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

Center for Regional Economic Competitiveness & Cromwell Schmisseur

OCTOBER 2016

Appendices

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

Center for Regional Economic Competitiveness & Cromwell Schmisseur

OCTOBER 2016

Appendix 1: 

Program Parameters

101

Appendix

APPENDIX 1: 

Program Parameters 

Appendix 1 summarizes program parameters as described in the SSBCI program rules. It is an 

informal summary of some of the program parameters and requirements set forth in the SSBCI 

Policy Guidelines, Allocation Agreements, National Standards for Compliance and Oversight, 

and Frequently Asked Questions49 It is important to note that each state may have placed 

further restrictions on its programs and that states developed their own underwriting criteria 

and processes. 

Business and Funding Eligibility 

SSBCI funds may be used to support operating small businesses and most nonprofit entities to 

expand economic opportunity. Ineligible uses included refinancing debt by the same lender, 

financing passive real estate investments, and providing capital for religious institutions in the 

performance of their core mission, among others. Other prohibited businesses included those 

engaged in speculative activities, businesses that earn more than half of revenue from lending 

activities (except non-depository CDFIs), businesses engaged in gambling activities, and other 

business activities prohibited by federal law. 

Business Size and Transaction Size Limits

For CAPs, the maximum business size was 500 employees and the maximum transaction size 

was $5 million. For other programs, the maximum business size was 750 employees with a 

maximum transaction size of $20 million. In addition to these limits for other programs, states 

were required to target an average business size of 500 employees or less and transactions of 

$5 million or less. 

Private Leverage

Each transaction required that the total amount of private capital at risk would constitute at 

least 20 percent of the SSBCI-supported transaction. Each program was required to spur $1 

in private lending or investing for each $1 in SSBCI funding at all times. Further, states had to 

demonstrate a reasonable expectation of leveraging at least $10 in new small business lending 

or investing for every $1 of federal investment for all of the state’s programs combined. 

Service to Underserved Communities

The Act sought to encourage private sector lending and investing that would “provide capital 

access to small businesses in low- and moderate-income, minority, and other underserved 

communities, including women- and minority-owned small businesses.”50 Each state had to 

provide a plan on how they would target underserved communities, giving states flexibility to 

define “underserved.”

49 “Resource Center.” U.S. Department of the Treasury. Web accessed. (https://www.treasury.gov/resource-center/sb-programs/

Pages/summary-of-where-to-find-program-rules-for-the-ssbci.aspx). 

50 H.R. 5297 – Small Business Jobs Act of 2010. Section 3005(e)8. Web accessed. (https://www.congress.gov/bill/111th-congress/

house-bill/5297).
102

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

Lender Eligibility

All banks, credit unions, and CDFIs were eligible lenders. Each state was responsible for 

determining if lenders have sufficient commercial lending experience, financial and managerial 

capacity, and operational skills to meet the purposes of the program.

Program Administration

The Act provided key parameters to Treasury to manage the deployment of funds and 

administration of state programs:

• Allocations – Each state received between $13 and $168 million based on a formula tied to 

the state’s population and change in unemployment during the recession.

• Disbursements – States received one-third of their funding initially and could receive the 

next disbursement of funds after they had successfully deployed 80 percent of the previous 

disbursement.

• Administering Entities – States could partner with third parties to administer some or all 

of the programs, with state oversight.

• Administrative fees – States were allowed to use 5 percent their first disbursement and 3 

percent of the second and third disbursements to support program administration. 

• Sunset –Treasury’s allocation agreements with states expire on March 31, 2017, and 

Treasury’s SSBCI administration authority expires on September 27, 2017, at which time 

undisbursed funds revert to the General Fund at the Treasury.

• Dispensation of funds – Funds deployed and repaid to states lose their federal character 

and revert to state control after March 31, 2017.
Program Evaluation of the U.S. Department of Treasury State Small Business Credit Initiative

Center for Regional Economic Competitiveness & Cromwell Schmisseur

OCTOBER 2016

Appendix 2: 

SSBCI Administering 

Organizations by Type 

and Partipating State

105

Appendix

APPENDIX 2: 

SSBCI Administering Organizations 

by Type and Participating State

Public Agencies

States Public Agencies

Alabama Alabama Dept. of Economic and Community Affairs

American Samoa American Samoa Department of Commerce

Alaska, Anchorage Municipality of Anchorage - Finance Department

California Governor’s Office of Business and Economic Development

California Pollution Control Financing Authority

Delaware Delaware Economic Development Office

District of Columbia Dept. of Insurance, Securities and Banking

Florida Florida Dept. of Economic Opportunity

Georgia Georgia Dept. of Community Affairs

Hawaii Hawaii Strategic Development Corporation

Illinois Illinois Dept. of Commerce and Economic Opportunity

Kentucky Kentucky Cabinet for Economic Development

Louisiana Louisiana Economic Development Corporation

Maryland Maryland Dept. of Commerce

Maryland Dept. of Housing and Community Development

Minnesota Minnesota Dept. of Employment and Economic Development

Mississippi Mississippi Development Authority

Missouri Missouri Dept. of Economic Development

Montana Governor’s Office of Economic Development

Nebraska Nebraska Dept. of Economic Development

Nevada Nevada Governor’s Office of Economic Development

New Mexico New Mexico Economic Development Dept.

New York Empire State Development

North Dakota, Mandan City of Mandan Business Development & Communications Office

Northern Mariana Islands Commonwealth Development Authority

Ohio Ohio Development Services Agency

Oregon Business Oregon

Pennsylvania Pennsylvania Dept. of Community and Economic Development

South Dakota South Dakota Governor's Office of Economic Development

Texas Texas Dept. of Agriculture

Virginia Virginia Small Business Financing Authority

Washington Washington Dept. of Commerce
106

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

Quasi- Public Agencies

States Quasi-Public Agencies

Arizona Arizona Commerce Authority

Arkansas Arkansas Development Finance Authority

Colorado Colorado Housing and Finance Authority

Connecticut Connecticut Development Authority

Guam Guam Economic Development Authority

Idaho Idaho Housing and Finance Association

Indiana Indiana Economic Development Corporation

Maine Finance Authority of Maine

Massachusetts Massachusetts Growth Capital Corporation

Michigan Michigan Economic Development Corporation

Missouri Missouri Technology Corporation

New Hampshire New Hampshire Business Finance Authority

New Jersey New Jersey Economic Development Authority

Puerto Rico Economic Development Bank of Puerto Rico 

Rhode Island Rhode Island Commerce Corporation

Vermont Vermont Economic Development Authority

Virgin Islands Virgin Island Economic Development Authority

West Virginia West Virginia Jobs Investment Trust

Wisconsin Wisconsin Housing and Economic Development Authority
107

Appendix

Private Organizations

Participating States Private Organizations (Nonprofit and For Profit)

Connecticut Connecticut Innovations, Inc.

Florida

Enterprise Florida, Inc.

Florida First Partners

Florida Export Finance Corporation

Florida First Capital Finance Corporation

Iowa

Iowa Business Growth Corporation

Iowa Foundation for Microenterprise and Community 

Vitality

Kansas NetWork Kansas

Maine Maine Venture Fund

Maryland Maryland Venture Fund

Massachusetts Massachusetts Business Development Corporation

Nebraska Invest Nebraska Corporation

Nevada University of Nevada Small Business Development Center

North Carolina North Carolina Rural Economic Development Center, Inc.

North Dakota, Carrington Red River Corridor Fund

North Dakota, Mandan Lewis and Clark Regional Development Council

Oklahoma i2E, Inc.

Pennsylvania Ben Franklin Technology Partners

Life Science Greenhouses

Rhode Island

Betaspring

Slater Technology Fund

Rhode Island Small Business Loan Fund Corporation

South Carolina Business Development Corporation of South Carolina

Tennessee Launch Tennessee

Utah Utah Small Business Growth Initiative

Virginia Center for Innovative Technology

Washington

Craft3 Fund

W Fund Management, LLC

Wisconsin Wisconsin Business Development Corporation

Wyoming, Laramie Wyoming Smart Capital Networks, LLC

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

Center for Regional Economic Competitiveness & Cromwell Schmisseur

OCTOBER 2016

Appendix 3: 

Profiles of State 

SSBCI Programs

i

APPENDIX 3:

State51 Program Profiles

This appendix 3 summarizes the 15152 Approved State Programs funded by the State Small Business Credit 

Initiative (SSBCI). The program profiles are derived from application materials, annual reports, and interviews with 

state programs managers. All data presented and program descriptions are as of December 31, 2015.

Each profile includes: 

• cumulative outcomes for each state’s SSBCI program, including:

o The number of jobs retained and the projected number of jobs expected to be created within two 

years as reported by the business

o Median business size by number of Full Time Equivalent (FTEs) employees

o Percent of transactions in Low- and Moderate- Income (LMI)53 Areas

o The top industries assisted by the program

• a narrative summary of each credit support and/or venture capital program

• a summary of lessons learned and other perspectives provided by state program managers and officials 

 51 Treasury approved SSBCI applications from 47 states, the District of Columbia, five territories, and municipalities in three 

states (collectively referred to as “states”).

52 SSBCI funded 152 Approved State Programs through December 31, 2015; however, this Appendix 3 does not include the 

American Samoa Venture Fund (ASVF), which has not expended or obligated SSBCI funds for investments to date.

53 Based 2010 Census Bureau’s 5-year American Community Survey. “Low income” households earn less than 50 percent of 

area median income. “Moderate income” households earn between 50 percent and 80 percent of area median income. These 

standards were set based on definition that HUD Community Planning and Development uses for low- and moderate-income 

households. (http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/glossary/l).
ii

TABLE OF CONTENTS

SSBCI Approved State Programs.............................................................................................................114

Alabama ....................................................................................................................................................117

Alaska-Anchorage.....................................................................................................................................120

Arizona......................................................................................................................................................123

Arkansas....................................................................................................................................................125

California ..................................................................................................................................................131

Colorado....................................................................................................................................................134

Connecticut ...............................................................................................................................................136

Delaware ...................................................................................................................................................140

District of Columbia .................................................................................................................................142

Florida.......................................................................................................................................................146

Georgia......................................................................................................................................................151

Guam.........................................................................................................................................................154

Hawaii.......................................................................................................................................................156

Idaho .........................................................................................................................................................159

Illinois.......................................................................................................................................................161

Indiana ......................................................................................................................................................166

Iowa ..........................................................................................................................................................171

Kansas.......................................................................................................................................................175

Kentucky...................................................................................................................................................180

Louisiana...................................................................................................................................................183

Maine ........................................................................................................................................................188

Maryland...................................................................................................................................................192

Massachusetts ...........................................................................................................................................197

Michigan ...................................................................................................................................................200

Minnesota..................................................................................................................................................204

Mississippi ................................................................................................................................................209

Missouri ....................................................................................................................................................211

Montana ....................................................................................................................................................215

Nebraska ...................................................................................................................................................218

Nevada ......................................................................................................................................................222
iii

New Hampshire ........................................................................................................................................227

New Jersey................................................................................................................................................232

New Mexico..............................................................................................................................................238

New York..................................................................................................................................................240

North Carolina ..........................................................................................................................................246

North Dakota-Carrington..........................................................................................................................251

North Dakota-Mandan ..............................................................................................................................255

Northern Mariana Islands .........................................................................................................................257

Ohio ..........................................................................................................................................................259

Oklahoma..................................................................................................................................................264

Oregon ......................................................................................................................................................266

Pennsylvania .............................................................................................................................................268

Puerto Rico................................................................................................................................................273

Rhode Island .............................................................................................................................................276

South Carolina ..........................................................................................................................................281

South Dakota.............................................................................................................................................283

Tennessee..................................................................................................................................................285

Texas.........................................................................................................................................................288

Utah...........................................................................................................................................................291

Vermont ....................................................................................................................................................295

Virgin Islands............................................................................................................................................297

Virginia .....................................................................................................................................................299

Washington ...............................................................................................................................................304

West Virginia............................................................................................................................................309

Wisconsin..................................................................................................................................................314

Wyoming-Laramie....................................................................................................................................318
114

SSBCI Approved State Programs

Participating State Allocation 

($ millions)

Capital 

Access 

Loan 

Guarantee

Collateral 

Support 

Loan 

Participation 

Venture 

Capital 

Alabama $31.3   

Alaska, Anchorage $13.2 

American Samoa $10.5 

Arizona $18.2 

Arkansas $13.2    *

California $167.8   

Colorado $17.2  

Connecticut $13.3  

Delaware $13.2  

District of Columbia $13.2   

Florida $97.7  * * 

Georgia $47.8   *

Guam $13.2   

Hawaii $13.2 

Idaho $13.1 

Illinois $78.4   * 

Indiana $34.3  

Iowa $13.1   

Kansas $13.2  

Kentucky $15.5   

Louisiana $12.4  

Maine $13.2 * 

Maryland $23.0 *  

Massachusetts $20.4  *

Michigan $79.2     

Minnesota $15.5    
115

Participating State Allocation 

($ millions)

Capital 

Access 

Loan 

Guarantee

Collateral 

Support 

Loan 

Participation 

Venture 

Capital 

Mississippi $13.2 

Missouri $26.9  

Montana $12.8 

Nebraska $13.2  

Nevada $13.8   

New Hampshire $13.2     

New Jersey $33.8  * 

New Mexico $13.2  

New York $55.4   

North Carolina $46.1   

North Dakota, Carrington $3.4  

North Dakota, Mandan $9.7 

Northern Mariana Islands $13.2  

Ohio $55.1   

Oklahoma $13.2 

Oregon $16.5   

Pennsylvania $29.2 * 

Puerto Rico $14.5  

Rhode Island $13.2  *

South Carolina $18.0  

South Dakota $13.2 

Tennessee $29.7 

Texas $46.6  

Utah $13.2   

Vermont $13.2 *

Virgin Islands $13.2 * 

Virginia $18.0    

Washington $19.7    

West Virginia $13.2    
116

Participating State Allocation 

($ millions)

Capital 

Access 

Loan 

Guarantee

Collateral 

Support 

Loan 

Participation 

Venture 

Capital 

Wisconsin $22.4  

Wyoming, Laramie $13.2  

Total $1,457

* indicates 2 or more programs of that type
117

Alabama

PROGRAM PORTFOLIO OVERVIEW54

Using $31.3 million in SSBCI allocation, Alabama operates three credit support programs. The Alabama 

Department of Economic and Community Affairs (ADECA) administers each program. SSBCI helped ADECA 

develop the infrastructure to deliver credit support to lenders for the first time. Through these efforts, ADECA 

cultivated relationships with and enrolled 32 lenders in the state’s SSBCI program.

