The Treasury Department has announced that an additional 9 states have now received federal funding from the $10 Billion State Small Business Credit Initiative (SSBCI) program — bringing the total amount distributed to $1.5 Billion to 14 states. Last month, the first 5 states were approved.
Here's the latest on what states have received SSBCI funding to support small business owners and startups, what types of SSBCI funding has been approved, and how you can apply for this funding.
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$10B in SSBCI Funding Is Being Distributed To Businesses and Startups
The SSBCI Program was started to help provide capital to traditionally underserved startups or small business owners was originally started in 2010. As part of the American Rescue Plan, another $10B was authorized for the program — $10B that is being funneled through states.
In short, every state, DC, territory, and tribal government had a chance to apply for funding programs to help startups and businesses in their states. The Treasury has approved 14 states so far and we expect dozens more to be approved in the coming months.
Here Are All the States That Have Received SSBCI Funding To Date
As of July 22, 2022 the following states have been approved for funding programs for a total of $1.5 billion. As more states are approved we will update this article. You can stay up to date on your state here.
- Arizona
- Connecticut
- Hawaii
- Indiana
- Kansas
- Maine
- Maryland
- Michigan
- New Hampshire
- Pennsylvania
- South Carolina
- South Dakota
- Vermont
- West Virginia
Some states are currently accepting expressions of interest but as of the latest update in this article, no applications are available to apply for or otherwise seek funding.
Funding Options Include Venture Capital and Guaranteed Loans
According to the Treasury there are 5 types of funding that States could request as part of the SSBCI program. However, so far, there have been two main types of funding approved — venture capital programs and loan participation programs.
Here are the 5 types of SSBCI funding programs, according to the Treasury Department:
Venture Capital Programs: Jurisdictions may set up public-private partnerships for equity investing or invest in venture capital funds. These investments are focused on providing capital to underserved startups and democratizing venture capital across geography and to diverse founders.
Loan Participation Programs: In these programs, states, the District of Columbia, territories, and Tribal governments buy an interest in the loans made by lenders or lend directly alongside private lenders, providing direct lending to finance small businesses.
Loan Guarantee Programs: States, the District of Columbia, territories, and Tribal governments use SSBCI funds to provide an assurance to lenders that they will be partially repaid in the event of default, after the lender makes every reasonable effort to collect, helping small businesses secure loans that may have otherwise been inaccessible or prohibitively expensive.
Collateral Support Programs: The programs in this model set aside funds as collateral for new loans, enabling start-ups to borrow funds to help their businesses grow with the assistance of SSBCI capital.
Capital Access Programs (CAPs): These programs provide portfolio insurance in the form of a loan loss reserve fund into which the lender and borrower contribute, supplemented with SSBCI funds.
Want 1-1 Help Applying for Funding or Growing Your Business?
If you need further assistance with funding — including government funding options via the SBA or SSBCI programs — or growing your business, try Skip VIP or Skip Platinum — or if you're already a member, reach out to your concierge. Join the tens of thousands of business owners and entrepreneurs who've collectively received $2B to launch and grow their businesses with Skip.