Nearly $60M for Small Business Credit Initiative
A state-backed program is pooling federal funds to extend financing to small businesses in Alaska.
Small Business Credit Initiative
The Alaska State Small Business Credit Initiative (SSBCI) is a project of the State of Alaska, UAA, and the Alaska Small Business Development Center (SBDC), which is hosted by UAA’s Business Enterprise Institute.
“The SSBCI program will be an amazing catalyst for economic growth, a perfect example of the state, university, and private sector partnering to build a better future for Alaska,” says SBDC Director Jon Bittner.
The program uses $59.9 million from the US Department of Treasury to pay incentives to drive private sector funding toward small businesses statewide.
The SSBCI funds will be deployed by the SBDC through a $32 million loan guarantee program, a $15.9 million loan participation program, a $10 million equity investment program, and a $2 million loan collateral program. These funds will be deployed over the next ten years to help Alaska’s small businesses grow and thrive, particularly those that have traditionally had a hard time securing loans or equity investments.
“This investment in Alaska businesses will empower innovation and entrepreneurship across the state,” says UA System President Pat Pitney, “and our Small Business Development Center is the perfect partner to help mentor the recipients of these funds. I have no doubt the capital disbursed as a result of these programs will fuel our economy and benefit our communities.”
The funds will be available through Alaska lenders and local equity investment funds starting in January 2023. Businesses interested in using these programs to help secure financing should reach out to their lender or local equity investors.