Table AL-1: Alabama’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Alabama supported 400 loans that generated almost $153 million in new financing through December 31, 2015. 

Table AL-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI 

Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

400 $28.9 million $45.2 million $152.5 million $381,300 5.27:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate-Income 

Areas

Transactions in 

Non-Metro Areas Top Industries Assisted

3,957 4 FTEs 4 years 35% 46%

1. Retail Trade

2. Manufacturing

3. Other Services (except 

Public Administration)

*Includes funds expended for administrative costs

 54 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Alabama Loan Guarantee 

Program Loan Guarantee $27.6 million Alabama Department of Economic and Community Affairs

Alabama Capital Access 

Program Capital Access $1.87 million Alabama Department of Economic and Community Affairs 

Alabama Loan Participation 

Program Loan Participation $1.87 million Alabama Department of Economic and Community Affairs 
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CREDIT SUPPORT PROGRAMS

Loan Guarantee Program

The Alabama Loan Guarantee Program (LGP), Alabama’s primary program, provides up to a 50 percent

contingency guarantee on loans of up to $5 million. ADECA charges a 1 percent fee on the amount guaranteed and 

the term of the guarantee coincides with that of the loan. All business types, sizes, and loan purposes are eligible if 

consistent with SSBCI requirements. According to ADECA, the program worked well for (1) transactions

originated by smaller community banks that do not participate in SBA programs; (2) transactions that required credit 

support, but did not justify an 80 percent guarantee as provided by comparable SBA programs; and (3) promising 

start-ups that would otherwise not qualify under existing bank-established lending standards. ADECA reviews the 

quality of the bank underwriting, but it does not independently underwrite each transaction. More than 30 lenders 

have completed transactions through the program.

Capital Access Program

The Alabama Capital Access Program requires the borrower and lender each to contribute to a reserve account with

combined contributions ranging from 2 percent to 7 percent of the principal loan amount. ADECA uses SSBCI 

funds to match the combined borrower and lender contributions on a one to one basis. 

Loan Participation Program

The Alabama Loan Participation Program allows ADECA to buy participations on a subordinated basis in term 

loans. However, almost all of the transactions ADECA supported were enrolled in the LGP.

Credit Support Program Outcomes

Through December 31, 2015, Alabama’s SSBCI credit support programs have supported 400 loans resulting in 

almost $153 million in total financing from $29 million in SSBCI funds. The credit support programs have 

generated $5.30 in total financing for every $1 in SSBCI funds spent. Businesses reported that the transactions will 

help create or retain almost 4,000 jobs. 

More than 90 percent of SSBCI dollars expended to date have helped business services, personal services, 

manufacturing, and retail businesses. The most active participants in the loan guarantee program were community 

banks – which accounted for more than 90 percent of the transactions ADECA supported. See Table AL-2 for 

additional credit support program outcomes.

Alabama measures the success of these credit support programs based on the number of jobs created and retained, 

and based on having a minimal default rate associated with publicly backed lending. The latter concern is based on 

the state’s very conservative stance toward risk associated with public investments. With support of the SSBCI 

program, the program manager cultivated relationships with a number of new lending partners. Ten lenders (four 

community banks and one community development financial institution (CDFI)) – ServisFirst Bank, Southern States 

Bank, United Bank, Peoples Bank of Alabama, South Point Bank, Oakworth Capital Bank, Troy Bank & Trust 

Company, Pinnacle Bank, Noble Bank & Trust N.A., and First Citizens Bank – have each used more than $2 million 

each in SSBCI funds through the LGP, representing nearly 80 percent of the program volume as well as 80 percent

of the total guarantee transactions. United Bank, a CDFI, has used the LGP more than other lenders, comprising 37 

percent of the state’s loan guarantee transactions. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:
119

• Sponsorship from both the governor and bank superintendent helped establish the programs’ credibility. 

• Hiring a former bank lender who could effectively communicate the value proposition of the program and who 

dedicated extensive time to sustained personal outreach significantly expanded bank participation.

• Alabama initially offered capital access, loan participation, and loan guarantee programs. According to 

ADECA, lenders preferred the loan guarantee program because, from the banker’s perspective, it is much easier 

and cheaper (less cumbersome in paperwork and less costly to customer in fees) to use than SBA’s guarantee 

program. Also, bankers have found the 50 percent loan guarantee attractive. 

• The state minimized its role in loan approvals by establishing an initial lender enrollment process, which 

reviews the enrollee to verify their good standing and the adequacy of their underwriting criteria and loan 

experience. Once lenders are enrolled in the program, they are solely responsible for underwriting, packaging, 

and managing the loans. The program manager’s staff purposely molded the programs this way to bypass many 

of the past difficulties they experienced with program implementation (e.g., cumbersome application processes 

and restrictions tied to federal programs and challenges experienced with internal underwriting of loans). 

• ADECA’s loan checklist helps verify that SSBCI program requirements are met. Checklist completion is 

required prior to each loan, enabling an evaluation for compliance with SSBCI requirements and policy 

guidelines prior to funding.
120

Alaska-Anchorage

PROGRAM PORTFOLIO OVERVIEW55

Using $13.2 million in SSBCI allocation, the Municipality of Anchorage, Alaska, operates a venture capital 

program, the 49th State Angel Fund (49SAF).

The 49th State Angel Fund (49SAF) includes equity financing managed through both a fund of funds model as well 

as agency-managed investments. The fund of funds strategy received most of the SSBCI allocation, with the 

agency-managed fund strategy created to explore the potential for directly supporting investments in early-stage 

businesses. After one direct investment was closed, the initiative shifted its approach to exclusively support private 

investment managers in the fund of funds.

Table AK-1: Alaska-Anchorage’s SSBCI Program Portfolio Summary

Program Outcomes

The Municipality of Anchorage, Alaska, supported 8 investments that generated almost $6 million in total financing 

through December 31, 2015. 

Table AK-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI 

Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

8 $1.26 million $0 $5.6 million $701,800 4.47:1

Jobs Created 

or Retained

per Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro Areas Top Industries Assisted

42 5 FTEs 1 year 25% 0%

1a. Manufacturing

1b. Professional, Scientific, and 

Technical Services

2a. Agriculture, Forestry, 

Fishing and Hunting

2b. Information

2c. Retail Trade

2d. Wholesale Trade

*Includes funds expended for administrative costs

 55 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

49SAF Venture Capital $13.2 million Municipality of Anchorage – Finance Department
121

VENTURE CAPITAL PROGRAM

As a new venture capital program designed and managed by a municipality lacking prior experience with venture 

capital programs, the 49SAF required new processes and people to be put in place for implementation. A 49SAF 

Investment Advisory Committee, consisting of mayoral appointees and representing a cross-section of business 

leaders with diverse backgrounds, was created to assist with evaluating potential investees and make investment 

recommendations. The responsible parties at the municipality included the Chief Financial Officer and Program 

Manager, with the Mayor having the authority to approve, modify, or reject fund participation recommendations 

coming out of due diligence performed by program staff. Application periods for interested funds were held semiannually while funds remained available. A member of the investment committee was assigned a fund to observe 

and report updates during committee meetings.

The contracted fund managers invest in the form of equity or convertible debt investments, often serving as the lead 

investor to set investment terms and assist with identifying co-investors. In addition to the funding leverage that 

comes from private capital invested by the fund, investment managers seek co-investment participation from 

resident individual angel investors and venture capital funds managed outside of Alaska. The Municipality of 

Anchorage participates as a Limited Partner (LP) investor in each fund, participating in any financial returns on 

similar terms to other LPs. 

Table AK-3: 49SAF Fund Summary

49SAF Municipality Managed Fund Program

Investment Investment Stage Investment Description

49SAF $200,000 Seed/Early

Direct investment closed as convertible 

debt in a medical technology startup

49SAF Fund-of-Funds Program

Fund Name Allocation Investment Stage Contracted Fund Size

Alaska Accelerator Fund $850,000 Seed $1.7 million fund

49th Fund $2 million Growth $4 million fund

Anchorage Opportunity Fund $2 million Expansion $4 million fund

Anchorage Equity Partners $4.5 million Expansion $9.25 million fund

The state of Alaska initially considered the opportunity to submit an application to Treasury for participation in 

SSBCI. However, with Alaska’s population and small business activity concentrated around Anchorage, the state 

supported an application by the Municipality of Anchorage to establish and administer a venture capital program. 

The 49SAF objective is to provide a new source of capital to Anchorage entrepreneurs that will spur economic 

development and build a base of private investors to increase equity-based investment in Alaska.

The majority of economic activity in Alaska is focused on large-scale resource extraction and development 

opportunities in the oil and gas, mining, and seafood harvesting industries. Through the 49SAF, public and private 

sector leaders aim to further diversify the state’s economy and support emerging industry opportunities such as 

digital media, entertainment and alternative energy. With a lack of venture capital managed and invested in 

geographically isolated Alaska, building in-state investment capacity and increasing strategic connections to private 

investors outside the state were 49SAF priorities identified by program stakeholders. The contracted private fund 
122

managers had responsibility for setting the investment strategy and target investment stage for each fund, with the 

49SAF fund portfolio including seed, growth, and expansion stage strategies.

Figure AK-4: 49SAF Program Structure

Municipality of Anchorage

Official Applicant and Program Manager

49th State Angel Fund

New State Venture Capital Program with Agency Managed and Private Fund Strategies

Municipally Managed 

Fund

Fund of Funds with Contracted Private Fund Managers

Small Business 

Investment Transactions 

($200,000)

Alaska Accelerator 

Fund 49th Fund Anchorage Opportunity Fund

Anchorage Equity 

Partner

SSBCI Funds Invested in Small Businesses in Alaska

Venture Capital Program Outcomes

Through December 31, 2015, 49SAF had expended $1.26 million or 10.5% of its $13 million VCP allocation in 8 

transactions. See Table AK-2 for venture capital program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Implementing a direct investment program through a governmental agency is difficult, especially when 

experienced personnel and adequate administration budgets are not in place. However, experimenting with a 

direct investment approach helped to educate program managers and stakeholders in Alaska on the challenges 

involved in building investor syndicates and partnering with private investors, leading to the shift to fund of

funds.

• When creating a new venture capital program in a developing market, it is critically important to attract credible 

leadership to assist with administration, deal evaluation and investing – including professional service providers 

and advisors.

• Having private sector and public sector champions for a new capital initiative is a critical success factor. The 

city mayor was an early champion of the 49SAF and mobilized staff to support it. A private citizen, who is also 

a prominent leader in the entrepreneurial community, played a key role in convening stakeholders and building 

interest.

• Raising aspirational goals and changing perceptions of investors and entrepreneurs is necessary to achieve long 

term, sustainable success in Alaska with capital formation initiatives.

• In developing entrepreneurial ecosystems, sourcing viable investment deals and bona fide investment fund 

managers is a challenge to program execution – both were an issue in Alaska.
123

Arizona

PROGRAM PORTFOLIO OVERVIEW56

Using $18.2 million in SSBCI allocation, Arizona operates a single credit support program – a loan participation 

program, the Arizona Expansion Fund, which is marketed as the Arizona Innovation Accelerator Fund (the Fund). 

Prior to SSBCI, the state had no credit support programs. 

The Arizona Commerce Authority (ACA), a quasi-public agency that performs the functions of the former 

commerce department, manages the program and targets it to certain key industries such as manufacturing, 

aerospace and defense, semiconductors, optics, bioscience, and renewable energy. However, any eligible small 

business may apply for the program.

Table AZ-1: Arizona’s SSBCI Program Portfolio Summary

Program Outcomes

Arizona supported 52 loans that generated almost $86 million in total financing through December 31, 2015. 

Table AZ-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

52 $18.2 million $234,2000 $75.4 million $1.45 million 4.14:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

3,429 15 FTEs 5 years 52% 2%

1. Manufacturing

2. Construction

3. Health Care and Social 

Assistance

*Includes funds expended for administrative costs

 56 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Arizona Expansion Fund (aka the 

Arizona Innovation Accelerator Fund) Loan Participation $18.2 million Arizona Commerce Authority
124

CREDIT SUPPORT PROGRAM

Loan Participation Program

ACA purchases a portion of a loan up to 49 percent with a maximum of $2 million. The Fund’s participation can be 

either subordinated or “pari passu.” In some cases, the Fund will support a line of credit to a company raising equity 

to finance growth. In such cases, the Fund will typically buy a 100 percent participation in a bank revolving line of 

credit in an amount up to 33 percent of the equity raised.

ACA charges a commitment fee between 1 percent and 3 percent. For subordinated participations, the interest rate 

may be set at 100 to 300 basis points above the bank’s rate.

ACA reviews the lenders’ credit memos and frequently hires independent third parties to review potential loans.

Since the bank packages and services the loan, the Fund requires a modest administrative staff and fees can be kept 

relatively low.

Credit Support Program Outcomes

Through December 31, 2015, the Fund has completed 52 transactions expending $18 million in SSBCI funds to

generate almost $86 million in total financing or $4.60 in total financing for every $1 in SSBCI funds spent. In 

addition to Treasury’s standard reporting measures, the program manager also tracks the quality of the jobs created 

or retained (in terms of average wages), reporting an average annual salary of roughly $42,000 for the businesses

receiving loans. See Table AZ-2 for additional credit support program outcomes.

Through this program, ACA has had new opportunities to collaborate with community development financial 

institutions, community banks, angel networks, and venture capital partners. ACA tracks the number of businesses

that have contacted it about financing needs, and these company inquiries help it better understand broader needs 

and trends within the state’s small business community.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Peer states can have a significant impact on the design of programs. The program manager worked closely 

with Michigan and other states to identify program attributes that would work best in Arizona.

• Program managers relied on their financing experience and relationships previously developed in the 

private sector to establish trust with key loan partners, including tapping lender expertise to help develop a

program model in response to market needs.

• To limit its staffing requirements and keep administrative costs down, Arizona sought to adapt the 

program’s requirements so that it could use pre-existing bank loan documents and tap banks to service 

ACA’s loan purchases. 

• Participating banks need continuous “care and feeding” to ensure that they remember the SSBCI program 

and to help the program develop a reputation as nimble and responsive.

• Arizona was able to prove the program’s market flexibility among private-sector constituents by modifying 

the program to allow for equity investments to match dollars. 

