Business Oregon Opens Applications for Venture Fund Program
Business Oregon is now accepting applications for the new Business Oregon Venture (BOV) Fund Program under the State Small Business Credit Initiative (SSBCI) program. Due to the nature of the venture capital industry and SSBCI program guidelines, Business Oregon will be accepting and reviewing BOV Fund Program applications on a rolling basis. The first deadline to submit applications for review will be February 28, 2023.
Business Oregon believes venture capital fund managers can play an important role in Oregon’s entrepreneurial ecosystem. Oregonians can leverage fund managers’ expertise, networks, and private capital to develop and maintain a strong pipeline of high-growth opportunities.
Business Oregon will deploy a portion of its overall SSBCI allocation through the BOV Fund Program to invest in SEC-accredited venture capital funds in need of capital to become operational or scale up significantly. The SSBCI program places an emphasis on fund managers with access to startups led by Socially and Economically Disadvantaged Individuals (SEDI). Business Oregon is preliminarily allocating $15 million to the BOV Fund Program.
Program eligibility requirements can be accessed on the U.S. Treasury’s website.
Basic criteria for venture capital fund strategies include:
- State participation limited to Oregon companies only.
- Average portfolio company of fewer than 500 employees.
- Average check size to portfolio companies smaller than $5 million.
- Portfolio company equity rounds smaller than $20 million.
- Funds must demonstrate that $1 from the BOV Fund Program will “cause and result” in at least $1 of new private financing at the fund level.
Business Oregon staff will screen all BOV Fund Program proposals for eligibility and completeness and refer the qualifying submissions to a review committee. The review committee will include private industry experts along with members of the Oregon Innovation Council and Business Oregon representatives.
To learn more and download the application, visit the BOV Fund Program webpage. Please email SSBCI.info@biz.oregon.gov with questions about the BOV Fund Program. For clarification purposes, The Business Oregon Venture Direct Program is separate from the BOV Fund Program. More information on these and other SSBCI-funded venture capital, venture debt, and small business lending programs can be found on Business Oregon’s website.
Program Documents:
SSBCI Initial Program Guidelines
SSBCI Fact Sheet
SSBCI FAQs
What is the State Small Business Credit Initiative (SSBCI)
On March 11, 2021, President Biden signed The American Rescue Plan Act, which reauthorized and funded the State Small Business Credit Initiative (SSBCI). The new version of the SSBCI program provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic. The funds will also support recipient jurisdictions in promoting American entrepreneurship and democratizing access to startup capital across the country, including in underserved communities.
What is SSBCI?
The American Rescue Plan Act of 2021 reauthorizes and expands the State Small Business Credit Initiative (SSBCI) Program, which was originally established in 2010. SSBCI will provide a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to expand access to capital for small businesses emerging from the pandemic, build ecosystems of opportunity and entrepreneurship, and create high-quality jobs.
SSBCI provides recipient jurisdictions funding for: (1) credit and investment programs for existing small businesses and start-ups, and (2) technical assistance to small businesses applying for SSBCI funding and other government small business programs.
Oregon Venture Fund Program
The Business Oregon Venture (BOV) Fund Program, under the State Small Business Credit Initiative (SSBCI) program, is designed to invest in SEC-accredited venture capital funds in need of capital to become operational or scale up significantly. Business Oregon believes venture capital fund managers can play an important role in Oregon’s entrepreneurial ecosystem and that Oregonians can leverage fund managers’ expertise, networks, and private capital to develop and maintain a strong pipeline of high-growth opportunities.
By Business Oregon Press Release
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