DOVER – In the last 45 days, the Delaware Division of Small Business (DSB) announced that it has distributed $2.4M to small business owners. Since DSB’s relaunch of the Small State Business Credit Initiative (SSBCI), Director CJ Bell set a goal to distribute $14M to small businesses by the end of the year, only $11.6M remains to be allocated.
“Results always speak louder than words,” DSB Director CJ Bell said. “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 $2.4M 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.
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 $2M 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”. Companies with fewer than 100 employees are eligible. Most will be tech-focused companies. The company must have an accredited lead investor, and those that can prove a 1:1 match will be prioritized.
