U.S. Department of the Treasury 

Office of Public Affairs 

 

Press Release: August 19, 2022

Contact: Treasury Public Affairs, Press@Treasury.gov

Colorado to Receive Up to $104.7 Million from U.S. Treasury Department to Promote 

Small Business Growth and Entrepreneurship through the American Rescue Plan 

Colorado Among Four States Recently Approved to Receive Federal Funding Through the State 

Small Business Credit Initiative 

WASHINGTON — Today, the U.S. Department of the Treasury announced the approval of 

Colorado’s application for funding under the State Small Business Credit Initiative (SSBCI) for 

up to $104.7 million. President Biden’s American Rescue Plan reauthorized and expanded 

SSBCI, which was originally established in 2010 and was highly successful in increasing access 

to capital for small businesses and entrepreneurs. The new SSBCI builds on this successful 

model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal 

governments to increase access to capital and promote entrepreneurship, especially in 

traditionally underserved communities as they emerge from the pandemic. SSBCI funding is 

expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, 

amplifying the effects of this funding and providing small business owners with the resources 

they need to sustainably grow and thrive. State governments submitted plans to Treasury for how 

they will use their SSBCI allocation to provide funding to small businesses, including through 

venture capital programs, loan participation programs, loan guarantee programs, collateral 

support programs, and capital access programs.

“This is an historic investment in entrepreneurship, small business growth, and innovation 

through the American Rescue Plan that will help reduce barriers to capital access for traditionally 

underserved communities including those in rural areas,” said Secretary of the Treasury Janet 

L. Yellen. “I’m excited to see how SSBCI funds will promote equitable economic growth in 

Colorado and across the country.”

“Colorado is proud to be one of the recipients of these exciting federal grants, which will help 

create and retain over 11,000 good-paying jobs for Coloradans," said Governor Jared Polis. 

"The Polis administration is committed to finding ways to offer effective support to small 
businesses, save people money, and work to ensure that Colorado is a place where entrepreneurs 

and businesses can thrive for generations to come. This type of support furthers that mission.”

“We passed the American Rescue Plan last year to support small businesses across 

Colorado and strengthen the communities they call home. As Coloradans continue to 

recover from a difficult few years, I’m pleased to welcome these funds to Colorado to help local 

companies retain their employees and create new jobs,” said Senator Michael Bennet.

“Small businesses are still struggling with rising costs, the lingering effects of the pandemic, and 

labor shortages. This partnership between the federal government and states will help new and 

existing businesses grow and thrive,” said Senator John Hickenlooper.

Colorado, approved for up to $104.7 million, will operate three programs, including a venture 

capital program, to which it has allocated nearly $60 million. The program expects to invest in 

two venture capital funds per year for three years to build a diverse seed-stage portfolio of small 

businesses in need of capital. Colorado has also allocated $35 million to an existing cash 

collateral support program that enables small businesses and non-profit organizations to secure 

credit by pledging a cash deposit as collateral. In addition, Colorado has set aside $10 million for 

a loan program intended to help Main Street businesses recover from the pandemic.

A recent White House report found that more Americans are starting new businesses than ever 

before. In 2021, Americans applied to start 5.4 million new businesses – 20% more than any 

other year on record. It also found that small businesses are creating more jobs than ever before, 

with businesses with fewer than 50 workers creating 1.9 million jobs in the first three quarters of 

2021 – the highest rate of small business job creation ever recorded in a single year. The 

investments being made through SSBCI are a key part of the Biden Administration’s strategy to 

keep this small business boom going by expanding access to capital and by providing 

entrepreneurs the resources they need to succeed. The work Treasury has done through the 

implementation process to ensure SSBCI funds reach traditionally underserved small businesses 

and entrepreneurs will also be critical to ensuring the small business boom not only continues but 

also continues to lift up communities disproportionately impacted by the pandemic. Treasury 

intends to continue approving state plans on a rolling basis.

The following descriptions highlight some of the key programs that Treasury has approved for 

the four states being announced today:

• Colorado, approved for up to $104.7 million, will operate three programs, including a 

venture capital program, to which it has allocated nearly $60 million. The program 

expects to invest in two venture capital funds per year for three years to build a diverse 

seed-stage portfolio of small businesses in need of capital. Colorado has also allocated 

$35 million to an existing cash collateral support program that enables small businesses 

and non-profit organizations to secure credit by pledging a cash deposit as collateral. In 

addition, Colorado has set aside $10 million for a loan program intended to help Main 

Street businesses recover from the pandemic.
• Montana, approved for up to $61.3 million, will operate a loan participation program 

modeled after a successful program in the previous iteration of SSBCI. This new 

program is designed to significantly increase the number of eligible CDFI and non-profit 

local economic development agencies with revolving loan funds (RLFs) that can 

participate in the program, to obtain a much broader outreach for targeting underserved 

markets. In addition, this program gives rural and Native American entrepreneurs greater 

opportunity to create new businesses and expand existing small businesses — creating

jobs and economic opportunities in Montana’s rural counties and Indian Country.

• New York, approved for up to $501.5 million, will operate multiple programs, including 

a capital access program, loan guarantee programs, loan participation programs, and 

venture capital programs. For example, New York has allocated over $154 million to a 

program that provide equity support to small businesses by investing through private 

venture capital funds and accelerator funds. This program will provide capital support to 

funds with diverse and emerging fund managers and teams. In addition, New York has 

allocated funds to two programs designed to help small and underserved businesses 

compete for government contracts, which may include projects funded by the Bipartisan 

Infrastructure Law. As part of these efforts, New York will expand an existing program 

that saw a significant majority of its support for potential contractors going to minorityand women-owned businesses.

• Oregon, approved for up to $83.5 million, will operate five programs, including two 

venture capital programs to which the state has allocated $30 million. The venture capital 

programs are designed to invest in funds in need of additional capital to launch and scale 

and to make co-investments in companies alongside private investors by matching the 

lead investor’s structure and terms. Across its programs, Oregon’s plan aims to counter 

systemic barriers to economic opportunity by providing access to capital in persistently 

underserved, low- and moderate-income areas and rural communities. Oregon expects 

these programs to be self-sustaining, providing vital support to small business in Oregon

now and over the long term.

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