The programs are designed to invest in seed/early-stage startups raising seed through Series A investment rounds and provide low-interest loans to pre-seed, seed, and early-stage startups raising equity capital from primarily angel investors but also VC investors. Stay tuned for the release of our 2023 Session Announcement. Borrowers must have an identified Partnering Lender providing. payroll or sales taxes; or. The State Small Business Credit Initiative (SSBCI) is a $10 billion small business program managed by the U.S. Department of the Treasury (Treasury). SSBCI, a program established in 2010, was reauthorized and funded through The American Rescue Plan Act in 2021. These funds will support businesses owned or controlled by socially and economically disadvantaged individuals, including minority-owned, women-owned, veteran-owned, rural, or other targeted small business populations across the state. The 504 Bridge Loan Program will address this timing difference. Renovation of the construction site as well as the purchase of active or non-passive real estate. The loan participation program, allocated $27.5 million, will offer up to 50 percent participation in small business loans for equipment and working capital. SSBCI FAQ What is the State Small Business Credit Initiative? Are you a business seeking a loan of $250,000 or less? Administered by the U.S. Department of the Treasury, this initiative is the second installment of the program originally passed under the Small Business Jobs Act of 2010. Treasury Launches the 2021 State Small Business Credit Initiative (SSBCI) Technical Assistance Grant Application Portal on 8/1/2022 Treasury Announces North Carolina Approved to Receive Up to $201.9 Million to Promote Small Business Growth and Entrepreneurship through the American Rescue Plan (7/29/2022) CDFI Investment Areas are generally low-income, high-poverty areas that receive neither sufficient access to capital nor support for the needs of small businesses, including minority-owned businesses. South Dakota SSBCI Funding $62M Approved: The state has allocated these new funds entirely to support a loan participation program, which will be dispersed through approved lending institutions and CDFIs. Contact CDFA to discuss your technical assistance needs. Indiana is leveraging SSBCI to expand venture capital investments and create a new program to invest in small business loan funds throughout the state. Each SSBCI transaction, whether the relevant location is in a CDFI Investment Area or not, must be determined immediately before the closing of the relevant loan, investment, or other credit or equity support-related transaction, at the time that ownership and control is assessed. >>> Treasury SSBCI Resources Alabama SSBCI Program ssbci.manager@dca.ga.gov The Small Business Jobs Act of 2010 (the "Act") became law in the fall of 2010. Participating States funded new or existing state . Kansas SSBCI Funding $69M Approved & Accepting Applications: Program will include a capital multiplier loan program, along with venture funds, that will assist small businesses in both rural and urban areas. The LPP, allocated $26 million, will originate companion loans used to help fill the gap needed to secure senior loans from banks, institutional lenders, and credit unions. Administrative Unit: University of Alaska Anchorage. On March 11, 2021, the U.S. Congress enacted the American Rescue Plan Act, which, in part, provides $10 billion to fund the State Small Business Credit Initiative (SSBCI). Startups and emerging growth companies can receive capital from this fund. The Collateral Support Program enables financing that might otherwise be unavailable due to a collateral shortfall. CDFA and guest speakers from The Choctaw Nation and gener8tor held this webinar on March 11, 2022 for a discussion on how Tribal Governments can utilize the State Small Business Credit Initiative (SSBCI) program. Community Planning Development & Services. Funds will be used to support businesses with limited . Virgin Islands SSBCI Funding $57M Approved: This U.S. territory will operate four programs: a collateral support program, a loan participation program, and two loan guarantee programs. SSBCI application deadlines for Tribal Governments: Council of Development Finance Agencies, Treasury Announces Approval of up to $339M to Support Small Business across Three States and Two U.S. 48 states/territories have been approved for SSBCI funding, and 16 states are accepting SSBCI applications through lenders. ET, 2022. IBank is the lead applicant and they have signed an allocation agreement with U.S. Treasury. New Mexico allocated over $65 million to a new equity/venture capital program designed to provide equity support to small businesses by committing capital to private VC funds, including those targeting early-stage companies. The lender makes such a loan with the expectation