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

40 Responses to "The State Small Business Credit Initiative (SSBCI): 3 Details You Should Know"
    • 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

      Thanks

      • 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.

Leave a Reply

Disclaimer: Comments are subject to moderation and removal without cause or justification and may take up to 24 hours to be seen in comments. Your email address will not be published. Required fields are marked * Please do not include personal policy information; if you have questions or concerns regarding your policy with The Hartford, please log into your account or you can speak directly to a Customer Service Representative.