The State Small Business Credit Initiative Program:
Today, The US Department of the Treasury issued the capital program implementation guidance for the State Small Business Credit Initiative (SSBCI) Program. This re-issuance of the SSBCI program, which was first created in 2010, will provide $10 Billion to States, The District of Columbia, territories, and Tribal Governments.
The goal of the program is to empower small businesses to access to capital needed to invest in job-creating opportunities as the country emerges from the pandemic. The Department of the Treasury reports that these funds will catalyze investment at a rate of $10 of private investment for every $1 of SSBCI program funding.
How funds will be equitably allocated:
In the goal of promoting equity, Treasury will allocate $2.5 Billion of the program funding to businesses owned by socially and economically disadvantaged individuals. Additionally $600 million in allocation to tribes which the Treasury reports having been consulted in the policy design.
These equity goals will be achieved through connecting with local sources of capital, such as community banks, CDFIs, Minority Depository Institutions, and investors. In allocating capital through working with local capital sources the Treasury can more effectively meet these goals.