that the portion above 50% will be taken-out by a SBA note. March 11, 2022 - Applications due for municipalities located in states that do not apply for SSBCI (application form forthcoming). Different types of capital that will get included would involve the ones given below; To apply you must know more about the different funding categories. Massachusetts SSBCI Funding $169M Approved: This state will operate five programs: two loan participation programs, two loan guarantee programs, and a venture capital program. We are a Community Development Financial Institution (CDFI) in Florida. The following are the typical terms: The most common Loan Participation is the504 Bridge Loan Participation. Florida has been allocated $488,486,572 to utilize for various technical assistance, capital access, credit support, and venture capital programs designed to help small businesses grow and thrive. In September 2022, DEOannouncedthe approval of the state SSBCI application by the United States Department of the Treasury (U.S. Treasury) for $488 million in funding. Once U.S. Treasury approves the application, the allocated funds will be disbursed to the State of Florida for the administrations of the States SSBCI program. If you are not applying under any of the three criteria mentioned above, you will not be able to make the application. North Carolina SSBCI Funding $201M Approved & Accepting Applications: Three programs have been approved to include, capital access, venture capital, and a loan participation program. Applications to become a subrecipient will be accepted until January 14, 2022 11:59 EST. Capital Access A loan portfolio insurance program (pooled loan insurance) where a private lender originates a loan and the borrower and lender contribute a percentage of the loan per eligible small business, which is then matched by SSBCI funding. As part of the American Rescue Plan Act signed into law in March 2021, $10 billion of additional funding was reauthorized for the State Small Business Credit Initiative (SSBCI). Email instructions and a link were emailed to eligible jurisdiction point(s) of contact the same day each portal was launched. .css-1hnz6hu{position:static;}.css-1hnz6hu::before{content:'';cursor:inherit;display:block;position:absolute;top:0px;left:0px;z-index:0;width:100%;height:100%;}.css-722v25{font-weight:var(--chakra-fontWeights-bold);}Skip TeamFebruary 28, 2023 13 min read. . Our highly anticipated summit is taking place February 27, 2023 at the However, if you are applying under any of the three categories, you can refer to the information provided here as help and guide. Created as part of the Small Business Jobs Act of 2010, SSBCI was designed by the federal government to help states strengthen existing loan and equity programs and/or create new programs that support financing small businesses. An equal opportunity employer/program. The loan proceeds must be used for a business purpose. A business purpose includes, but is not limited to, startup costs, working capital, business procurement, franchise fees, equipment, inventory, as well as the purchase, construction renovation or tenant improvements of an eligible place of business that is not for passive real estate investment purposes. Blue Buffalo Tastefuls Singles, Guam SSBCI Funding $58M Approved: This US Territory will operate three programs: . A list of financial institutions participating in these program is has been released since funding has been allocated to each organization. March 31, 2022 - Applications for SSBCI technical assistance from states, territories, and Washington, DC are due (application form forthcoming). For example, New York has allocated over $154 million to a program that provide equity support to small businesses by investing through private venture capital funds and accelerator funds. Wisconsin SSBCI Funding $79M Approved: This state will operate seven programs: a capital access program, a collateral support program, a debt/equity hybrid program, two loan participation programs, and two equity/venture capital programs. Your social security number and a government-issued tax ID. Financing Authority (VSBFA) is the eligible entity that will apply for SSBCI 2.0 funds. GA LPP is used to purchase a portion of a loan originated by a lender to an eligible small business borrower. The American Rescue Plan Act of 2021 reauthorized theState Small Business Credit Initiative (SSBCI)as part of the national response to the coronavirus pandemic-induced recession. If you continue to use this site we will assume that you are happy with it. What types of lenders can use the program? SSBCI dollars are not allowed by federal law to be used as grant funding. See the CDFI Public Viewer for a map of CDFI Investment Areas for the purposes of SSBCI. In the Discover phase of the Planning process, different kinds of stakeholders are made to complete a public