State Small Business Credit Initiative 

Procedures for Requesting Approvals of Modifications

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Revised 11/22/2013

U.S. Department of the Treasury State Small Business Credit Initiative

Proposed Modifications to Approved State Programs that Require 

Amendments to Allocation Agreement 

Procedures for Requesting Approvals of Modifications

Effective June 27, 2011

Revised November 22, 2013 and December 17, 20131

Purpose: This document provides guidance for requesting an approval of a proposed modification to an 

Approved State Program or implementing State agency (“modification”) under the SSBCI Program. Prior 

approval from Treasury, in the form of a written amendment to the Allocation Agreement, is required 

for any one or more of the following modification events:

1) The elimination or termination of an Approved State Program;

2) The addition of one or more new State programs;

3) A material change in the scope or purpose of an Approved State Program. Treasury maintains 

the discretion to determine materiality of any changes in scope or purposes that are proposed 

by a Participating State2

; 

4) The reapportionment and transfer of a Participating State’s allocated funds among Approved 

State Programs, when the cumulative amounts transferred exceeds 20 percent of the 

Participating State’s total allocation3

; 

5) A change in the identity of the State agency or contracting entity proposed to implement the 

Approved State Programs from the State agency that is identified in Section 5.1 or Annex 1 of 

the Allocation Agreement or a merger of State agencies or contracting entities is proposed that 

substantially alters the organizational structure of the implementing Participating State agency

or contracting entity; or 

 

1 The 11/22/2013 revision reflected the five-year time period for calculating the 10:1 leveraging expectation for 

modifications and the 12/17/2013 revision reflected SSBCI’s revised modification threshold.

2 In this document, the capitalized term Participating State refers to states of the United States, plus the District of 

Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, 

American Samoa, and any eligible municipalities, that have been allocated SSBCI funds.

3 Under Section 4.1 of the SSBCI Allocation Agreement, each Participating State agrees to comply with a number of 

specified requirements, including applicable provisions of the Grants Management Common Rule referenced in the 

attachment to OMB Circular A-102. Unless waived by the agency, the Grants Management Common Rule requires 

agency approval for transfers among separately budgeted programs that exceed 10 percent of the total project 

budget. For purposes of the Allocation Agreement, Treasury has exercised its discretion to deem the 10 percent 

threshold not applicable, but instead to require agency approval through a modification to the Allocation 

Agreement if any reallocation of funds among Approved State Programs cumulatively exceeds 20 percent of the 

State’s total allocation of SSBCI funds.

Superseded by 2021 Program Documents
State Small Business Credit Initiative 

Procedures for Requesting Approvals of Modifications

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Revised 11/22/2013

U.S. Department of the Treasury State Small Business Credit Initiative

6) Extenuating circumstances requiring extensions to the reporting schedule established in Annex 5 

of the Allocation Agreement.

In addition, Treasury, on its own, may initiate a written amendment to the Allocation Agreement for 

either of the following events: 

1) The occurrence of any material event as described in Section 4.10 of the Allocation Agreement; 

or 

2) A reduction in the total amount allocated to the Participating State;

Participating States may request approval of the proposed modification pursuant to the procedures 

below. A modification is not considered approved until both the Participating State’s authorized 

representative and the designated Treasury official have fully executed a letter amendment to the 

Allocation Agreement (which will be prepared by Treasury), and Treasury has inserted an effective date.

Procedures for States to Initiate a Modification Approval Request Package

General Requirements—For All Modification Approval Requests

In order for Treasury to process a modification approval request, the Participating State must email both 

of the following to SSBCIAgreements@treasury.gov: 

1) A letter, signed by the Participating State’s Authorized Representative4, specifying: the name of 

the Participating State; a description of the modification for which approval is requested; an 

identification of the section(s) of the Allocation Agreement that the Participating State proposes 

to amend; the proposed revision to this section, as appropriate; and a justification for the 

request.

2) Any documentation to support the justification, including an explanatory narrative of the 

requested modification. This justification should clearly explain the need for the proposed 

change to the Allocation Agreement, as well as the impact of this change on program 

performance, including the 10 to 1 private leverage expectation, which may be calculated over 

a maximum five-year time period, from the date of Treasury’s approval of the proposed 

modification. Also, if the modification approval request is in response to an event that has 

already occurred, the Participating State should include explanation of why advance notice 

requesting approval was not received prior to the precipitating event, including any factors that 

may have been outside of the Participating State’s control or other mitigating factors.

Treasury may request any additional information or documentation that it deems necessary and 

approval of the modification request is solely at Treasury’s discretion.

 

4 In this document, the capitalized term Authorized Representative refers not only to the individual designated in 

the application as the Authorized Representative, but also to any successor with the same title.

