With the clock ticking, Delaware is re-launching the Small State Business Credit Initiative.
The U.S. Treasury awarded Delaware $60.9-million in 2023 in three allocations. In order to access the next round of funding, $14-million must end up in the hands of small business owners and entrepreneurs by the end of 2025.
At The Mill Space in downtown Wilmington Thursday, Delaware Division of Small Business Director CJ Bell called it “Delaware’s Race to $14-Million.”
“The goal of this program is to use the form of loans to provide access to capital, to provide direct investments to high-impact start-ups,” Bell said.
SSBCI has already assisted businesses such as WhipFlip. “Our goal is to be the supply chain driver of used vehicles at the speed of AI,” WhipFlip Founder and CEO Rober Clappe said.
According to climate tech company Carbon Reform co-founder Nick Martin, the funding would help it to expand its intellectual property portfolio.
“There’s a number of really exciting patents that we have in the pipeline. We really need access to capital to convert those,” Martin said. “Our goal is also to create really high-quality jobs in Delaware.”
Governor Matt Meyer said the state’s goal is to get this available $14-million out where it could do the most good as soon as possible.
“We want to make sure we have a nurturing environment so that you have every benefit and opportunity that the big companies have,” Meyer said.
The Division of Small Business provides partial funding to a bank, credit union or Community Development Financial Institution to help them make small business loans available. Current participating lenders are Del-One Federal Credit Union, True Access Capital and Community Bank in Sussex County DSP is interested in enlisting additional lenders.
The DSB’s Regional Business Managers work with business owners who are interested in SSBCI by reviewing qualifications. A business owner who is not yet “bank ready” can be referred to the Small Business Development Center for technical assistance.
21 loans have been supported so far through these programs. Bell says thee is potential for Delaware to develop as a Mid-Atlantic innovation hub.
“Using SSBCI is a critical tool to help us get there.”
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