US Treasury awards Alaska nearly $60M in small business funding
ANCHORAGE, Alaska (KTUU) - The U.S. Department of the Treasury announced Tuesday that Alaska is among 11 states to be approved for the most recent round of State Small Business Credit Initiative funding.
According to a press release from the treasury, Alaska is set to receive $59.9 million in SSBCI monies that will be directed to lenders in order to provide opportunities for commercial fishing, mariculture, tourism, manufacturing, and other industries. The release said that Alaska’s funding will be split up into four programs.
“This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” Secretary of the Treasury Janet Yellen said in the release. “I’m excited to see how these SSBCI funds will promote equitable economic growth across the country.”
Alaska’s $59.9 million will be split into four programs — the largest of which is the Alaska Loan Guarantee Program — aimed at providing funding to small businesses that are facing revenues below what they would see in a typical year. There is $32 million allocated to the loan guarantee program, $15.9 million designated for the loan participation program, $10 million directed to the equity and venture capital program and another $2 million being sent to the collateral fund program, according to the release.
“The impact of Alaska’s programs is expected to be greatest in rural and remote communities that have struggled to attract capital in commercial fishing and mariculture, manufacturing, and tourism sectors with high profit upfront capital costs,” the release said.
In total, 31 states have been approved for approximately $4.8 billion in funding through the program, which began in 2010 but was restarted under the American Rescue Plan.
The release states that the program was “highly successful in increasing access to capital for small businesses and entrepreneurs” in 2010, and is specifically designed to promote entrepreneurship in underserved communities.”
A 2022 report from the White House found that in 2021 more Americans started new businesses than ever before, and small businesses with less than 50 employees created jobs at the highest rate ever recorded in a single year.
“SSBCI funding is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, amplifying the effects of this funding and providing small business owners with the resources they need to sustainably grow and thrive,” the release said.
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