U.S. Treasury to invest $10 billion in small businesses

A report in the Wall Street Journal this week outlined an initiative set forth late last year by the US Treasury to invest $10 billion in American small businesses as part of the American Rescue Plan.

The State Small Business Credit Initiative seeks to disburse funds to states, territories and the District of Columbia that those governments can then dispense to small businesses which have applied for the credit. Applications for this round of SSBCI credits are due no later than February 11, after which the funds will be allocated.

The initiative was first implemented in 2010 through the Small Business Jobs Act and SSBCI 2021 is funded via the American Rescue Plan, signed in March of last year. The $10 billion in funding for SSBCI is available to applicants from states, territories, tribal governments, and Washington, DC. 

The credits are intended to help small upstarts gain access to capital in order to grow their businesses. The funding is specifically intended to help small businesses in disadvantaged communities and put small businesses on better footing as the COVID-19 pandemic continues.