US State will receive up to $201.9 million from the US Treasury Department | New
The US Department of the Treasury recently announced the approval of North Carolina’s request for funding under the state’s Small Business Credit Initiative for up to $201.9 million.
President Biden’s US bailout reauthorized and expanded SSBCI, which was originally created in 2010 to increase access to capital for small businesses and entrepreneurs. The new SSBCI 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 communities. traditionally underserved as they emerge from the pandemic. Assistant Treasury Secretary Wally Adeyemo announced approval of North Carolina’s plan alongside North Carolina Commerce Secretary Machelle Baker Sanders at the North Carolina Rural Center. The North Carolina Rural Center administers small business funding from local and federal sources, including the SSBCI program. As part of the announcement, Assistant Secretary Adeyemo and Secretary Sanders participated in a roundtable with small businesses and financial institutions that participated in the first round of SSBCI.
“This historic investment in entrepreneurship, small business growth and innovation funded by the U.S. bailout will help reduce barriers to accessing capital for traditionally underserved communities across the state,” said Adeyemo. “I was pleased to have the opportunity to hear from North Carolina small business owners and financial institutions during my visit today and look forward to seeing the impact of these funds on the promoting equitable economic growth in North Carolina.”
“The state’s Small Business Credit Initiative provides vital support to our small businesses, especially those that often face challenges accessing capital,” Sanders said. “I’m excited to see how this upcoming round of funding will help many of our state’s women-owned and minority-owned small businesses in our rural communities grow and become more resilient.” »
“Since 2011, the North Carolina Rural Center has operated the State’s Small Business Credit Initiative on behalf of the state of North Carolina,” said Patrick Woodie, president of the North Carolina Rural Center. “We are extremely proud that the program has been a national leader in working with private lenders across the state to help more small business owners get the essential business capital they need to start or grow their businesses. company. We are deeply honored by the trust placed in us by the North Carolina Department of Commerce, the General Assembly, and the Governor’s Office to again lead the deployment of this new funding allocation for this proven and trusted initiative.
North Carolina, approved for up to $201.9 million, will operate three different programs, including a loan participation program to which it has allocated $160 million. The Loan Participation Program expands access to capital by purchasing subordinated equity interests in small business loans made by financial institutions. The program helps lenders engage in small business lending and provide support to underserved businesses. The state has partnered with the North Carolina Rural Center to administer the program, which aims to support communities in their efforts to revitalize central business districts, strengthen neighborhoods, encourage small business recovery and support economic growth. .
SSBCI’s funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI’s capital funding, amplifying the effects of this funding and providing small business owners with the resources they need to grow and thrive. sustainable. State governments have submitted plans to the Treasury on how they will use their SSBCI allocation to provide financing to small businesses, including through venture capital programs, loan participation programs, guarantee programs loans, collateral support programs and access to capital programs. To date, the Treasury has approved state plans totaling more than $1.7 billion in funding to promote small business growth through SSBCI.
A White House report released in June found that more Americans are starting new businesses than ever before. In 2021, Americans asked to start 5.4 million new businesses, 20% more than any other year on record. It also found that small businesses are creating more jobs than ever before, with firms with fewer than 50 workers creating 1.9 million jobs in the first three quarters of 2021 – the rate of job creation in highest small business on record in a single year.