Indiana is set to receive up to $99.1 million in federal funding to expand access to and increase capital for entrepreneurs, startups and small businesses. The Indiana Economic Development Corp. announced Monday the state is one of the first 14 to be approved by the U.S. Department of Treasury for the State Small Business Credit Initiative.
The SSBCI, which was established in 2010, was reauthorized and funded through The American Rescue Plan Act in 2021. The IEDC says the funding is expected to leverage $10 in follow-on investment for each $1 of SSBCI.
“As a state, Indiana is strategically focused on creating the economy of the future and investing in the jobs of tomorrow and taking Indiana’s Top 40 Global Entrepreneurship Ecosystem to a Top 5 Ecosystem is an essential goal of that initiative,” said Indiana Secretary of Commerce Brad Chambers. “This SSBCI award will inject critical funding and resources into our ecosystem of current and future entrepreneurs, startups and small businesses who are solving global challenges, creating new technologies, and positively impacting Hoosier communities statewide.”
The IEDC says Indiana will receive a minimum of $86 million and will be eligible for an additional $13 million over 10 years.
The state plans to use the funding to expand venture capital investments and create a new program to invest in small business loan funds. A minimum of 37% of the funding will be allocated to traditionally underserved small businesses and entrepreneurs.
The IEDC says about $70 million will be used to accelerate the state’s “innovative startup ecosystem through direct investments in early-revenue companies.” The allocation is expected to expand Indiana’s ability to support pre-seed and seed funding rounds through Indianapolis-based Elevate Ventures.
The allocation will be invested in Indiana-based companies through the Indiana Angel Network Fund. The IEDC says the investments will be available to companies pursuing seed stage financing.
The IEDC says it will use $28 million to create a new small business loan fund investment program, which will provide more capital for historically underserved entrepreneurs and small businesses. The remaining SSBCI funds will be used to support administrative costs.