Indiana gets up to $99 million to invest in startups and small businesses – Inside INdiana Business

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The State of Indiana is set to receive up to $99.1 million in federal funding to expand access and increase capital for entrepreneurs, startups and small businesses. The Indiana Economic Development Corp. claims Hoosier State is one of the first 14 states to be approved by the US Treasury Department for the state’s Small Business Credit Initiative.

The SSBCI, which was created in 2010, was reauthorized and funded by the American Rescue Plan Act in 2021. The IEDC says the funding is expected to generate $10 of follow-on investment for every $1 of SSBCI.

“As a state, Indiana is strategically focused on building the economy of the future and investing in the jobs of tomorrow. Moving Indiana’s Top 40 Global Entrepreneurship Ecosystem to the Top 5 Ecosystem is a critical goal of this initiative,” said Indiana’s Secretary of Commerce. Brad Chambers. “This SSBCI award will inject critical funds and resources into our ecosystem of current and future entrepreneurs, startups, and small businesses who are solving global challenges, creating new technologies, and positively impacting Hoosier communities across the country. State.”

IEDC says Indiana will receive a minimum of $86 million and be eligible for an additional $13 million over 10 years.

The state plans to use the funding to expand venture capital investments and create a new program to invest in small business loan funds. A minimum of 37% of funding will be allocated to small businesses and traditionally underserved entrepreneurs.

The IEDC says about $70 million will be used to accelerate the state’s “innovative startup ecosystem through direct investments in early-stage revenue companies.” The allocation is expected to expand Indiana’s ability to support pre-seed and seed funding rounds through Indianapolis-based Elevate Ventures.

The allocation will be invested in Indiana-based companies through the Indiana Angel Network Fund. IEDC says the investments will be available to companies seeking seed-stage financing.

IEDC says it will use $28 million to create a new Small Business Loan Fund Investment Program, which will provide more capital to historically underserved entrepreneurs and small businesses. The remaining SSBCI funds will be used to cover administrative costs.

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