TLDR:
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– Awards of $32 million federal investment to minority and women-led venture capital firms in North Carolina
– Expected to kickstart over $90 million in overall investments to early-stage small businesses
In a recent announcement, Vice President Kamala Harris revealed that ten minority and women-led venture capital firms in Durham, North Carolina’s Historic Black Wall Street will be receiving a $32 million federal investment. This money, coming from the American Rescue Plan, is projected to lead to more than $90 million in overall investments to early-stage small businesses in the state. The funding is part of an effort to make equity capital investments available to historically underserved small businesses and entrepreneurs.
The funding awarded through the State Small Business Credit Initiative (SSBCI) is expected to generate an additional $60 million in private investment. This initiative, established in 2010, provides funding to states, territories, and Tribal governments to increase lending and investing in small businesses. With the American Rescue Plan expanding the SSBCI to provide $10 billion in support, up to $10 of private investment is expected for every $1 of SSBCI capital funding.
Several venture firms in North Carolina, such as Symphonic Capital, Wocstar Capital, RevTechLabs, and LeVert Ventures, are committed to raising private funds and investing in companies with traditionally underrepresented founders. These investments aim to foster the growth of black business ownership, which is currently at the highest pace in 30 years, and support the increasing number of small business applications in the country.
