The program provides cash to minority-owned businesses, businesses in low-income areas, and firms who are having difficulty obtaining finance.
This week, a not-so-new federal program to assist small businesses began disbursing funding. How much is it? How does $10 billion sound to you?
This isn't a joke. The federal government is putting up $10 billion, and any small business in the country is eligible.
This is not the economic injury disaster loan program or the paycheck protection program. Both of the Covid relief attempts have run their course.
This is also not a Small Business Administration loan program. It's a treasury-related message.
The state small business credit initiative, or SSBCI, is a scheme that works like this.
The Treasury Department has been given authority to distribute $10 billion to each state under the 2021 American Rescue Plan Act.
The formula is based on local unemployment and the need for job development in the District of Columbia and tribal territories.
As previously stated, the program is not new. The SSBCI was founded in 2010 and distributed $1.5 billion at the time. So, we'll refer to this as version 2.0.