Last month the US Treasury Department announced an addition $10 billion in aid to new companies in an attempt to spur development and broaden business recovery from the pandemic.

As part of the American Rescue Plan Act signed in March 2021, the State Small Business Credit Initiative (SSBCI) will fund state, territory, and Tribal government small business investment and credit programs guiding private lenders to issue loans to small businesses and help get venture capital out. Application materials become available this month and disbursement of funds will likely begin before the end of the first quarter this year.

During the 2007 recession this policy was put in place when banks slowed lending to small businesses. This new program is six times larger than the previous rollout. With many small businesses, especially in the retail sector suffering or closing permanently, financial credit through this program will help keep more businesses open and occupying retail spaces.