Mississippi Development Authority deploying funds for small business
- Mississippi approved for $86 million in funding
- Funds will help operate four programs
Jackson, Miss. (July 12, 2023) – The Mississippi Development Authority and U.S. Treasury Department announced that the State Small Business Credit Initiative has been approved for up to $86 million. The SSBCI will operate four programs to support Mississippi small businesses and startups: a loan participation program, a loan guarantee program, and two equity/venture capital programs.
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 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 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.
The SSBCI Direct Program in Mississippi is an initiative with a budget of $11 million, 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.
Additionally, the state will operate a $15 million loan guarantee program with guarantees of up to 80 percent, aiming to expand access to capital for underserved small businesses.
“Mississippi’s economy is booming, unemployment is at an all-time low, and now is the ideal time to start and grow a small business in our state. We’re incredibly excited to see these funds invested into local communities to support Mississippi-grown small businesses. The future of our state’s economy is being charted today by innovative entrepreneurs and I greatly look forward to seeing their continued success.” – Gov. Tate Reeves
“The SSBCI will provide critical funding to support Mississippi small businesses and startups, and we are thrilled to see these programs become a reality. By investing in these Mississippi companies, we will generate new job opportunities and spur even more economic growth in communities throughout our state.” – MDA Deputy Executive Director Laura Hipp
“This program is a great way to multiply the impact of venture capital investments because it relies on a private investor putting their capital at risk – but then doubling the amount and impact of that investment.”– Tony Jeff, President and CEO of Innovate Mississippi
About Mississippi Development Authority
Mississippi Development Authority is the state’s lead economic and community development agency. MDA focuses on new business recruitment, existing business expansion, workforce training and tourism promotion. For more information, visit MDA’s website at mississippi.org.