State has $14 million for small business loans available thru end of year

The Delaware Division of Small Business announced that, as part of its Race to $14M initiative, in the last 45 days, it has distributed $2.40 million to small business owners.

This is exciting news since the highly publicized relaunch of DSB’s Small State Business Credit Initiative April 24, when DSB Director CJ Bell explained the urgent need to get $14 million in the hands of small business owners before the end of the calendar year.

“Results always speak louder than words,” said Bell. “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 $2.40 million 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. With these funding awards, there is now just $11.6 million left to meet the goal.

In 2023, Delaware was awarded $60.9 million in federal funding from the U.S. Treasury Department to be provided in three allocations. The state received its first $20 million and must spend 80% of that to access the next round. As of early April, just over $2 million had been distributed, leaving another $14 million 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 that 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 loans 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 email Business_Finance@delaware.gov to learn more.