WASHINGTON D.C., November 17, 2023 – The U.S. Department of the Treasury has given the green light to Washington, D.C.’s ambitious plan to receive up to $62 million in funding, as part of President Biden’s comprehensive Investing in America agenda.
This funding falls under the American Rescue Plan’s State Small Business Credit Initiative (SSBCI) and is set to catalyze the growth of small businesses, especially in traditionally underserved communities.
The Treasury Department has now approved plans from various entities, including states, territories, D.C., and Tribal governments, corresponding to a staggering $8.3 billion in SSBCI capital and technical assistance funding. This significant injection of funds is aimed at supporting small business ventures and entrepreneurs while expanding access to capital.
Deputy Secretary of the Treasury, Wally Adeyemo, emphasized the importance of supporting the small business boom, stating, “The State Small Business Credit Initiative is helping to unlock the potential of entrepreneurs in underserved communities in the District of Columbia and across the nation.”
D.C. Mayor Muriel Bowser echoed the sentiment, highlighting the vital role small businesses play in the city’s vibrancy and job creation. She stated, “President Biden’s Investing in America Agenda is building stronger communities and giving more people a fair shot.”
President Biden’s American Rescue Plan reauthorized and expanded the SSBCI, initially established in 2010. The new SSBCI allocates nearly $10 billion to states, D.C., territories, and Tribal governments to enhance access to capital and promote entrepreneurship, especially in communities recovering from the pandemic.
The District of Columbia, approved for up to $62 million, will implement two programs: a Collateral Support Program (CSP) and a Loan Participation Program (LPP). The CSP, with over $29 million allocated, aims to enhance collateral coverage for small business borrowers, particularly focusing on Community Development Financial Institutions (CDFIs). The LPP, with $33 million allocated, will provide direct lending and purchased participations, targeting areas such as working capital, inventory, expansion, and renovation costs.
DISB Commissioner Karima Woods expressed confidence that SSBCI funding will be a driving force for small businesses, fulfilling the Bowser Administration’s goals for broad-based economic development.
The Treasury Department has already announced awards exceeding $8 billion in SSBCI capital funding for states, territories, and D.C. Additionally, over $57 million in technical assistance grants have been earmarked for 12 states, supporting legal, accounting, and financial advisory services for eligible small businesses applying for SSBCI capital programs.
The Treasury Department’s commitment to supporting small businesses is evident through initiatives like the Minority Business Development Agency (MBDA) Capital Readiness Program (CRP), which has received a $125 million transfer from Treasury’s SSBCI. Furthermore, a new $75 million competitive grant program, the SSBCI Investing in America Small Business Opportunity Program, aims to bolster technical assistance for very small and underserved businesses.
As the Treasury Department continues to invest in the growth of small businesses, the impact on the economy is expected to be substantial, fostering resilience and recovery in communities disproportionately affected by the pandemic.
