Oregon small businesses in rural and tribal communities will benefit from $83.5 million in federal funds from the State Small Business Credit Initiative program, according to the U.S. Treasury Department.

The funding, which was released on Friday, went first to Oregon, Montana, Colorado and New York. Every state, territory and tribal community was encouraged to apply. It is is part of a $10 billion grant to small businesses and entrepreneurs nationwide that was part of President Biden’s American Rescue Plan Act, which reauthorized the State Small Business Credit Initiative. The credit initiative is designed to provide access to capital needed to invest in job-creating businesses as the country emerges from the pandemic.

In Oregon, the funding will be divided between two venture capital programs and loans to small businesses and entrepreneurs in a plan submitted to the Treasury Department.

Small business is the backbone of the United States economy, said Sameera Fazili, White House deputy national economic council director.

Businesses with fewer than 50 employees created 1.9 million jobs — the highest rate of job creation ever recorded — in the first nine months of 2021, the last year data are most current, she said.

“Expanding access to capital and navigating the available resources levels the playing field,” Fazili said.

The Bend Venture Conference, which has been funding startups for 19 years, could possibly be one of the recipients of capital from the federal funds, said Amber Nabors, Business Oregon public relations coordinator. Established annually to help finance promising business startups, the private investment vehicle is an invitation-only event and limited to accredited investors.

“This historic investment will further catalyze job creation and innovation across Oregon,” said Deanne Buck, Economic Development for Central Oregon Venture Catalyst director. “We are excited to see how the funds will be leveraged to increase access to capital for startups and growth-stage companies in Central Oregon through existing channels, like (the Bend Venture Conference) and new mechanisms.”

In Oregon, the federal venture capital funds can be used for small businesses across the state and amounts will be determined by industry, region and growth prospects. The goal with these funds is to leverage the private market’s capital and expertise to grow economic development in an equitable manner, Nabors said.

Oregon has designated $30 million from its federal award for venture capital.

“The influx of cash should allow investors to write more checks to deserving, yet historically underserved Oregon startups,” Nabors said. “The state will have a way to co-invest in any startups that don’t receive funding through local fund managers.”

Gov. Kate Brown, who was also at the briefing Thursday, said Oregon’s small businesses, particularly those in underserved communities, have been adversely affected by the pandemic.

“Access to capital has been a persistent struggle and in that vein our approach is to tackle these systemic problems with investment programs and early stage venture capital,” Brown said. “We are thrilled to have these investments. What is most important is these programs will be sustaining our work to create a strong work environment for Oregon.”