Some funding will target disadvantaged communities.
The U.S. through the Treasury Department is planning to hand out $10 billion to help young companies gain access to capital in a bid to support businesses in disadvantaged communities and spur a broader economic recovery from the pandemic.
The State Small Business Credit Initiative will direct money to states, territories and tribal governments for programs that provide venture capital or encourage private lenders to issue loans to small firms.
The government has already spent more than that amount to support small businesses since the start of the pandemic. Funds are coming from the $1.9 trillion relief package passed last March. Businesses will receive money based on a formula that accounts for hardships like job losses. From that, they set programs, from loans to venture capital, that best target their respective locales.
As the Lord Leads, Pray with Us…
- For wisdom for Secretary Yellen and other officials in the Treasury Department as programs are implented to support economic recovery.
- For the funding designed to help small businesses and start-ups in disadvantaged areas to be effective and beneficial.
- That leaders in government would be discerning as federal programs are developed and assessed.
Sources: Wall Street Journal, Politico, The Hustle