• Arizona sought to reinforce banks’ perception of ACA as a resource by designing the program in a way that 

ensures a bank retains the full relationship with the borrower throughout the loan packaging, closing, and 

servicing process.
125

Arkansas

PROGRAM PORTFOLIO OVERVIEW57

Using $13.2 million in SSBCI allocation, Arkansas operates three credit support programs and three venture capital 

programs. With the SSBCI program portfolio, the state places a heavy emphasis on supporting access to capital for 

seed and early stage high-potential tech businesses and reaching a 10 to 1 leverage ratio. 

Arkansas Development Finance Authority (ADFA), a state-sponsored quasi-public agency, administers the 

programs. ADFA’s mission is to provide capital to support activities that enhance the quality of life for Arkansans.

Table AR-1: Arkansas’ SSBCI Program Portfolio Summary

Combined Program Outcomes

Arkansas supported 240 loans and investments that generated $215 million in total financing through December 31,

2015. 

Table AR-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

239 $12.0 million $1.2 million $215.5 million $901,471 17.9:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

1,542 2 FTEs 1 year 45% 13%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Retail Trade

*Includes funds expended for administrative costs

 57 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Bond Guaranty/ Loan Participation 

Program Loan Participation $4.7 million Arkansas Development Finance Authority

Disadvantaged Business Enterprise/ Small 

Business Loan Guarantee Program Loan Guarantee $720,000 Arkansas Development Finance Authority

Arkansas Capital Access Program Capital Access $41,500 Arkansas Development Finance Authority

Arkansas Development Finance Authority 

Co-investment Fund Venture Capital $3.6 million Arkansas Development Finance Authority

Seed and Angel Capital Network Venture Capital $2.8 million Arkansas Development Finance Authority

Risk Capital Matching Fund Venture Capital $1.3 million Arkansas Development Finance Authority
126

CREDIT SUPPORT PROGRAMS

Loan Participation Program

ADFA developed the Bond Guaranty/Loan Participation Program to augment the program manager’s existing bond 

guaranty program, under which ADFA guarantees bond issues sold to the public for businesses without a credit 

rating. ADFA uses SSBCI funds to purchase a participation in the total financing, generally around 9 percent. The 

loan participation part of the transaction allows ADFA to finance collateral shortfalls and strengthen the 

creditworthiness of the bond-financed portion of the transaction. A bond trustee manages bond payments and 

accounting. ADFA manages the SSBCI loan participation directly. The SSBCI loan participation is limited to a 

maximum term of 10 years although bond issues could have a 20- to 30-year term. The SSBCI loan participation is 

subordinated to the bond and is priced at a 3 percent interest rate. 

Loan Guarantee Program

The Disadvantaged Business Enterprise/Small Business Loan Guaranty Program provides credit enhancements for 

small contractors seeking a guarantee up to $200,000. While the program manager’s legacy guarantee program was 

limited to disadvantaged businesses, the SSBCI program is open to all small businesses. The guarantee is 

collateralized in part by assignment of a contract, generally for construction projects and often for state highway 

projects. The term for the guarantee is typically limited to six months with the potential for a six-month renewal. 

The maximum guarantee is 80 percent, and the amount set aside to cover the guarantee is equal to the amount 

guaranteed. Borrowers incur a fee of 1 percent of the loan amount at closing and an additional 1 percent of the loan 

amount upon renewal.

Capital Access Program

The Arkansas CAP requires the borrower and lender each to contribute to a reserve account with combined 

contributions ranging from 2 percent to 7 percent of the principal loan amount. ADFA uses SSBCI funds to match 

the combined borrower and lender contributions on a one to one basis.

Credit Support Program Outcomes

Through December 31, 2015, Arkansas’s SSBCI credit support programs have supported 120 loans resulting in 

almost $70 million in total financing using $5.3 million in SSBCI funds for credit enhancement. The credit support

programs have generated $13.30 in total financing for every $1 in SSBCI funds spent. Businesses reported that the 

loans will help create or retain 1,543 jobs. 

Table AR-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

119 $5.2 million $757,000 $69.8 million $586,460 13.36:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-metro Areas Top Industries Assisted

899 2 FTEs 2 years 36% 25%

1. Manufacturing

2. Retail Trade

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs
127

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Employing a variety of programs allowed the program manager to reach a wide range of businesses by size 

and type, to deploy SSBCI funds throughout the state, to achieve a 13 to one private matching of SSBCI 

funds, and to maximize the efficiency of Arkansas’s SSBCI funding. The program manager does not 

believe that it would have been as successful if it had employed only one or two programs to implement 

SSBCI.

• Employing a variety of programs allowed the program manager to deploy SSBCI funds expeditiously 

which in turn allowed it to be among the first states to draw down its second and third SSBCI tranches. 

ADFA deployed $2.3 million through the Bond Guaranty program prior to year-end of 2012 which was the 

primary driver in allowing it to draw down its second tranche of SSBCI funds. The drawdown of its third 

tranche was driven primarily by venture capital investing that accelerated in the second half of 2012 and 

2013.

• Partnering with other state agencies and state sponsored programs allowed the program manager to market 

SSBCI efficiently and effectively. ADFA and the Arkansas Economic Development Commission (AEDC),

the state agency that managed other small business programs, jointly call on financial institutions to market 

their programs. Innovate Arkansas, funded by AEDC, provides technical assistance to entrepreneurs in 

search of venture capital and long-term debt financing from ADFA.

• SSBCI enabled the program manager to take subordinate positions in its Bond Guaranty program, which 

allowed it to close transactions that it would not have been able to do through its legacy Bond Guaranty 

program.

• While the CAP was not attractive to bank lenders, CDFI lenders found the program to be easy to use and 

effective. The program is attractive because of the bonus reserve contribution backed by ADFA’s legacy 

funding for the first $1 million in transactions originated by each lender.

• Small commercial loans of less than $50,000 are no longer attractive to banks.
128

VENTURE CAPITAL PROGRAMS

Arkansas’ SSBCI venture capital programs (VCPs) make up 60 percent of its total allocation through the: 1) Risk 

Capital Matching Fund, which targets seed/early stage technology businesses needing further development to attract 

venture capital investment; 2) ADFA Co-investment Fund, which invests alongside venture capital funds in more 

advanced technology businesses, and 3) Angel/Seed Network fund of funds, which seeks to increase angel investor 

activity and the organization of angel investor groups in the state. Prior to SSBCI, ADFA had substantial experience 

managing VCPs, including a pre-existing Risk Capital Matching Fund that had already invested $1.7 million in six 

businesses, and a program that invested capital in Arkansas-based and out-of-state regional venture capital funds. 

The primary purpose of the VCPs is supporting access to capital for seed and early stage high-potential technology 

businesses.

Venture Capital Program Design and Operations

ADFA programs co-invest alongside private sector investors with equity investments in private businesses or 

venture funds on pari passu terms with other investors. ADFA does not lead investment rounds, but often actively 

supports entrepreneurs seeking to identify lead investors. The Risk Capital Matching Fund and ADFA Coinvestment Fund invest directly in small businesses, and the Angel/Seed Network makes investments in seed/early 

stage venture funds, technology business accelerators and funds established by angel investor groups. The form of 

the investments can range from convertible debt to equity depending on the terms established by the lead investor.

The primary goal for the state is to augment private sector investments, helping to accelerate the time it takes highpotential small businesses to close on investment rounds after it has secured the commitment of lead investors. 

ADFA designed its SSBCI programs to quickly deploy capital using existing program models. Though the amounts 

vary from deal to deal, seed/early stage businesses typically give new investors 20 to 30 percent of the fully diluted 

ownership interests in the company, and with ADFA typically matched 4 to 1 by private investors, ADFA’s 

ownership interest is typically 5 to 6 percent after the initial close, with the expectation that it will become more 

diluted with each follow-on round of investment. ADFA typically does not invest in follow-on rounds, preferring to 

maximize the number of seed investments it can make.

Figure AR-4: Arkansas Venture Capital Program Structure

Arkansas Development Finance Authority (ADFA)

An Independent Instrumentality of the State of Arkansas

Official State Applicant and Program Manager

Risk Capital Matching Fund

($1.3 million SSBCI allocation)

Existing Co-Investment VCP 

targeting seed and early-stage 

businesses

ADFA Co-Investment Fund

($3.6 million SSBCI allocation)

New Co-Investment VCP targeting 

venture fund investments in later 

stage businesses

Seed & Angel Capital Network

($2.8 million SSBCI allocation)

New Fund-of-Funds Venture 

Capital Program

SSBCI funds disbursed to eligible Arkansas small businesses by ADFA as 

co-investments alongside private investors on pari passu terms

SSBCI funds committed to private 

funds for investment into eligible 

Arkansas small businesses

Venture Capital Program Outcomes

Through December 31, 2015, ADFA had expended $6.8 million or 85 percent of its $8 million VCP allocation, and 

$7.3 million or 91 percent of the allocation has been expended or obligated through the same period. A very 
129

important outcome from the outset was the ability of the program manager to sustain popular programs that were 

short on capital and susceptible to lowered budgets because of widespread economic challenges from 2008 to 2010. 

Program managers describe the timing of SSBCI as “serendipitous” and the amount of its allocation as crucial to 

sustaining its existing programs. Due in large part to an $80 million follow-on investment in one of the portfolio 

businesses, the VCPs have realized a leverage ratio of 21.5 to 1 and are assured of exceeding 10 to 1 leverage across 

all SSBCI programs. 

ADFA targets innovation-based businesses with the potential to pay wages of at least 150 percent of the average 

state wage. Investees reported that the SSBCI capital will help create or retain 436 jobs in portfolio businesses. But 

ADFA’s primary motivation is to accelerate the flow of capital into innovation-based, high-growth technology 

businesses, using as much leverage as it can muster from the private sector. Because its programs require pari passu

investment returns, ADFA programs make money when private investors make money. For example, ADFA 

realized a substantial 4X return on its investment of $800,000 of SSBCI capital from an investment in a portfolio 

company, when it was acquired via an $80 million investment from a national VC fund in 2013. Capital returned 

from this investment is being recycled into new investments, extending the reach and impact of SSBCI. 

Table AR-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

120 $6.8 million $462,900 $145.7 million $1.21 million 21.38:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

643 3 FTEs 1 year 53% 1%

1. Professional, Scientific, and 

Technical Services

2. Information

3. Retail Trade

*Includes funds expended for administrative costs

ADFA also notes SSBCI capital helped to develop new funds or relationships with existing funds focused on seed 

and early stage investments, and that its co-investment funds helped to establish state-sponsored Innovate Arkansas 

as a value-add accelerator for Arkansas-based entrepreneurs and their businesses. Essentially, entrepreneurs have 

learned that Innovate Arkansas is viewed by ADFA as a trusted evaluator of seed and early stage businesses. As a 

result, more entrepreneurs are putting their businesses through the Innovate Arkansas accelerator, which exposes 

more to quality educational support and mentoring.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• ADFA already had strong administrative support due to the size and scope of its pre-existing programs. With 

SSBCI, ADFA did not change the range of its programs, but SSBCI provided greater flexibility to allocate 

capital between programs – perhaps by describing a singular VCP with a broad range of investment capabilities. 

• ADFA has learned from this experience that it may be impractical to obtain board positions with each 

investment, simply because following through on the fiduciary roles of board members for each investee could 

consume a significant amount of staff time, creating a preference for observer rights over board member status. 

• ADFA also found through investing SSBCI capital that there are certain non-monetary terms that statesponsored organizations should require that other investors do not necessarily require. These primarily include 
130

certain reporting requirements and certain authorities that require board/shareholder approval. An example of 

this would be level of authority for the CEO to enter the company into debt obligations without 

board/shareholder approval. 

• With its co-investment model, ADFA also noted that they are required to do as much (if not more) research or 

due diligence on co-investors as the businesses themselves because they must have confidence in the lead 

investor’s abilities to monitor and support the businesses through board service.
131

California

PROGRAM PORTFOLIO OVERVIEW58

Using $167.8 million in SSBCI allocation, California operates four credit support programs to meet the diverse 

needs of the state’s small businesses. 

The Governor’s Office of Business and Economic Development (Go-Biz) manages the California Small Business 

Loan Guarantee Program (SBLGP) through the California Infrastructure and Economic Development Bank (IBank). 

The California Pollution Control Financing Authority (CPCFA) manages the California Capital Access Program 

(CalCAP), the California Collateral Support Program (CalCSP), and California Property Assessed Clean Energy 

Program (CalPACE).

Go-Biz offers a range of services to attract, retain, and expand businesses to the state. CPCFA is an independent 

agency chaired by the California State Treasurer, a statewide officer elected independently of the Governor.

Table CA-1: California’s SSBCI Program Portfolio Summary

Combined Program Outcomes

California supported 7,699 loans that generated $793 million in total financing through December 31, 2015. 

Table CA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI 

Funds 

Recycled

Total

Financing 

Generated by 

SSBCI Funds

Average 

Financing

Size Leverage Ratio

7,700 $110.5 million $10.7 million $793.6 million $103,000 7.18:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions 

in Low- and 

ModerateIncome Areas

Transactions 

in Non-Metro 

Areas Top Industries Assisted

70,336 2 FTEs 5 years 51% 1%

1. Retail Trade

2. Accommodation and Food Services

3. Transportation and Warehousing

*Includes funds expended for administrative costs

 58 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

California Small Business Loan 

Guarantee Program Loan Guarantee $83.5 million The Governor’s Office of Business and Economic Development

California Collateral Support Program Collateral Support $64.7 million California Pollution Control Financing 

Authority

California Capital Access Program Capital Access $19.6 million California Pollution Control Financing 

Authority

California Property Assessed Clean 

Energy Program Loan Participation $0 California Pollution Control Financing Authority
132

CREDIT SUPPORT PROGRAMS

Loan Guarantee Program

IBank engages a network of nine Financial Development Corporations (FDCs) to market and underwrite guarantees 

on behalf of the SBLGP. The FDCs are nonprofit intermediaries that manage multiple government-backed credit 

enhancement programs under contract to federal and state agencies. Under the SBLGP, lenders receive a guarantee 

for up to 80 percent of a qualified loan, with a maximum guarantee amount of $2.5 million. While loan terms may 

be longer, the maximum term of a guarantee is seven years. The FDCs receive fee income (up to 3 percent of the 

guarantee amount plus a $250 documentation fee) for generating these guarantees. Once a guarantee is 

conditionally approved, IBank sets aside 20 percent of the guarantee amount in a pooled reserve.

Collateral Support Program

Under CalCSP, the CPCFA assigns a cash deposit to the lender as collateral for a small business loan. The cash 

collateral amounts vary from 20 percent to 50 percent based on the size, purpose, and maturity of the loan. Four 

categories of customers can access higher levels of support within this range: green businesses, manufacturing 

businesses, or businesses in economically distressed areas and small transactions between $50,000 and $250,000. 

