Officials from the U.S. Treasury visited Topeka today to discuss the State Small Business Credit Initiative (SSBCI). The Treasury joined Green Dot Holdings LLC, NetWork Kansas and the Department of Commerce in a roundtable discussion of Kansas’ use of the SSBCI to administer the Kansas Capital Multiplier Funds. Kansas has one of the leading private capital leveraged ratios in the SSBCI program, with $18 of private capital for every $1 in public funding.
“The State Small Business Credit Initiative has partnered with Kansas to provide opportunities for new industries to take root, give start-ups a running start and help high-tech companies reach new heights,” said Cliff Kellogg, the director of the State Small Business Credit Initiative at the U.S. Treasury Department. “This ongoing public-private partnership among the U.S. Treasury Department, the Kansas Department of Commerce and Network Kansas supports local lenders and investors. This effort is providing entrepreneurs and small business owners greater access to new sources of capital to help create jobs and promote economic growth in local communities.”
Kansas has received more than $13.1 million in SSBCI funding from the U.S. Treasury. NetWork Kansas administers the Kansas Capital Multiplier Funds with these proceeds in partnership with Commerce through three programs. Through these funds, qualifying businesses are eligible to apply for up to nine percent of private capital loans and investment, and may apply for up to $500,000 per loan and up to $250,000 for an investment.
“The Kansas Capital Multiplier Funds are a tremendous resource for small businesses in Kansas,” said Mark Remmert, CEO of Green Dot Holdings. “Green Dot was able to leverage the funding provided through these programs to help raise private capital, which is critical for any emerging business.”
The Kansas Capital Multiplier Loan Fund provides gap financing to help businesses raise capital in the form of bank loans, certified development companies and other private capital resources. The Kansas Capital Multiplier Venture Fund provides matching venture funds to businesses raising capital through investors, including angel networks and venture capital firms. The Minority and Women Business Multiplier Loan Fund provides gap financing to help minority and women-owned businesses and other disadvantaged business enterprises.
“The success of the loan and venture funds are a testament to the collaborative nature and significant expertise present in our partner network,” said Steve Radley, president and CEO, NetWork Kansas. “This unique network opened the door to significant opportunity for businesses across Kansas to impact rural and urban communities as well as areas with significant low-to-moderate income populations.”
“Access to capital is an essential requirement for entrepreneurs and small businesses,” Kansas Commerce Secretary Pat George said. “NetWork Kansas’ programs have been highly successful in helping hard working innovators raise the private capital needed to get their businesses off the ground, grow and create new jobs in our state.”
Through SSBCI, the U.S. Treasury Department awarded nearly $1.5 billion to fund state programs across the nation that support small businesses and small manufacturers. Each state designs its own SSBCI programs to respond to local economic conditions. SSBCI currently supports more than 60 existing and more than 80 new small business support programs across 57 participating states, territories and municipalities. For more information on SSBCI and Treasury’s other small business programs, please visit www.treasury.gov/smallbusiness.