Small business programs in Nevada to receive federal funds in new initiative

Nevada will receive about $112.9 million in federal funding to help diversify its economy and launch new businesses, the US Treasury Department announced Tuesday.

The department approved 11 additional state plans for up to $1 billion in funding under the State Small Business Credit Initiative, a program started during the Great Recession but re-approved by the American Rescue Plan.

The initiative aims to improve access to capital and encourage entrepreneurship in traditionally underserved communities as they work to recover from the pandemic. It’s also designed to ensure capital flows everywhere, not just big cities and corporations, Gene Sperling, senior adviser to the president and coordinator of America’s bailout plan, said during a press briefing Tuesday.

In 2021, Americans applied to start 5.4 million new businesses, 20 percent more than any other year on record, the White House said. Small businesses with fewer than 50 employees added 2.8 million jobs in 2021, the highest rate of small business jobs on record in any year, according to the White House.

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“The investments being made through (State Small Business Credit Initiative) are an integral part of the Biden administration’s strategy to keep this small business boom going by expanding access to capital and providing entrepreneurs with the resources they need to be successful,” said a statement from the U.S. Treasury Department.

The initiative also includes a capital increase, providing up to $10 in private investment for every $1 in equity funding from the State Small Business Credit Initiative, the statement said. So far, the initiative has approved 31 state plans worth about $4.8 billion to help small businesses.

work makes money

Nevada will use its funding to operate five programs: a collateral support program, three loan participation programs and a venture capital program, Rep. Dina Titus. D-Nev. said Tuesday during a press briefing with the US Treasury Department about the initiative.

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The initiative is expected to create more than 2,000 jobs in Nevada, according to Titus.

“Nevada is very excited to receive this money. We’re going to get it out the door, we’re going to help these small businesses, and they’re going to help us get back to normal. Or better than normal,” Titus said.

The COVID-19 pandemic hit Las Vegas hard, Titus said, shutting down casinos, restaurants and other businesses. Small businesses are key to the recovery as they hire lots of people and support the economy from the ground up, Titus said.

Save energy and water

One of the programs will fund energy and water efficiency for small businesses, Titus said.

Another program will support debt financing for small businesses and manufacturers, with the government participating in more than $250,000 in loans from commercial banks and credit unions, the US Treasury Department’s statement on public affairs said.

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Chambers of commerce will help companies get the funding, Titus said. UNLV also has a small business division center that provides training and support for small business start-ups, she said.

Rep. Susie Lee said Congress passed legislation focused on supporting community economic drivers and supporting small businesses. This program is another step in that direction, she said.

“I always say we were ground zero for the economic devastation of the pandemic. But we’re also ground zero for the economic benefit of these types of smart investments in our small business community,” Lee said.

Contact Jessica Hill at [email protected] consequences @jess_hillyeah on twitter.



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