The program manager assesses a fee up to $500 for each loan enrolled in the collateral support program, based on a 

percentage of the collateral support provided minus an amount associated with the incentive for economically 

distressed communities.

Capital Access Program

CalCAP requires the borrower and lender each to contribute to a reserve account with combined contributions 

ranging from 2 percent to 7 percent of the principal loan amount. CPCFA uses SSBCI funds to match the combined 

borrower and lender contributions on a one to one basis. Each borrower may enroll up to $2.5 million in loans over 

a three-year period. 

Loan Participation Program

CalPACE is designed to focus on energy and water conservation improvements in commercial buildings. CalPACE

is inactive since no qualified lender responded to the state’s request for proposal for management of this program. 

CPCFA reapportioned the CalPACE allocation to other active SSBCI programs.

Credit Support Program Outcomes

California’s credit support programs assisted businesses primarily in four sectors: retail trade, accommodation and 

food services, transportation and warehousing, and manufacturing. Through December 31, 2015, California’s credit 

support programs expended $110.5 million to support 7,699 transactions and achieved a leverage ratio of 7.2 to 1. 

Businesses reported that these loans will help create or retain 70,321 jobs. Of the more than 7,699 total transactions, 

3,933 were provided in low- and moderate-income (LMI) areas. 

The SBLGP expended $50.4 million in original SSBCI funds, recycled $10.3 million, and achieved a leverage ratio 

of 8.4 to 1. Businesses reported that the SBLGP loans will help create or retain over 34,000 jobs. CalCSP expended

$47.9 million for a leverage ratio of 2.8 to 1, and businesses reported that the loans will help create or retain 2,174

jobs. The SSBCI funds supported 113 CalCSP transactions, 44 of which were made to businesses in LMI areas. 

See Table CA-2 for additional credit support program outcomes.

CalCAP provided $12.2 million in SSBCI contributions and recycled amounts of $275,000 to loan loss reserves for

credit enhancement of 6,592 transactions. These loans achieved a leverage ratio of 19.5 to 1 and businesses reported 

the loans will help create or retain over 32,000 jobs. CDFIs accounted for the majority of all CalCAP transactions. 

Community banks accounted for almost two-thirds of the dollars loaned to businesses.
133

SSBCI funding revived the SBLGP by providing new resources at a scale sufficient to attract lender attention and to 

engage the FDCs. As an example, IBank offered larger guarantee amounts that equate to additional fee income, 

more centralized state involvement in making guarantees, and provided leadership that allowed FDCs to expand 

their services to local lenders and small business borrowers. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• SSBCI’s flexibility allowed the state to restructure its programs in response to changing market needs.

• California keeps administrative costs down and reduces the lender burden by allowing them to use their 

own application forms and their own processes to document loan decisions.

• Greater lender acceptance would likely result if a secondary market for SSBCI loans existed. 

• High performing FDCs need greater flexibility in structuring larger loan transactions. 

• Longer guarantee term limits on SBLGP loans (e.g., from 7 to 10 years) would make the program more 

competitive with other credit enhancement programs, but SSBCI leverage requirements require shorter 

terms to allow funds to recycle. 

• Lender relationships are key. State funding cuts before the infusion of SSBCI capital meant that FDCs had 

stopped selling the state guarantee program to lenders. When SSBCI funding became available, the FDCs 

had to rebuild their network of financial institution partners.

• The state loan guarantee program provided 90 percent guarantees before SSBCI. The SSBCI 80 percent

guarantee limit proved that a lower guarantee level would appeal to lenders and borrowers.

• The CalCSP reduced the amount of collateral support available per transaction in order to more efficiently 

use funds and to help sustain the program. 

• The Governor’s Reorganization Plan embedded the loan guarantee program in IBank, an entity suited to 

managing the program. This allowed the state to centralize the guarantee authority for greater 

accountability and allowed it to better meet borrower needs.
134

Colorado

PROGRAM PORTFOLIO OVERVIEW59

Using $17.2 million in SSBCI allocation, Colorado operates two credit support programs – a capital access program,

Colorado Capital Access (CCA), that compliments the state’s legacy capital access program and a new collateral 

support program, the Cash Collateral Support Program (CCSP). 

The Colorado Economic Development Commission (CEDC) oversees the program and contracts with the quasipublic Colorado Housing and Finance Authority (CHFA) for implementation. CHFA is a statewide community and 

economic development lender with a strong record in raising tax-exempt and taxable capital for private-sector 

projects. 

Table CO-1: Colorado’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Colorado supported 175 loans that generated almost $102 million in total financing through December 31, 2015. 

Table CO-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

175 $16.3 million $0 $102 million $582,800 6.26:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

982 2 FTEs 4 years 45% 47%

1. Accommodation and Food 

Services

2. Health Care and Social 

Assistance

3. Manufacturing

*Includes funds expended for administrative costs

 59 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Cash Collateral Support Program Collateral Support $16.9 million Colorado Economic Development 

Commission

Colorado Capital Access Capital Access $300,000 Colorado Economic Development 

Commission
135

CREDIT SUPPORT PROGRAMS

Collateral Support Program

The CCSP augments the value of collateral pledged by small businesses to secure their loans. CHFA pledges a cash 

deposit with the participating bank lender to support the transaction. The amount of the cash deposit is equal to 25

percent of the loan amount or $250,000, whichever is less. The CCSP charges a 2.5 percent fee for minority and 

women owned businesses and a 3 percent fee for all others. After the initial 3-year term, there is a 1 percent fee for 

year four, and then an increasing annual fee up to 5 percent per year, for up to 7 years.

Capital Access Program

The CCA requires the borrower and lender each to contribute to a reserve account with combined contributions 

ranging from 2 percent to 7 percent of the principal loan amount. The state uses SSBCI funds to match the 

combined borrower and lender contributions on a one to one basis. Under this program, the maximum loan amount 

is $750,000. To make the CCA more attractive to lenders, the state allotted the remaining $300,000 in its legacy 

CAP to boost loans to minority- and women-owned business enterprises and to businesses located in Enterprise 

Zones. These loans receive an additional 25 percent in matching funds to CCA lender loan loss reserve accounts. 

Credit Support Program Outcomes

Through December 31, 2015, CHFA expended over $16 million in SSBCI funds to support 175 transactions. The 

programs generated $102 million in total financing or $6.30 in total financing for every $1 in SSBCI funds spent. 

Businesses reported that the loans will help create or retain 982 jobs. See Table CO-2 for additional credit support 

program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The SSBCI program has reinforced longstanding relationships between CHFA and lenders throughout the 

state and underscores the importance of retaining communication strategies with lenders. 

• At the outset of CCSP, limited maturities and high fees deterred lenders from participating in the program. 

Upon Treasury’s recommendation, Colorado consulted with SSBCI program managers in Idaho and 

Michigan and subsequently made the following modifications to CCSP: 

o Eliminated a 5 percent upfront borrower fee and charged 2.5 to 3.0 percent for loans with initial 

terms of three years or less. 

o Allowed for a longer loan term. Under the original application, the maximum term allowed was 

three years.

o Allowed for a larger, fixed cash deposit instead of the original graduated deposit amount at a 

lower level.

o After the modifications were made, lender acceptance increased significantly demonstrating that a 

responsive state that is willing to work with Treasury and other states to improve program 

redesign is critical for program success. 

• After a slow start for CCA, Colorado began using state funds to increase the match for CCA loans to 

minority- and women-owned business enterprises and borrowers operating in Enterprise Zones to 

incentivize lender participation although CCA utilization continues to be modest. 

• Financial institutions noted that the ease and efficiency of submitting and closing loans were appealing 

features. 

• Some financial institutions were concerned about the longevity of CCSP since it was perceived as a new 

government program.

• The legacy CAP was more attractive to lenders than the CCA because the lender was not required to match 

the borrower’s contribution to the loan loss reserve account. As long as the legacy state program was 

available, lenders used that program until funds were expended or reallocated. 

• Face-to-face meetings with banks were most effective, but that these meetings were more effective because 

the state banking commissioner and other regulatory authorities endorsed Colorado’s SSBCI programs. 
136

Connecticut

PROGRAM PORTFOLIO OVERVIEW60

Using $13.3 million in SSBCI allocation, Connecticut operates a new venture capital program called the Seed and 

Early Stage Investment Fund (SESIF). The state initially allocated SSBCI funds to support an existing capital 

access program (CAP), and later reapportioned CAP funding to SESIF.

Initially, the Connecticut Development Authority (CDA) managed the program on behalf of the Connecticut 

Department of Economic and Community Development (DECD). When CDA merged with Connecticut 

Innovations, Inc. (CII), CII became the state’s authorized SSBCI administrator. CII is a body politic and nonprofit 

corporation created by the state in 1989 to support promising, early-stage technology businesses.

Table CT-1: Connecticut’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Connecticut supported 45 loans and investments that generated almost $52 million in total financing through 

December 31, 2015. 

Table CT-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

45 $6.5 million $0 $51.9 million $1.15 million 8.01:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

692 6 FTEs 5 years 27% 4%

1. Retail Trade

2. Professional, Scientific, and 

Technical Services

3. Other Services (except 

Public Administration)

*Includes funds expended for administrative costs

 60 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Connecticut Seed and Early Stage 

Investment Fund Venture Capital $13.3 million Connecticut Innovations, Inc.

Connecticut Capital Access Program Capital Access $0 Connecticut Development Authority
137

CREDIT SUPPORT PROGRAM

Capital Access Program

The state initially allocated SSBCI funds to support an existing CAP. At nearly the same time (January 2012), 

Connecticut established a Small Business Express Program (SBEP) with state funds to target small businesses with 

fewer than 100 employees. SBEP used $150 million in initial funding to provide financing to the same size 

businesses and the same type of funding as Connecticut’s SSBCI CAP. Early on, the program manager noted the

low usage of funds by the SSBCI CAP, and in August 2014, Connecticut reapportioned all but $200,000 of its

allocation to SESIF. In September 2015, DECD unenrolled its capital access program transactions and Connecticut 

reapportioned the remaining $200,000 to SESIF. 

Credit Support Program Outcomes

DECD enrolled 35 loans that generated almost $6 million in total financing. DECD marketed CAP loans to all 

banks, regardless of size, throughout the state. DECD was able to sign up a number of banks to participate. 

However, enrolled banks did not make very many loans leading to a reapportionment of all CAP funds. 

Table CT-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

35 $183,500 $0 $5.8 million $166,100 31.67:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

492 5 FTEs 3 years 23% 6%

1. Retail Trade

2. Other Services (except 

Public Administration)

3a. Construction

3b. Health Care & Social 

Assistance

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• In discussions with regional or national banks, it was evident that the banks want consistent program policies 

and procedures in each state where the financial firm operates. Thus, many regional and national banks viewed 

the SSBCI program as overly complicated because the programs differed from state to state. Banks noted that 

SBA programs streamlined policies and procedures across states, making them simpler to execute for multistate institutions. 

• A financial institution must disburse a significant amount of loans in order to handle a loan loss. The program 

manager reports that the 10 percent reserve amount, slim net margins associated with small business lending for 

loans under $500,000, and the associated fees made the CAP less enticing to banks even though CDA provided

a 30 percent supplemental guarantee on all enrolled transactions.
138

VENTURE CAPITAL PROGRAM

Connecticut has a track record of allocating state funding to venture investment programs and venture development 

programs managed by CII. Having an existing small business investment portfolio in place allowed the program 

manager to examine investing gaps in the state’s capital continuum. CII targeted the range from seed to the 

expansion stage investments. The creation of the SESIF enabled CII to address this financing gap.

Venture Capital Program Design and Operations 

CII often serves as the lead investor for early-stage investment rounds, setting deal terms and working to attract 

additional private investment. The availability of venture capital, particularly early-stage venture capital, is limited 

in Connecticut. Therefore, CII seeks co-investment from individual angel investors, strategic investors, family 

office entities, and other state capital programs. 

Figure CT-4: SESIF Program Structure

Connecticut Department of Economic and Community Affairs

Official State Applicant

Connecticut Innovations Inc.

Contracted Private, Non-profit Investment Manager

Connecticut Seed and Early Stage Investment Fund

A New State Venture Capital Program

SSBCI funds are invested by contracted private, non-profit investment manager into eligible Connecticut small 

businesses

Venture Capital Program Outcomes

SESIF became operational in August 2014. As of December 31, 2015, SESIF expended over $6 million or 47

percent of its $13.3 million allocation, generated $46 million in new investment or $7.30 in new capital for every $1 

in SSBCI funds expended. Businesses have reported that the 10 SSBCI investments will help create or retain 200

jobs. 

Table CT-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

10 $6.3 million $0 $46.0 million $4.60 million 7.32:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

200 13 FTEs 6 years 40% 0%

1. Professional, Scientific, and 

Technical Services

2a. Retail Trade 

2b. Wholesale Trade

*Includes funds expended for administrative costs
139

At the conclusion of SSBCI, CII will maintain control of investment returns for future capital deployment into 

Connecticut-based small businesses with a focus on providing a comprehensive portfolio of capital programs filling 

identified gaps in the state’s financing lifecycle.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The state looked to address an unmet need in Connecticut for early-stage, equity-based financing by 

contracting with a trusted economic development partner. The investment manager communicated that 

with significant state funding in place (CII invests more than $20 million of state resources per year in 

small businesses), it can take time to identify the best fit and right strategy to invest additional funding.

• The investment manager learned the importance of working through SSBCI program requirements, such as 

certification and reporting requirements, up front with investees to ensure appropriate compliance.

• Investment concentration was expected around the Hartford, New Haven, and Stamford communities. 

However, small business investments were also made in more rural areas. 
140

Delaware

PROGRAM PORTFOLIO OVERVIEW61

Using $13.2 million in SSBCI allocation, Delaware operates two credit support programs. The state used SSBCI to 

expand a pre-existing capital access program (CAP), the Delaware Access Program, and reinvigorate a loan 

participation program (LPP), the Delaware Strategic Fund (DSF) Participation and Loan Program.

The Delaware Economic Development Office (DEDO), the state’s lead economic development agency, implements 

the programs through its Delaware Economic Development Authority (DEDA).

Table DE-1: Delaware’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Delaware supported 110 loans that generated $59 million in total financing through December 31, 2015. 

