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
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.
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.
The Mississippi Venture Capital Program 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 Innovate Mississippi at innovate.ms/ssbci.
Innovate Mississippi also will be administering the SSBCI Direct Investment Program. 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 Innovate Mississippi at innovate.ms/ssbci.
Contact
Ready to see where Mighty Mississippi can take you? Contact the Mississippi Development Authority to learn more.
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