Virginia is poised to receive more than $230 million in federal funds to help stimulate the growth of the state’s small businesses, particularly those in underserved communities or owned by women or people of color.
The funds are coming from the Treasury Department’s State Small Business Credit Initiative, a program that was first authorized in 2010 and greatly expanded in 2021 as part of the American Rescue Plan, which President Joe Biden signed into law in March 2021. The reauthorized SSBCI provides $10 billion to U.S. states, the District of Columbia, territories and tribal governments to increase small businesses’ access to capital through a mix of loans, grants and equity investments.
The Treasury Department has so far awarded $6.3 billion of the total, including the $1.5 billion it approved this week for Virginia and six other states. Maryland was the first state to receive Treasury’s approval for SSBCI funds in May and will receive $198 million from the program. D.C.’s application for $62 million in SSBCI funds is still awaiting approval, according to the Treasury Department.