Table DE-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

110 $8.4 million $0 $59.1 million $537,300 7.06:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

1,463 3 FTEs 3 years 30% 25%

1. Accommodation and Food 

Services

2. Retail Trade

3. Health Care and Social 

Assistance

 61 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

DSF Participation and Loan Program Loan Participation $12.2 million Delaware Economic Development Office

Delaware Access Program Capital Access $1 million Delaware Economic Development Office
141

CREDIT SUPPORT PROGRAMS

Loan Participation Program

Under the DSF Participation and Loan Program, the program manager buys up to 50 percent participations on either 

an equal or subordinate basis for transaction with maturities up to five years. The state funds are provided at belowmarket interest rates. While the maximum participation amount provided to date has been $1 million, the program 

manager targets participations of $200,000. On average, purchase participations have ranged between 20 percent

and 30 percent of the total loan amount. 

Capital Access Program

The Delaware Access Program requires the borrower and lender each to contribute to a reserve account with 

combined contributions ranging from 2 percent to 7 percent of the principal loan amount. The state uses SSBCI 

funds to match the combined borrower and lender contributions on a one to one basis. For certain types of 

borrowers, Delaware will provide additional matching funds. Using state money to supplement the loan loss 

reserve, the program manager can contribute up to five times the combined borrower/bank contribution for loans 

made to minority- and women-owned business enterprises and other targeted businesses. 

The state subsidizes SSBCI by paying administrative costs through general funds and using SSBCI administrative 

allocations for program activities. 

Credit Support Program Outcomes

Through December 31, 2015, Delaware’s credit support programs used $8.4 million in SSBCI funds to support 110

loans that generated $59 million in total financing or $7.10 in total financing for every $1 in SSBCI funds spent. 

Businesses reported that the loans will create or retain 1,463 jobs. See Table DE-2 for additional credit support

program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Given the small size of the state and the program manager’s strong pre-existing relationships with local lenders, 

DEDO did not initially focus on marketing. Declining SSBCI loan volume during 2013-2014 caused DEDO to 

rethink this approach and hold workshops and symposiums with lenders and retain a direct-marketing 

consultant. Applications picked up subsequently.

• The state offers a simple six-page loan participation agreement, which helps in the application process.

• Delaware structured its LPP so that lenders would find the approval process easy. The program’s demand 

improved after the program manager increased the LPP participation amount to 50 percent, agreed to do 

subordinate participations, and established a delegated loan approval process eliminating the need for loan 

approval at monthly public meetings for loans less than $500,000. 

• The program manager implemented SSBCI with existing staff that have long tenures in state government. In 

the case of the CAP, the SSBCI program is a continuation of an existing state program. In the case of the LPP, 

the SSBCI program is functionally new, but it is embedded in an agency that has had a loan program since 

1994. Thus, neither the staff nor its financial institution partners had to create/learn new programs or agencies. 
142

District of Columbia

PROGRAM PORTFOLIO OVERVIEW62

Using $13.2 million in SSBCI allocation, the District of Columbia (the District) operates a venture capital program, 

the Innovation Finance Program (IFP), and two credit support programs, the District of Columbia Loan Participation 

Program (DLPP) and the District of Columbia Collateral Support Program (CSP). In 2012, the District also created 

a capital access program which was subsequently closed down after a lack of interest from local banks. With the 

SSBCI program portfolio, the District sought to create jobs specifically for District residents, spur business activity 

in census tracts with high poverty, and diversify the tax base with new non-government industry revenues.

The District’s Department of Insurance, Securities and Banking (DISB), which regulates financial-service 

businesses and administers insurance, securities, and banking rules and regulations, manages the program. The 

District had not offered a small business credit enhancement program in the past.

Table DC-1: District of Columbia’s SSBCI Program Portfolio Summary

Combined Program Outcomes

The District of Columbia supported 22 loans and investments that generated almost $14 million in total financing 

through December 31, 2015. 

Table DC-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

22 $5.9 million $0 $13.5 million $615,800 2.32:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

644 8.5 FTEs 7.5 years 45% 0%

1. Construction

2. Accommodation and Food 

Services

3a. Health Care and Social 

Assistance

3b. Manufacturing

*Includes funds expended for administrative costs

 62 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

D.C. Collateral Support Program Collateral Support $5.8 million Department of Insurance, Securities and 

Banking

D.C. Loan Participation Program Loan Participation $4.4 million Department of Insurance, Securities and 

Banking

Innovation Finance Program Venture Capital $3 million Department of Insurance, Securities and

Banking
143

CREDIT SUPPORT PROGRAMS

Collateral Support Program

The District’s CSP provides a pledged asset (in the form of a cash collateral account) to an enrolled lender in order 

to enhance the collateral coverage of a small business borrower that is otherwise qualified but unable to meet the 

lender’s security requirements. The CSP targets credits that are “bankable” but for inadequate collateral. The 

amount of collateral support is limited to 50 percent of the original principal amount of the loan. The maximum 

collateral deposit that DISB will make per borrower is $1 million. DISB reduces the cash collateral account 

proportionately with the principal reduction of the loan, on an annual basis or sooner if the loan is paid off. DISB 

can charge a closing fee of up to 4 percent of the cash collateral account balance for participation in the CSP along 

with an annual fee of up to 4 percent of the annual cash collateral account balance. The CSP has proven particularly 

useful in facilitating deals that involve service oriented businesses and construction contractors.

Loan Participation Program

The DLPP provides for the purchase of a participation of up to 50 percent of a loan originated by a financial 

institution. DISB charges a 1 – 2 percent fee of the DLPP amount and shares proportionately with the bank interest 

income from the loan. 

Credit Support Program Outcomes

Through December 31, 2015, the District’s credit support programs supported 21 loans through the CSP that 

generated over $13 million in total financing from $5.9 million in SSBCI funds or $2.30 in total financing for every 

$1 in SSBCI funds spent. Businesses reported that the loans will help create or retain 636 jobs. 

Table DC-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

21 $5.8 million $0 $13.4 million $637,500 2.31:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

636 9 FTEs 8 years 43% 0%

1. Construction

2. Accommodation and Food 

Services

3a. Health Care and Social 

Assistance

3b. Manufacturing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Running the SSBCI programs out of the DISB provides a regulatory environment that values compliance and 

gives SSBCI a ready audience in the banking community. 

• The program manager has reached out to the banking community to spur involvement in the newly established 

SSBCI programs. This has been an important strategy for success as there are many small community banks 

and CDFIs in the District that have a history of community development lending. 
144

• When the District’s SSBCI programs initially started, borrowers were required to be “Certified Business 

Enterprises” to receive assistance. This CBE process was to certify that the business was a District of Columbia 

local small business and was done by the Department of Small and Local Business with an approximate fortyfive day turnaround time. In 2014, there was a regulatory change that permits all small businesses in the 

District to participate. Once this requirement was removed, program activity accelerated. 

• The main problem in getting the SSBCI program off the ground was realizing that CAP was not going to work. 

Bigger regional banks with higher loan volumes opted not to use it. The program manager then had to invest 

the time and effort to have the District’s SSBCI program restructured as a CSP. Once Treasury approved the 

CSP, DISB was able to hire program staff that were more successful in funding transactions.

• Initial loans made through the CSP are larger than anticipated and required a higher CSP participation than 

anticipated (30 – 50 percent). DISB will have to reduce the CSP participation in future loans and/or turn CSP 

loans over more quickly than anticipated to reach the overall leverage ratio expectation of at least 10 to 1.

• The District’s primary purpose in introducing the DLPP was to increase program income and enhance the 

sustainability of their SSBCI program. However, the District has yet to enter into a DLPP transaction. Bankers 

find the CSP more appealing than DLPP because they can keep 100 percent of the collateralized asset. 

VENTURE CAPITAL PROGRAM

The District’s IFP is a new venture capital program created by an allocation of $3 million in SSBCI funding (out of 

$13.2 million total) through an agreement modification. The IFP is a co-investment fund that matches private 

investment, up to 50 percent of the financing round, for qualified small business investments in the district on a 

transaction-by-transaction basis. 

DISB administers the program and designed it to stimulate private investment in a way that addresses small business 

financing needs not being met by equity-based investors and traditional depository lenders. The IFP aligns with the 

economic development goals of the District of Columbia, which include job creation, forming and locating 

businesses in the district, developing distressed areas, and industry diversification.

Venture Capital Program Design and Operations

The program manager’s strategy was to fill an identified void in the financing lifecycle with public co-investments 

that offer moderate risk for moderate returns. Matching SSBCI funds may be used to invest in qualified small 

businesses that are non-public businesses registered and taxed in the District, have leased or deeded principal offices 

in the district, have 75 percent of employees work in the District, and at least 25 percent of the company’s workforce 

as District residents.

The IFP relies on the private sector for making investment decisions and determining the structure and terms of 

investments. The IFP disburses matching SSBCI funds as co-investment alongside approved Innovation Finance 

Companies (IFCs), with IFC eligibility requirements defined by DISB. Once an IFC submits an investment 

opportunity, DISB checks for SSBCI program compliance and proceeds with disbursing the requested matching 

capital, up to the designated limit. DISB maintains program oversight responsibility by reviewing and monitoring 

IFP-enrolled investments for compliance with SSBCI rules and guidelines and by ensuring that the investments meet 

the District’s economic development goals. Potential investment structures anticipated by the program manager 

include debt, convertible debt and priced equity rounds. Any equity positions in private businesses from SSBCI 

investment activities will be held in a sidecar fund established by DISB.

The IFCs that are eligible to participate as co-investors include CDFIs, small business investment companies 

(SBICs), business development companies (BDCs), double bottom line funds (DBLFs), and other private investment 

entities with at least $5 million of investment capital. To participate in the program, IFCs must enter into a 

participation agreement with DISB. The agreement governs reporting and program investment eligibility 

requirements. The IFC application process is open and conducted on a rolling basis as new applications are 

submitted.

The District shares in financial returns to incentivize investor participation. For participating IFCs, in addition to its 

own pro rata share in the total return on investment (ROI) on a performing investment, the private investor receives
145

between 25 and 40 percent of the District’s pro rata share of the total ROI. In the event of a financial loss scenario, 

the private investor and DISB share the loss on a pari passu basis. The IFP co-investment must be $500,000 or less 

and cannot exceed 50 percent of total capital invested.

Figure DC-4: IFP Structure

DC Department of Insurance, Securities & Banking

Official Applicant and Program Designer

Innovation Finance Program

New State VC Program

Approved “Innovation Finance Companies”

Meets Eligibility Requirements via Application

SSBCI Funds Invested in Small Businesses

Co-investment up to 50% of total investment on first-served basis

Venture Capital Program Outcomes

The venture capital program, which began operating in September 2014, funded one investment as of December 31, 

2015. 

Table DC-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

1 $50,100 $0 $160,000 $160,000 3.19:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

8 8 FTEs 1 year 100% 0% Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• DISB communicated the operational challenge of effectively marketing the venture capital program to 

potential investees and private co-investors. 

• DISB recommends overcoming this operational challenge by partnering with regional partners like venture 

development organizations for outreach about the program and to customize messages for different 

audiences like small business development centers, chambers of commerce, and angel investor networks.
146

Florida

PROGRAM PORTFOLIO OVERVIEW63

Using $97.7 million in SSBCI allocation, Florida operates four credit support programs and a venture capital 

program. Florida’s Department of Economic Opportunity (DEO) contracts with Florida Export Finance Corporation 

to administer the Florida Export Support Program (FLESP) and with Enterprise Florida, Inc. (EFI) to oversee the

Loan Guarantee Program, Loan Participation Program, and Venture Capital Program. Only the export guarantee

program was operational when Florida initially designed its SSBCI programs. 

The DEO helps the governor advance the state’s economy by championing an established economic development 

vision and directly administers the Florida Capital Access Program (FL CAP). EFI, the state-created nonprofit that 

serves as Florida’s primary economic development organization, manages the Loan Guarantee Program on behalf of 

DEO. Florida First Capital Finance Corporation, a statewide certified development corporation and the state’s 

largest SBA 504 lender, manages the Loan Participation Program under a contract with EFI. Florida First Partners 

(FFP), a private for-profit joint venture partnership of Arsenal Venture Partners and Credit Suisse, manages the 

Venture Capital Program also under contract with EFI.

Table FL-1: Florida’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Florida supported 202 loans and investments that generated $298 million in total financing through December 31,

2015. 

Table FL-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI 

Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing

Size Leverage Ratio

202 $70.0 million $12.7 million $298.1 million $1.48 million 4.26:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions 

in NonMetro Areas Top Industries Assisted

3,658 5 FTEs 4 years 37% 3%

1. Information

2. Manufacturing

3. Accommodation and Food 

Services

*Includes funds expended for administrative costs

 63 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Loan Participation Program Loan Participation $32 million Florida First Capital Finance Corporation

Direct Loan Program Loan Participation $100,000 Enterprise Florida, Inc.

Loan Guarantee Program Loan Guarantee $15 million Enterprise Florida, Inc.

Florida Export Support Program Loan Guarantee $5 million Florida Export Finance Corporation

Florida Capital Access Program Capital Access $2 million Florida Department of Economic 

Opportunity

Venture Capital Program Venture Capital $43.5 million Florida First Partners
147

CREDIT SUPPORT PROGRAMS

Loan Participation Program

Florida First Capital Finance Corporation uses SSBCI funds to buy a participation from the lead bank that will be 

taken out by the closing of an SBA 504 real estate and equipment loan – generally 40 percent of the total financing. 

A subordinated SSBCI loan participation (typically between $250,000 and $5 million) is limited to a maximum 6-

month term. However, Florida First Capital Finance Corporation has extended loan terms to 24 months for new 

construction. 

Loan Guarantee Program

Florida’s Loan Guarantee Program provides a guarantee of up to 50 percent or $1,000,000, whichever is less. The 

program leverages the guarantee reserve at no more than a three to one basis (i.e., $1 of guarantee reserve for every 

$3 guaranteed). While the lender is free to set the terms and conditions for the loan, the maximum guarantee 

provided is three years. The up-front fee is 1.5 percent of the guaranteed amount and an annual fee of 1 percent of 

the guaranteed amount is assessed. While the program targets loans between $250,000 and $5 million, smaller loans 

are considered on a case-by-case basis. Prior to September 30, 2013, Florida guaranteed amounts greater than $1 

million, but established the maximum of $1 million per transaction to improve program sustainability.

Export Support Program

The Florida Export Support Program (FLESP), an export loan guarantee program, is intended to guarantee loans to 

exporters to finance small ($200,000 to $300,000), short-term purchase orders. It reaches exporters who do not 

qualify for the Export-Import Bank or Small Business Administration export financing and is intended to help small, 

young exporting businesses to become bankable. Florida Export Finance Corporation (FEFC) charges a 3 percent

guarantee fee. FEFC has operated a similar export guarantee program since 1993.

