United States: The Governor of California- Gavin Newsom, announced $1.1 Billion in funding to support Small Business Support coming to California to create a more-inclusive venture capital ecosystem.
The funding came from the United States Treasury’s State Small Business Credit Initiative (SSBCI), which will increase the small business owners access to capital, which will cover upwards of 80 percent of loans.
SSBCI is planning to leverage an additional $18 billion of capital for the state’s small businesses.
Moreover, Governor Newsom mentioned in the statement, “California is home to the largest as well as the most diverse small business community in the nation.”
“We are a state that is driven by small business innovation as well as entrepreneurship – that is why we have invested billions of dollars in supporting our businesses recover from the pandemic as well as to give more citizens of California a shot at the California Dream. Thanks to this funding, underrepresented and underserved business owners will have more access to the critical funding they require to succeed as well as thrive.”
The state will get $1.1 billion to help in supporting small businesses as part of the federal American Rescue Plan Act of 2021.
The California Infrastructure, as well as Economic Development Bank (IBank) as well as the California Pollution Control Financing Authority will split the allocation equally to fund small business credit support programs. IBank will also launch a new program designed to create a more equitable venture capital ecosystem.
Along with this, this is the second time the United States of America has been able to apply for this federal program. The first was in 2010, when California applied for as well as received $168 million to operate three state credit-support programs:
- The Small Business Loan Guarantee Program
- The California Capital Access Program (CalCAP) for Small Business
- The Collateral Support Program
Furthermore, as in 2010, IBank will use a large portion of the SSBCI funds for its Small Business Loan Guarantee Program, working with nonprofits as well as lenders to offer small business loan guarantees.
