Oregon to Receive Up to $83.5 Million from U.S. Treasury Department to Promote Small Business Growth and Entrepreneurship through the American Rescue Plan

WASHINGTON — Today, the U.S. Department of the Treasury announced the approval of
Oregon's application for funding under the State Small Business Credit Initiative (SSBCI) for up
to $83.5 million. President Biden's American Rescue Plan reauthorized and expanded SSBCI,
which was originally established in 2010 and was highly successful in increasing access to
capital for small businesses and entrepreneurs. The new SSBCI builds on this successful model
by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal
governments to increase access to capital and promote entrepreneurship, especially in
traditionally underserved communities as they emerge from the pandemic. SSBCI funding is
expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding,
amplifying the effects of this funding and providing small business owners with the resources
they need to sustainably grow and thrive. State governments submitted plans to Treasury for how
they will use their SSBCI allocation to provide funding to small businesses, including through
venture capital programs, loan participation programs, loan guarantee programs, collateral
support programs, and capital access programs.

"This is an historic investment in entrepreneurship, small business growth, and innovation
through the American Rescue Plan that will help reduce barriers to capital access for traditionally
underserved communities including those in rural areas," said Secretary of the Treasury Janet
L. Yellen. "I'm excited to see how SSBCI funds will promote equitable economic growth in
Oregon and across the country."

"I'd like to thank Secretary Yellen, Deputy Secretary Adeyemo, and the Biden-Harris
administration for approving Oregon's application and for their support of our business
community," said Governor Kate Brown. "Oregon's SSCBI funds will make meaningful
impacts for our small business community for generations to come and help to further our work
to build a safe, strong, just, and equitable Oregon for all. Oregon's approach will be to use these
funds to counter systemic barriers to economic opportunity by providing access to capital in
persistently underserved, low- and moderate-income areas, and rural communities."

"Oregon is a leader in innovation, thanks to the entrepreneurs and small businesses generating
thousands of jobs in their communities. Yet, too often small business owners – especially
entrepreneurs of color, women, and those in rural parts of our state -- face serious obstacles to
get the capital they need to grow their businesses, or even get their businesses off the ground in
the first place," said Senator Ron Wyden. "These historic American Rescue Plan investments
will go far in tearing down obstacles to growth and support more entrepreneurs and small
businesses in every nook and cranny of our state. I am thrilled that Oregon's SSBCI plan has
been approved and am eager to see our entrepreneurs and small businesses thrive."

"Small businesses are the lifeblood of our communities," said Senator Jeff Merkley. "As our
economy continues to recover from the ongoing pandemic and other market disruptors, it's
crucial to continue supporting our local community businesses. This important access to capital
will help jumpstart new and growing small businesses in Oregon by ensuring business
opportunities are accessible and encouraging entrepreneurs old and new to build out their small
businesses—ultimately, serving their communities and building the shared future we want."

"This significant investment is an exciting opportunity for Oregon's small businesses and the
hard-working, entrepreneurial Oregonians who run them," said Congresswoman Suzanne
Bonamici. "Small businesses are an important part of our communities and our economy. With
more people starting new small businesses and growing existing businesses, it's important to
break down barriers to success, especially in underserved areas and rural communities. I've been
working on access to capital for small businesses since my time in the Oregon Legislature,
so I enthusiastically helped to secure this federal funding. I look forward to seeing how it
contributes to the growth and stability of Oregon small businesses in the years to come."

Oregon, approved for up to $83.5 million, will operate five programs, including two venture
capital programs to which the state has allocated $30 million. The venture capital programs are designed to invest in funds in need of additional capital to launch and scale and to make co- investments in companies alongside private investors by matching the lead investor's structure and terms. Across its programs, Oregon's plan aims to counter systemic barriers to economic opportunity by providing access to capital in persistently underserved, low- and moderate-
income areas and rural communities. Oregon expects these programs to be self-sustaining, providing vital support to small business in Oregon over the long term.
A recent White House report found that more Americans are starting new businesses than ever
before. In 2021, Americans applied to start 5.4 million new businesses – 20% more than any
other year on record. It also found that small businesses are creating more jobs than ever before,
with businesses with fewer than 50 workers creating 1.9 million jobs in the first three quarters of 2021 – the highest rate of small business job creation ever recorded in a single year.

The investments being made through SSBCI are a key part of the Biden Administration's strategy to
keep this small business boom going by expanding access to capital and by providing
entrepreneurs the resources they need to succeed. The work Treasury has done through the
implementation process to ensure SSBCI funds reach traditionally underserved small businesses
and entrepreneurs will also be critical to ensuring the small business boom not only continues but
also continues to lift up communities disproportionately impacted by the pandemic. Treasury
intends to continue approving state plans on a rolling basis.

The following descriptions highlight some of the key programs that Treasury has approved for
the four states being announced today:

• Colorado, approved for up to $104.7 million, will operate three programs, including a
venture capital program, to which it has allocated nearly $60 million. The program
expects to invest in two venture capital funds per year for three years to build a diverse
seed-stage portfolio of small businesses in need of capital. Colorado has also allocated
$35 million to an existing cash collateral support program that enables small businesses
and non-profit organizations to secure credit by pledging a cash deposit as collateral. In
addition, Colorado has set aside $10 million for a loan program intended to help Main
Street businesses recover from the pandemic.

• Montana, approved for up to $61.3 million, will operate a loan participation program
modeled after a successful program in the previous iteration of SSBCI. This new
program is designed to significantly increase the number of eligible CDFI and non-profit
local economic development agencies with revolving loan funds (RLFs) that can
participate in the program, to obtain a much broader outreach for targeting underserved
markets. In addition, this program gives rural and Native American entrepreneurs greater
opportunity to create new businesses and expand existing small businesses — creating
jobs and economic opportunities in Montana's rural counties and Indian Country.

• New York, approved for up to $501.5 million, will operate multiple programs, including
a capital access program, loan guarantee programs, loan participation programs, and
venture capital programs. For example, New York has allocated over $154 million to a
program that provide equity support to small businesses by investing through private
venture capital funds and accelerator funds. This program will provide capital support to
funds with diverse and emerging fund managers and teams. In addition, New York has
allocated funds to two programs designed to help small and underserved businesses
compete for government contracts, which may include projects funded by the Bipartisan
Infrastructure Law. As part of these efforts, New York will expand an existing program that saw a significant majority of its support for potential contractors going to minority-
and women-owned businesses.

• Oregon, approved for up to $83.5 million, will operate five programs, including two
venture capital programs to which the state has allocated $30 million. The venture capital
programs are designed to invest in funds in need of additional capital to launch and scale
and to make co-investments in companies alongside private investors by matching the lead investor's structure and terms. Across its programs, Oregon's plan aims to counter
systemic barriers to economic opportunity by providing access to capital in persistently
underserved, low- and moderate-income areas and rural communities. Oregon expects
these programs to be self-sustaining, providing vital support to small business in Oregon
over the long term.

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