Capital Access Program

Florida’s CAP requires the borrower and lender each to contribute to a reserve account with combined contributions 

ranging from 2 percent to 7 percent of the principal loan amount. DEO uses SSBCI funds for a one to one match of 

the combined borrower and lender contributions. The CAP has been used on a limited basis as the agency continues 

efforts to find partner lenders.

Credit Support Program Outcomes

Florida expended 50 percent of its allocation to credit support programs through December 31, 2015, and generated

$185 million in total financing or $3.80 in total financing for every $1 in SSBCI funds spent. Businesses reported

that the loans will help create or retain over 2,500 jobs. Florida primarily monitors program impact based on private 

financing generated and job creation and retention.
148

Table FL-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI 

Funds 

Expended*

SSBCI 

Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing

Size Leverage Ratio

158 $48.4 million $12.7 million $184.7 million $1.17 million 3.82:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions 

in NonMetro Areas Top Industries Assisted

2,530 3 FTEs 4 years 30% 4%

1. Accommodation and Food Services

2. Wholesale Trade

3. Construction

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The simplicity of Florida’s programs appeals to lenders. 

• Fast turnaround time (five to 10 working days) for applications is achieved with minimal additional 

documentation. 

• Lenders show greater interest in programs that guarantee payments within 120 days in the event of loan default. 

• Loan participations can be subordinated and are usually short-term (between six and 18 months).

• Programs that complement existing state initiatives are easier to sell to lenders, e.g., SSBCI export guarantee 

program as modified is virtually identical to the legacy state program. 

• In commercial banking, institutions relate best to program managers who are former finance professionals with 

extensive lending experience.

• Program champions, generally a loan officer who may benefit financially from increased small business loan 

production, help the program achieve acceptance by lenders. 

• SSBCI credit support programs are best positioned as alternatives and complements to existing federal credit 

enhancement programs, not as competition.

• Credit support programs require meaningful credit-risk exposure for lenders to assure sufficient overall credit 

quality. 

• One reason that the CAP was not attractive to CDFI lenders in the state is that many indicated that they felt left 

out of the dialogue during the program’s initial design phase.

VENTURE CAPITAL PROGRAM

The Florida Venture Capital Program (FLVCP) is a third-party managed investment vehicle with allocation of $43.5

million in SSBCI funds. The FLVCP was designed to support the capital needs of early-stage Florida businesses 

through initial and follow-on financing rounds. The FLVCP aims to support early-stage, high-growth potential 

small businesses and improve perceptions about Florida investment opportunities in the national venture capital 

community. Early-stage is broadly defined to include pre-revenue to below $5 million in revenue, with the 

investment manager having the ability to invest outside this range for strategic transactions.

Venture Capital Program Design and Operations

EFI administers Florida’s SSBCI venture capital program (FLVCP) because it had existing operational capacity to 

support capital formation strategies when the federal funding became available. The commitment of federal funding 

support at significant scale allowed for the creation of the FLVCP. EFI contracted with a private third-party 

investment manager (Florida First Partners) to provide the requisite expertise and professional networks to make 

equity-based investments. Florida designed the single investment vehicle structure to make a small number of 
149

investments and support the capital needs of small businesses through follow-on financing rounds. EFI and Florida 

First Partners operate the FLVCP as a direct investment program (see Figure FL-1) under the umbrella of the Florida 

Opportunity Fund (FOF). 

The Florida legislature created the FOF to realize significant long-term capital appreciation by investing in highquality venture capital funds, businesses and infrastructure projects that will provide lasting benefit to Florida. The 

FOF is governed by an independent Board of Directors and is currently comprised of direct investment (including 

the FLVCP) and fund of funds programs that were capitalized with state and federal resources. 

FFP, a joint venture between Arsenal Venture Partners, Inc. and GCM Customized Fund Investment Group, 

manages the FOF program portfolio. FFP’s responsibilities include sourcing deals, performing due diligence, 

closing investment transactions, and managing and supporting the growth of FOF investees. All FOF investment 

recommendations must be presented to and approved by its Board of Directors.

Florida designed the FLVCP to maximize financial returns by operating as similar as possible to a privately financed 

early-stage venture fund. By placing a specific emphasis on financial returns alongside economic development 

returns, EFI and the FOF aim to demonstrate the viability of Florida’s entrepreneurial ecosystem to private investors 

and attract more private investment to Florida. 

Figure FL-4: Florida Venture Capital Program Funds Flow and Program Structure

Florida Department of Economic Opportunity (DEO)

Official State Applicant

Enterprise Florida, Inc.

Contracted Non-Profit Program Administrator Florida First Partners (FFP)

Contracted Investment Manager

A Private Sector Joint Venture between 

Arsenal Venture Partners and Credit 

Suisse

Florida Opportunity Fund

Legislatively Mandated Capital Program

Managed by Florida First Partners

Florida Venture Capital Program

A new Venture Capital Fund, capitalized with $43.5 million in 

SSBCI funds, managed by FFP

Equity Investments in Florida Small Businesses
150

Venture Capital Program Outcomes

As of December 31, 2015, the FLVCP expended almost $22 million or 50 percent of the $43.5 million allocation, 

and generated over $113 million in new investment or $5.3 in new capital for every $1 in SSBCI funds spent. 

Businesses reported that the 44 investments will help create or retain over 1,100 jobs. 

Table FL-5: Venture Capital Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI 

Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

44 $21.6 million $0 $113.4 million $2.58 million 5.25:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,128 13 FTEs 4.5 years 61% 0%

1. Information

2. Manufacturing

3. Finance and Insurance

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The FLVCP is unique in the overall SSBCI venture capital program portfolio as a newly created investment 

fund, 100 percent capitalized with SSBCI funds, at a sufficient scale to participate in follow-on financings of 

portfolio businesses. Specifically, the FLVCP reserves capital to participate in follow-on investment rounds for 

all FLVCP portfolio businesses, which is the common practice for private funds aiming to maximize financial 

returns. This approach, however, is not as common for state-sponsored funds with limited resources and 

economic development priorities. State program managers recommend communicating this market-standard 

investment strategy to public stakeholders early in the program implementation phase to set clear expectations 

on how and when capital will be deployed to small businesses.

• A critical success factor to operating a third-party managed fund is identifying a private investment manager 

with the right mix of expertise, ecosystem knowledge and professional connections to manage investment 

decisions and attract private capital. The contracted investment manager for the FLVCP, Florida First Partners, 

brought an impressive operating history and meaningful connections to the program that contribute to program 

success.

• Having strong board leadership at the organizational level of the program manager, EFI is important to build 

market credibility and establishing consistency in operations.

• FLVCP managers learned how to operate under robust sunshine laws in Florida while maintaining the privacy 

of confidential information that potential investees do not want disclosed to potential competitors.

• A single third-party managed fund can be an effective private capital formation strategy and economic 

development tool, but the fund must be of sufficient size if financial performance is important to achieving 

program objectives.
151

Georgia

PROGRAM PORTFOLIO OVERVIEW64

Using $47.8 million in SSBCI allocation, Georgia operates four credit support programs – the Georgia Capital 

Access Program (GCAP), two loan participation programs – the Georgia Loan Participation Program (GA LPP), and 

Georgia Funding for CDFIs, and a hybrid loan guarantee/risk reserve pool program – the Georgia Small Business 

Credit Guarantee Program (SBCG).

The Georgia Department of Community Affairs (DCA) manages the program. DCA is a state agency that whose 

mission is to spur private job creation, implement planning, develop downtowns, and generate affordable housing 

solutions. 

Table GA-1: Georgia’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Georgia supported 371 loans that generated $203 million in total financing through December 31, 2015. 

Table GA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

371 $33.1 million $480,000 $203.3 million $548,000 6.14:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

3,167 4 FTEs 5 years 33% 10%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Construction

*Includes funds expended for administrative costs

 64 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Georgia Funding for CDFIs Loan Participation $20 million Georgia Department of Community Affairs

Georgia Loan Participation Program Loan Participation $8 million Georgia Department of Community Affairs 

Georgia Small Business Credit Guarantee 

Program Loan Guarantee $17.8 million Georgia Department of Community Affairs 

Georgia Capital Access Program Capital Access $2 million Georgia Department of Community Affairs 
152

CREDIT SUPPORT PROGRAMS

Loan Participation Programs

Georgia Funding for CDFIs: This program uses a network of nonbank CDFIs to source, underwrite, close, and 

service loans on behalf of the program manager. Under the program, CDFIs make subordinate “companion” loans

of up to 50% of a debt financing. DCA maintains control of SSBCI funds at all times, makes the final credit 

decision, and all loan agreements are between the CDFI and the borrowers. Credit support is targeted towards loans 

with an average principal amount of $5 million or less. Once deployed, the CDFI is able to re-use the recycled 

principal for small business loans and retain any fee or interest income for eligible administrative expenses. When 

the SSBCI program ends, the CDFIs will retain all program funds for small business lending. 

GA LPP: DCA will purchase up to 25 percent of a loan with its collateral interest being in second position. The 

maximum participation amount under the GA LPP is 25 percent up to $5 million; thus, DCA’s maximum position is 

$1.25 million. Loans exceeding $5 million up to $20 million are capped at a participation amount of $1,250,000. 

The lender is not charged a fee but shares a proportional amount of monthly principal and interest payments with 

DCA. The financial institution is responsible for servicing the loan. 

Loan Guarantee Program

Under the SBCG program, lenders can choose from two guarantee products. The first is a traditional guarantee of 

50 percent. DCA charges a 2 percent guarantee fee at closing.

The second product, the Risk Reserve Pool (RRP), is a CAP-like portfolio insurance arrangement in which Georgia 

funds a loan loss reserve specific to each lender in an amount equal to 10 percent of each enrolled loan. So long as 

balances remain in the loss reserve, the lender can offset up to 80 percent of the loss on any transaction. After 

credits mature or retire from the program, the lender has a 120-day period to re-use the reserve funds, after which 

the funds may recouped by the state to support another lender’s activity. DCA charges a $100 processing fee and a 

0.5 percent annual fee.

Two non-profit associations, one of credit unions and another of banks, are the SBCG’s highest users. They 

participate through the online trade credit finance company NOWaccount.

Capital Access Program

Georgia has not expended or obligated any allocated funds under GCAP. 

Credit Support Program Outcomes

Through December 31, 2015, Georgia’s SSBCI funds supported 371 transactions and generated $203 million in total

financing or $6.10 in total financing for every $1 in SSBCI funds spent. Businesses reported that the loans will help

create or retain over 3,100 jobs. Businesses in low- and moderate-income communities received 33 percent of the 

total number of loans and 39 percent of total dollar volume. Professional, Scientific, and Technical Services 

businesses accounted for roughly one-third of the total number of transactions. See Table GA-2 for additional credit 

support program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Georgia tracks the geographic reach of its programs. As of September 30, 2015, Georgia SSBCI had a 

presence in 60 of the 159 counties in Georgia. Approximately 42.4 percent of loans were for minority- and 

women-owned business enterprises, and 6.7 percent for veteran owned businesses. 
153

• The outcomes by program vary substantially. TCGC and SBCC finance very short term smaller dollar 

loans compared to the participation programs. 

• Georgia actively partnered with the CDFI community in order to assist in reaching the underserved 

populations in Georgia. At the end of 2015, the CDFIs had 49 percent of their total number of loans and

44.5 percent of their total dollars in LMI areas. As of September 30, 2015, 41.4 percent of CDFI loans 

were for minority- and women-owned businesses and 8.6 percent for veteran-owned businesses. 

• The success of the programs is due to a number of factors including the continuing consultation between

DCA and the Georgia Bankers Association (GBA) as well as banking regulators.
154

Guam

PROGRAM PORTFOLIO OVERVIEW65

Using $13.2 million in SSBCI allocation, Guam operates three credit support programs – the Guam Capital Access 

Program (CAP), the Guam Loan Guarantee Program (LGP), and the Guam Loan Participation Program (LPP). 

The Office of the Governor implements the programs through the Guam Economic Development Authority 

(GEDA), a public corporation with broad authority to undertake economic development initiatives on behalf of the 

territory. 

Table GU-1: Guam’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Guam supported 41 loans that generated $10 million in total financing through December 31, 2015. 

Table GU-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

41 $5.8 million $0 $10 million $243,400 1.73:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

785 3 FTEs 1 year 32% 93%

1. Accommodation and Food 

Services

2. Retail Trade

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 65 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Guam Credit Guarantee Program Loan Guarantee $9.9 million Guam Economic Development Authority

Guam Loan Participation Program Loan Participation $2.6 million Guam Economic Development Authority

Guam Capital Access Program Capital Access $658,400 Guam Economic Development Authority
155

CREDIT SUPPORT PROGRAMS

Loan Guarantee Program

The LGP guarantees up to 75 percent of a maximum $500,000 loan. Of the 75 percent guarantee, GEDA is required 

to set aside 20 percent cash in a reserve account at the bank. The maximum term on the loan is seven years, with a 

10 year amortization. There is a one-time fee of 2 percent of the total loan amount, with no annual fee.

Loan Participation Program

The LPP allows the program manager to purchase up to 40 percent from a lender on new economic diversification 

projects that demonstrate short-term cash flow deficiency. The program manager can offer preferred terms (no 

interest and/or principal) for up to 36 months. 

Capital Access Program

The CAP requires the borrower and lender each to contribute to a reserve account with combined contributions 

ranging from 2 percent to 7 percent of the principal loan amount for loans of up to $200,000. GEDA uses SSBCI 

funds on a one to one basis to match the borrower and lender contributions to the reserve account.

Credit Support Program Outcomes

Through December 31, 2015, GEDA expended $5.8 million in SSBCI funds to support 41 loans, and generated $10

million in total financing or $1.70 in total financing for every $1 in SSBCI funds spent. Businesses reported that the

loans will help create or retain more than 700 jobs. Accommodation and food services, retail trade, and 

professional, scientific, and technical services represent more than half of the industries of borrowers who received 

loans. As of December 31, 2015, only one relatively small loan has defaulted, representing less than 1 percent of the 

portfolio. See Table GU-2 for additional credit support program outcomes.

As of December 31, 2015, Guam has not deployed funds through its LPP or CAP. The commercial lenders in Guam 

are commercial banks and credit unions. With the exception of Bank of Guam, off-island banks, primarily from 

Hawaii, manage the territory’s banks. Banks tended to prefer the LGP over the LPP and CAP.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• SSBCI demonstrates that the federal government can effectively cooperate with the territorial government 

on some issues, an unusual view in Guam given local perceptions that the federal government typically 

prescribes solutions with limited local input. 

