Treasury allocates $1.5 billion in funding to seven states

Dec. 6 (UPI) -- The U.S. Treasury Department announced more than $1 billion in funding to help grow small businesses across seven states.

The department confirmed plans on Tuesday to allocate $1.5 billion in funding under the State Small Business Credit Initiative. It recently approved SSBCI funding plans from seven additional states.

Tuesday's addition brings the department's total SSBCI funding up to $6.8 million.

Florida, Georgia, Illinois, Louisiana, North Dakota, Oklahoma and Virginia were the seven states to be awarded funding on Tuesday.

Florida's $488.4 million was the largest amount of the seven. The state will operate five programs, including a collateral support program, loan participation program, loan guarantee program, equity and venture capital program, and a capital access program.

Illinois will operate four programs in total with its $354.6 million in new funding. The state is backing one new loan guarantee program, two loan participation programs and one new program focused on supporting emerging businesses in the green energy sector.

Virginia was awarded up to $230.4 million for five similar programs, while Louisiana will receive up to $113 million, North Dakota will get up to $58.6 million and Oklahoma is being awarded $81.6 million. Georgia was approved for up to $199.6 million in funding under the program.

In March 2021, President Joe Biden signed the American Rescue Plan Act, which reauthorized and funded the SSBCI. The new version of the SSBCI program provides a combined $10 billion to states, the District of Columbia and territories.

"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 a statement.

"These SSBCI funds will promote equitable economic growth across the country."

Funding awarded under the SSBCI helps to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic.