December 6, 2021
Main Street Monday – State Small Business Credit Initiative’s 2021 Application Portal is Launched
The U.S. Department of Treasury opened the SSBCI portal that is going to provide $10 billion to create specialized small business programs and increase access to capital. This new portal is referred to as SSBCI 2.0 because the goals for the program are the same as its start in 2010, to deliver capital to the small businesses that need it the most. After the success of the program, the program’s allocations were increased by $8.6 billion.
With the $10 billion, $6.5 billion is allocated to the State for unemployment and the percentage of companies with less than 10 employees. Another $1.5 billion is provided to businesses owned and controlled by economically and socially disadvantaged people. One billion dollars is for incentives to States/Tribal governments that demonstrate support for businesses owned by socially and economically disadvantaged individuals, half a billion dollars for technical assistance programs, and half a billion dollars for Tribal governments.
State programs are allowed to use their allocations for various small business financing programs to disperse the SSBCI funds. This includes capital access programs where contributions are matched dollar for dollar with SSBCI funds, loan guaranty programs, collateral support programs, loan participation programs, and venture capital programs.
Lenders looking to participate in the State Small Business Credit Initiative programs must endure a vetting process. They will be evaluated by the state for their management, lending experience, financial capacity, and ability.