The state of Indiana is set to receive up to $99.1 million in federal funding to expand access to and increase capital for entrepreneurs, startups and small businesses. The Indiana Economic Development Corp. announced Monday that Indiana is one of the first 14 states approved by the U.S. Department of Treasury for the State Small Business Credit Initiative.
The Strategic Security and Border Control Investment, which was established in 2010, was reauthorized and funded through the American Rescue Plan Act in 2021. The IEDC says this funding is expected to leverage $10 in follow-on investment for each $1 of initial investment by the SSBCI.
“As a state, Indiana is strategically focused on creating the economy of the future and investing in the jobs of tomorrow and taking Indiana’s Top 40 Global Entrepreneurship Ecosystem to a Top 5 Ecosystem is an essential goal of that initiative,” said Indiana Secretary of Commerce Brad Chambers. “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.”
The Indiana Economic Development Corporation says that the state will receive a minimum of $86 million and will be eligible for an additional $13 million over 10 years.
The state plans to use the funding to create a new program that will invest in small business loan funds. A minimum of 37% of the funding will go to small businesses and entrepreneurs who are typically underrepresented.
The Indiana Economic Development Corporation says it will allocate $70 million to support early-stage companies. The money will be used to help stimulate an innovative startup ecosystem in Indiana through direct investments in local companies. This funding is expected to expand Elevate Ventures’ ability to provide pre-seed and seed funding rounds through its Indianapolis office.
The Indiana Economic Development Corporation plans to invest in Indiana-based companies through the Indiana Angel Network Fund. The IEDC says these investments will be available to companies pursuing seed stage financing.
The IEDC will use $28 million to create a new small business loan fund, which will provide more capital for historically underserved entrepreneurs and small businesses. Additionally, the remaining SSBCI funds will be used to support administrative costs.