“The success of small businesses and our talented entrepreneurs is key to Rhode Island’s economic expansion and the future of our cities and towns,” Governor Chafee said. “These federal SSBCI funds are an important tool to help strengthen existing capital and economic development programs, support businesses and job creation in our communities and encourage private investment to grow innovative companies.”
“Under Governor Chafee’s leadership in conjunction with the Congressional Delegation Rhode Island was able to secure the $13.1 million in SSBCI funds. These funds are critical to help the state capitalize on our existing talent and provide small businesses and entrepreneurs with the catalytic investment that they need to create quality jobs in growth industries,” said RIEDC Executive Director Keith Stokes.
Rhode Island’s SSBCI funds will be invested in early-stage, technology- and innovation-driven companies, entrepreneurs, small businesses and businesses in urban communities with the aim of creating high-skilled, high-wage jobs. This new source of small business financing is also expected to spur additional private capital co-investment and complement other state capital and economic development programs aimed at further expanding key growth industries in Rhode Island.
The goal of the Rhode Island SSBCI program is to stimulate at least $131 million in private capital co-investment from its share of the federal funds. Under the federal program, participating states are expected to leverage the SSBCI funds to generate private financing and co-investment at least 10 times the amount of their SSBCI funds. The follow-on investment will come in the form of private investor/venture capital, direct bank loans and/or direct capital investments by the companies.
The $13.1 million will be directed to provide co-investment capital to small businesses in Rhode Island through the following programs:
- Up to $9 million to the Slater Technology Fund for seed stage investments. Slater currently provides seed funding for local technology-based ventures in the IT and life sciences industries, and plans to expand investments.
- $2 million to Betaspring for new small business formation. Betaspring is a mentorship-driven, Providence-based startup accelerator program for technology and design entrepreneurs.
- Up to $2.1 million to the RIEDC’s Small Business Loan Fund (SBLF) for additional capital.
