State Small Business Credit Initiative

Overview

The American Rescue Plan Act of 2021 (ARPA) reauthorizes and amends the Small Business Jobs Act (SBJA) of 2010, which established the State Small Business Credit Initiative (SSBCI) Program. ARPA provides a combined $10 billion to states, the District of Columbia, territories and Tribal governments to help address the economic fallout of the pandemic and lay the foundation for a strong and equitable recovery by providing direct support to jurisdictions for programs that increase access to credit for small businesses. Mississippi will receive approximately $86 million in allocation from this program.

Quick Links

  • Mississippi CDFI Small Business Loan Fund
  • Small Business Loan Guarantee Program
  • Venture Capital Program
  • Direct Investment Program
  • Technical Assistance Program
Mississippi CDFI Small Business Loan Fund

The loan participation program, known as the Mississippi CDFI Small Business Loan Fund, has been allocated $45 million to provide funds in the form of a loan to non-depository community development financial institutions to support lending to Mississippi small businesses and startups. This program aims to increase access to capital for small businesses in Mississippi and promote economic growth and job creation.

Small Business Loan Guarantee Program

The state allocated $15 million to the Small Business Loan Guarantee Program (SBLGP), which provides access to capital for small businesses by providing loan guaranties to banks and other small business lenders. The SBLGP encourages lenders to make term loans or provide lines of credit to new or existing small businesses in a difficult credit environment to help with the development, expansion and retention of Mississippi’s small businesses.

Venture Capital Program

The InvestMS administered by Innovate Mississippi has been allocated $15 million to provide equity support to small businesses by investing in venture capital funds that support startups. This program aims to attract and retain high-growth businesses in Mississippi by providing access to the capital they need to grow and create jobs.

For more information on the Venture Capital Program, please visit InvestMS for Venture Funds at investms.ms/for-venture-funds.

Direct Investment Program

Innovate Mississippi also will be administering the InvestMS for Startups. This initiative, with an allocation of $11 million, is focused on Pre-Seed, Seed and Series A stage startups. Larger deals can receive up to $3 million with an SSBCI match of up to $1 million, while the remaining funds are allocated for SSBCI deals with a match of up to $500,000. It’s important to note that Mississippi’s SSBCI Direct Program will not serve as the lead investor and requires a lead investor’s participation in a funding round.

For more information on the Direct Investment Program, please visit InvestMS for startups at investms.ms/for-startups.

Technical Assistance Program

The State Small Business Credit Initiative (SSBCI) Technical Assistance Program, managed by the Mississippi Small Business Development Center (SBDC), supports the SSBCI in Mississippi. This program provides technical assistance to small businesses and startups by offering a range of services, including legal and accounting assistance, training in financial management and guidance in the loan application processes. It focuses on addressing the needs of socially and economically disadvantaged individuals and small businesses while preparing businesses to be credible loan applicants and enhancing their ability to operate successfully.

The Mississippi Small Business Development Center (SBDC) is the technical assistance provider for the State Small Business Credit Initiative. To get started, please visit ConnectMS  and/or click here to be directed to a questionnaire so SBDC can best assist you. Upon submitting the questionnaire online, SBDC staff will promptly be in touch with further information, including the next steps in the process.

Contact

Ready to see where Mighty Mississippi can take you? Contact the Mississippi Development Authority to learn more.

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