Small Business

Menendez Joins Biden Administration in Announcing $255M to Support Small Businesses

U.S. Senator Bob Menendez (D-N.J.) joined the Biden Administration in announcing the U.S. Department of the Treasury’s approval to expand access to capital for small businesses under the American Rescue Plan’s State Small Business Credit Initiative (SSBCI), including New Jersey’s SSBCI funding plan for up to $255.1 million. The American Rescue Plan reauthorized and expanded SSBCI, which was originally established in 2010 and was highly successful in increasing access to capital for small businesses and entrepreneurs.

“With this announcement of federal funding, we are opening the doors of opportunity for millions of small businesses across the country, and in particular, for thousands of small businesses owners in New Jersey,” said Sen. Bob Menendez. “The $255 million in SSBCI funding we’re announcing today is an economic lifeline for entrepreneurs still reeling from the devastating effects of the pandemic, especially minority-owned and operated businesses that disproportionately bore the burden from Camden County to Bergen County.”

The new SSBCI builds on this successful model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic. States, the District of Columbia, territories, and Tribal governments submit an application describing how their SSBCI funding will create new lending and investment. 

The New Jersey Economic Development Authority (NJEDA) announced on December 30, 2022 that it plans to create and launch the following six programs with its SSBCI funding, which are now approved for up to $255.1 million.

The programs include the Angel Match Program to invest directly in early-stage, product-based technology companies, and the Clean Energy Business Financing Program, a loan participation program that will provide loans to small businesses to deploy clean energy technologies. Additional programs will support small business lending by community development financial institutions (CDFIs) and minority depository institutions (MDIs) in New Jersey. 

In January, the Census Bureau released data which showed that over the last two years Americans have applied to start 10.5 million new businesses, making 2021 and 2022 the strongest two years on record for new business applications. The investments being made through SSBCI are a key part of the Biden Administration’s strategy to keep this small business boom going by expanding access to capital and by providing entrepreneurs the resources they need to succeed.

To access more business news, visit NJB News Now.

Related Articles: