WASHINGTON- The U.S. Treasury Department said on Friday it approved four additional state plans for the State Small Business Credit Initiative worth $750 million, bringing total approvals under the COVID-19 recovery venture capital program to $2.25 billion.
The $10 billion SSBCI program aims to address a shortage of capital for new business startups and other small business developments, particularly in disadvantaged communities, by attracting $10 of private investment for every $1 of taxpayer funding. It was reauthorized and expanded as part of last year's $1.9 trillion American Rescue Plan Act.
The state plan approvals announced on Friday for New York, Colorado, Oregon and Montana include a variety of venture capital funds, loan participation programs, loan guarantees and collateral support programs to make capital more accessible to small firms and entrepreneurs.
New York state was approved for up to $501.5 million, including a capital access program, loan guarantees, loan participation and venture capital programs, the Treasury said. The state has allocated $154 million to programs to provide equity support to small businesses through private venture capital and accelerator funds.
Colorado was approved for up to $104.7 million, Oregon for up to $83.5 million and Montana for up to $61.3 million, the Treasury said.
(Reporting by David Lawder; Editing by Jacqueline Wong)