Up to $86 million has been approved for the State Small Business Credit Initiative (SSBCI), according to the Mississippi Development Authority (MDA) and U.S. Treasury Department.
The initiative will operate four programs to support Mississippi small businesses and startups including a loan participation program, a loan guarantee program, and two equity/venture capital programs.
The loan participation program — known as the Mississippi CDFI Small Business Loan Fund — has been allocated $45 million to provide funds in the form of a loan to community development financial institutions.
Administered by Innovate Mississippi, the Mississippi Venture Capital Program has been allocated $15 million to provide equity support to small businesses by investing in venture capital funds that support startups.
The SSBCI Direct Program in Mississippi is an initiative with a budget of $11 million, focused on Pre-Seed, Seed, and Series A stage startups.
Larger deals can receive up to $3 million with an SSBCI match of up to $1 million, while the remaining funds are allocated for SSBCI deals with a match of up to $500,000.
The MDA noted that Mississippi’s SSBCI Direct Program will not serve as the lead investor and requires a lead investor’s participation in a funding round.
Additionally, the state will operate a $15 million loan guarantee program with guarantees of up to 80 percent, aiming to expand access to capital for underserved small businesses.