• Only two local banks have been willing to become engaged in the program despite several banks enrolling 

early in the program’s tenure.

• Banks value the guarantee on the LGP as a way to reduce their risk significantly on small business loans.
156

Hawaii

PROGRAM PORTFOLIO OVERVIEW66

Using $13.2 million in SSBCI allocation, Hawaii operates a venture capital program – the Hawaii Venture Capital 

Investment Program (HVCIP).

Hawaii Strategic Development Corporation (HSDC) manages the HVCIP. The state legislature established HSDC 

in 1990 with a mission to promote economic development and economic diversification. HSDC uses SSBCI funds 

to strengthen strategic efforts that create a venture capital industry in Hawaii. Without any active Hawaii-based 

venture funds and due to Hawaii geographic isolation from mainland venture investment hubs, HSDC designed the 

program to support the creation of new Hawaii-based investment funds capable of serving Hawaii’s early-stage 

businesses and making strategic connections to more private investors.

Table HI-1: Hawaii’s SSBCI Program Portfolio Summary

Program Outcomes

Hawaii supported 76 investments that generated $74 million in total financing through December 31, 2015. 

Table HI-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

77 $3.4 million $0 $74.1 million $962,300 21.81:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

331 3 FTEs <1 year 23% 13%

1. Information

2a. Professional, Scientific and 

Technical Services

2b. Retail Trade

2c. Wholesale Trade

*Includes funds expended for administrative costs

 66 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Hawaii Venture Capital Investment 

Program Venture Capital $13.2 million Hawaii Strategic Development Corporation
157

VENTURE CAPITAL PROGRAM 

Through December 31, 2015, Hawaii expended over $3 million in SSBCI funds to support 76 small business 

investments that have generated over $70 million in total financing (see Table HI-2).

Hawaii designed the HVCIP as a key component of a startup movement in Hawaii branded “Startup Paradise” – a 

shared vision by stakeholders in the state’s innovation ecosystem to position Hawaii as a great location to live and 

launch innovative businesses. Hawaii implements the HVCIP through intermediary investment firms, with the 

investment managers directing investment strategy and investment terms. Although some variation is possible, the 

participating investment managers target seed to early-stage businesses in the form of equity or convertible debt 

investments. HSDC supports the investment funds as a Limited Partner investor in each fund, participating in any 

financial returns on similar terms to private investors. The contracted investment funds are summarized below in 

Table HI-3.

Table HI-3: HVCIP Investment Funds

Investment Fund Name SSBCI Allocation Fund Characteristics

Startup Capital Ventures $4 million $25 million early-stage investment fund focused on software businesses

with offices in California and Hawaii

UPSIDE II $3 million $6 million seed stage investment fund focused on university tech 

transfer/research commercialization

Blue Ventures

Blue Ventures II

$0.5 million

$0.65 million

$1 million seed and $1.54 million early stage investment funds associated 

with the Blue Startups Venture Accelerator

mbloom Fund $3 million $10 million seed and early stage technology investment fund

GTA Development Fund $0.5 million $1 million seed stage investment fund associated with the GVSl 

Transmedia Accelerator focused on media/content businesses

EEX Fund One (pending) $1.5 million $2.5 million seed stage investment fund associated with the Energy 

Excelerator an accelerator focused on clean tech businesses

Private co-investors include angel investors, corporate investors, and institutional investors in Hawaii and venture 

investors outside of Hawaii. Three of the selected investment funds are associated with business accelerator 

programs that provide a consistent source of potential seed-stage investment opportunities. 

By focusing on early-stage funds investing in young businesses, the program manager implemented a 

comprehensive strategy to include intensive small business support and “hands on” mentoring by the private 

investors to help facilitate second stage financings by larger, more established venture capital funds outside of 

Hawaii.
158

Figure HI-4: HVCIP Structure

Hawaii Strategic Development Corporation (HSDC)

State Applicant

Quasi-state Non-profit Entity Program Manager

Startup Capital 

Ventures

Contracted 

Investment Manager 

with $3 million 

SSBCI allocation

UPSIDE II

Contracted 

Investment Manager 

with $3 million 

SSBCI allocation

mbloom Fund

Contracted 

Investment Manager 

with $3 million 

SSBCI allocation

Blue Ventures 

Contracted 

Investment Manager 

with $500,000

SSBCI Allocation

GTA Development 

Fund 

Contracted 

Investment Manager 

with $3 million 

SSBCI allocation

Investments in Hawaii Small Businesses

Venture Capital Program Outcomes

Through December 31, 2015, HSDC’s 76 investments have generated about $74 million in total financing or $21.7 

in new capital for every $1 in SSBCI funds spent. Businesses reported that the SSBCI investments will help create 

or retain over 300 jobs. See Table HI-2 for additional venture capital program outcomes.

The HVCIP has contractually obligated the allocated SSBCI capital to private investment managers. Additional 

performance metrics collected by the program manager include: 

• Number of funds active in state, with an emphasis on new funds created

• Number of businesses receiving assistance and investment

• Private co-investment leverage – initial and follow-on financings

HSDC executives acknowledge the common state government viewpoint that values traditional economic 

development metrics like state revenue generation and job creation. However, the program manager places 

emphasis on communicating the need to generate financial returns from the capital program’s small business 

investment portfolio to achieve industry diversification and high-wage job creation for Hawaii. HSDC recognized 

private investors have the objective of generating a financial return, and a strength of SSBCI is the mandate for 

states to work with private investors because of the matching funds requirement, which aligns financial interests 

around investing in Hawaii businesses.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• A critical success factor for a fund of funds investment program is to attract and select the right mix of 

investment managers that fill identified gaps across the equity financing continuum. In a state with no or 

few existing venture capital funds, looking to foster the creation of new funds or engaging funds outside the 

state is necessary.

• In a market without existing venture capital funds, the program design should facilitate the establishment of 

funds that span the continuum of equity financing to allow seed stage investors to have confidence in 

follow-on funding opportunities and for early stage investors the confidence in a pipeline of quality deal 

flow.

• Program managers should work to understand existing strengths and capabilities on both demand and 

supply side of risk capital, focusing on the activity and health of the state’s entrepreneurial ecosystem.
159

Idaho

PROGRAM PORTFOLIO OVERVIEW67

Using $13.1 million in SSBCI allocation, Idaho operates a single credit support program – the Idaho Collateral 

Support Program (ICSP). Idaho designed the program to help its small businesses gain access to capital to build and 

expand facilities, buy new equipment and add employees. Prior to SSBCI, the state had no small business credit 

support programs.

The Idaho Department of Commerce administers the program through the Idaho Housing and Finance Association 

(IHFA), a corporation created by the Idaho Legislature in 1972. IHFA is a self-supporting quasi-public organization 

with a mission to improve lives and strengthening Idaho communities by expanding housing opportunities, building 

self-sufficiency, and fostering economic development.

Table ID-1: Idaho’s SSBCI Program Portfolio Summary

Program Outcomes

Idaho supported 254 loans that generated $164 million in total financing through December 31, 2015. 

Table ID-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

253 $13.1 million $7.2 million $163.9 million $648,000 12.48:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

2,510 8 FTEs 6 years 24% 30%

1. Health Care and Social 

Assistance

2. Manufacturing

3. Retail Trade

*Includes funds expended for administrative costs

 67 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Collateral Support Program Collateral Support $13.1 million Idaho Housing and Finance Association
160

CREDIT SUPPORT PROGRAM

Collateral Support Program

Idaho’s program pledges a cash deposit to the lender as collateral for a loan. The deposit provides sufficient 

collateral for the loan using the bank’s standard underwriting criteria. To limit the period that funds are held by 

lenders, the state has the following maximum amounts for collateral support:

• Loans with a maturity of 12 months or less: lesser of 20 percent of the lender’s loan amount or $1,000,000.

• Loans with maturities of 13 months up to 60 months: lesser of 20 percent or $500,000.

• Loans with maturities exceeding 60 months: lesser of 15 percent or $250,000.

The program charges no fees except for 0.5 percent of the loan amount for loans with maturities exceeding 60 

months. After five years, the program annually recaptures 20 percent of the year five collateral support account 

balance. 

The program manager does not re-underwrite a loan, but rather reviews the bank’s collateral assessment to 

determine if the collateral support request is reasonable. The lead bank is responsible for servicing, collections, and 

liquidation, with IHFA receiving semi-annual and delinquency reports. Idaho’s program is “last loss” – the lender 

must liquidate all primary collateral before collecting against the CSP account. Borrowers must be for-profit 

businesses.

The program manager has expanded CSP through the infusion of $5 million in additional capital from other IHFA 

resources.

Credit Support Program Outcomes

Through December 31, 2015, Idaho’s CSP expended over $13 million in SSBCI funds to support 254 transactions

and generated $12.50 in total financing for every $1 in SSBCI funds spent. Businesses reported that the loans will 

help create or retain more than 2,500 jobs. The top 5 lenders by dollar amount loaned accounted for 75 percent of 

the amount loaned and 58 percent of the number of CSP transactions. See Table ID-2 for additional credit support

program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Idaho was able to deploy its SSBCI capital quickly in part because IHFA had a strong pre-existing network of 

banks participating in its housing lending partnership programs. Idaho had deployed 99 percent of its SSBCI 

capital by December 31, 2013.

• Simplicity is the key to program success. Bankers’ overall time is limited, and thus a successful CSP program 

cannot substantially increase a loan’s transaction costs.

• Quality of service is also important. Idaho’s program responds to lenders within three business days of 

receiving a request for collateral support.

• Marketing efforts focused on various levels of banks’ commercial lending operations, including bank CEOs, 

chief lending and credit officers, and line lenders. While the ICSP does some general awareness marketing to 

the small business market, it focuses its efforts on bankers, who are the point of distribution. 

• “Power users” drive program volume. While 24 banks have signed up for Idaho’s CSP program, 5 to 8 

institutions drive volume.

• To be sustainable longer-term and not lose marketing momentum among banks, IHFA believes a program has 

to be continuously available. Idaho estimates that roughly $30 million in capital would be required to keep the 

program continuously available in Idaho. 
161

Illinois

PROGRAM PORTFOLIO OVERVIEW68

Using $78.4 million in SSBCI allocation, Illinois operates four credit support programs and a venture capital 

program collectively known as Advantage Illinois (AI). With the SSBCI program portfolio, the state sought focused 

on sustainability and channeled nearly all funding into the loan participation program because it shows the highest 

potential to revolve funds during the long-term and also generate current income to support SSBCI operations. 

Illinois’ Department of Commerce and Employment Opportunity (DCEO) administers all SSBCI credit support and 

venture capital programs.

Table IL-1: Illinois’ SSBCI Program Portfolio Summary

Combined Program Outcomes

Illinois supported 208 loans and investments that generated almost $503 million in total financing through 

December 31, 2015. 

Table IL-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI 

Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

208 $59.7 million $1.5 million $502.9 million $2.42 million 8.42:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business 

Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

3,814 10 FTEs 6 years 34% 13%

1. Manufacturing

2. Accommodation and Food 

Services

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 68 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Participation Loan Program Loan Participation $70.1 million Illinois Department of Commerce and 

Employment Opportunity

Conditional Direct Loan Program Loan Participation $500,000 Illinois Department of Commerce and 

Employment Opportunity

Collateral Support Program Collateral Support $1.6 million Illinois Department of Commerce and 

Employment Opportunity

Capital Access Program Capital Access $50,000 Illinois Department of Commerce and 

Employment Opportunity

Venture Capital Program Venture Capital $6.1 million Illinois Department of Commerce and 

Employment Opportunity
162

CREDIT SUPPORT PROGRAMS

Loan Participation Programs

Participation Loan Program (PLP): Illinois’ PLP currently offers four credit enhancement products. Each 

product targets a specific small business market segment or financing instrument. The credit enhancement products 

of Illinois’ PLP provide support to small businesses owners with an extra focus on minority-, women-, disabled-, 

and veteran-owned/controlled borrowers. The program manager uses SSBCI funds to purchase a participation in the 

aggregate financing at the lower of 25 percent of project costs or 50 percent of the loan amount up to $2.0 million. 

Loans must create at least one full-time equivalent employee for each $50,000 of program management support or 

retain at least one “at risk” job for each $50,000. 

The SSBCI loan participation is limited to a maximum of 10 years for term loans and two years for lines of credit. 

There is a cap on participations of $2 million which range from $10,000 to $2 million. Loan participations are 

priced at a below market interest rate but with a floor of 2.0 percent. DCEO charges an interest rate that is 2.0

percent less than the rate charged by a bank or 1.0 percent less than the rate charged by a community development 

corporation. SSBCI loan participations are subordinate to the lender’s loan position, but pro-rata on payment.

Conditional Direct Loan Program (CDLP): The CDLP provides direct loans of no more than 10 percent of total 

project costs not exceeding $1 million per project. The CDLP program is only used in very specific situations to 

provide the “but for” rationale for a given credit. It has been used in conjunction with purchase participation PLPs 

where an additional long-term, highly subsidized companion loan is required to make a transaction work. It appears 

that this is a particularly valuable program for industrial retention and for difficult inner-city transactions where 

collateral values are particularly difficult to support. 

Collateral Support Program 

Illinois uses its Collateral Support Program (CSP) to provide credit support for small businesses whose underlying 

asset values fail to meet the loan to value requirements of lenders. The CSP supports gaps in collateral value by 

establishing a deposit of up to 20 percent of the loan being issued by the lender. The SSBCI CSP position is 

subordinate to the lender’s loan position, but collateral was released 20 percent per year over a five-year period. 

Originally modeled after a similar Michigan program and using similar documentation, the program is currently 

inactive. 

Capital Access Program 

The Illinois CAP requires the borrower and lender each to contribute a maximum of 2.5 percent of the principal loan 

amount to a reserve account for a total of 5 percent. DCEO uses SSBCI funds to match the combined borrower and 

lender contributions on a one to one basis. The maximum loan amount is $1 million with term loans up to five years 

and eligible lines of credit. “Main Street” retail and service businesses have been the primary beneficiaries. 

However, program managers report that banks do not find sufficient risk mitigation with the program. This is 

because asset values in the state fell drastically with little recovery following the financial crisis. Thus, SBA loans 

rather than CAP loans are generally viewed as more desirable by bankers for transactions with questionable 

collateral judged to require credit enhancement. 