survey. Iowa SSBCI Funding $96M Approved: This state will operate four programs, including two venture capital programs, to which they have allocated $53 million. DEO will target institutions in the financial services sector that align with the mission of SSBCI. Lessons Learned for using SSBCI to help capital reach minority entrepreneurs. To be eligible, businesses must be Florida-based and have 500 employees or less. Apply now. This program will provide collateral security for performance bonds required by small contractors working on public and private construction projects. .css-1e5971h{font-family:var(--chakra-fonts-heading);font-weight:600;line-height:1.2;font-size:var(--chakra-fontSizes-xl);}Skip Team, Not owned or operated by any government agencies, See our full post on Alaska SSBCI funding, See our full post on California SSBCI funding, See our full post on Colorado SSBCI funding, See our full post on Kansas SSBCI funding, See our full post on Maryland SSBCI funding, See our full post on Michigan SSBCI funding, See our full post on Montana SSBCI funding, See our full post on North Carolina SSBCI funding, See our full post on Pennsylvania SSBCI funding, See our full post on South Carolina SSBCI funding. (Included in these activities is the production, servicing, or distribution of otherwise legal products that are to be used in connection with an illegal activity, such as selling drug paraphernalia or operating a motel that knowingly permits illegal prostitution); or, Borrowers may not be businesses engaged in gambling enterprises, unless the business earns less than 33% of its annual net revenue from lottery sales; or, Borrowers may not be businesses where the principal of the company has been convicted of a sex offense against a minor; or. The new version of the SSBCI program will provide a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses who are looking for capital. The primary objective of Floridas SSBCI Program is to leverage private capital for Floridas small businesses, which are defined as businesses with 500 employees or less. In addition, this program gives rural and Native American entrepreneurs greater opportunity to create new businesses and expand existing small businesses creating jobs and economic opportunities in Montanas rural counties and Indian Country. Oklahoma allocated $32.7 million to the Oklahoma Business Lending Partnerships program which will provide subordinate companion loans originated by partners and CDFIs that will accompany senior loans originated by other financial institutions. Funding is available from U.S. Treasury in three tranches, and the first tranche of funding - $142 million - is ready for deployment. Essential Information: The Tribal applications, Eastern Time, and technical assistance seekers can apply now until 01st September 2022. Georgia SSBCI Funding $200M Approved: This state will operate five programs: a loan guarantee program, two loan participation programs, and two equity/venture capital programs. Scaling and focusing on underserved entrepreneurs is another advantage of the program. As a working capital or to bear startup costs. The U.S. Department of the Treasury has launched the 2021 State Small Business Credit Initiative (SSBCI) portal. Say Yes to the Dress Application in 5 Easy Steps, Food Lion Job Application Online [Step-by-Step Guide], Data is based on their unemployment figures, This help could come before or after loan or equity infusions, Socially and Economically Disadvantaged Businesses, Based on their population and government schemes. Loan proceeds may not be used for holding passive investments such as commercial real estate ownership, or the purchase of securities; and lobbying activities; or, Loan proceeds may not be used to repay delinquent federal or state income taxes unless the borrower has a payment plan with the relevant taxing authority; or, Loan proceeds may not be used to repay taxes held in trust or escrow, e.g. On February 4, 2022, IBank and the California Pollution Control Financing Authority submitted a joint application to the U.S. Treasury to draw California's $1. The equity/venture capital programs, allocated up to a combined $50 million, will allow the state to invest in funds as a limited partner and to make direct co-investments alongside a lead investment in small businesses. Job Description & How to Apply Below. State Small Business Credit Initiative: Implementation and Funding Issues Congressional Research Service 2 costs).6 As of December 31, 2016, all 57 participants had received their first tranche, 56 had received their second tranche, and 53 had received their third tranche.7 States were expected to leverage their SSBCI funds to generate new small business lending that is Priority is given to very small businesses (<10 employees) and SEDI individuals who own or operate for-profit or . CDFA hosted this public briefing on November 22, 2021 to provide an overview of the new SSBCI Capital Program Policy Guidelines as well as application timelines and requirements. 