Virginia Governor Youngkin has announced that the state has secured up to $230 million in funding from the U.S. Department of the Treasury under the State Small Business Credit Initiative (SSBCI) program. This funding, which aims to boost the formation and growth of start-ups and small businesses across the state, aligns with Governor Youngkin’s vision of fostering an innovation economy and his goal of creating 10,000 new start-ups. The SSBCI program will provide increased access to both public and private capital, particularly for under-represented communities and entrepreneurs. The funding is expected to stimulate up to 10 times the amount of private investment for every $1 of SSBCI invested capital. With an allocation of approximately $57 million to the Virginia Small Business Financing Authority (VSBFA), the program will offer expanded credit support and technical assistance to eligible businesses.
Introduction
Funding helps provide additional resources for Governor Youngkin’s vision of an innovation economy and stated goal of 10,000 new start-ups across the Commonwealth
Announcement of Funding
RICHMOND, VA – Governor Glenn Youngkin announced today that Virginia has been approved for up to $230 million by the federal U.S. Department of the Treasury under the State Small Business Credit Initiative (SSBCI) program to accelerate the formation and growth of entrepreneurial businesses across the Commonwealth. The credit lending and early-stage equity financing programs available through SSBCI will provide Virginia-based businesses with increased access to both public and private capital, especially around under-represented communities and entrepreneurs.
Impact on Virginia’s Economy
Virginia’s allocated SSBCI funding is expected to catalyze up to 10x of private investment for every $1 of SSBCI invested capital deployed. The Virginia Small Business Financing Authority (VSBFA) will offer expanded credit support and Technical Assistance to small businesses through the SSBCI program.
Quotes from Officials
“Start-ups and small businesses are critical to our future and job creation. This initiative will expand our existing funding programs for companies with high potential for rapid growth and significant economic development,” said Governor Glenn Youngkin.
“Virginia has a remarkable history of being the birthplace of innovations that have changed the world. This funding will help extend our impressive and successful track record. Our goal is to expand entrepreneurial ecosystems and unleash small businesses and entrepreneurs as a pathway to success for their groundbreaking ideas and new products and services,” said Secretary of Commerce and Trade Caren Merrick.
Allocation of Funding
Approximately $57 million of the SSBCI funding will be allocated to VSBFA and deployed through three loan programs to eligible small businesses. VSBFA is Virginia’s business and economic development financing arm which is aligned within Virginia’s Department of Small Business and Supplier Diversity (DSBSD) which provides loans to Virginia businesses for economic growth and expansion.
Program Information
More information about Virginia Small Business Financing Authority (VSBFA) and Virginia Innovation Partnership Corporation (VIPC) can be found on their respective websites.
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Question & Answer
What is the State Small Business Credit Initiative (SSBCI) program?
The SSBCI program is a funding initiative aimed at boosting the formation and growth of start-ups and small businesses across Virginia by providing increased access to public and private capital, especially for under-represented communities and entrepreneurs.
How much funding has Virginia secured under the SSBCI program?
Virginia has secured up to $230 million in funding from the U.S. Department of the Treasury under the SSBCI program to support the growth of entrepreneurial businesses across the state.
What is the expected impact of the SSBCI funding on Virginia’s economy?
The allocated SSBCI funding is expected to stimulate up to 10 times the amount of private investment for every $1 of SSBCI invested capital deployed, thereby catalyzing economic growth and development in Virginia.
Who will oversee the allocation of the SSBCI funding in Virginia?
The Virginia Small Business Financing Authority (VSBFA) will oversee the allocation of approximately $57 million of the SSBCI funding to eligible small businesses through three loan programs aimed at providing credit support and technical assistance.
