Gov. Meyer and DSB will distribute $14 million in federal funding to small businesses before the end of 2025. (Photo courtesy of Rebecca Ashton Parson)
Delaware officials are working to fast-track the distribution of $14 million in federal funding to small businesses before the end of 2025, as part of the State Small Business Credit Initiative (SSBCI).
Governor Matt Meyer and Division of Small Business (DSB) Director CJ Bell announced the push during an event Thursday at The Mill in Wilmington, which has benefited from the program.
Delaware received $60.9 million from the U.S. Treasury Department under SSBCI, to be released in three stages. The first $20 million allocation must be at least 80% spent by the end of 2025 to unlock the next round. With only about $2 million distributed so far, state officials say they must move quickly to meet the target.
“To create quality jobs, small businesses and startups need access to critical funding,” said Governor Meyer. “I have repeatedly said that we will leverage these federal funds to support entrepreneurs, and we’re determined to get this money into the hands of Delawareans as fast as possible.”
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DSB is branding the campaign “The Race to $14M” and unveiled a meter at its offices tracking funds distributed to date. The money is being deployed across four SSBCI-backed programs: two supporting loans and two focused on venture capital investments.
“This funding is key to empowering small business owners on two fronts,” said Bell. “The loan programs are best for small business owners who have credit challenges. These are what I call the ‘missing middle’ who still struggle to grow and scale. The venture capital programs will help us establish Delaware as a leader in the Innovation economy, where high impact startups bring the future to life.”
The loan programs—Loan Participation and Capital Access—aim to support businesses that may lack collateral or have limited credit histories, especially those in underserved communities. Rather than issuing funds directly, the state partners with local lenders like Del-One Federal Credit Union, True Access Capital, and Community Bank in Sussex County. The goal is to reduce risk for lenders and expand access to capital.
Business owners are first screened by DSB’s Regional Business Managers, who assess eligibility and connect qualified applicants with participating lenders. Entrepreneurs not yet ready for a loan are referred to the Small Business Development Center for technical assistance.
The Mill, one of the event’s hosts and a Capital Access program recipient, was highlighted as an example of the program’s impact.
“When Robert Herrera and I had the shared dream and Vision to create The Mill in Delaware, it was to create a home for entrepreneurs in this economy, a launchpad for them to take off, and a center for the entrepreneurial ecosystem,” said The Mill Co-Founder Chris Buccini.
So far, DSB has supported 21 loans under the SSBCI initiative, but officials say that won’t be enough to meet their $14 million goal. Attention is now turning to direct investments through the Delaware Accelerator and Seed Capital Program (DASCP), which offers up to $1 million to high-impact startups with fewer than 100 employees. Businesses must provide a 1:1 funding match and have already completed their seed funding round.
Source: delawarelive.com…