A second tranche of federal funding allotted through the Biden-era American Rescue Plan Act is expected to help economic development leaders target stronger small business growth, expand access to capital, and support high-growth entrepreneurship across Missouri.
More than $33 million is being deployed to the Missouri Technology Corporation (MTC) via the State Small Business Credit Initiative 2.0 (SSBCI 2.0) — a federal program to advance technology-based economic development that was continued by President Trump’s U.S. Treasury — according to a release this week from the Missouri Department of Economic Development (DED).
“Missouri’s entrepreneurs drive innovation and create jobs in every corner of our state,” said Gov. Mike Kehoe, R-Missouri. “This next round of SSBCI 2.0 funding will help in furthering our commitment to supporting small businesses, strengthening our communities, and building a strong and competitive economy.”
The SSBCI 2.0 program provides funding for credit and investment programs for small businesses and startups.
Originally established as part of the Small Business Jobs Act of 2010 under the Obama Administration, the SSBCI is intended to provide public funds to leverage private-sector lending and equity investment into small businesses. The initiative was reauthorized and expanded as part of the American Rescue Plan Act, President Biden’s $1.9 trillion stimulus package, which passed Congress in March 2021 along party lines.
The initiative now offers $10 billion for states to expand access to capital for small businesses, build entrepreneurial ecosystems, and create high-quality jobs. Eligible SSBCI programs are limited to Venture Capital, Loan Participation, Loan Guarantee, Collateral Support, and Capital Access. For every dollar of federal funding invested through the SSBCI 2.0 program, it is expected that at least 10 dollars of private capital investment will be generated.
Sheri Flanigan-Vazquez, chief operating officer of Justine PETERSEN, speaks during a 2025 GEWKC panel conversation on accessing public funds to fund the growth of startups and small businesses at Union Station; photo by Ayleen Bashir, KCSourceLink, UMKC Innovation Center
President Trump’s U.S. Treasury approved the latest funds to be deployed through two programs:
- State-sponsored venture capital program: MTC manages the IDEA Fund, which provides equity-based investments to early-stage, high-growth potential Missouri companies. To date, the program has deployed over $30 million to more than 100 companies, including nearly $13 million in direct investments across 34 firms statewide.
- Loan participation program: The Ignite MO Loan Participation Program, administered by Justine PETERSEN, expands access to credit and capital for small businesses. The program has deployed over $10 million in loans, supporting small microbusinesses, including underserved and rural entrepreneurs.
“DED is committed to ensuring our state’s small businesses have the tools they need to succeed,” said Michelle Hataway, director of Missouri’s Department of Economic Development. “Through partnerships with MTC and others, we’re opening doors for more entrepreneurs and small businesses to grow, innovate, and help Missourians prosper.”
With the approval of the second tranche, Missouri will be positioned to deploy more than $33 million over the next two years through MTC’s direct investment programs and Justine PETERSEN’s lending activities, MTC said in a release.
“This investment strategy builds on the recommendations of the Catalyzing Innovation report and reinforces Missouri’s commitment to investing in early-stage business to help drive innovation and economic outcomes,” the organization said in a statement. “The additional capital will strengthen the state’s entrepreneurial ecosystem and expand resources for businesses at every stage, from startups seeking early capital to small businesses needing loan support to grow.”
It also strengthens Missouri’s commitment to increasing access to working capital for entrepreneurs, added Allen Dillingham, chair of MTC’s board of directors.
“MTC will continue working with DED to deploy these resources across the state in ways that support economic development and help catalyze innovation,” he said.
