BUSINESS

Wisconsin to receive $79.1 million in federal funding to support small businesses

Ricardo Torres
Milwaukee Journal Sentinel

Wisconsin will receive up to $79.1 million through the federal State Small Business Credit Initiative as part of the American Rescue Plan. 

The U.S. Department of Treasury announced Thursday it was planning to allocate $339 million to Wisconsin, Arkansas, Rhode Island, Guam and the U.S. Virgin Islands to support small businesses and expand their access to capital.  

“This is an historic investment in entrepreneurship, small business growth, and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” Treasury Secretary Janet Yellen said in a statement. “These SSBCI funds will promote equitable economic growth across the country.”   

The funding for Wisconsin would support capital access, collateral support, a debt/hybrid program, two loan participation programs and two equity/venture capital efforts.  

Both venture capital funds will receive $25 million for small business investments. The Wisconsin Economic Development Corp., will receive $6 million for its Capital Catalyst Fund, a loan program that provides matching capital to revolving loan funds managed by nonprofits. 

“The SSBCI offers an exciting opportunity to not only provide the capital that is so critical to small business success but to use federal resources to promote new private investment,” WEDC Secretary and CEO Missy Hughes said in a statement. “The long-term benefit is using the private investment expertise to generate returns and grow a revolving pool of capital to be reinvested in new businesses again and again.” 

The Wisconsin Housing and Economic Development Authority will receive $15 million for credit support for small businesses that receive financing from the Community Development Financial Institutes. 

“In Wisconsin, our small businesses and main street’s are the lifeblood of our communities and make our state the great place it is to live and raise a family,” Wisconsin Sen. Tammy Baldwin said in a 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.”