Vice President Kamala Harris recently announced a $32 million federal investment to ten minority and women-led venture capital firms in Durham, North Carolina’s Historic Black Wall Street. This initiative, funded by the American Rescue Plan, aims to provide equity capital investments to historically underserved small businesses and entrepreneurs. The awards are projected to kickstart over $90 million in overall investments to early-stage small businesses in the state, with an additional $60 million in private investment expected to follow.
The funding awarded through the State Small Business Credit Initiative (SSBCI) is intended to increase lending and investing in small businesses. Established in 2010, the SSBCI was expanded by the American Rescue Plan to provide $10 billion in support. This initiative is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding. The announcement was made by Vice President Harris, Deputy Secretary of the Treasury Wally Adeyemo, and North Carolina Governor Roy Cooper.
The awardees of the SSBCI funding in North Carolina and other states are committed to raising private funds in addition to the federal investment. For example, Symphonic Capital focuses on closing access gaps in health and wealth, while Wocstar Capital is dedicated to creating wealth in communities of color by supporting women of color entrepreneurs and diverse tech teams. RevTechLabs, a majority female and Latina-owned entrepreneurship center and accelerator, plans to invest in over 200 early-stage companies with traditionally underrepresented founders in financial, health, and insurance technologies. LeVert Ventures will invest in next-generation technologies in the agricultural technology industry.
It is noted that black business ownership is currently growing at the fastest pace in 30 years, with a surge in small business applications in the past three years. Initiatives like the one in North Carolina and other states are crucial in fostering this success. The investments made by the federal government through the SSBCI are expected to not only support minority and women-led venture capital firms but also create opportunities for diverse entrepreneurs and small businesses to thrive. This funding is part of a broader effort to promote economic growth and equity in underserved communities.
The impact of this federal investment in North Carolina’s Historic Black Wall Street is significant, as it is projected to generate over $90 million in overall investments to early-stage small businesses in the state. The collaboration between the federal government, state officials, and venture capital firms highlights a commitment to supporting minority and women-led businesses. With the expansion of the SSBCI through the American Rescue Plan, more opportunities will be available for traditionally underserved entrepreneurs to access the capital needed to grow and succeed.
In conclusion, the announcement of the $32 million federal investment in Durham, North Carolina’s Historic Black Wall Street represents a milestone in advancing equity in small business lending and investing. The SSBCI funding, supported by the American Rescue Plan, is expected to not only provide direct financial support to minority and women-led venture capital firms but also stimulate private investment in early-stage small businesses. With initiatives like this one, there is great potential for continued growth and success in historically underserved communities, ultimately contributing to a more inclusive and prosperous economy.
