State Small Business Credit Initiative (SSBCI) General Information

History of the Original SSBCI

The State Small Business Credit Initiative was created through federal legislation in 2010 in order to improve access to capital by small businesses following the Great Recession.

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's (CPCFA) California Capital Access Loan Program, housed inside the State Treasurer’s Office.

For a review of the SSBCI 1.0 program results, as presented by the U.S. Treasury: https://home.treasury.gov/system/files/256/SSBCI-Summary-of-States-Annual-Report-2016_508-Compliant.pdf

For more information about the original SSBCI, visit the U.S. Treasury archive.

Introduction to SSBCI 2.0

• The American Rescue Plan Act of 2021 included $10 billion for the reauthorization of the State Small Business Credit Initiative, known as SSBCI or SSBCI 2.0. States, territories, the District of Columbia, and tribal governments must apply to receive their portion of the funds.

• $1.181 billion for capital programs was allocated for California.

• The U.S. Treasury guidelines allow five types of capital programs:
• Capital access program (also known as loan loss reserve)
• Collateral support program
• Loan guarantee program
• Loan participation program
• Venture capital program.
• New for SSBCI 2.0:
• Funds for technical assistance allocated by jurisdiction
• CalOSBA is implementing the SSBCI Technical Assistance for Capital Readiness 2023: Capital Readiness Coaches
• $10 in private capital to be leveraged for each $1 in SSBCI funding.
• Sub-allocations for very small businesses (10 or fewer employees) and historically underserved business owners.
• IBank submitted California’s application for capital programs on behalf of IBank and CPCFA together.
• IBank included a loan guarantee program and a venture capital program.
• CPCFA included a capital access program and a collateral support program.
• California’s application was approved in September 2022.
• SSBCI funds are sent in three separate tranches (installments), over a period of up to eight years.
• The second tranche arrived December 2024.
• IBank and CPCFA have an agreement to implement SSBCI jointly.
• The joint agreement divides each tranche equally between the two but includes flexibility to shift funds between programs as uptake varies.
• For more information about SSBCI 2.0, visit the U.S. Treasury website and see U.S. Treasury’s fact sheet.