Oregon gets $83.5 million for small businesses

President Biden’s American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010 and was highly successful in increasing access to capital for small businesses and entrepreneurs, according to a release from the U.S. Department of the Treasury.

The new SSBCI builds on this successful model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic.

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 states.

State governments submitted plans how they would us the SSBCI allocations to the U.S. Treasury Department.

Reaction

“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 including those in rural areas,” Secretary of the U.S. Treasury Janet L. Yellen said.

Oregon U.S. Sen. Ron Wyden said Oregon is a leader in innovation, thanks to the entrepreneurs and small businesses generating thousands of jobs in their communities.

"Yet, too often small business owners – especially entrepreneurs of color, women, and those in rural parts of our state - face serious obstacles to get the capital they need to grow their businesses, or even get their businesses off the ground in the first place," Wyden said. "These historic American Rescue Plan investments will go far in tearing down obstacles to growth and support more entrepreneurs and small businesses in every nook and cranny of our state."

“Small businesses are the lifeblood of our communities,” Oregon U.S. Senator Jeff Merkley said. “As our economy continues to recover from the ongoing pandemic and other market disruptors, it’s crucial to continue supporting our local community businesses. This important access to capital will help jumpstart new and growing small businesses in Oregon by ensuring business opportunities are accessible and encouraging entrepreneurs old and new to build out their small businesses - ultimately, serving their communities and building the shared future we want.”

“This significant investment is an exciting opportunity for Oregon’s small businesses and the hard-working, entrepreneurial Oregonians who run them,” Oregon U.S. Congresswoman Suzanne Bonamici said. “Small businesses are an important part of our communities and our economy. With more people starting new small businesses and growing existing businesses, it’s important to break down barriers to success, especially in underserved areas and rural communities."

How the money will be used

Oregon will operate five programs, including two venture capital programs to which the state has allocated $30 million. The venture capital programs are designed to invest in funds in need of additional capital to launch and scale and to make co-investments in companies alongside private investors by matching the lead investor’s structure and terms, according to the release.

Across its programs, Oregon’s plan aims to counter systemic barriers to economic opportunity by providing access to capital in persistently underserved, low- and moderate-income areas and rural communities. Oregon expects these programs to be self-sustaining, providing vital support to small business in Oregon now and over the long term.

A recent White House report found that more Americans are starting new businesses than ever before. In 2021, Americans applied to start 5.4 million new businesses – 20% more than any other year on record.

The report also found that small businesses are creating more jobs than ever before, with businesses with fewer than 50 workers creating 1.9 million jobs in the first three quarters of 2021 – the highest rate of small business job creation ever recorded in a single year.