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Treasury approves 7 new states’ programs for SSBCI funding

December 08, 2022
By: Conor Gowder

Earlier this week, the U.S. Department of the Treasury announced the approval of seven additional states’ programs for State Small Business Credit Initiative (SSBCI) funding, totaling over $1.6 billion: Florida, Georgia, Illinois, Louisiana, North Dakota, Oklahoma and Virginia. A short summary of these states’ plans, all of which include investment capital, are available below:

Florida has been approved for up to $488.4 million to operate a total of five programs. Enterprise Florida, Inc., with the First Florida Capital Finance Corporation, will administer a collateral support program, loan participation program, and loan guarantee program. Florida has allocated the bulk of their total funding, $250 million, to the collateral support program. The Florida Department of Economic Opportunity will run a capital access program. Lastly, Enterprise Florida, Inc., with the Florida Opportunity Fund, have been allocated $100 million to administer the Florida Venture Capital Program with the goal of making equity co-investments in new and emerging Florida companies

Georgia has been approved for up to $199.6 million, and will also operate five programs. The Georgia CDFI program, a loan participation program, is being administered by the Georgia Department of Community Affairs and will fund companion loans by enrolled CDFIs with its $60 million allocation. Georgia Department of Community Affairs will also administer the Georgia Loan Participation Program and Georgia Small Business Credit Guarantee Program. Invest Georgia will administer the final two programs with a combined allocation of $50 million: the Georgia Equity Direct Program is intended to focus on underserved business co-investment opportunities, while the Georgia Venture Capital Program is intended to allow the state to invest in funds as limited partners and co-invest in small businesses alongside a lead investment.

Illinois has been approved for up to $354.6 million to operate four programs. The Illinois Department of Commerce and Economic Opportunity and the Illinois Finance Authority will each administer a loan participation program — the Advantage Illinois Loan Participation Program and Climate Bank Finance Loan Guarantee program respectively. The Illinois Department of Commerce and Economic Opportunity will also administer the Advantage Illinois Loan Guarantee Program and INVENT Venture Capital Program. All four programs are intended to focus on small businesses, especially those owned by historically underserved and/or low-income people, and communities impacted by energy transitions to allow for a smoother transition to zero emissions.

Louisiana has been approved for up to $113 million to operate five programs, all of which are administered by Louisiana Economic Development. The majority of Louisiana’s funds, $91.5 million, will be split between two equity/venture capital programs, Louisiana Seed Capital Program and Louisiana Venture Capital Program. The Seed Capital program will focus on seed to early-stage investments while the venture program will focus on investments ranging from seed to series A/B. The other three programs are the Louisiana Collateral Support Program, Louisiana Small Business Loan Guarantee Program, and a loan participation program.

North Dakota, approved for up to $58.6 million, will operate two programs — both direct equity capital. The Angel Match Program, administered by the North Dakota Development Fund, is intended to focus on community outreach, technical assistance and capital investments in rural, Tribal, and other underserved communities with the goal of expanding access to capital. The second direct equity capital program, the Direct Investment Program administered by the North Dakota Department of Commerce, has similar goals but with a broader scope.

Oklahoma has been approved for up to $81.6 million to operate two programs, one loan participation and one equity capital (funds), with both administered by the Oklahoma Center for the Advancement of Science and Technology. The loan participation program has been allocated $32.7 million, while targeting projects that will create jobs paying a minimum of $65,000. The remaining $48.9 million will go towards the Oklahoma Venture Capital Investments program.

Virginia, approved for up to $230.4 million, will operate a total of five programs. Two of these programs support equity investment, one by providing capital to funds and one by making direct investments. Both will be administered by the Virginia Innovation Partnership Corporation, and have been allotted a combined $173.4 million. The direct program is intended to focus on equity co-investments to private capital invested in seed and early-stage technology companies, while the funds program is intended to spur private capital through limited partner investment commitments to entrepreneurs from historically underserved Virginia communities. The remaining programs will be administered by the Virginia Small Business Financing Authority and are comprised of two loan participation programs and one loan guarantee program, which have been allocated the remaining $57 million.

Please note that when not available in a post-award press release, some details about the administering entities and program names have been drawn from Treasury's "List of Proposed Programs and Contacts," last updated Sept. 2, 2022.

ssbci, states, venture capital, vc, capital