Codefi and efactory Selected to Receive $2.94 Million Federal Grant for Statewide Expansion of Entrepreneurial Support Services

April 28, 2025

[Cape Girardeau, MO]: On Friday, April 25, at 1:00 pm, Missouri Department of Economic Development (DED) Director Michelle Hataway joined regional business and economic development leaders at a media event in downtown Cape Girardeau to celebrate receipt of a $2.94 million federal grant. The funding will expand technical assistance programs for entrepreneurs and small businesses throughout Missouri.

As a selected subaward recipient, codefi’s Foundation on Rural Innovation is expected to receive over $1.4 million in State Small Business Credit Initiative¹ (SSBCI) Technical Assistance Grant funds to prepare tech-based startups to apply for equity capital from Missouri Technology Corporation's² (MTC) SSBCI IDEA Fund.³

This award builds upon the success of the Southern Missouri Innovation Network⁴ (Innovate SOMO), which launched three years ago and now serves Missouri's 47 southernmost counties through a collaborative network of nearly 40 regional, community, and training partner organizations. The U.S. Department of Treasury has approved this program to provide capital access for Missouri-based businesses. This initiative specifically includes rural entrepreneurs throughout the state.

“This funding is an exciting opportunity to further support entrepreneurship in every region of our state, including rural areas,” said Michelle Hataway, Director of the Department of Economic Development. “We look forward to our partners using these funds to help Missourians prosper by expanding valuable services for small businesses.”

The expanded Innovate SOMO programs will prepare startups and small businesses to apply for Missouri's two SSBCI capital programs: the Missouri Technology Corporation's IDEA Fund for equity investments and Justine PETERSEN's IgniteMO⁵ small business loan program.

“MTC recognizes the challenges associated with early-stage companies and aspiring entrepreneurs in accessing the capital required to launch and grow their businesses,” said Jack Scatizzi, Executive Director of MTC. “MTC is excited to see the programs and services that Innovate SOMO can launch or expand with the federal SSBCI program funding to ensure all of the state's entrepreneurs have access to the training and resources to access the growth capital they require.”

DED announced on Friday, April 18⁶ that it had received the funding through the U.S. Department of the Treasury's American Rescue Plan Act. Following a competitive application process and approval by U.S Treasury, DED selected Missouri State University's efactory to administer the program, with codefi as a subawardee.

The efactory and codefi collaborated to create Innovate SOMO, which was announced on April 8, 2022—almost exactly three years ago—at a similar media event held at the historic Marquette Tower, codefi's headquarters.

"It's been an honor to work with Rachel and her outstanding team at efactory and Missouri State University to build a network connecting our organizations with numerous regional, community, and training partners," said Dr. James Stapleton, founder, President and CEO of codefi. "Together, we have considerably improved our ability to serve entrepreneurs, tech talent, and investors who choose to live in smaller cities and rural communities."

Innovate SOMO has already demonstrated success across Missouri's 47 southernmost counties. With this new funding, the network projects serving 500 entrepreneurs, launching 50 new businesses, creating 200 jobs, and generating $20 million in new capital investment and annual earnings.

"We're excited to expand our collaboration with codefi and our growing statewide network of partners to deliver meaningful support where it's needed most," said Rachel Munday, Executive Director of efactory. "Together, we're proving that innovation can thrive anywhere in Missouri."

Shad Burner, CEO of Southeast Missouri Regional Economic Development, Inc. (SEMO REDI), also delivered remarks at Friday's event. Burner previously participated in the 2022 launch of Innovate SOMO while serving as DED's Director of Federal Initiatives, where he announced nearly $4 million in competitive state ARPA grant funding.

"For over a decade, codefi has anchored the historic resurgence of private development in downtown Cape Girardeau," said Burner. "As they expand their innovative programs and services throughout Missouri, our entire region benefits tremendously. We're proud of both codefi and efactory for creating this essential entrepreneurial network."

The expanded network is set to launch in the next 8 to 10 weeks, helping to build stronger, more resilient regional economies by ensuring that entrepreneurs in all corners of Missouri have access to the capital and support they need to scale their operations.

##

About the SSBCI Technical Assistance Grant

The State Small Business Credit Initiative (SSBCI) is a nearly $10 billion program to support small businesses and entrepreneurship in communities across the United States by providing capital and technical assistance to promote small business stability, growth, and success. SSBCI represents a transformational investment in American small businesses and is expected to catalyze up to $10 of private investment for every $1 of SSBCI Capital Program funding to increase access to capital to small businesses and entrepreneurs.⁷ The SSBCI Capital Program provides funds to states, the District of Columbia, territories, and Tribal governments for those jurisdictions to create tailored programs that offer funding to small businesses and entrepreneurs through equity/venture capital, loan participation, loan guarantee, collateral support, and capital access programs.

About codefi

codefi⁸ is a nationally recognized tech-based development non-profit organization that specializes in deploying an innovation ecosystem in rural and smaller metro regions. The integrated system of programs and tech services produces high-quality jobs by building and attracting software-focused companies, educating and training tech and founder talent, and providing access to pre-seed capital that expands the tech economy and improves the quality of lives, companies, and communities.

About Innovate SOMO

The Southern Missouri Innovation Network (or Innovate SOMO), developed by codefi and efactory, is a collaborative network of businesses and organizations who work together for greater impact. We connect workers to training, entrepreneurs to resources, and employers to talent—all to drive regional growth and prosperity. The network transforms communities in the southernmost 47 counties in Missouri by unlocking the full potential of entrepreneurship and innovation.

About efactory 

Missouri State University’s efactory⁹ is the front door to the university for businesses and employers. As a business and economic development hub, efactory offers a network of programs designed to support both large and small businesses throughout southern Missouri as they start, scale and succeed. In addition, efactory provides talent development and training to boost skills and job opportunities for Missourians.