As of June 30, the Treasury Department had distributed over $1.2 billion to states through the State Small Business Credit Initiative, which provides direct funding to states for programs that expand access to credit for small businesses. The disbursements represented 87 percent of the total SSBCI $1.45 billion allocation to states under an ABA-backed small business lending bill passed five years ago this week.
States in turn had spent over $1.1 billion in loans or investments in small businesses. Thirty-eight states have received their third and final SSBCI allocation. SSBCI collateral support partners had expended 89 percent of their allocations, while loan participation partners had deployed 86 percent of theirs and venture capital partners 85 percent of their allocations.
The SSBCI distributes federal funds to states for programs that partner with private lenders to expand small-business credit. States must demonstrate a minimum “bang for the buck” of $10 in new private lending for every $1 in federal funding.
