“To create quality jobs, small businesses and startups need access to critical funding,” said Meyer. “I have repeatedly said that we will leverage these federal funds to support entrepreneurs, and we’re determined to get this money into the hands of Delawareans as fast as possible.”
The Division of Small Business is using the SSBCI funds for four programs: two venture capital programs and two that support loans for small businesses. Information on the programs is available at de.gov/ssbci.
“This funding is key to empowering small business owners on two fronts,” said Bell. “The loan programs are best for small business owners who have credit challenges. These are what I call the ‘missing middle’ who still struggle to grow and scale. The venture capital programs will help us establish Delaware as a leader in the Innovation economy, where high impact startups bring the future to life.”
The loan programs Bell describes include a Loan Participation Program and a Capital Access program. Funds from these programs are available to all small businesses, especially those in underserved or economically and socially disadvantaged areas and are intended to reach those that need access to capital, but may lack necessary collateral, or have a short credit history.
The Division began issuing loans under both programs in 2024. Instead of lending directly to the small business owner though, DSB provides partial funding to a bank, credit union or Community Development Financial Institution to help them make small business loans. By doing so, the bank is able to make more loans without shouldering all of the risk.
The state’s current participating lenders are Del-One Federal Credit Union, True Access Capital and Community Bank in Sussex County. The Division is in significant need of additional lenders and asks any interested financial institution to contact them at Business_Finance@delaware.gov to learn more.
Business owners access these programs by working with a regional business manager (RBM) from the Division, who will review the program’s minimum qualifications to determine if they qualify. If so, the RBM will connect the owner with one of our participating lenders, and the lender will work with the Division to finalize the loan.
If the business owner is not quite “bank ready,” they are referred to the Small Business Development Center (SBDC), for technical assistance. Once the owner has completed work with the SBDC, they will be referred to the participating lenders.
The Mill in Wilmington, where the event was held, is one of the recipients of a Capital Access program loan but is also a leader for Delaware’s innovation economy.
“When Robert Herrera and I had the shared dream and Vision to create The Mill in Delaware, it was to create a home for entrepreneurs in this economy, a launchpad for them to take off and a center for the entrepreneurial ecosystem,” said The Mill co-founder Chris Buccini. “Having just celebrated our ninth anniversary this month, and having grown from 7,000 square feet to 90,000 square feet and having been the launch pad for many startups, we are so excited as we look in the rearview mirror and toward the future. The State of Delaware has played a vital role in The Mill’s growth every step of the way, and the Division of Small Business, even more so. We are so excited to be participating in the relaunch of the SSBCI program today as it is another powerful tool for our state’s small businesses and entrepreneurs.”
To date, DSB has supported 21 loans through these programs. Bell said that based on the amounts awarded, though, “it’s not going to get us to $14 million fast enough. That’s why we are focusing a lot of energy right now on making direct investments in companies.”
The Delaware Seed/Accelerator Capital Program (DASCP) allows the Division to make direct investments of up to $1 million to small businesses that are considered “high impact.” The direct investments must be made after the business has completed their seed round of funding, which is usually funding from family and friends. The Division will match what they raised.
Companies with fewer than 100 employees are eligible. Most will be tech-focused companies. The owner is required to have a lead negotiator, and those that can prove a 1:1 match will be prioritized.
Two of the DASCP funding recipients spoke during the event.
“Being the first investment from Delaware’s Accelerator and Seed Capital Program is a key milestone for Carbon Reform,” said co-founder and Chief Operating Officer Nick Martin. “This funding will help us expand our IP portfolio in Delaware, develop carbon-reduction technologies in our local lab and create quality jobs by hiring skilled technicians and PhDs. If deployed across all commercial buildings in Delaware, our technology could remove the equivalent of 3,500 cars off the road each year or plant over 730,000 trees.”
“As a lifelong Delawarean, this moment means the world to me – not just as a founder, but as someone deeply proud of where I come from and my unwavering conviction that the State of Delaware is THE hidden gem for high-growth technology companies like WhipFlip to grow,” said Roger Clappe, founder and CEO of WhipFlip, which is housed at The Mill. “This investment from the State of Delaware is more than funding – it’s a vote of confidence in the future we’re building together to further drive Delaware’s emerging ecosystem of tech and entrepreneurial talent. I’m incredibly thankful to Governor Meyer, Mayor Carney, CJ Bell, Chris Buccini and Robert Herrera of The Mill and many others that have supported us in our journey thus far. With their support, we’re not only scaling WhipFlip, we’re putting Delaware on the map as a serious player in the AI and automotive technology space. That is a core mission we are proud to advance every day.”
For more information about SSBCI and its programs, visit de.gov/ssbci.
