California governor announces $1.1 billion from SSBCI

Gov. Gavin Newson of California announced that the state is approved for $1.1 billion of funding from the State Small Business Credit Initiative (SSBCI), which represents the largest funding amount that has been approved in the SSBCI program. The funding will support the launch of a new $200 million venture capital program and and will help fund small business credit support programs. The allocated amount will be equally split between the California Infrastructure and Economic Development Bank (IBank) and the California Pollution Control Financing Authority.

In addition to small business loan guarantees, IBank is expected to use approximately $200 million of its SSBCI funds for a new venture capital program, which is designed to create a more inclusive venture capital ecosystem by supporting underrepresented venture capital managers; investing in underrepresented entrepreneurs and business owners; investing in geographic areas that are socio-economically disadvantaged or that receive very limited venture capital funding; and, promoting climate equity and climate justice.  

According to the U.S. Department of the Treasury, in addition to the new venture capital program, California will operate a capital access program that has been allocated $118 million, a loan guarantee program that has been allocated over $390 million and another program that will assist with small business loans, which has been allocated $472 million.