UPDATE: DSB Distributes $2.40M in SSBCI Funding in 45 days

DOVER, Del. – Significant progress has been made on the Delaware Division of Small Business’s (DSB) Race to $14M initiative! In the last 45 days, the Division is proud to announce that it has distributed $2.40M to small business owners. This is exciting news since the highly publicized relaunch of DSB’s Small State Business Credit Initiative (SSBCI) on April 24, when DSB Director CJ Bell explained the urgent need to get $14M in the hands of small business owners before the end of the calendar year.

“Results always speak louder than words,” said DSB Director CJ Bell. “The Division prides itself on being efficient and transparent. Special recognition goes to our Business Finance Team, who have been the true catalyst for this effort. If you know someone who could benefit from these programs, send them our way! Let’s have a conversation.”

The $2.40M was distributed through two Loan Participation Program loans under $600,000, and three direct investments through the Delaware Accelerator and Seed Capital program of approximately $500,000 each. With these funding awards, there is now just $11.6M left to meet the goal.

In 2023, Delaware was awarded $60.9M in federal funding from the U.S. Treasury Department to be provided to the State, in three allocations. It received its first $20M and must spend 80% of that to access its next round. As of early April, just over $2.0M had been distributed, leaving another $14M to hand out by the end of December.

The Division of Small Business is using the SSBCI funds for four programs – two venture capital programs and two which support loans for small businesses. Information on the programs is available at de.gov/ssbci.

The loan programs are available to all small businesses, especially those in underserved or economically and socially disadvantaged areas and are intended to reach those that need access to capital, but may lack necessary collateral, or have a short credit history.

Instead of lending directly to the small business owner, DSB provides partial funding to a bank, credit union or Community Development Financial Institution to help them make small business loans. The State’s current participating lenders are Del-One Federal Credit Union, True Access Capital, and Community Bank in Sussex County. The Division is in significant need of additional lenders and asks any interested financial institution to contact them at Business_Finance@delaware.gov to learn more.

With the latest awards, DSB has supported 23 loans through these programs.

The Delaware Seed/Accelerator Capital Program (DASCP) allows the Division to make direct investments of up to $1M dollars to small businesses that are considered “high impact”. The direct investments must be made after the business has completed their “seed round” of funding, which is usually funding from family and friends. The Division will match what they raised.
Companies with fewer than 100 employees are eligible. Most will be tech-focused companies. The owner is required to have a lead negotiator and those that can prove a 1:1 match will be prioritized. Questions about the DASCP can be directed to Business_Finance@delaware.gov.

###

The Division of Small Business is a state agency committed to helping small businesses start and grow in Delaware through a variety of services it provides. From start-ups to experienced business owners looking to expand, our team of Regional Business Managers can provide you one-on-one assistance and counseling to help you succeed. They can assist with a variety of needs, including: navigating government processes, connecting owners with our many resource partner organizations, and identifying funding opportunities for which you may qualify. See all of the programs and services we offer at business.delaware.gov.