Governor Tom Wolf announced that Pennsylvania has received nearly $268 million in Save America funding, through the State Small Business Credit Initiative (SSBCI), to spur small business success and job creation opportunities across the Commonwealth.
“Supporting our small businesses and boosting Pennsylvania’s world-class business environment remains one of my top priorities and I thank President Biden for sharing that commitment,” said Gov. Wolf. “This funding from the Biden Administration is a significant investment in Pennsylvania’s future that will be used to empower our small businesses and create new jobs.”
The American Rescue Plan reauthorized and expanded the SSBCI, originally established by Congress in 2010 to provide loans and investments to underserved small businesses. As part of this reauthorization, SSBCI is allocating $10 billion in funding to states, including $267.8 million to Pennsylvania.
“This is a historic investment in entrepreneurship, small business growth, and innovation through the Save America Plan that will help reduce barriers to capital access for traditionally underserved communities,” said Treasury Secretary Janet L Yellen. “I am excited to see how SSBCI’s funding will promote equitable economic growth across the country.”
The Pennsylvania Department of Community and Economic Development (DCED) will distribute the new funds to eligible economic development partners who will then administer the funding to eligible businesses in the form of equity investments and loans.
Pennsylvania will operate three different programs. A combined total of $142 million was allocated to the first two programs – equity capital investments and venture capital investments. Direct equity investments will be made in seed and early-stage technology companies in Pennsylvania through long-standing partners Ben Franklin Technology Partners and Life Sciences Greenhouses, as well as venture capital investments in new funds under the management of underserved venture capital firms sufficiently.
The third program is a loan participation program to which more than $125 million has been allocated. It will extend loans of no more than 50 percent of the total funding to small business borrowers through certified economic development organizations (CEDOs) and community development financial organizations (CDFs).
“I am very pleased to see these ARPA funds allocated to Pennsylvania,” said DCED Acting Secretary Neil Weaver. “Our partners will use this funding to help small businesses, socially and economically disadvantaged businesses, and businesses in the innovation and technology sector.”
Detailed guidance will be available soon and eligible partners should visit the Pennsylvania SSBCI website for additional information as it becomes available. DCED expects to begin distributing SSBCI funds to economic development partners this Fall.
Since the beginning of his administration, Gov. Wolf has supported small businesses in the Commonwealth. In 2018, the Wolf Administration launched the PA Business One Stop Shop which serves as the go-to resource for planning, registering, operating and growing a small business in Pennsylvania.
