Small Business: The State Small Business Credit Initiative

SSBCI Fact Sheet Sept. Final

The State Small Business Credit Initiative


The State Small Business Credit Initiative (SSBCI) was originally created through federal legislation – the Small Business Jobs Act of 2010. 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. The American Rescue Plan Act of 2021 included $10 billion for the reauthorization of SSBCI, commonly known SSBCI 2.0, of which California is expected to receive at least $895 million (see here for a breakdown).

For more information regarding SSBCI from the U.S. Treasury:

For a review of the SSBCI 1.0 program results, as presented by the U.S. Treasury:


Key dates: (California has submitted an Intent to Apply for the funds)

Fall 2021 – Guidance is expected to be released from the U.S. Treasury to States and the guidelines will be posted here once released.

December 11, 2021 – Applications due to U.S. Treasury from each State

Next Steps:

  • CPCFA and IBank will collaborate and jointly apply for the funds from the U.S. Treasury.
  • Initial stakeholder outreach has begun and more informational events will be announced once the guidelines have been released from U.S. Treasury.
  • Lenders are now being enrolled by both CPCFA and IBank, enabling lenders to participate in the Small Business Finance Loan Guarantee program and qualifying CalCAP loan loss reserve programs.

General IBank SSBCI inquiries and lenders interested in participating in IBank’s Small Business Loan Guarantee Program should email General CalCAP inquiries and lenders interested in participating in CalCAP should email

Frequently Asked Questions

SSBCI Frequently Asked Questions

1. How does a lender become enrolled in the SSBCI-eligible programs?

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

3. Have SSBCI funds been disbursed?

SSBCI funds 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.. U.S. Treasury has indicated that program guidance and the application will be issued in fall 2021.

2. What are the different components of the $10 billion SSBCI program?

California has been preliminarily allocated $895 million of the $6 billion to states, territories, and Washington, DC on a formula basis.

* $500 million to Tribal governments in the proportion determined appropriate by the Secretary of the Treasury. View U.S. Treasury’s Tribal Government SSBCI fact sheet ( for more information.
* $1.5 billion to eligible governments for business enterprises owned and controlled by socially and economically disadvantaged individuals (SEDI businesses).
* $500 million to eligible governments for very small businesses, defined as a business with fewer than 10 employees, including independent contractors and sole proprietors.
* $1 billion in additional incentive allocations to eligible governments that demonstrate robust support for SEDI businesses.
* $500 million to provide technical assistance to certain businesses applying for SSBCI or other government programs that support small businesses.

4. How can SSBCI funds be used?

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