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
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
Will I have to repay the money and how long will I have to repay it?
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.
Thank you.
You’re welcome! Thank you for reading SBA!
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?
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.
When can I apply for SSBCI. Venture capital
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.
THANK YOU IN ADVANCE FOR YOUR EFFORTS.
You’re welcome!
I need assistance with the ssbci grant!
https://sba.thehartford.com/finance/ssbci/
please email me at gene@marksgroup.net and I’ll point you in the right direction.
Hello
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
You can learn more and find links for application materials on this website: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci
Thanks for reaching out!
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.
You can check this listing of grants for business owners:
https://bench.co/blog/operations/small-business-grants/
You can also look at grants.gov
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.
This is a great listing of available grants to business owners, updated mid-January
https://bench.co/blog/operations/small-business-grants/
Also look at grants.gov
I purchased a business in September 2020. Am I eligible under this program?
Yes. It’s just an extension of an original program from 2010. You should apply.
Looking forward to the possibilities for us small business owners.
🙂
Thanks for the info!
You’re welcome, Jose! We’re happy to hear you liked the article.
I am interested in applying for any Grants or Loans that may be available to help my business continue to run successfully.
Hi Josephine, you can look for grants on Grants.gov
You can also check out this resource:
https://www.nav.com/resource/small-business-grants/
I am interested in grant and or loans to get my business up and running.
Grants.gov is a great option for finding grants and loans. You can also check out this listing of available grants to business owners, updated mid-January:
https://bench.co/blog/operations/small-business-grants/
I would like more info and how sign up.
You will need to talk to a local CDFI. Go here:
https://ofn.org/cdfi-locator
How does a business owner in PA access these funding systems?
Go to Seedcopa – it’s an organization that administers this funding loans in Pennsylvania.
https://seedcopa.com/pa-small-business-credit-initiative-psbci-program/
We are interested in this SSBC initiative. How do we apply for it and when.
It’s a state thing. You need to find out who is administering these fundings locally. Google SSBCI and your state. Or ask your local Small Business Development Center for help.
https://www.sba.gov/local-assistance/resource-partners/small-business-development-centers-sbdc
Very interesting.
We’re glad you thought so. Thanks for commenting, James!
Thanks for the update.
You’re welcome!
I need the application. Where do I get it from?
You should talk to a local CDFI. This website can help you find one: https://ofn.org/cdfi-locator
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?
All the information you need is here about your application and the process:
https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci
You need to find out who is administering these fundings locally. Google SSBCI and your state. Or ask your local Small Business Development Center for help.
https://www.sba.gov/local-assistance/resource-partners/small-business-development-centers-sbdc
Thanks
You’re welcome! Thanks for reading SBA!
This program is very interesting.
It is! We hope you found the article helpful!
I am interested in applying for any Grants or Loans that may be available to help my business grow and continue to run successfully.
Try Grants.gov
This list is also a great resource:
https://www.nav.com/resource/small-business-grants/
Where does a small business seek out available funds within its state?
Your state’s website is the first place to start. Also talk to an SBDC rep that’s local to you.
https://www.sba.gov/local-assistance/resource-partners/small-business-development-centers-sbdc
Thank you for updating.
You’re welcome!
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.
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.
Keep me posted of different similar programs.
Hi Ash, you can sign up for our newsletter to get updates on new articles and programs: https://www.thehartford.com/business-insurance/sba-subscribe
Thanks for reading SBA!