FROM THE NEWS: $10b in SSCBI Funding is Now Being Distributed to Business Owners
Introducing the State Small Business Credit Initiative and How it can Help You
In 2010, the federal government created the Small Business Job Act. The Small Business Credit Initiative (SSBCI) is an integral part of this program. Designed to aid on the state level by strengthening existing loan and equity programs, as well as helping to create new ones that support the financing of small businesses.
Much like the Employee Retention Tax Credit (ERTC) it is vital to know what funds are available to you as a small business owner.
Of course, such resources require certain criteria to qualify which can appear complicated to navigate. Today we will help explain some of the details and outline how you can apply for the SSBCI program for your own small business.
Just This Year (2022)
The federal government has begun distributing $10 billion (yes billion, with a ‘b’) in funds to the small business credit initiative. Being distributed across the states, the District of Columbia and tribal territories. The initiative seeks to target minority business owners and small business owners in low-income areas to help give better access to financing where it may have been lacking in the past.
People Often Ask:
- What is the SSBCI program?
- What is SSBCI funding?
- How do I qualify for SSCBI?
- How does the State Small Business Credit Initiative work?
This article is here to answer these key questions and clarify your next steps for taking advantage of the SSBCI program.
So, What is the SSBCI & How Do You Qualify?
First and foremost, what is the SSBCI?
During the historic economic crash of 2008, the Obama Administration first implemented the State Small Business Credit in response. Similarly, as the COVID-19 pandemic wreaks similar havoc on small businesses across the country, the Biden Administration has renewed the program to help those most affected.
Given the recent approval to disperse $10bn in funds to the program, states can now provide better loans and equity capital to qualifying small businesses and their owners.
Within the SSBCI program there are a few ways in which states can issue funds to qualifying small business owners and entrepreneurs.
The Loan Guarantee Program (LGP) seeks to support and increase private lending to small business owners, while the Collateral Support Program (CSP) will provide access to necessary collateral that may not otherwise be available to small businesses in low-income areas. These are just two of the many ways in which SSBCI funding will provide support and financial backing to qualifying small businesses that may otherwise see increasing losses in the wake of the recent recession.
Each of these programs are designed to aid small business owners and in turn create jobs. Addressing issues such as supply chain challenges and staffing costs, the SSBCI will help small business owners to continue hiring employees for operation as well as maintain inventory despite economic setbacks. This is especially true for minority owned businesses or businesses in traditionally lower-income areas as the program seeks to provide support while focusing on equality.
How to Apply for SSBCI?
First thing’s first, your small business has to be eligible. The SSBCI was designed especially to aid small business owners in economically disadvantaged areas and minority owned businesses. If this includes you and your small business demographic, then the SSCBI is tailored to provide financial support to aid you in beginning or maintaining necessary funding for your small business.
Of course, each state will have its own variations and requirements for eligibility and available funding. So, be sure to learn the details of the state in which you choose to conduct your small business when applying for the State Small Business Credit Initiative program.
To Summarize
The State Small Business Credit Initiative is a strong program, designed to provide financial resources and support on a national level to those who need it most. Small business owners in underserved communities, those affected most by recession such as in the wake of COVID-19 as well as minority owned businesses can apply and reap the benefits of these programs.
While there are many details to consider (such as whether to seek a loan guarantee or perhaps access to capital that may otherwise be out of reach), the SSBCI will undoubtedly provide hundreds of thousands of small business owners with the resources they need to continue growing, create jobs and help their communities.
If we’ve already helped you we would love a Google review!
