State Small Business Credit Initiative (SSBCI)
SSBCI is a $10 billion federal program that helps states support small businesses and startups that are creditworthy but unable to access the capital they need to grow or establish their businesses and create jobs.
To share your experience or feedback with LED, click here to access a survey for small businesses.
The first SSBCI was established in 2010. The American Rescue Plan Act of 2021 reauthorized and expanded SSBCI to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities as they emerge from the pandemic. U.S. Treasury guidelines ensure that very small businesses with fewer than 10 employees (VSBs) and small businesses owned by socially and economically disadvantaged individuals (SEDIs) will receive critical resources to sustainably grow and thrive.
Louisiana received official U.S. Treasury approval for up to $113 million in SSBCI funds on Dec. 6, 2022. (Read the LED news release here.) Access to the full $113 million is dependent on state disbursements meeting federal funding benchmarks for VSBs and SEDIs whose access to capital is a point of emphasis.
LED, via the Louisiana Economic Development Corporation (LEDC), will work with private equity funds and financial institutions to disburse SSBCI funds via collateral support, equity, micro lending and loan guaranty programs.
A high-level description of each program and its potential financial benefits can be found by clicking the “Programs” dropdown below. Use the directory at left (on a desktop computer) or below (on a mobile device) to access additional detail about eligibility requirements, program rules, application process, participating providers and frequently asked questions about the various programs.
Like the first SSBCI, which concluded in 2017, the American Rescue Plan Act of 2021 authorizes the new initiative for seven years. Approval of Louisiana’s allocation is an important but early step. The process of qualifying and opting in as a participating provider will be ongoing over a period of several months; the same is true of application processes, which vary by program, fund and lender, and are likely to evolve over time.
LED will post all of the latest developments about the program – including updated fund and lender names and contact info as new providers opt into SSBCI program – on this website.
LED continues to work diligently to finalize an SSBCI application process that serves the needs of participating equity funds and lenders while also complying with all U.S. Treasury guidelines. That work will continue into the first quarter of 2023. When the process is complete and the Louisiana SSBCI is officially rolled out, small business owners and entrepreneurs may begin applying for funds through approved providers in the programs described below.