The State Small Business Credit Initiative (SSBCI): 3 Details You Should Know

The Hartford

With small businesses continuing to face challenges brought on by the pandemic, the U.S. Department of Treasury has expanded the State Small Business Credit Initiative (SSBCI) Program as a part of The American Rescue Plan Act of 2021. This program will provide a combined $10 billion for small business credit support and investment programs to:

  • The states
  • U.S. territories
  • The District of Columbia

The SSBCI will also help fund programs run by Tribal governments. This program will build upon the $416.3 billion in emergency relief aid that the United States Small Business Administration (SBA) gave to over six million businesses in 2021.

In order for the SSBCI program to be successful, each state will need to apply for funding. They’ll also need to set their own rules/guidelines for small business owners once they receive funding.

To learn more, read through the sections below.

1. The SSBCI is focusing on equality

The rising cost of goods and supply chain backups are just some of the hurdles small businesses owners have had to overcome in recent years. The SSBCI’s goal is to help expand capital for small businesses across the U.S. and improve the access to startup capital, especially in underserved communities.

To accomplish this goal, the U.S. Department of Treasury will provide $1.5 billion to small businesses that are owned by individuals that face barriers to accessing capital. This includes those that are subject to racial and ethnic prejudice or cultural bias within the U.S.

This allocation will also help support small businesses that are in low income and high-poverty geographics, including minority-owned businesses. On top of this, the SSBCI will provide over $600 million to Tribes in the U.S. and $500 million to businesses with fewer than 10 employees

2. The SSBCI is expected to create more jobs

In 2021, 46.8% of U.S. employees worked at a small business. By increasing capital for small businesses through the SSBCI, the U.S. Treasury is also aiming to see an increase in job creation. Small businesses that have the working capital to hire employees are better able to stay competitive and innovative in their market. The SSBCI will also help small businesses retain their existing employees and consistently make payroll.

3. The SSBCI will support a variety of programs that increase the access to capital for small businesses

To receive the benefits of the SSBCI, your state, U.S. territory or Tribal government will need to apply. They’ll need to explain how their programs will lead to economic growth and job creation. Some of the programs the SSBCI funds will support include:

  • Venture capital programs
  • Loan participation programs
  • Loan guarantee programs
  • Collateral support programs
  • Capital access programs (CAPs)

As small businesses continue to find new ways to innovate, evolve and overcome the obstacles the pandemic throws their way, the U.S. Department of Treasury is looking to help. The SSBCI will help fund programs across the U.S. that can raise capital for small businesses and startups, especially minority owned operations.

For more information on your state’s requirements, please visit the U.S. Department of Treasury’s State Small Business Credit Initiative (SSBCI) page.

If your business does not qualify for the SSBCI program, there are other options you can use for financing like Lendio*.

*Sponsored by Lendio

54 Responses to "The State Small Business Credit Initiative (SSBCI): 3 Details You Should Know"
    • Herrice E Higgs | September 2, 2022 at 3:12 pm

      Will I have to repay the money and how long will I have to repay it?

      • Gene Marks | September 6, 2022 at 2:16 pm

        That will depend on the financing you get. If you get a loan that will be what’s negotiated with you and the financial institution giving you the loan. However, you may be able to find organizations that are willing to give you a grant or an equity/debt investment.

    • Denyse Hicks | August 3, 2022 at 4:33 pm

      Thank you.

      • Small Biz Ahead | August 4, 2022 at 8:16 am

        You’re welcome! Thank you for reading SBA!

    • FRANK GOMBASH | August 1, 2022 at 4:28 pm

      When is the SSBCI program starting and when can we start the new application as business owner and how long does it takes to be granted or approved?

      • Gene Marks | August 3, 2022 at 8:14 am

        The program has started but money from the federal government will be distributed to the states over the course of the next year. You should begin reaching out to the nonprofits, community banks or other organizations targeted to receive these funds right now in order to establish a relationship and get in the queue to take advantage.

      • Laurie benson | November 15, 2022 at 12:43 am

        When can I apply for SSBCI. Venture capital

        • Gene Marks | November 16, 2022 at 8:16 am

          You need to google your state and ‘small business credit initiative” to see where your state is allocating the money. States get the money from Treasury and then allocate to partners for loans, investments, grants to small businesses.

          Hope this helps.

