Missouri has been approved for $26.9 million in funding through the State Small Business Credit Initiative, a Small Business Jobs Act program that supports state-level, small-business lending programs.
According to a news release from Gov. Jay Nixon's office, the Missouri government will use the initiative funding to create new jobs and create additional small-business lending statewide.
The application period for Missouri businesses will begin April 8.
"These new resources will help Missouri entrepreneurs grow their operations and turn their dreams into bricks and mortar," Nixon said in the release. "These critical funds will help Missouri small businesses access the capital they need to expand their operations, create new jobs and continue supporting our nation's economic recovery."
The state anticipates that for every $1 spent in federal funding, at least $10 will be spent in private lending, which would equate to more than $269 million, the release said.
Of the total funding, $16.9 million will be used to establish the Missouri Innovation, Development and Entrepreneurial Advancement Seed and Venture Capital Funds, which would provide financing to eligible businesses through four stages of venture growth:
- pre-seed capital stage financing;
- seed capital stage financing;
- venture capital stage financing; and
- expansion stage debt.
The remaining $10 million will be used for the Grow Missouri Loan Participation Fund, which promotes the formation and growth of small businesses in the industrial, commercial, agricultural and recreational sectors. It provides loans up to $3 million for businesses with fewer than 500 employees to aid expansion, the release said.
In a separate news release, the Missouri Chamber of Commerce and Industry commended Nixon and the state government for securing the funds.
“For Missouri small businesses and aspiring entrepreneurs, the promise of public-private lending partnerships will provide the needed capital to grow and create jobs in the state,” Missouri Chamber CEO Daniel Mehan said in the release. “In a tough economic climate, many have not had the resources to bring those opportunities to life."[[In-content Ad]]
