State Small Business Credit Initiative

Program Summary

Dollars in Thousands

 

 FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016

 Actual Estimated Estimated $ Change % Change

Budgetary Resources:

Recovery from Prior Years 1,718 2,020 1,000 (1,020) -50.50%

Unobligated Balances from Prior Years 25,376 19,323 14,118 (5,205) -26.94%

Subtotal Budgetary Resources $27,157 $21,343 $15,118 (6,225) -29.17%

Other Resources:

SSBCI Program 103 0 0 0 0.00%

SSBCI Administration 7,731 7,225 6,086 (1,139) -15.76%

Subtotal Other Resources $7,834 $7,225 $6,086 (1,139) -15.76%

Total FTE 10 11 9 (2) -18.18%

Summary

The State Small Business Credit Initiative 

(SSBCI) funds new and existing state 

programs that support lending to and 

investment in small businesses in order to 

stimulate economic growth and new 

jobs. Under the SSBCI, participating states 

use the federal funds for programs that 

leverage private lending to help finance small 

businesses and manufacturers that are 

creditworthy but are not getting the loans they 

need to expand and create jobs. The Small 

Business Jobs Act of 2010 (the Act) 

authorized and appropriated $1.5 billion for 

SSBCI through FY 2017. Due to the success 

of SSBCI, the FY 2016 President’s Budget 

proposes a new authorization of $1.5 billion to 

build on the momentum of the program’s first 

round, strengthen the Federal government’s 

relationships with state economic development 

agencies, and to provide capital to America’s 

diverse community of entrepreneurs.

Priorities

• To provide direct funding support to states 

for use in programs designed to increase 

access to credit for small businesses.

• To support state capital access programs

and other credit support programs that 

support lending to and investment in small 

businesses and small manufacturers.

• To monitor the deployment of SSBCI 

funds among approved state programs and 

to ensure adherence to all Treasury 

compliance standards.

• To promote best practices in program 

design, operations, and marketing among 

state-run programs.

• To provide technical assistance to states as 

they implement these programs and deploy 

funds to eligible small businesses.

SSBCI FY 2016 Budget Highlights

Dollars in Thousands

State Small Business Credit Initiative FTE Amount

FY 2015 Estimated 11 $7,225

Changes to Base:

Maintaining Current Levels (MCLs): - $118

Pay-Raise - $14

Pay Annualization - $5

FERS Contribution Increase - $7

Non-Pay - $92

Subtotal Changes to Base - $118

Total FY 2016 Base 11 $7,343

Program Changes:

Program Decreases: (2) ($1,257)

Program Decreases (2) ($1,257)

Total FY 2016 Estimated 9 $6,086
FY 2016 Budget Adjustments

Maintaining Current Levels (MCLs)

Pay-Raise +$14,000 / +0 FTE

Funds are required for the proposed January 

2016 pay-raise.

Pay Annualization +$5,000 / +0 FTE

Funds are required for annualization of the 

January 2015 pay-raise.

FERS Contribution Increase +$7,000 / 

+0 FTE

Funds are required for increases in agency 

contributions to the Federal Employee 

Retirement System based on updated actuarial 

estimates.

Non-Pay +$92,000 / +0 FTE

Funds are required for inflation adjustments in 

non-labor expenses such as GSA rent 

adjustments postage, supplies, and equipment.

Program Decreases

Program Decreases -$1,257,000 / -2 FTE

Contract and personnel support related to state 

technical assistance will decrease as the 

funding allocated to the states and 

municipalities becomes fully expended.

Legislative Proposals

Treasury recommends new legislation 

authorizing a $1.5 billion extension of the 

SSBCI. $1 billion will be competitively 

awarded to states best able to target local 

market needs, promote inclusion, attract 

private capital for start-up and scale-up 

businesses, strengthen regional entrepreneurial 

ecosystems, and evaluate results among other 

factors. An additional $500 million will be 

allocated to states according to a need-based 

formula.

Description of Performance

By the end of FY 2014, 56 of the 57 program

participants reported using SSBCI funds to 

support loans or investments in businesses 

using disbursed funds. As of September 30, 

2014, Treasury had outlayed to states 

approximately $1.14 billion or 79 percent of 

the total funds available for disbursement. 

Treasury expects states to qualify to receive 

most of the remaining funds in FY 2015 and 

FY 2016. 

In FY 2016, Treasury will continue to monitor 

the performance of state programs, tracking 

loans and investments made with SSBCI funds 

and disbursing obligated funds to states. In 

addition, Treasury will process requests from 

states to modify their allocation agreements to 

reapportion funds from lower to higher 

performing programs and to optimize program 

design in order to improve performance. 

Treasury plans to approve or deny 90 percent 

of all state requests for modifications and 

subsequent disbursements within 90 calendar 

days of final receipt. Additionally, Treasury 

plans to collect 90 percent of all quarterly 

reports within five days of the deadline to 

report. Treasury will also provide on-going 

technical support to recipients, including the 

dissemination of practices among recipients on 

such elements as program design, operations, 

and marketing. Treasury proposes a new 

SSBCI authorization of $1.5 billion. In 

FY 2016, Treasury will process applications 

for need-based awards and will prepare and 

release the application for competitive awards.

SSBCI Performance

Performance Measure FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Target Target

Cumulative Value of SSBCI Funds Transferred to States (thousands) $553,000 $917,000 $1,146,000 $1,367,000 $1,441,000 

State Subsequent Disbursement Requests Approved or Denied 

within 90 days (%) 100 100 96 90 90

State Requests to Modify Allocation Agreements Approved or Denied 

within 90 days (%) 100 90 95 90 90

Receive State Quarterly Reports within five business days of 

reporting deadline (%) 100 93 95 90 90