SSBCI funds anticipated in early 2022. have not been disbursed. States must first submit their applications to U.S. Treasury for approval. Once the applications are approved, the funds will be disbursed to the states. California expects to submit its application by Dec. 11, 2021

Programs initiated by California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center and administered by its seven financial development corporations are also supported by the federally-funded State Small Business Credit Initiative, or SSBCI. Launched in 2010 by the federal Small Business Jobs Act, SSBCI’s first round of $1.5 billion included $168 million to bolster IBank’s Small Business Loan Guarantee Program as well as the State Treasurer’s small business assistance initiatives, the California Capital Access Program and Collateral Support Program, both under the treasurer’s California Pollution Control Financing Authority (CPCFA). The federal SSBCI has been reauthorized with $10 billion through the American Rescue Plan Act 2021 with California expected to receive at least $895 million (see here for a breakdown). The state’s portion of SSBCI 2.0 will again be shared between the IBank Small Business Finance Center and the State Treasurer programs. The Small Business Finance Center anticipates that it will use its funds for the loan guarantee program and 

For more information regarding SSBCI from the U.S. Treasury: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci/ssbci-2021

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

Use of Funds

SSBCI funds will be used to support small business financing programs and the provision of technical assistance to small businesses applying for SSBCI and other government programs. During the previous round of SSBCI (SSBCI 1.0), Eligible Governments used SSBCI funds to support the following types of small business financing programs:

• Capital Access

• Collateral Support

• Loan Guarantee

• Loan Participation

• Venture Capital

Lender Enrollment

Lender enrollment is easy and can be done well before SSBCI funds are deployed to the states from the U.S. Treasury. IBank has a simple one-page certification that will be filled out and signed by the interested lender. Lenders interested in participating in IBank’s Small Business Loan Guarantee Program should send an email to SSBCI@ibank.ca.gov.