Over $10 billion in funding will be distributed to nine states through the State Small Business Credit Initiative and Pennsylvania is set to get the largest amount of money.
Millions in American Rescue Plan funding is headed to Pennsylvania to support small businesses and underserved entrepreneurs, and spur economic growth across the state.
The American Rescue Plan, signed in March 2021 by President Joe Biden, reauthorized the State Small Business Credit Initiative (SSBCI) and expanded its funding to $10 billion to give small businesses the capital needed to grow. Pennsylvania will receive $267.8 million.
“Small businesses are the lifeblood of Pennsylvania’s economy – creating jobs and making our communities vibrant,” said US Rep. Mary Gay Scanlon (D-Delaware), who voted in favor of the rescue plan. “But they’re still hurting from the pandemic and need our support as they recover.”
The funds will go to qualifying businesses through equity investments and loans distributed by the state Department of Community and Economic Development through eligible economic development partners.
Pennsylvania will operate three different programs to distribute the funding:
- $142 million has been allocated to two of the programs, equity capital investments and venture capital investments for seed and early-stage technology companies and underserved venture capital firms.
- $125 million has been allocated to a loan participation program which will offer loans up to 50% of total financing to small businesses.