The State Small Business Credit Initiative (SSCBI) is a $96 million investment in growing Iowa’s small businesses, including startups, manufacturers and businesses owned by veterans and individuals from diverse backgrounds. The funding is available through the U.S. Treasury Department’s SSBCI, a small business aid program that was expanded through the federal American Rescue Plan Act.
The Treasury Department approved Iowa’s amount based on a plan submitted by the Iowa Economic Development Authority (IEDA). Iowa’s SSBCI dollars will focus on encouraging venture capital and investment in scalable innovation companies through the following programs:
- Loan Participation Program for Manufacturing 4.0 Investments: $28 million to help Iowa manufacturers invest in the new technologies that are transforming the industry. The state will purchase part of the loan to help offset risk for lenders.
- Small Business Collateral Support Program: $15 million to help small businesses offset collateral shortfalls as they secure loans through commercial lenders. Eligible borrower’s owners include small businesses that are 51% owned by women, individuals from diverse backgrounds, veterans, individuals with disabilities, and long-term rural residents; and small businesses that enhance arts and culture in Iowa.
- Venture Capital Innovation Fund Program: $22 million to increase funding opportunities across the state’s assistance programs for entrepreneurs. This fund also will provide more funding to address gaps in startup development phases as businesses work through concept, launch and expansion.
- Venture Capital Co-Investment Fund Program: $31 million to process and hold equity investments in private companies and ensure investments are qualified.
More information on these programs will be provided in the coming weeks from the Iowa Economic Development Authority.