State Small Business Credit Initiative

The State Small Business Credit Initiative (SSBCI) was originally created through federal legislation – the Small Business Jobs Act of 2010. The program is designed to help states address the challenges small businesses face in securing financing.

In California, SSBCI-funded programs are administered by both the California Infrastructure and Economic Development Bank (IBank), housed within the Governor’s Office of Business and Economic Development, and the California Pollution Control Financing Authority, housed within the California State Treasurer’s Office.

The American Rescue Plan Act of 2021 reauthorized and funded a new version of the original SSBCI program, providing a combined $10 billion to states and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities. The funds also support promotion of American entrepreneurship and democratize access to startup capital across the country, including in underserved communities.

California has been allocated $1.2 billion.

(See SSBCI Allocation Table.)

Next steps

Stakeholder outreach continues.
Lenders are now being enrolled by both IBank and the California Pollution Control Financing Authority to participate in the Small Business Loan Guarantee Program, California Capital Access Program (CalCAP), and Collateral Support Program.

Lenders: Enrollment is a simple one-page certification and can be completed now!

To enroll to participate in IBank’s Small Business Loan Guarantee Program, email us HERE.
To enroll to participate in California Pollution Control Financing Authority’s CalCAP loan loss reserve program or Collateral Support Program, email the State Treasurer HERE.

Questions about programs funded by SSBCI?

For IBank’s Small Business Loan Guarantee Program, email us HERE.
For California Pollution Control Financing Authority’s CalCAP loan loss reserve program or Collateral Support Program, email the State Treasurer HERE.

Background

The State Small Business Credit Initiative (SSBCI) was originally created through federal legislation – the Small Business Jobs Act of 2010. The initial SSBCI program (SSBCI 1.0) was funded with $1.5 billion to strengthen state programs that support financing of small businesses. California received $168 million of the $1.5 billion, which was shared between two state agencies focused on small business support – the California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center and the California Pollution Control Financing Authority, housed within the State Treasurer’s Office.

For general information about SSBCI, visit the U.S. Treasury website.

Frequently Asked Questions

SSBCI Frequently Asked Questions

1. How does a lender become enrolled in the SSBCI-eligible programs?

Lender enrollment is easy and can be done well before SSBCI funds are deployed to California from the U.S. Treasury. IBank and California Pollution Control Financing Authority both use a simple one-page certification that lenders fill out and sign.

Lenders interested in participating in IBank’s Small Business Loan Guarantee Program should send us an email, HERE.

Lenders interested in participating in California Pollution Control Financing Authority’s CalCAP or Collateral Support Program, please email the State Treasurer HERE.

3. Have SSBCI funds been disbursed?

Yes. SSBCI funds were disbursed to California on September 16, 2022.

2. What are the different components of the $10 billion SSBCI program?

California has been preliminarily allocated $1.2 billion of the $10 billion to states, territories, and Washington, DC on a formula basis.

California:

$829 million for main capital.
$187.2 million for business enterprises owned and controlled by socially and economically disadvantaged individuals (SEDI businesses).
$65.9 million to eligible governments for very small businesses, defined as a business with fewer than 10 employees, including independent contractors and sole proprietors.
$99.8 million in additional incentive allocations to eligible governments that demonstrate robust support for SEDI businesses.
$25.4 million preliminary allocation to provide technical assistance to certain businesses applying for SSBCI or other government programs that support small businesses.

Nationally:

$500 million to Tribal governments nationwide in the proportion determined appropriate by the Secretary of the Treasury. View U.S. Treasury’s Tribal Government SSBCI fact sheet for more information.

4. How can SSBCI funds be used?

SSBCI funds will be used to support small business financing programs and provide technical assistance to small businesses applying for SSBCI and other government programs.

Eligible states can use SSBCI funds to support the following types of small business financing programs:

Capital Access — Offered in California through California Pollution Control Financing Authority
Collateral Support — Offered in California through California Pollution Control Financing Authority
Loan Guarantee — Offered in California through IBank
Loan Participation
Venture Capital — Offered in California through IBank