Treasury Issues Guidance on State Small Business Credit Initiative Program

On November 10, 2021, the U.S. Department of the Treasury (“Treasury”) issued program implementation guidance for the State Small Business Credit Initiative (SSBCI) Program. SSBCI was originally established by the American Rescue Plan Act’s reauthorization and expansion of the Small Business Jobs Act of 2010. However, this new version will contain new features—including, promoting equity, catalyzing private investment, and fueling economic growth and good jobs—to increase the benefit to the communities served.

The Treasury's press release indicates that the program will “provide a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic.”

Pursuant to the program’s efforts to catalyze private investment, SSBCI Program is intended to “mobilize local sources of capital, such as community banks” to promote “American entrepreneurship” and to increase access to startup capital—especially in underserved communities. To successfully “mobilize” this local credit, the SSBCI funding is “expected to catalyze up to $10 of private investment for every $1 of SSBCI funding.”

To learn more about how your community bank can get involved in this program and benefit the communities it serves, please contact Kennedy Sutherland.