Technical Assistance


State Small Business Credit Initiative - Fact Sheet


The State Small Business Credit Initiative (SSBCI) authorizes the U.S. Department of the Treasury (Treasury) to allocate federal funds to states, U.S. Territories, Washington, D.C., and Tribal Governments (Juridictions) to capitalize local small business support programs. Jurisdictions must match SSBCI funds with private capital, and aspire to leverage each dollar to attract 10 dollars in private financing. The SSBCI program was reauthorized and enhanced in 2021.

The American Rescue Plan Act of 2021 reauthorized SSBCI at $10 billion in total funding and enhanced the program to provide dedicated funding for technical assistance activities and opened program participation to Tribal Governments. The reauthorized SSBCI program also requires Jurisdictions to target a portion of loans and investments to Very Small Businesses and businesses owned or controlled by socially and economically disadvantaged individuals (SEDI businesses).

Treasury is currently working with Jurisdictions to approve and implement local SSBCI strategies.

Implementation Timeline

View CDFA’s SSBCI Resource Center and Treasury’s SSBCI webpage for additional information about the SSBCI program.

Frequently Asked Questions

1. What are the different components of the $10 billion SSBCI program? 2. Have SSBCI funds been disbursed?
SSBCI funds have not been disbursed.

All states, U.S. territories, and Washington, D.C. have submitted a Capital Program application. Tribal Governments must submit a Capital Program application by May 11, 2022. SSBCI funds will be disbursed to Jurisdictions upon Treasury’s approval of their application, and execution of an Allocation Agreement.

3. How can SSBCI funds be used for Capital Programs?
SSBCI funds will be used to support small business financing programs and the provision of Technical Assistance to small businesses applying for SSBCI and other government programs. See Treasury’s 2017 program evaluation, State Small Business Credit Initiative: A Summary of States’ 2016 Annual Reports, for more information on SSBCI 1.0.

4. How can SSBCI funds be used for Technical Assistance programs?
In April 2022, Treasury issued the Technical Assistance Grant Program Guidelines and Preliminary Allocation Table for "Eligible Recipients". Local governments - states, U.S. Territories the District of Columbia, and Tribal Governments - that submit a complete application for the SSBCI Capital Program are considered Eligible Recipients and can apply to receive funding through the SSBCI Technical Assistance (TA) funding.

Eligible Recipients may deliver Eligible TA Services by:
TA funding may be used to provide legal, accounting, and financial advisory services to Very Small Businesses and SEDI-owned businesses that are applying for, preparing to apply for, or have previously applied for a SSBCI capital program or other federal or other jurisdiction small business programs.

Treasury will transfer $100 million to the Minority Business Development Agency to carry out TA programs, in addition to the $200 million in TA Grant Program funding available to Eligible Recipients.

5. What is a SEDI business?
The November 2021 Capital Program Policy Guidelines provide a definition of what small businesses qualify as a SEDI business. The basis for eligibility can be geographic, demographic, or socioeconomic. A small business may qualify as a SEDI business if it meets at least one of the four criteria below.

1. Business enterprises that certify that they are owned and controlled by individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances, due to their: (1) membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society; (2) gender; (3) veteran status; (4) limited English proficiency; (5) physical handicap; (6) long-term residence in an environment isolated from the mainstream of American society; (7) membership of a federally or state-recognized Indian Tribe; (8) long-term residence in a rural community; (9) residence in a U.S. territory; (10) residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization); or (11) membership of another “underserved community” as defined in Executive Order 13985.

2. Business enterprises that certify that they are owned and controlled by individuals whose residences are in CDFI Investment Areas.

3. Business enterprises that certify that they will operate a location in a CDFI Investment Area.

4. Business enterprises that are located in a CDFI Investment Area.

The term “owned and controlled” means, if privately owned, 51 percent is owned by such individuals; if publicly owned, 51 percent of the stock is owned by such individuals; and in the case of a mutual institution, a majority of the board of directors, account holders, and the community which the institution services is predominantly comprised of such individuals.

View Treasury’s FAQ document and SEDI Incentive Funding Table to learn more program requirements and goals for extending capital to SEDI businesses.

Learn More and Stay Up-to-Date on SSBCI

Visit the SSBCI Resource Center
Subscribe to CDFA’s SSBCI Update newsletter
Join the SSBCI Coalition

Become a CDFA member to participate in the SSBCI Coalition, gain full access to the SSBCI Resource Center, and receive discounts on current and future SSBCI events.

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