1 issue facing them in Florida.2 The initiative can help with reasonable expectation of improving or maintaining the health or overall function of the chronically ill enrollee. The SSBCI program is managed by the U.S. Dept. Applicants may also amend their submitted "Initiated Application" from December 12, 2021, to February 11 at 11:59 p.m. On August 19, Governor Kathy Hochul announced New York State has been awarded $501.5 million in federal funding through the State Small Business Credit Initiative (SSBCI), a program through the American Rescue Plan Act. Post this step, you will need to complete ten sections out of which you have to read through three segments and fill another seven segments. The SSBCI portal link is given here in this section. The SSBCI program does not offer grants or direct loans. A business purpose includes, but is not limited to: start-up costs, working capital, business procurement, franchise fees, equipment, inventory, and the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real-estate investment purposes. This is a considerable increase from the first SSBCI and the $1.4 billion it offered in 2010. This includes corporations, partnerships, sole-proprietors, independent contractors, nonprofits, and cooperatives. The following programs are allowable under SSBCI Guidelines: Collateral Support Enables financing that might otherwise be unavailable due to a collateral shortfall. h. rept. The CDFA Online Resource Database includes webcast presentations, program guidance, disclosure documents, and more from the Treasury's SSBCI staff. Typical term between 3 to 18 months (until SBA take-out), Fee is typically .50% of participation (1.00% if ground-up construction). Water Based Spray Foam, WITS Online Application Status Here is How to Check, SCRIE Application Guide Know Requirements & Eligibility. SSBCI will fund state, territory, and Tribal government small business credit support and investment programs. Community banks and nonprofit mission-based lenders, particularly CDFIs, are important to reach this programs intended populations and will be utilized to the greatest extent possible. Loan proceeds may not be used for transfer of ownership or business acquisition (purchase of Goodwill). See our full post on Kansas SSBCI funding, Maine SSBCI Funding $62M Approved & Accepting Applications: Program will be operated by Grow Maine, and work with statewide intermediary lenders. In September, the DEO announced the approval of the state SSBCI application by the United States Department of the Treasury for $488 million in funding with $142 million ready for immeidate. On March 26, 2021, we discussed insights and recommendations to Treasury and our understanding of what resources need to be developed. Funding is available from U.S. Treasury in three tranches, and the first tranche of funding - $142 million - is ready for deployment. Save my name, email, and website in this browser for the next time I comment. For additional information for lendersclick here. The Angel Match Program will expand access to capital for underserved communities by focusing outreach, technical assistance, and capital investment in rural communities, Tribal communities, and communities undergoing economic transitions such as coal communities. What is a Community Development Financial Institution (CDFI) Investment Area? The capital program application portal was launched on 11/22/2021 and the technical assistance grant program application portal was launched on 8/1/2022. An overview of the results is here. October 11, 2022 Jefferson City The U.S. Department of Treasury has approved Missouri's State Small Business Credit Initiative's (SSBCI) application, representing nearly $27 million to support small businesses, startups, and entrepreneurs. I look forward to keeping Florida free for future generations. the approval of the state SSBCI application by the United States Department of the Treasury (U.S. Treasury) for $488 million in funding. U.S. Treasury Extends Tribal Government SSBCI TA Grant Program Application Deadline, U.S. Treasury Announces SSBCI Tribal Government Capital Program Application Submissions, SSBCI Comes to Indian Country: New Federal Funding for Tribes to Invest in Indian Country Small Businesses and Native Entrepreneurs, Treasury Department Publishes SSBCI Fact Sheet for Tribal Governments. Glad Recycling Bags 13 Gallon. Administered by the U.S. Department of the Treasury, this initiative is the second installment of the program originally passed under the Small Business Jobs Act of 2010. Louisiana SSBCI Funding $113M Approved: This state will operate five programs: a loan guarantee program, a loan participation program, a collateral support program, and two equity/venture capital programs.