STATE SMALL BUSINESS CREDIT INITIATIVE 

(SSBCI)

Howard Wills

Alabama Department of Economic & Community 

Affairs

401 Adams Avenue

Montgomery, Alabama 36103

howard.wills@adeca.alabama.gov

(334)353-5353
Program Sustainability

• Constant Hands on Marketing

• Maximum Guarantee of 50%

• Fee for Services

• Maximum Term 60 Months

• Constantly checks for excess cash for redeployment
• Lenders

• Economic Developers

• Community Development Corporations

• Alabama Small Business Development Center Network

SSBCI Program Audience
• Comply with Treasury Program requirements

• Leveraging

• Job Creation

• Sunset Provision

• Very few rules

SSBCI Compliance Rules
Gather Lender Interest

• Underwriting

• Servicing

• Credit Quality
• Master Agreement

• Simplicity – 2 Page Application– Relevant Items

• Quick Turn Around

• Recognizing What Works & What Doesn’t

• Low Cost

• Helps Business – Affordable Rates

• Helps Banks – CRA – Loan Exposure

• Advisory Committee

• Program as structured will continue to function

Why is Alabama Successful?

IBank

Small

Business Loan 

Guarantee 

Program

Sustainability
About Us

IBank’s Small Business Finance Center (SBFC) helps provide loansto

small businesses that experience capital access barriers through its

Small Business Loan Guarantee Program (SBLGP) established in 1968.
Small Business Loan 

Guarantee Program (SBLGP)

1968,

grow and prosper in

California and their

communities.

30,000 loans to lending

institutions that are

committed to helping

small businesses

the SBLGP has guaranteed over

Since
State Small Business Credit 

Initiative (SSBCI)

2011,

U.S. Treasury

2100 guarantees*

SBLGP funds in supporting

over

under the SSBCI

program joined existing

for California small

businesses.

funds provided by the

Since

*as of March 31, 2017
Financial Development 

Corporations (FDC’S)

They work with Banks, Credit Unions, and 

CDFIs to connect 

borrowers, and issue guarantees up 

to 80% of the loan.

FDC’s are the contracted

agents of the State

Lender Program Participation

36

54

63

70

86 87

89

2010 2011 2012 2013 2014 2015 2016

Number of Lenders
Lender Program Participation

75

1

6

5

Type of Financial Institutions

Community Bank CDFI Credit Union FDC or Other
How we are different from SBA?

SBLGP 

Bank uses its own forms

SBA 

Loans up to $20MM

Fee 2.5%

Can request less than 80%

Non profits eligible

No restrictions on EB5 or non-citizen 

residents

Lender criteria used

Minor infractions OK

OK to mandate banking relationship

SBA forms

Limited to $350K

Fee (generally) 3% & up

Fixed guarantee %

No Non-profits

Must be citizen

Business must have 2-3 years of 

consecutive profitability

No legal infractions

Cannot mandate banking relationship
Social Media
Our Success 

Stories
Total Loan Amount: 

• $150,000.00 RLOC

• $300,000.00 term 

Use of Funds: 

• Working Capital

Jobs Created:

• 6 full-time employees
Use of Funds: 

• Tenant Improvements

• Equipment Purchase

Total Loan Amount: 

• $350,000 term loan

Jobs Created:

• 15 employees

Owners Julia and Todd opened The French Press 

in 2009, with the shared goal to make a nice place 

to have a fine coffee. Over time, the business 

evolved into a successful coffee roaster and bake 

shop. 

Inform assembly and senate districts
B Street Theatre has been delighting audiences 

and providing an opportunity for children to 

experience the arts in the region for over 25 years.

Jobs Created:

• 53 employees

Total Loan Amount: 

• $12,000,000 term loan

Use of Funds: 

• New construction

• Title & Escrow Costs

“Feel good” 

stories
Legislative change to leverage ratio
Secondary Market

Standardize Loans

 Identify 

Private Investors 
Diversify your

Portfolio
FARM 

Loans:

Help CDFI’s keep 

liquidity to leverage 

their funds

CDFI to Farm

• CDFI provides loan directly to small farm.

• Loan is 90% guaranteed by USDA.

IBank to CDFI

• CDFI requests reimbursement for loan from IBank.

• IBank provides direct loan to CDFI.

• CDFI pays IBank back as borrower payments are collected
FARM Loans:

Loans up to $1,399,000

 For small Farms 

Purchase of new or existing farms

operating expenses, machinery, livestock and more.
Jump 

Start

Loan 

Program
 Making it possible for 

entrepreneursto 

 start and expand

 their own business

Encouraging 

Entrepreneurial 

Culture
More than 

Just a Loan
$1,000,000 $1,000,000

Seeking additional 

contributors

CRA Credits
Making Dreams Come True

Loans from $500 

to $10,000