Northhampton News

Gov. Tom Wolf recently announced Pennsylvania has been awarded nearly $268 million from the American Rescue Plan through the State Small Business Credit Initiative (SSBCI).

The funds will support small businesses and job creation, according to a July 18 press release.

The American Rescue Plan reauthorized and expanded the SSBCI, the release stated. It was created in 2010 by Congress with a focus on providing loans and investments to underserved small businesses. The SSBCI is allocating $10 billion to states, which includes $267.8 million to the commonwealth of Pennsylvania.

“Supporting our small businesses and boosting Pennsylvania’s world-class business environment continues to be one of my top priorities and I thank President (Joe) Biden for sharing that commitment,” Wolf said. “This funding from the Biden administration is a significant investment in Pennsylvania’s future that will be used to empower our small businesses and generate new jobs.”

Secretary of the Treasury, Janet Yellen, said she is excited to see how the funds will promote equitable economic growth nationwide.

“This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” Yellen said.

The funds will be distributed by the Department of Community and Economic Development (DCED), the release stated. There will be three different programs. The first two programs are equity capital and venture capital investments, which will receive $142 million. The third is a loan participation program that has been allocated $125 million. This will extend loans of up to 50% of total financing to small business borrowers.

“Our partners will use this funding to help small businesses, socially and economically disadvantaged businesses, and businesses in the innovation and technology sector,” said DCED Acting Secretary, Neil Weaver, in the release.