KENTUCKY — Kentucky will receive a $117 million award from the federal government to expand access to funding for small businesses across the state, Gov. Andy Beshear and President Joe Biden's administration announced Monday.

Kentucky will use the award—part of the Treasury Department's State Small Business Credit Initiative (SSBCI)—to launch a suite of initiatives known as the Kentucky Small Business Credit Initiative 2.0, Beshear explained in a news release.

The funding will be allocated in three phases over a 10-year period. It'll support venture capital programs, loan support programs and Community Development Financial Institutions, with an emphasis on access for underserved business owners, Beshear said.

“This significantly increases the capital available to promising businesses at critical early stages and helps lay the foundation for Kentucky’s innovative economy of the future," Beshear said. "We must also acknowledge that while the talent and energy of our entrepreneurs and small-business owners are unmatched, the opportunity has not existed in equal measure. This funding will help more Kentuckians who may have been excluded from that opportunity in the past to realize their dreams of owning and growing a business.”

KY Innovation, the office within the Cabinet for Economic Development responsible for supporting entrepreneurs and small businesses, will distribute the funding starting within 60 days, state officials said.

“Back in 2010, Kentucky used these SSBCI dollars to increase loan security and saw tremendous success,” said Monique Kuykendoll Quarterman, executive director of KY Innovation. “These funds enable us to build upon that success by strengthening that loan capital program and investing heavily into our venture capital community."

Commonly known as SSBCI 2.0, the Treasury Department program was authorized as part of the American Rescue Plan Act and builds upon the 2010 SSBCI initiative. Kentucky used previous funding to create the Kentucky Small Business Credit Initiative, which secures loans by covering gaps between lent capital and posted collateral of up to 20%.

“This is a historic investment in entrepreneurship, small business growth and innovation through the American Rescue Plan that will help reduce barriers to capital access for traditionally underserved communities,” said Secretary of the Treasury Janet L. Yellen. “These SSBCI funds will promote equitable economic growth across the country.”