The State Small Business Credit Initiative (SSBCI) is a $10 billion federal program administered by the US Department of the Treasury that provides funding via state and tribal governments for small business lending and equity investment programs. The objective is to support small businesses and entrepreneurship in communities across the United States. SSBCI is expected to substantially increase access to capital for small businesses and entrepreneurs.
The Treasury Department recently released the SSBCI Annual Report summarizing loan and investment transactions in 2022 and 2023. Accomplishments include:
- 3,900 loans or investments made
- $750 million in SSBCI funds expended
- $2.6 billion in private financing leveraged
- 78% of transactions with businesses having fewer than 10 employees
- $87,700 median loan transaction
- 64% of loans made to businesses less than 5 years old
- $880,000 median investment transaction
- 91% of investment deals to businesses in the pre-seed, seed, or early stages of venture investment
Overall, the median participating business in the State Small Business Credit Initiative had 3 employees and has been in business for 4 years.
SSBCI Quarterly Reports provide a more current snapshot of activity. The latest quarterly report, through June 30, 2024, finds:
- $8.3 billion out of $10 billion has been allocated
- $3.1 billion has been disbursed by the SSBCI program to jurisdictions
- $1.7 billion in funds have been deployed through jurisdictions’ capital programs
- The top five states by percentage of allocated funds deployed are:
- Montana
- Vermont
- Maine
- New Hampshire
- Alaska
The SSBCI program also includes funds for technical assistance. The technical assistance programs are meant to help small businesses apply for SSBCI-supported financing. Many small businesses need legal, financial, and accounting advisory services to become finance-ready. $400 million has been allocated to help jurisdictions create or expand such programs.
For more information please see:
https://home.treasury.gov/news/press-releases/jy2728
https://smartincentives.org/ssbci-report-shows-funds-flowing-to-american-small-businesses/
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