Jan.12, 2022—The U.S. is planning to hand out $10 billion to help upstart companies gain access to capital, the Wall Street Journal reported.
The State Small Business Credit Initiative will direct money to states, territories and tribal governments for programs that provide venture capital or encourage private lenders to issue loans to small firms. The program revives a policy put into place following the 2009 recession, when banks cut back on lending to small firms.
The $10 billion is more than six times as large as the cost of the earlier program, in part because the administration and Congress wanted to dedicate funds to disadvantaged groups. The money comes from the $1.9 trillion coronavirus-aid package Congress passed last March.