State Small Business Credit Initiative (SSBCI 2.0)

Current Status

The U.S. Treasury has awarded $1.181 billion in SSBCI 2.0 funds to California, divided equally between CPCFA and IBank. IBank is the lead applicant and they have signed an allocation agreement with U.S. Treasury. CPCFA and IBank have signed an updated joint agreement to implement SSBCI 2.0.

The funds will be sent to California over a period of eight years, in three separate installments (tranches). The funds will be used to implement the five types of programs allowed under SSBCI 2.0.

Outreach to qualifying financial institutions, organizations serving small businesses, and community organizations has begun and will continue.

U.S. Treasury is in the process of accepting applications for SSBCI 2.0 Technical Assistance.

CPCFA’s SSBCI 2.0 Programs

• First tranche: CalCAP for Small Business Brochure (Including How It Works and Which Loans Qualify)
• First tranche: CalCAP Collateral Support Brochure (Including How It Works and Which Loans Qualify)
• Within the second tranche: loan participation program

IBank’s SSBCI 2.0 Programs

• First tranche: Small Business Loan Guarantee Program
• First tranche: Venture Capital Program

What Happens Next

• Stakeholder outreach continues.
• Financial Institutions are being enrolled in the CPCFA and IBank programs.
• Technical Assistance for small businesses will be implemented by technical service providers after U.S. Treasury completes the application and award process.

Participation and Support for Small Businesses

• Small businesses can begin by using technical support to learn about financing options and how to prepare to apply for capital
• The California Office of the Small Business Advocate (CalOSBA) has on-line resources for: managing finances, applying for funding, getting permits, addressing workforce issues, marketing the business, advising on operations, and more
• CalOSBA can refer you to small business technical support centers near you for no-cost or low-cost help
• CalOSBA offers referrals to help in more than 20 languages
• Small businesses can also access technical support from America’s Small Business Development Centers
• When ready to apply for capital, small businesses can apply to participating financial institutions for CalCAP for Small Business or CalCAP Collateral Support
• Small businesses can request financial institutions with which they have an existing business relationship to consider enrolling as a participating financial institution for CalCAP for Small Business and/or CalCAP Collateral Support

• After applying, the participating financial institution’s underwriting process will determine if the proposed loan should be enrolled in the CalCAP for Small Business or CalCAP Collateral Support program, and may also approve a proposed loan without enrolling the loan in CalCAP

• Small businesses can also choose to apply for IBank’s SSBCI 2.0 programs

Participation for Financial Institutions

• Many types of financial institutions are eligible to enroll in CalCAP for Small Business and/or CalCAP Collateral Support as a participating financial institution
• There is no charge to enroll and all fees are paid on a per-loan basis
• Financial institutions begin enrollment with this one-page form
• Financial institutions can also choose to enroll in IBank’s SSBCI 2.0 program