The funds will help increase small business access to capital
The U.S. Treasury Department has approved North Carolina’s application for nearly $202 million in funding under the State Small Business Credit Initiative (SSBCI). The American Rescue Plan reauthorized and expanded the program, which was first established in 2010 to increase access to capital for small businesses and entrepreneurs.
The state will receive $201.9 million to operate three programs including a loan participation program to which it has allocated $160 million. The loan program helps lenders engage in small business lending and provide support to underserved businesses.
The state has partnered with the North Carolina Rural Center to administer the program which aims to support communities in their efforts to revitalize central business districts, strengthen neighborhoods, foster small business recovery, and support economic growth.
A White House report released in June found that more Americans are starting new businesses than ever before. In 2021, Americans applied to start a record 5.4 million businesses. It also found that small businesses are creating more jobs than ever before, with businesses with fewer than 50 workers creating 1.9 million jobs in the first three quarters of 2021, the highest rate of small business job creation ever recorded in a single year.