Harrisburg, Pennsylvania – Governor Tom Wolf today announced that Pennsylvania has received nearly $268 million in U.S. bailout funding, through the State Small Business Credit Initiative (SSBCI), to boost small business success and job creation opportunities across the Commonwealth.
“Supporting our small businesses and driving Pennsylvania’s world-class business environment continues to be one of my top priorities and I thank President Biden for sharing this commitment,” Governor Wolf said. “This funding from the Biden administration is an important investment in Pennsylvania’s future that will be used to empower our small businesses and generate new jobs.”
The US bailout reauthorized and expanded the SSBCI, originally created by Congress in 2010 to provide loans and investments to underserved small businesses. As part of this reauthorization, $10 billion in funding is being allocated by SSBCI to the states, including $267.8 million to Pennsylvania.
“This is a historic investment in entrepreneurship, small business growth and innovation through the US Bailout that will help reduce barriers to accessing capital for traditionally underserved communities. said Treasury Secretary Janet L. Yellen. “I am excited to see how the SSBCI funds will promote equitable economic growth across the country.”
The Pennsylvania Department of Community and Economic Development (DCED) will distribute the new funds to eligible economic development partners who will then administer the funding to eligible businesses in the form of equity investments and loans.
Pennsylvania will operate three different programs. The first two programs — equity investments and venture capital investments — received a combined total of $142 million. Direct equity investments will be made in technology startups and start-ups in Pennsylvania through longtime partners Ben Franklin Technology Partners and Life Sciences Greenhouses, as well as venture capital investments in new funds under the management of underserved venture capital firms.
The third program is a loan participation program to which over $125 million has been allocated. It will provide loans not exceeding 50% of total financing to small business borrowers through Certified Economic Development Organizations (ADECs) and Community Development Financial Institutions (CDFIs).
“I am very pleased to see these ARPA funds allocated to Pennsylvania,” DCED Acting Secretary Neil Weaver said. “Our partners will use this funding to help small businesses, socially and economically disadvantaged businesses, and companies in the innovation and technology sector.”
Detailed guidelines will be available soon, and eligible partners should visit the Pennsylvania SSBCI website for additional information as it becomes available. DCED plans to begin distributing SSBCI funds to economic development partners this fall.
Since the beginning of his administration, Governor Wolf has supported small businesses in the Commonwealth. In 2018, the Wolf administration launched the PA Business One Stop Shop which serves as a go-to resource for planning, registering, operating and growing a small business in Pennsylvania.
Additional support includes:
For more information about the Department of Community and Economic Development, visit the DCED website and be sure to stay up to date with all the news from our agency on Facebook, Twitterand LinkedIn.
# # #