DED announces release of second tranche of SSBCI 2.0 funding to Missouri Techn…

The Missouri Department of Economic Development (DED), in coordination with the Missouri Technology Corporation (MTC), today announced the release of the second tranche of Missouri's State Small Business Credit Initiative 2.0 (SSBCI 2.0) funding, a federal U.S. Treasury program to advance technology-based economic development. The second round of funding includes more than $33 million for statewide deployment to strengthen small business growth, expand access to capital, and support high-growth entrepreneurship across Missouri.

"Missouri's entrepreneurs drive innovation and create jobs in every corner of our state," said Governor Mike Kehoe. "This next round of SSBCI 2.0 funding will help in furthering our commitment to supporting small businesses, strengthening our communities, and building a strong and competitive economy."

The SSBCI 2.0 program provides funding for credit and investment programs for small businesses and startups. The program offers $10 billion for states to expand access to capital for small businesses, build entrepreneurial ecosystems, and create high-quality jobs. Eligible SSBCI programs are limited to Venture Capital, Loan Participation, Loan Guarantee, Collateral Support, and Capital Access. SSBCI is the only American Rescue Plan Act (ARPA)-funded program that can be used for state-sponsored venture capital activities. For every dollar of federal funding invested through the SSBCI 2.0 program, it is expected that at least 10 dollars of private capital investment will be generated.

Missouri was awarded $95 million through SSBCI 2.0 across three tranches. The U.S. Treasury approved funds to be deployed through two programs:

• State-Sponsored Venture Capital Program: MTC manages the IDEA Fund, which provides equity-based investments to early-stage, high-growth potential Missouri companies. To date, the program has deployed over $30 million to more than 100 companies, including nearly $13 million in direct investments across 34 firms statewide.
• Loan Participation Program: The Ignite MO Loan Participation Program, administered by Justine PETERSEN, expands access to credit and capital for small businesses. The program has deployed over $10 million in loans, supporting small microbusinesses, including underserved and rural entrepreneurs.

"DED is committed to ensuring our state's small businesses have the tools they need to succeed," said Michelle Hataway, Director of the Department of Economic Development. "Through partnerships with MTC and others, we're opening doors for more entrepreneurs and small businesses to grow, innovate, and help Missourians prosper."

With the approval of the second tranche, Missouri will be positioned to deploy more than $33 million over the next two years through MTC's direct investment programs and Justine PETERSEN's lending activities. This investment strategy builds on the recommendations of the Catalyzing Innovation report and reinforces Missouri's commitment to investing in early-stage business to help drive innovation and economic outcomes. The additional capital will strengthen the state's entrepreneurial ecosystem and expand resources for businesses at every stage, from startups seeking early capital to small businesses needing loan support to grow.

"This second tranche of SSBCI 2.0 funding strengthens Missouri's commitment to increasing access to working capital for entrepreneurs," said Allen Dillingham, Chair of the MTC Board of Directors. "MTC will continue working with DED to deploy these resources across the state in ways that support economic development and help catalyze innovation."

For details on how to access funding, visit MTC's IDEA Fund programs webpage and Justine PETERSEN'S IgniteMO Loan program webpage.

About the Missouri Department of Economic Development

The Missouri Department of Economic Development (DED) works to create an environment that encourages economic growth by supporting Missouri's businesses and diverse industries, strengthening our communities, developing a talented and skilled workforce, and maintaining a high quality of life. As one team built around the customer and driven by data, DED aspires to be the best economic development department in the Midwest. Through its various initiatives, DED is helping create opportunities for Missourians to prosper.

For the latest updates on DED's current or future programs and initiatives, visit DED's website.

About Missouri Technology Corporation

The Missouri Technology Corporation (MTC) is a public-private partnership created to foster innovation and entrepreneurship within the state of Missouri. MTC achieves its mission through two main activities: grant-based support to expand the state's entrepreneurial capacity and direct investments in high-growth companies through a state-sponsored venture capital program.