State Small Business Credit Initiative

Program Summary

Dollars in thousands

FY 2011 

Actual

FY 2012

Estimated

FY 2012

Estimated

FY 2012 to FY 

2013

% Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budgetary Resources:

Unobligated balances, Start of year $1,500,000 $235,707 $25,267 -89.28%

Total Budgetary Resources 

Available $1,500,000 $235,707 $25,267 -89.28%

Expenses/Obligations

SSBCI Program $1,258,900 $204,210 -100.00%

SSBCI Administration 5 $5,393 12 $6,230 12 $6,629 0.00% 6.40%

Total Expenses/Obligations 5 $1,264,293 12 $210,440 12 $6,629 0.00% -96.85%

Summary and Explanation of Programs

Section 3003 of the Small Business Jobs Act 

of 2010 authorized and directed the Secretary 

of Treasury to establish a seven-year State 

Small Business Credit Initiative (SSBCI), 

which was funded with $1.5 billion to support 

state programs that support lending to small 

businesses and small manufacturers. The 

SSBCI is expected to support new small 

business lending through local programs that 

help entrepreneurs expand their businesses and 

create new jobs. 

Under the SSBCI, states are offered the 

opportunity to apply for federal funds for 

programs that partner with private lenders to 

extend greater credit to small businesses. 

States are required to demonstrate a reasonable 

expectation that a minimum of $10 in new 

private lending will result from every $1 in 

federal funding. Accordingly, the $1.5 billion 

funding commitment that the federal 

government will make for this program is 

expected to result in $15 billion in new private 

lending and investment to small businesses, 

aligning with Treasury’s strategic goal to

enhance U.S. competitiveness and promote 

international financial stability and balanced 

global growth. 

SSBCI administrative expenses also support 

the Office of Inspector General’s efforts to 

provide audit and investigative oversight of 

SSBCI activity. 

Legislative Proposals

SSBCI has no legislative proposals for 

FY 2013.

Description of Performance

In FY 2011, Treasury established the SSBCI 

office, accepted applications from over 58 

eligible entities by the statutory due dates, and 

approved over $435 million for disbursement. 

SSBCI estimates disbursing cumulative totals 

of $1.219 billion by end of FY 2012 and 

$1.463 by the end of FY 2013, as states draw 

down their approved allocations under the 

program. Through November 30, 2011, 

Treasury has already obligated nearly $1.4 

billion of the $1.46 billion apportioned for 

funding to states. As a result, SSBCI 

anticipates that states will use these funds to 

support loans and investments made through 

approved state programs during FY 2012 and 

FY 2013.

In FY 2012 and FY 2013, Treasury will 

continue monitoring the performance of state 

programs, tracking loans and investments 
made with SSBCI funds, and disbursing the 

remaining obligated funds to states once funds 

have been deployed to eligible small 

businesses. SSBCI plans to disposition 

99 percent of all state requests for subsequent 

disbursements within 90 calendar days of 

receipt. Treasury will also be providing ongoing technical supports to states as state 

programs evolve. Finally, Treasury will be 

promoting national best practices among states 

on such elements as program design, 

operations, and marketing.