Jul. 19—Pennsylvania has been awarded nearly $268 million in American Rescue Plan funding through the State Small Business Credit Initiative to spur small-business success and job creation, Gov. Tom Wolf said Monday.

"This funding from the Biden Administration is a significant investment in Pennsylvania's future that will be used to empower our small businesses and generate new jobs," Wolf said in a new release announcing the funding.

The American Rescue Plan reauthorized and expanded the SSBCI, which was established by Congress in 2010 to provide loans and investments to underserved businesses.

As part of the reauthorization, $10 billion in funding is being allocated by SSBCI to states, including $267.8 million to Pennsylvania.

The Pennsylvania Department of Community and Economic Development will distribute the new funds to eligible economic development partners, who will then administer the funding to qualifying businesses via equity investments and loans.

Pennsylvania will operate three different programs.

The first two — equity capital investments and venture capital investments — have been allocated a combined $142 million. Direct equity investments will be made in seed and early-stage technology companies through longstanding partners Ben Franklin Technology Partners and Life Sciences Greenhouses, as well as venture capital investments in new funds under the management of underserved venture capital firms.

The third program is a loan participation program that has been allocated more than $125 million.

It will extend loans of no more than 50% of total financing to small-business borrowers through certified economic development organizations and community development financial institutions.

Detailed guidelines will be available soon. DCED expects to begin distributing the SSBCI funds to economic development partners in the fall.