TOPEKA – Kansas is on track to receive up to $69 million in additional federal support for small business development and entrepreneurship through a US Treasury Department program used to support businesses during the pandemic .
The U.S. bailout expanded the State Small Business Credit Initiative, or SSBCI, created in 2010 to help businesses after the Great Recession from 2007 to 2009. The goal is to improve access to capital in rural and other traditionally underserved communities.
The states participating in the SSBCI operate with the expectation that each would generate business loans at least 10 times the amount of federal assistance.
“Treasury will continue to work with Kansas to ensure this funding has the maximum impact across the state to promote economic growth,” said Wally Adeyemo, deputy secretary of the federal agency.
Federal legislation has provided approximately $10 billion to states, the District of Columbia, tribal governments and U.S. territories to support businesses emerging from the COVID-19 pandemic. Treasury officials said Thursday that Kansas was among the five states in the latest round of allocations.
Under federal law, neighboring states of Kansas would receive $64 million to $104 million to support small businesses. The amounts: Colorado, $104 million; Missouri, $94 million; Oklahoma, $81 million; and Nebraska, $64 million.
The US bailout narrowly passed the House and Senate in 2021. Kansas House Republicans Tracey Mann, Ron Estes and Jake LaTurner voted against the bill, while House Democrat Sharice Davids le supports. In the Senate, Republicans Jerry Moran and Roger Marshall voted “no” to the bill.
Treasury Department officials have recommended states support industries important to the U.S. economy, including companies involved in manufacturing, supply chains and renewable energy. Additionally, the federal agency urged recipients to support businesses offering paid employment.