Superseded by 2021 Program Documents
State Small Business Credit Initiative 

Procedures for Requesting Approvals of Modifications

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Revised 11/22/2013

U.S. Department of the Treasury State Small Business Credit Initiative

Additional Requirements for Requests for Approval of New State Programs

In addition to complying with the requirements listed above, the Participating State must also submit 

the following when seeking approval for a new State program:

1) A completed State Small Business Credit Initiative Application form; 

2) The application signature page, signed by the Participating State’s Authorized Representative; 

and

3) Form SF-424B Assurances – Non-construction programs. 

The application must include responses to:

• Section 1A;

• Section 1B (although a designation letter need not be attached if the organization listed is the 

same as the one listed in section 5.1 of the Allocation Agreement);

• Section 1C;

• Section 1D, if any contracting entities will administer the new program proposed (if contracting 

entities are being used to administer existing Approved State Programs but will not be used to 

administer the proposed new program, the Participating State may leave this section blank);

• Section 1E;

• Section 2A (this amount should match the amount listed in the Participating State’s Allocation 

Agreement);

• Section 2B;

• Section 2C (showing the proposed apportionment of allocated funds to the existing programs, as 

well as the proposed new program);

• Section 3, if and only if the new proposed program is a CAP; and

• Section 4, if and only if the new proposed program is an OCSP.

If required, Sections 3 and 4 of the application should only reflect the proposed new programs. 

Participating States need not provide information about their existing Approved State Programs in these 

sections. 

Unless otherwise indicated, Treasury will assume that the narrative responses that the Participating 

State provided to questions 2D and 5B in its previously approved application are still indicative of the 

Participating State’s plans to provide access to capital to underserved businesses and communities, and 

of the Participating State’s plans to ensure appropriate reporting mechanisms, audits, and other 

compliance activities. For this reason, Treasury will not require Participating States that request 

approval for a new State program to submit responses to these questions. However, if there has been a 

material change to the Participating State’s plans in these areas, the Participating State should submit 

updated responses to these questions.

Superseded by 2021 Program Documents
State Small Business Credit Initiative 

Procedures for Requesting Approvals of Modifications

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U.S. Department of the Treasury State Small Business Credit Initiative

Additional Requirements for Requests Involving a Proposed Change in the Implementing Agency

In addition to complying with the requirements listed in the General Requirements above, the 

Participating State must also submit the following:

1) A signed letter of designation from the chief executive of the Participating State indicating that 

the implementing department, agency, or political subdivision listed in the previously approved 

Allocation Agreement will no longer to implement the Approved State Program(s) and that a 

different specified entity will be designated to implement the Approved State Program(s), and 

administer the funds allocated to the Participating State.

2) A narrative describing the necessary legal actions that have been or need to be taken. The 

narrative should confirm that (1) the entity is legally capable to bind the State, territory or 

municipality to obligations with the Federal Government; and (2) the legal mechanisms are in 

place for the State, territory, or municipality to accept the transfer of SSBCI funds and deliver 

funds to the proposed entity. 

3) Form SF-424B Assurances – Non-construction programs, signed by the new designated 

implementing agency.

4) Upon approval by Treasury, the Participating State will be required to provide an amended and 

revised Annex 6 of the Allocation Agreement (Opinion of Counsel) which covers the new 

designated implementing agency.

Treasury Processing of Modification Approval Requests

Upon receipt of a complete modification approval request package, Treasury will evaluate the request 

and seek additional information or documentation if necessary. If the modification request involves a 

request for approval of a new State program, Treasury will submit the accompanying SSBCI Application 

for review by a designated review committee. This review will include a program eligibility review, an 

assessment of the qualitative evaluation criteria, and final approval of the designated Treasury official. 

Treasury will then either approve or deny the request, in writing. 

Requests for modification approvals initiated by the Participating State that will result in any 

reapportionment of funds must be received no less than 30 days prior to the triggering event. Requests 

for modifications that will not result in a reapportionment of funds should be submitted as soon as 

practicable, and in all cases, before the triggering event occurs, unless extenuating circumstances exist 

that are documented by the Participating State.

If Treasury determines that approval of the modification request is appropriate, or if Treasury itself 

initiates an amendment, Treasury will send the Participating State a letter amendment to the Allocation 

Agreement, which the Participating State’s Authorized Representative must execute and return to 

Treasury within 10 calendar days of receipt. Upon receipt of the executed documents, Treasury will 

enter an “effective date” for the letter amendment and return a copy to the Participating State for its 

Superseded by 2021 Program Documents
State Small Business Credit Initiative 

Procedures for Requesting Approvals of Modifications

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Revised 11/22/2013

U.S. Department of the Treasury State Small Business Credit Initiative

files. Treasury approval of the modification request is not considered be in effect until the letter 

amendment to the Allocation Agreement has been fully signed by both the Participating State and 

Treasury and an “effective date” has been entered by Treasury. 

Superseded by 2021 Program Documents