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Missouri to receive nearly $95 million in small business financing

Missouri Legislature
Posted at 12:41 PM, Oct 11, 2022
and last updated 2022-10-11 14:04:35-04

WASHINGTON, D.C. — The U.S. Department of Treasury announced Tuesday afternoon 11 states, including Missouri, will receive funding to help small business financing.

In total, 1 billion dollars was given out to the 11 states, made possible by President Joe Biden's American Rescue plan.

Missouri will receive $94.8 million from the Department of Treasury. The money will be put in the IDEA Fund, a venture capital program operated by the Missouri Technology Corporation.

The program provides equity or equity-like co-investment (convertible notes) alongside primarily angel investors or venture capital funds.

The IDEA Fund targets companies based on their stage of development: pre-seed companies, seed-stage companies and venture-stage companies with an established private venture capital fund identified as a lead investor.

The other states receiving funding alongside Missouri include Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio and Utah. Ohio will get the largest share of the money, with slightly over $182 million.

After this round of funding, 31 states have now been approved in receiving small state business credit initiative spending. In total, nearly $5 billion has been provided so far.