First five states approved for SSBCI funds

The U.S. Department of the Treasury announced today that five states — Hawaii, Kansas, Maryland, Michigan and West Virginia — have had their State Small Business Credit Initiative (SSBCI) capital programs approved by the agency. Not all programs to be run by these states have been announced at this time, but they include: HI-CAP Invest program, which will support impact funds; GROWKS Angel Capital Support Program; Maryland’s Neighborhood Business Works Venture Debt Program; and, West Virginia’s seed capital co-investment fund.

Maryland TEDCO reported that it will receive $50 million of the state’s SSBCI funding and will split those resources between four existing programs targeting technology-based businesses and entrepreneurs. Three programs — the Venture Equity Fund, Venture Capital Limited Partnership Equity program, and Seeds Funds Equity program — are primarily focused on venture capital and startup funding. The fourth, the Social Impact Fund, provides investment and support to entrepreneurs who demonstrate economic or social disadvantage. Through these programs, TEDCO will continue to leverage its relationships with top-tier technology companies, entrepreneurs, and investors in the state while partnering with universities, regional business accelerators and incubators, and other organizations.

“[We] want to express our thanks to our friends at [the Maryland Department of Housing and Community Development] for their leadership on getting us to this point,” said Maryland TEDCO CEO Troy LeMaile-Stovall in correspondence with SSTI. “And this point is about investing in individuals and communities that are underrepresented in our innovation ecosystem, while also creating additional funds for TEDCO to invest in firms that will start and scale in Maryland — generating a more equitable future.”

Fifty-one other state and territory jurisdictions submitted their capital program applications by the deadline and will be hoping to see their approvals quickly follow this first announcement.