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Wisconsin is set to receive almost $80 million to support small businesses and entrepreneurs, according to an announcement made by Governor Tony Evers and U.S. Senator Tammy Baldwin on Thursday. The funding will be provided through the State Small Business Credit Initiative (SSBCI), which is part of the American Rescue Plan Act supported by Baldwin.
More than 99% of Wisconsin businesses quality as small businesses, which employ almost half of the state’s workers. The state has already invested over $1 billion in small businesses and business districts affected by the pandemic, and the new SSBCI funding will continue building on these efforts to create jobs and new opportunities.
The Evers Administration’s plan for allocating the SSBCI funds includes creating the Wisconsin Investment Fund, in partnership with venture capital funds investing private capital in Wisconsin-based start-ups, as well as expanding the state’s Technology Development Loan program to support innovative new businesses, supporting the Capital Catalyst program by providing matching funds to non-profit organizations operating small-business loan programs, and providing credit support to small businesses that receive microloans from Community Development Financial Institutions (CDFIs) through WHEDA.
SSBCI is unique among federal recovery funds because it focuses on supporting small businesses as they grow and create future opportunities, with a total of $10 billion allocated to states, territories, and tribal governments. The funds are expected to be deployed over several years, primarily through private sector investors and lenders. The SSBCI is funded by the American Rescue Plan Act, which was passed without any Congressional Republican support and enacted by President Biden in March 2021.
“In Wisconsin, our small businesses and Main Streets are the lifeblood of our communities and make our state the great place it is to live and raise a family,” said Sen. Baldwin via statement. “But, many of our businesses struggle to expand their reach and need resources to grow and thrive. I was proud to vote for the American Rescue Plan to help Wisconsin’s small businesses reach more customers, entrepreneurs access the resources they need to get their businesses’ off the ground, and create good-paying jobs in all corners of the state.”
The announcement comes as Governor Evers unveiled his 2023-25 biennial budget, which includes a $75 million venture capital fund of funds under the direction of WEDC. This fund will invest in venture capital funds that commit to investing the state’s funds in emerging Wisconsin companies alongside other private capital to leverage other sources of financing. The proposal will require that 20% of all investments go to historically underserved communities, including rural areas that do not traditionally receive venture capital financing and diverse- and women-owned businesses.
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Wisconsin is leading the way in terms of aid directed to support businesses and economic development, as shown in a recent 2023 report. The Evers Administration has already deployed more than $1 billion in federal recovery funding to support businesses across the state and help business owners respond to and get through the pandemic.
The SSBCI funds will enable Wisconsin to continue its successful efforts in creating job opportunities and ensuring the state maintains its economic momentum. More information will be available on WEDC.org and WHEDA.com as details of the programs are released.
