Alaska is one of 11 states that have received funding approvals in the latest round of funding from the State Small Business Credit Initiative, the U.S. Treasury Department announced Tuesday.
According to a press release from Janet Yellen of the Treasury Department, “this is a historic investment in entrepreneurship, small business growth and innovation through the US bailout that will help reduce obstacles to the availability of funding for traditionally underserved communities”.
Alaska will receive $59.9 million in SSBCI funds, according to a Treasury press release, which will be given to lenders to provide opportunities for commercial fishing, mariculture, tourism, manufacturing and other businesses. According to the press release, Alaska will receive funding for four different programs.
The $59.9 million allocated to Alaska will be divided among four programs, the largest of which is the Alaska Loan Guarantee Program. These programs are designed to provide capital to small businesses when their annual revenues are below expectations. According to the press release, $32 million will go to the loan guarantee program, $15.9 million to the loan participation program, $10 million to the venture capital program and $2 million to the fund program. of guarantee.
The initiative, which began in 2010 but was renewed as part of the US bailout, approved total funding of $4.8 billion for 31 states.
The impact of Alaska’s initiatives is expected to be greatest in rural and remote towns that have struggled to attract funding for industries with high initial returns, including commercial fishing and mariculture, manufacturing, and tourism. .
The initiative, which is specifically designed to encourage entrepreneurship in marginalized neighborhoods, was “extremely successful in boosting access to finance for small businesses and entrepreneurs” in 2010, according to the press release.
According to a 2022 White House report, the number of Americans starting new businesses in 2021 was higher than it had ever been, and small businesses with fewer than 50 employees were producing jobs at the annual rate the highest ever seen.
According to the press release, “SSBCI funding is estimated to catalyze up to $10 of private investment for every dollar of SSBCI capital support, amplifying the effects of this funding and giving small business owners the resources they need. need to develop and prosper in a sustainable way.
Summary of news:
- Alaska receives about $60 million in small business funding from the US Treasury
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