Pennsylvania’s small businesses are in line for a capital infusion of nearly $268 million under a program announced recently announced by the Wolf Administration. The money is coming from the federal government via the American Rescue Plan Act, but it will be distributed by the state Department of Community and Economic Development (DCED).
The State Small Business Credit Initiative (SSBCI), which was created in 2010 under the guidance of the U.S. Treasury to spur lending after the 2008 financial crash. The American Rescue Plan reauthorized and funded the program to the tune of $10 billion nationwide, including portions set aside for very small businesses. Pennsylvania is dividing its share of $267.8 million into three pools. The first two: one for equity investments and one for venture capital investments, contain $142 million. The third, a loan participation program contains more than $125 million.
Economic development organizations can apply for funds from the pools through Aug. 19. According to a DCED timeline, the agency will begin contracting with economic development partners by Sept. 9. Small businesses will be able to apply for funds through those partners by Oct. 17. Of the total amount coming into the state, $15.2 million is earmarked for very small businesses and $39.9 million is for socially and economically disadvantaged businesses, according to an analysis by the Congressional Research Service in Washington, D.C.
Detailed guidelines will be available soon. Visit the Pennsylvania SSBCI website for additional information as it becomes available. DCED expects to begin distributing the SSBCI funds to economic development partners this Fall.