Colorado has received a federal grant that could provide more than $100 million over the next five years to help small businesses access financing.

The U.S. Treasury Department awarded the State Small Business Credit Initiative (SSBCI) grant. The program was created as part of the American Rescue Plan Act to fund venture capital and loan participation programs that help small businesses access capital and create jobs.

In Colorado, the grant is expected to help create or retain more than 11,000 jobs over the next 10 years and add on average $423 million in wages to the state economy.

“This exciting federal grant creates and supports over 11,000 good-paying jobs for Coloradans and builds upon our work supporting small business and entrepreneurs; saving people money; and making sure Colorado remains the best place to live, work and do business,” said Colorado Gov. Jared Polis.

Patrick Meyers, executive director of the Colorado Office of Economic Development and International Trade, said the funding will benefit businesses and the people who work for them. “Our office will work diligently to efficiently and effectively deploy these funds so we can maximize this award and continuously offer capital access programs that can benefit generations to come as they grow their businesses.”

Colorado was scheduled to receive an initial installment of $31 million in funding in August and will receive additional installments as funds are loaned and invested. Over the next five years, Colorado could receive nearly $105 million in funding.

Funding will be distributed through three programs:

The Venture Capital Authority, which helps business startups and entrepreneurs access venture capital.

The Cash Collateral Support Program to provide cash deposits to lenders to supplement borrower collateral for business loans.

The Colorado Loans to Increase Main Street Business Economic Recovery program to provide loans to small businesses affected by the COVID-19 pandemic and related restrictions.

The Colorado Economic Development Commission and Colorado Office of Economic Development and International Trade Division of Business Funding will administer the SSBCI funding in collaboration with the governor and state treasurer’s office, Venture Capital Authority and Colorado Housing and Finance Authority.