Indiana will receive an additional $99.1 million in federal American Rescue Plan funds to invest in new and existing small businesses over the next 10 years.
The Indiana Economic Development Corporation announced the award Friday, which will be administered through the State Small Business Credit Initiative.
“This SSBCI award will inject critical funding 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 statewide,” Indiana Secretary of Commerce Brad Chambers said in a statement.
Indiana will receive a minimum of $86 million. The remaining $13 million will be released after meeting targets for the initial funding. Funding will be used to expand access to venture capital and create a new small-business loan program.
A minimum of 37% of funding is designated for traditionally underserved small businesses and entrepreneurs. Funds must be disbursed along with private investments, and the SSBCI estimates that will multiply the total dollars invested by a factor of 10, resulting in a total impact of $990 million on Indiana entrepreneurism.
Funding will be distributed by SSBCI and will be used for three purposes.
About $70 million will be invested in startup companies. These funds will be distributed through Elevate Ventures, a private venture capital firm working in partnership with the state. These investments will be made in Indiana companies, typically in the pre-revenue stage.
About $28 million will be used to create a new small business loan fund for historically underserved populations. Qualifying small businesses may have part of their loan bought by the IEDC.
The remaining portion of SSBCI funds, about $1 million, will be used for administrative costs.
SSBCI was created in 2010 and initially funded with $30 million, which was invested in Indiana small businesses through Elevate Ventures. Overall, Elevate Ventures has invested $136 million in Indiana businesses and drawn $1.9 billion in private co-funding.
This article originally appeared on The Center Square.