
Pennsylvania will operate three different programs. The first two programs – equity capital investments and venture capital investments – have been allocated a combined total of $142 million. Direct equity investments will be made in seed and early-stage technology companies in Pennsylvania through longstanding partners Ben Franklin Technology Partners and Life Sciences Greenhouses, as well as venture capital investments in new funds under the management of underserved venture capital firms.
The third program is a loan participation program that has been allocated more than $125 million. It will extend loans of no more than 50 percent of total financing to small business borrowers through certified economic development organizations (CEDOs) and community development financial institutions (CDFIs).
Detailed guidelines will be available soon and eligible partners should visit the Pennsylvania SSBCI website for additional information as it becomes available. DCED expects to begin distributing the SSBCI funds to economic development partners this Fall.
Get daily news, weather, breaking news and alerts straight to your inbox! Sign up for the abc27 newsletters here
“Supporting our small businesses and boosting Pennsylvania’s world-class business environment continues to be one of my top priorities and I thank President Biden for sharing that commitment,” said Gov. Wolf. “This funding from the Biden Administration is a significant investment in Pennsylvania’s future that will be used to empower our small businesses and generate new jobs.”
“This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” said Secretary of the Treasury Janet L. Yellen. “I’m excited to see how SSBCI funds will promote equitable economic growth across the country.”