The government is set to release the total of $750 million to the states of Colorado, New York, Montana, and Oregon as capital for small businesses. According to the Treasury department, this intervention will be administered under the State Small Business Credit Initiative.
Breaking down the allotment of the funds, the Treasury Department identified New York as the highest beneficiary of the aid. New York state will receive about $501.5 million which is over 66%. Colorado is slated for $104.7 million. The states of Oregon and Montana will be receiving $83.5 million, and $61.3 million respectively.
This Intervention was launched in 2010, and has received a reauthorization, and constitutional backing with the American Rescue Plan Act of 2021. The initiative involves supporting states, tribal governments, and territories with a combined $10 billion in rescue funds. The initiative is targeted at job creation. Additionally, it will help to cushion the effects of the pandemic, and facilitate economic recovery. The funds will be used for loan programs, venture capital investments, collateral assistance, and to give some leverage to small businesses slugging it out with big companies for state contracts.
Wally Adeyemo, the US Deputy Secretary of the Treasury while commenting on the initiative identified minority-owned small businesses as the biggest casualties who suffered the harsh economic consequences of the pandemic. The program was thus specifically created to bolster the chances of undeserved entrepreneurs.
Under the initiative, 19 states have been approved to access over $2.25 billion, consolidating several billions in aid already disbursed under the American Rescue Plan Act.
Reacting to the announcement, Governor Kathy Hochul of New York lauded the intervention; “this really gives us the lift we need, the investment we need, to be able to go to our small business community and say we are here to help you.”
As originally reported in (https://www.washingtonpost.com/business/on-small-business/four-states-to-get-up-to-750-million-for-small-business-from-us/2022/08/19/eceedef6-1fd1-11ed-9ce6-68253bd31864_story.html)