DELAWARE- The Delaware Division of Small Business has awarded $2.4 million in Small State Business Credit Initiative funding in just 45 days, marking progress toward its $14 million goal by the end of 2025.
The funding, part of the state’s Race to $14M campaign, followed the relaunch of the Small State Business Credit Initiative on April 24. Division of Small Business Director CJ Bell previously outlined the importance of distributing the money to small business owners statewide before December 31.
“Results always speak louder than words,” Bell said. “The Division prides itself on being efficient and transparent. Special recognition goes to our Business Finance Team, who have been the true catalyst for this effort.”
According to the agency, the $2.4 million includes two Loan Participation Program loans of less than $600,000 and three direct investments of approximately $500,000 each through the Delaware Accelerator and Seed Capital program. That leaves about $11.6 million still to be distributed to meet the goal.
Delaware was awarded $60.9 million in federal funding through the U.S. Treasury in 2023 to support small business growth in three phases. The state received its first $20 million and must spend 80% of that before it can access the next allocation. As of early April, only $2 million had been awarded, prompting the Race to $14M initiative.
The Division is channeling funds into four programs — two focused on venture capital and two designed to support small business loans. The loan programs are aimed at helping small businesses, especially those in underserved or economically disadvantaged communities, access capital despite limited collateral or credit history.
Instead of direct lending, the agency works with financial institutions such as Del-One Federal Credit Union, True Access Capital, and Community Bank in Sussex County, providing partial funding to encourage lending. The Division says it has supported 23 loans through these partnerships and continues to seek more lenders.
Through the Delaware Accelerator and Seed Capital Program, the agency makes direct investments of up to $1 million in high-impact small businesses, particularly those in tech. Businesses must complete a “seed round” and secure a 1:1 funding match to be considered. Only businesses with fewer than 100 employees are eligible.