State Small Business Credit Initiative Provides Funding to Entrepreneurs

State Small Business Credit Initiative
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The State Small Business Credit Initiative (SSBCI), which was originally introduced in 2010 after the Great Recession of 2008-2009, has been reinstated. The program offers funding to small business owners and entrepreneurs and is administrated by the U.S. Department of the Treasury.

As part of the program, $10 billion is given to states, territories, the District of Columbia, and Tribal governments to distribute to entrepreneurs. The hope is the funds will enable small businesses to recover from the COVID-19 pandemic, foster entrepreneurship and create new jobs. Pennsylvania has received just under $247 million to distribute. Current small businesses and startups can receive funding for credit and investment programs and have access to technical support when applying for financing.

What programs are available?

There are several different programs made available through the SSBCI, though not every area has each program available. Here are some of the programs that may be available to you:

  • Loan participation programs: With this program, states can finance small businesses by buying an interest in loans of lenders or lending directly with private lenders.
  • Venture capital programs: Recipients can invest in venture capital funds or create public-private partnerships for equity investing. These investments are meant to give financing to underserved startups and diverse founders.
  • Collateral support programs: Through this program, funding is set aside as collateral for new loans. This allows start-ups to borrow funds that will help their businesses to expand.
  • Loan guarantee programs: This program allows states to use the given funds to offer lenders assurance that would be repaid partially in the event of default. Lenders have to make every reasonable effort to collect. This will help small businesses receive loans that otherwise would be inaccessible.
  • Capital access programs (CAPs): Portfolio insurance is given as a loan loss reserve fund that both the borrower and lender contribute to. It also receives supplemental capital from the SSBCI.

The funding will be distributed by local economic development partners. You can find the participating program administrators in Pennsylvania by county from the state’s Department of Community and Economic Development.

RKL’s team of small business advisors can help you determine your eligibility for this program. Contact RKL’s Exton office at 484-874-2200 or complete this form to start the conversation.


Dennis Shindle, CPA, CCIFP, is a Senior Manager in RKL’s Small Business Services Group. He provides consulting, outsourced controllership, compilation, review, and tax services to small and medium-sized businesses.

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