Business organizations apply for state funding through State Small Business Credit Initiative
From: Melina Druga, PennBizReport
Capital Region Economic Development Corp. (CREDC), an organization serving Cumberland, Dauphin, and Perry counties, and its partners recently applied for $27 million in PA State Small Business Credit Initiative (PA-SSBCI) grants.
The federal American Rescue Plan re-authorized and expanded the SSBCI. In this round, SSBCI provided states with $1.5 billion and generated more than $10 billion of investment funding into state programs supporting small businesses.
Pennsylvania received $268 million and will use the funding for three programs. The Department of Community and Economic Development will distribute the money.
The first two programs were allocated $142 million for equity capital investments and venture capital investments. The third program was allocated more than $125 million to extend loans of no more than 50 percent of total financing to small-business borrowers through certified economic development organizations and community development financial institutions.
CREDC and its partners applied for the third program. CREDC and the Harrisburg Regional Chamber applied for a loan. Led by the Chester County Economic Development Council, CREDC, the Delaware County Economic Development Oversight Board, the Greater Berks Development Fund, the Bucks County EDC, and the Lebanon Valley EDC applied for money to seed a revolving loan fund.
A percentage of the funding for each county served will be reserved based on population.