Vermont State House

(The Center Square) – An injection of federal funding is coming to Vermont’s small business sector.

Republican Gov. Phil Scott says the state will receive $57.9 million in federal funding through the American Rescue Plan Act that will provide additional capital for entrepreneurs and small business start-ups in the state. It was also announced the state’s Small Business Credit Initiative program will provide low-interest loans and early-stage venture capital investments.

"My administration remains focused on retaining and creating jobs and supporting businesses in every region of the state,” Scott said in the release. “This program will support our innovative employers, helping them to grow and become national leaders while strengthening our communities here at home.”

The Small Business Credit Initiative, according to the release, was started in 2010 and was then reupped through ARPA money in 2021. The program has provided more than $10 billion in funding around the country.

The funding is designated, according to the release, to assist small businesses with capital for creating high-quality jobs, expanding economic opportunities in underserved communities that lack the necessary capital to grow.

“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,” Secretary of the Treasury Janet L. Yellen said in the release. “I’m excited to see how SSBCI funds will promote equitable economic growth across the country.”

Vermont is poised to receive almost $20 million for venture capital projects aimed at seed fund investments, leveraging accelerator programs, making small investments in rural, pre-seed stage companies, and making investments in higher growth, technologically innovative driven companies in health care.

The state, according to the release, is poised to give another $29 million to the loan participation program that is administered by the state’s Economic Development Authority. The funding will help smaller businesses grow, create jobs with good pay, and serve underserved areas.

Associate Editor

Brent Addleman is an Associate Editor and a veteran journalist with more than 25 years of experience. He has served as editor of newspapers in Pennsylvania and Texas, and has also worked at newspapers in Delaware, Maryland, New York, and Kentucky.