    • Denyse Hicks | June 16, 2022 at 3:36 pm


      • Small Biz Ahead | June 21, 2022 at 8:35 am

        You’re welcome!

    • MICHAEL BOOMER | June 15, 2022 at 9:02 am

      I need assistance with the ssbci grant!

    • kenqin zhong | June 10, 2022 at 7:38 pm

      Thank you for sharing the SSBCI information. I have a question, where can I apply for SSBCI program?

      I appreciated for your time
      Thank you

    • Shizue Nakamura | February 24, 2022 at 4:50 pm

      I am running a small restaurant but had to let go of many of my servers during the pandemic. Business has been slow and expenses are up. I am hoping to rehire them as the weekends are difficult to manage by myself. If any grants are available I would like to apply.

    • Susan Jones | February 17, 2022 at 8:53 pm

      I am a minority (woman owned) business. I am a sole proprietor in a low income area with less than 10 employees and have had setbacks due to the pandemic. I would be very interested in hearing more about any grants/loans available to
      small minority businesses in low income areas. It has been very difficult. Thank you.

    • Sadik Shakil | February 16, 2022 at 11:41 pm

      I purchased a business in September 2020. Am I eligible under this program?

      • Gene Marks | February 18, 2022 at 4:07 pm

        Yes. It’s just an extension of an original program from 2010. You should apply.

    • Jose Cruz | February 16, 2022 at 9:00 pm

      Looking forward to the possibilities for us small business owners.
      Thanks for the info!

      • Small Biz Ahead | February 17, 2022 at 8:32 am

        You’re welcome, Jose! We’re happy to hear you liked the article.

    • Josephine P Ha | February 16, 2022 at 8:29 pm

      I am interested in applying for any Grants or Loans that may be available to help my business continue to run successfully.

    • Shawanda Willis | February 16, 2022 at 7:59 pm

      I am interested in grant and or loans to get my business up and running.

    • Robert Hawthorne | February 16, 2022 at 4:43 pm

      I would like more info and how sign up.

    • Donald Ewert | February 16, 2022 at 3:13 pm

      How does a business owner in PA access these funding systems?

    • RAMESH TONY KEJRIWAL | February 16, 2022 at 2:36 pm

      We are interested in this SSBC initiative. How do we apply for it and when.

    • James Oranday | February 16, 2022 at 2:10 pm

      Very interesting.

      • Small Biz Ahead | February 17, 2022 at 8:34 am

        We’re glad you thought so. Thanks for commenting, James!

    • Deepak D Naik | February 16, 2022 at 1:58 pm

      Thanks for the update.

      • Small Biz Ahead | February 17, 2022 at 8:34 am

        You’re welcome!

    • YVONNE JENNINGS | February 16, 2022 at 12:51 pm

      I need the application. Where do I get it from?

    • P Dine | February 16, 2022 at 12:01 pm

      Could use the extra help for our small business right now. How do we determine if our state has applied and what are the specifics of an bus application?

    • Amiel Savaldi | February 16, 2022 at 8:07 am


      • Small Biz Ahead | February 16, 2022 at 9:34 am

        You’re welcome! Thanks for reading SBA!

    • Al MIDDLETON | February 16, 2022 at 6:06 am

      This program is very interesting.

      • Small Biz Ahead | February 16, 2022 at 9:37 am

        It is! We hope you found the article helpful!

    • Tarina Kazee | February 15, 2022 at 11:39 pm

      I am interested in applying for any Grants or Loans that may be available to help my business grow and continue to run successfully.

    • Denise M Barcomb | February 15, 2022 at 9:19 pm

      Where does a small business seek out available funds within its state?

    • John speno | February 15, 2022 at 3:25 pm

      Thank you for updating.

      • Small Biz Ahead | February 16, 2022 at 9:36 am

        You’re welcome!

    • Dr Charles B Darke | February 15, 2022 at 2:20 pm

      Are funds available for businesses that attempted to open at the beginning of the Pandemic??? I am not fully opened yet due to the difficulty of getting workmen in to perform the necessary work, before fully opening.

      • Gene Marks | February 16, 2022 at 2:59 pm

        It’s unlikely. Most of the funding has already run out at this time. Before that the funds were available generally to businesses that started operations before Feb 2020.

    • Ash Bhargave | February 15, 2022 at 1:55 pm

      Keep me posted of different similar programs.

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