Nine additional SSBCI state plans approved

The U.S. Department of the Treasury announced nine additional states whose SSBCI plans have been approved: Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, and Vermont. This is in addition to the five states approved earlier this year: Hawaii, Kansas, Maryland, Michigan and West Virginia. The state plans for the awards will support underserved businesses, innovation programs, investing for startups and more, detailed below.

Arizona has been approved for $111 million across three different state programs. Two venture capital programs, Arizona Venture Co-Invest and Arizona Multi-Fund Venture, will split $87 million of the total approved funds. The rest of the allocated funds will go towards the Arizona Loan Guarantee Program. The three programs will all aim to support underserved businesses by creating greater access to capital. 

Connecticut has been approved for $119 million, which will be allocated to CT Innovations Equity Fund, a venture capital program, and CT Works Fund, a loan participation program. The state will also be launching two new funds from Connecticut Innovations, The Connecticut Future Fund and The ClimateTech (CT) Fund. 

Indiana has been approved for $99 million for two state programs, both of which will be part of the Indiana Twenty-First Century Research and Technology Fund. The Indiana Angel Network Fund, a venture capital program, will receive over $70 million. The remaining $29 million is being allocated to the Fund Investment Program, a loan participation program. The funding for these programs is aimed to create more funding opportunities for underserved entrepreneurs and business owners in the state as well as grow local capital. 

Maine has been approved for $62 million across four state programs. Two venture capital programs, including a direct investment program with the Maine Venture Fund (MVF) and a funds program, have been allocated $20 million. In addition to this, Maine’s loan guarantee program, Commercial Loan Insurance Program, will receive up to $20 million. The final $22 million will be allocated to the loan participation program, Regional Economic Development Revolving Loan & Direct Loan Program. The funding for these programs will be focused on small startup investing and economic growth aligned with the state’s 10-year economic development plan. 

New Hampshire was approved for $62 million for their five programs administered by the New Hampshire Business Finance Authority: three loan participation programs, a loan guarantee, and one capital access program.

Pennsylvania had three programs approved for $268 million. These programs include $142 million across a direct equity investment program administered by the Ben Franklin Technology Partners (BFTP) and the Life Sciences Greenhouses and a “diverse venture loan program” to support underserved funds. The state will also have $126 million for a loan participation program administered by the Pennsylvania Department of Community and Economic Development.

South Carolina, approved for $101 million will run a loan participation program administered by the Business Development Corporation of South Carolina and a venture capital program by InvestSC, allocating $50 million and $51 million, respectively. 

South Dakota based SD Works will operate one loan participation program with the whole of its $60 million maximum allotment. The primary goal of this program is to complement the already present financing of CDFIs and other financial institutions via companion loans.

Vermont has been approved for $58 million to operate its three programs: two venture capital (funds and direct) and one loan participation. A combined $29 million will be allocated between the two venture capital programs, leaving $29 million for the loan participation program. The implementing entity, the Vermont Economic Development Authority, will administer the loan participation program and the funds-based venture capital programs. Treasury’s website lists the Vermont Center for Emerging Technologies and Center on Rural Innovation as administering the state’s direct investment program.