State Seed Capital Network
A Game Changer for Local Development
The State Small Business Credit Initiative (SSBCI) is a $1.5 Billion component of the Small Business Jobs Act of 2010 to support state small business capital programs. SSBCI funds may be used to provide credit enhancement to support small businesses lending and may also be used to support equity investment in companies seeking to start up or expand.
SSBCI funding can play a vital role in supporting by supporting small businesses of all types. Specifically, by offering collateral support for established small businesses seeking commercial loans, manufacturers and service providers alike can access the capital they need to thrive. Likewise, emerging companies, or established companies that are not candidates for bank financing can benefit from an active regional network of Angel funds. Angel investors often form the bridge between early development and the later rapid growth phases of an emerging business, filling critical gaps in financing. An active network of angel investors in a region can help drive the opportunity for entrepreneurs to find the capital they need to grow and prosper, and to create jobs.
With $16.5 million in SSBCI funds under management, DCN is implementing two SSBCI programs dedicated to serving the financing needs of small businesses in North Dakota and Wyoming. Serving 36 communities in North Dakota and 17 municipalities in Wyoming, DCN offers collateral support of up to 50% of the loan amount to qualifying small business seeking short term working capital credit facilities. In addition, DCN is building the angel capital in these state by investing in established angel funds or building new, member-managed angel funds, administered by DCN. DCN operates in partnership with the Praxis Strategy Group in North Dakota as part of the Red River Corridor Fund, and in Wyoming as part of the Wyoming Smart Capital Network.
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