Leahy REAX To Treasury Dept.’s Announcement Of $57.9M. Investment In Vermont To Support Underserved Entrepreneurs And Small Business Growth Through The State Small Business Credit Initiative Program
[The federal State Small Business Credit Initiative (SSBCI) empowers small businesses to access desperately needed capital to invest in job-creating opportunities. The program was first authorized under the Small Business Jobs Act of 2010 and then reauthorized under the American Rescue Plan Act of 2021. As Chair of Senate Appropriations Committee, Leahy fought for the inclusion of $10 billion for Treasury for SSBCI and an all-state minimum allocation for the program in the American Rescue Plan Act. Vermont has been among the lowest recipients in the United States of venture capital on a per capita basis.]
(MONDAY, July 18, 2022) – Senator Patrick Leahy (D-Vt.), Chair of Senate Appropriations Committee, today hailed the U.S. Treasury Department’s action to approve Vermont’s plan on how the state will use Vermont’s SSBCI funds, allocated under the federal American Rescue Plan. He released this statement on the news announced by the Treasury Department on Monday afternoon:
“I am delighted to see the Treasury approve Vermont’s plan to support underserved entrepreneurs and small business growth through the SSBCI program. As Chair of Senate Appropriations, reviving the SSBCI program was a priority of mine while working on the American Rescue Plan Act last year. There is a desperate need for venture capital in Vermont to give small businesses and entrepreneurs the opportunity to be able to start and grow a business in our great state. Rural states, like Vermont, lack professionally invested early-stage equity and near equity investors to prepare and launch new companies and research commercialization. These SSBCI funds will give Vermont the tools necessary to support business development and emerging companies statewide that currently lack access venture capital and critical lending programs.”
BACKGROUND: Vermont, approved for up to $57.9 million, will operate three different programs, including two venture capital programs to which it has allocated nearly $29 million of these federal funds. The venture capital programs will focus on seed fund investments, investments leveraging accelerator programs to make small investments in rural, pre-seed stage companies, and investments in high-growth, technology innovation companies in the healthcare sector. Vermont’s third program will allocate the remaining $29 million to a loan participation program which will leverage private funds to help small businesses grow, create good paying jobs, serve underserved markets and address climate change initiatives.
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