Scott Announces $57.9 Million Venture Capital Investment for Vermont Entrepreneurs
State Small Business Credit Initiative Program to Establish Venture Capital Investments and Small Business Loans
Vermont Business Magazine Governor Phil Scott, the Commerce and Community Development Agency (ACCD), and the Vermont Economic Development Authority (VEDA) today announced that Vermont will receive $57.9 million in federal funding from the American Rescue Plan Act (ARPA) to provide greater access to capital to Vermont entrepreneurs and small start-ups. Vermont’s State Small Business Credit Initiative (SSBCI) program will include access to low-interest loans and early-stage venture capital investments.
“My administration remains focused on maintaining and creating jobs and supporting businesses in all regions of the state,” Governor Scott said. “This program will support our innovative employers, helping them grow and become national leaders while strengthening our communities here at home. ”
Created in 2010 and reauthorized in 2021 under ARPA, $10 billion in SSBCI funding has been distributed to statesthe District of Columbia, territories, and tribal governments to expand access to capital for small businesses emerging from the pandemic with a focus on creating high-quality jobs and expanding economic opportunity in communities underserved who lack capital.
“This is a historic investment in entrepreneurship, small business growth and innovation through the US Bailout that will help reduce barriers to accessing capital for traditionally underserved communities. said Treasury Secretary Janet L. Yellen. “I am excited to see how the SSBCI funds will promote equitable economic growth across the country.”
Vermont’s SSBCI program will receive nearly $29 million in venture capital allocations that will focus on seed fund investments; leveraging acceleration programs to make small investments in pre-seed rural enterprises; and investments in high-growth technology innovation companies in the healthcare sector.
“Never before have we had such an opportunity to fund startups and seed capital for Vermont businesses,” said Department of Economic Development Commissioner Joan Goldstein. “These investments present a huge opportunity for venture capital in the state.”
Vermont will also allocate an additional $29 million to a Loan Participation Program, administered by VEDA, which will leverage private funds to help small businesses grow, create well-paying jobs and serve underserved markets.
“The COVID-19 pandemic has devastated many of our businesses, farmers and entrepreneurs,” said Cassie Polhemus, chief executive of VEDA. “Receiving this federal funding will go a long way in supporting VEDA’s mission to strengthen Vermont’s economic vitality by mobilizing private funds to catalyze innovation in key sectors, create high-quality jobs, diversify the economy, and help businesses to continue to recover from the pandemic. ”
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Governor. Montpelier. 18.07.2022. www.vermont.gov