Credit Support Program Outcomes

Through December 31, 2015, the program manager expended $53.2 million in SSBCI funds, and generated $415.4

million in total financing or $7.80 in new financing for every $1 in SSBCI funds spent. Businesses reported that the

loans will help create or retain over 3,200 jobs. The PLP has been Illinois’ most actively used SSBCI program.
163

Table IL-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

184 $53.7 million $1.5 million $415.4 million $2.26 million 7.74:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

3,246 12 FTEs 7 years 36% 15%

1. Manufacturing

2. Accommodation and Food 

Services

3. Construction

*Includes funds expended for administrative costs

As with most states, community banks have been the most interested and the most active in AI. Large banks with 

national service areas have not participated because they want to participate in programs they can implement across 

their entire footprint. As of December 2015, almost 60 community banks, CDFIs, and regional loan funds have 

enrolled in the Illinois SSBCI credit support programs. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The CAP is no longer competitive, even with a higher loan limit (compared to Illinois’ legacy CAP) especially 

without state funding to support higher matching levels than allowed by SSBCI. 

• Having strong personal relationships with local senior lending officers throughout the state has allowed the 

program manager to recruit new lenders and retain their trust during the hiatus caused by the change in 

gubernatorial administrations. 

• Maintaining pro-active communications with lenders is important to adjust SSBCI programs to the changing 

needs of the market place. DCEO started with four credit support programs, but subsequently focused on one 

(PLP) based on feedback from its lender partners.

• It is important to market the ability of SSBCI programs to meet specific lending niches. SSBCI is not a solution 

for all loan applications.

• Design management structures to limit interruptions in service during the transitions between administrations.

• The state prioritized supporting small businesses in underserved communities through its programming by 

specifically targeting minority-, women-, disabled- and veteran-owned and controlled businesses with

incentives in program design, collaboration with stakeholders and participation in seminars, conferences, and 

other program marketing activities. 
164

VENTURE CAPITAL PROGRAM

The Invest Illinois Venture Fund (IIVF) is a $6.1 million venture capital program, representing 7.8 percent of the 

state’s SSBCI allocation. IIVF is a new program for DCEO, designed to support young, innovative businesses and 

startups that show a high potential for future growth and high-paying professional jobs. Initially approved with a 

$20 million allocation, IIVF invested $6.1 million before the remainder of its allocation was transferred to an 

established credit support program.

Venture Capital Program Design and Operations 

IIVF was designed to help high-potential technology businesses accelerate the closing of seed, early, or growth stage 

investment rounds. IIVF developed a network of expert reviewers to support due diligence processes, and these 

experts often provided feedback and connections to other potential investors. Although IIVF did not lead 

investment rounds, it was accessible to entrepreneurs seeking their first private investors and sought to have a 

meaningful impact on helping entrepreneurs to secure lead investors and accelerate the time to a first closure.

Applicants to IIVF were reviewed by independent investors or subject matter experts sourced by IIVF staff to 

provide feedback to the applicants. Subject matter experts were drawn from regional venture funds, angel investor 

groups, venture development organizations, and corporate interests on an ad hoc basis, with the goal of obtaining 

unbiased expert insight on the applicant’s plan. The businesses evaluated as having high potential were invited to 

make a formal presentation at IIVF-hosted events. IIVF designed the processes to provide exposure for highpotential businesses to help them connect with lead investors for their investment rounds. IIVF only invested in 

applicants that had a lead investor setting the investment terms. Financial terms accepted by IIVF could take any 

form, and IIVF invested pari passu or on an equal basis with private investors. Up to $500,000 of SSBCI capital 

could be invested in a company. Provided that a lead investor was committed to the round, IIVF would often make 

an investment commitment contingent upon the applicant raising additional capital prior to closing the investment 

round including the IIVF investment. 

Figure IL-4: IIVF Structure

Illinois Department of Community and Economic Development

Official Applicant and Program Manager

Invest Illinois Venture Fund

$6.1 million State Venture Capital Program

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

Without an active state-sponsored nonprofit organization to serve as an implementation partner, IIVF needed to 

establish all new processes under the state agency to execute its venture capital program plan. The program was 

fully implemented and showing positive outcomes from early investments. However, with the departure of the IIVF 

program manager, temporary hiring limitations from the state prevented the agency from replacing the IIVF 

manager with a comparably experienced manager. As a result, the key processes for managing IIVF investments 

were not sustainable and DCEO decided to reallocate unexpended IIVF funds to the state’s SSBCI credit support

programs.

IIVF appeared to have a significant positive impact on the early stage technology business ecosystem. The IIVF 

portfolio, with just $6.5 million of investments, generated more than $13 in new capital for every dollar of SSBCI 

funding. Four of the businesses in which IIVF invested capital have received substantial follow-on rounds, 
165

including a biotechnology company which has raised more than $20 million of subsequent financing, a womanowned consumer game retail store chain that raised more than $16 million, and a medical device company that has 

raised nearly $10 million post-IIVF funding. 

Table IL-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

24 $6.05 million $0 $87.5 million $3.65 million 13.49:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

568 4 FTEs 2.5 years 2% 0%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The early termination of IIVF despite early successes illustrates the importance of developing management 

succession plans for highly specialized venture capital programs. In this case, a program staff change led to 

a decision to reallocate SSBCI resources to another program. 
166

Indiana

PROGRAM PORTFOLIO OVERVIEW69

Using $34.3 million in SSBCI allocation, Indiana operates a CAP and a venture capital program. With the SSBCI 

program portfolio, the state sought to support its innovation ecosystem through services and investments that 

discover and nurture successful entrepreneurs who are developing new technologies that could create high-paying 

jobs in Indiana.

The Indiana Economic Development Corporation (IEDC), a quasi-public agency serving the state’s economic 

development needs, manages the CAP and contracts with Elevate Ventures, a nonprofit, to manage the venture 

capital program.

Table IN-1: Indiana’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Indiana supported 202 loans and investments that generated almost $55 million in total financing through December 

31, 2015. 

Table IN-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

202 $15.5 million $0 $54.8 million $271,100 3.52:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

1,189 5 FTEs 4 years 31% 7%

1. Retail Trade

2. Professional, Scientific, and 

Technical Services

3. Construction

*Includes funds expended for administrative costs

 69 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Indiana Capital Access Program Capital Access $1.5 million Indiana Economic Development 

Corporation

State Venture Capital Program (21 Fund) Venture Capital $32.8 million Indiana Economic Development 

Corporation
167

CREDIT SUPPORT PROGRAM

Capital Access Program

Indiana’s CAP has been in operation since 1993. Under Indiana’s CAP, the combined borrower and lender 

contributions range from 2 to 7 percent of the principal amount of the loan. Typically, the borrower and lender each 

contribute between 1 percent and 3.5 percent of the loan amount enrolled. IEDC matches those contributions on a 

one to one basis using SSBCI funds, creating a total lender reserve between 4 percent and 14 percent. Lenders 

submit an enrollment form to IEDC when they make a loan. The lender determines whether a loan is made, the 

interest rate, the terms and conditions and the percentage contributed to the reserve fund. The maximum loan that 

can be enrolled in the CAP is $5 million. 

Credit Support Program Outcomes

Through December 31, 2015, the program manager expended $319,400 of SSBCI funds to support 125 CAP 

transactions and generated $8.2 million in total financing or $25.60 in total financing for every $1 in SSBCI funds

spent. Businesses reported that CAP loans will help create or retain 441 jobs 

Table IN-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

125 $319,400 $0 $8.2 million $65,500 25.64:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

441 3 FTEs 4 years 33% 8%

1. Retail Trade

2. Construction

3. Accommodation and Food 

Services

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The principal strength of the state’s CAP is that it is a seasoned program with years of activity from which to 

refine program design features. Thus, the present CAP format is a known risk mitigation product with local 

bank acceptance. 

• Indiana has six lenders who actively use the CAP. It is an attractive option to bank lenders once they can 

achieve a sufficient scale of loans to create a large reserve.
168

VENTURE CAPITAL PROGRAM

Indiana allocated $32.8 million of SSBCI capital to the Indiana 21st Century Research and Technology Fund (“21 

Fund”), a state-sponsored venture capital program created by the legislature in 1999. IEDC administers the 21 Fund 

and contracted with an independent non-profit venture development organization, Elevate Ventures, for 

management of the 21 Fund. 

The purpose of the 21 Fund is to nurture entrepreneurs developing new technologies with the potential to create 

high-paying jobs in Indiana. From 1999 - 2009, the 21 Fund provided grants to investees. However, from 2010 

through present, the 21 Fund shifted strategies and invested $101 million of state funds in 91 businesses under terms 

aligned with private sector co-investors, such as equity or convertible debt. The SSBCI capital allocation was 

designed to complement and expand existing 21 Fund programs managed by Elevate Ventures.

Venture Capital Program Design and Operations 

Indiana distributed its venture capital allocation to four program “funds” with varying target markets and 

deployment strategies:

1. Indiana Angel Network Fund Initiative (Angel Fund). The 21 Fund partners with angel and local venture 

investors to support early-stage investments and to attract new capital to Indiana. These partnerships create a 

sustainable investor network to partner on future ventures. The Angel Fund is a direct investment program that 

helps entrepreneurs accelerate the closing of investment rounds with angel investors or small venture funds. 

Elevate Ventures often couples support services to help many first-time entrepreneurs to develop business 

models, organize corporate documents and pass due diligence scrutiny from potential co-investors. Elevate 

frequently provides contingent commitments for funding that require businesses to complete investment rounds 

with co-investors within 90 days. This process helps businesses establish credibility with potential investors 

and provides an impetus to close investment rounds.

2. Indiana Seed Fund Holdings Initiative (Seed Fund). The 21 Fund co-invests with seed funds to provide seedstage investments to private businesses, leveraging additional private investments. The Seed Fund is a coinvestment program that supports the formation of seed-stage venture funds or angel groups supporting 

entrepreneurial ecosystems in Indiana. Funds/Groups apply to Elevate Ventures for approval to participate in 

the program. Approved funds and groups then submit deals for Seed Fund co-investments, typically matching 

capital committed by the funds or their members. Elevate Ventures reviews the deals for compliance only (i.e., 

does not make qualitative assessments) and funds deals on a first-come, first-served basis. Participating funds 

do not receive management fees but earn a 40 percent carried interest on the cumulative net returns from its 

Seed Fund co-investments. 

3. Indiana High Growth Fund Initiative (High Growth Fund). The 21 Fund provides capital to private lending 

corporations, who in turn issue loans to businesses leveraging the public funds into high growth private lending 

mechanisms with a focus on under-served markets. The High Growth Fund provides venture debt to primarily 

later stage growth businesses. Cambridge Capital Management Corporation received a $5 million SSBCI 

capital commitment to use as part of four investment vehicles: (1) Fixed asset financings of at least $125,000

through the Indiana Statewide Certified Development Corporation the 504 debenture does not close, where 

bank loans leverage SSBCI capital at least 5 to 4; (2) Mezzanine debt of at least $200,000 through the Indiana 

Community Business Credit Corporation, where bank loans match SSBCI capital at least 1 to 1; (3) 

Subordinated debt of at least $75,000 through Lynx Capital Corporation, which is used for growth capital in 

minority-owned businesses; and (4) Venture capital of at least $100,000 through Cambridge Ventures, which is 

used for businesses exhibiting the potential to deliver venture type returns.

4. The 21 Fund Enhancement is used to make direct investments into new businesses or those that previously 

received capital from the other three programs. The 21 Fund Enhancement is the pre-existing IEDC fund 

managed by Elevate Ventures.
169

While managing the state and SSBCI investment funds, Elevate Ventures also operates state-sponsored ecosystembuilding programs, such as the support of regional accelerators, an Entrepreneur-in-Residence (EIR) program, and 

regional and statewide venture showcases designed to attract out-of-state investors. Indiana is a state with very few 

resident venture capital funds and a historically low volume of venture capital investment in Indiana small 

businesses, so IEDC and Elevate Ventures serves as both technical advisor and lead investor for many high-potential 

technology businesses in the state.

Figure IN-4: The 21 Fund Structure

Indiana Economic Development Corporation (IEDC)

Non-profit Public-Private Partnership

Official Applicant and Program Administrator

21st Century Research & Technology Fund (21 Fund)

$32.9 million SSBCI State Venture Capital Program with Four Sub-Programs

Elevate Ventures, Inc.

Independent, Nonprofit Corporation

Contract Investment Manager

Indiana Angel Network 

Fund

($8 million allocation)

Direct Investment by 

Contracted Manager

Indiana Seed Fund

($7 million allocation)

Co-Investment Program

Indiana High Growth 

Fund

($6 million allocation)

VCP Using 3rd Party 

Contractor

21 Fund Enhancement

($11.8 million allocation)

Existing Direct 

Investment VCP

SSBCI funds invested by 

Elevate Ventures in 

eligible small businesses

SSBCI funds co-invested 

in eligible small 

businesses alongside 

approved investment 

funds/groups

SSBCI funds committed 

to Cambridge Capital 

Management Corp. for 

investment in eligible 

businesses

SSBCI funds disbursed to 

small businesses in 

support of program 

portfolio

Venture Capital Program Outcomes

Through December 2015, Elevate Ventures had invested $15.2 million or 46 percent of the state’s $32.8 million 

SSBCI allocation to the 21 Fund. The leverage ratio of 3.1 to 1 is relatively low because the majority of early 

investments have been through the Angel Fund, where initial leverage is often 1 to 1. The state reported that its 

SSBCI investments will help create or retain over 700 jobs, as 26 out of 77 investments were made in later stage 

businesses. Elevate has realized two successful exits from portfolio businesses, and two others have received 

follow-on venture capital investments of greater than $4 million and $10 million, respectively.
170

Table IN-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

77 $15.2 million $0 $46.6 million $604,900 3.06:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

748 6 FTEs 3 years 29% 5%

1. Professional, Scientific, and 

Technical Services

2. Information

3. Manufacturing

*Includes funds expended for administrative costs

Additionally, the program manager also collects data on SSBCI capital invested along with co-invested private 

capital leverage, the total employment (as reported by investment managers), and the geographic location of small 

business investments.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The initial Seed Fund request for proposal in 2012 did not receive any applicants despite favorable 

indications from potential participants. The reason offered was that the participants wanted to receive 

customary management fees (2 percent of capital managed) that would have exceeded SSBCI limits. 

• The Seed Fund request for proposal was reissued in 2015, again offering no management fees but raising 

the carried interest to 40 percent, and the market has responded with nine applications in a short period of 

time.

• The pace of investments in the Angel Fund was adversely affected by OIG audit findings that the Elevate 

Ventures conflicts of interest policies did not align with SSBCI rules. Elevate Ventures suspended 

investment activities from the Angel Fund for a period of approximately 12 months until findings were 

resolved, then resumed activity in early 2015. 

• The cost to Elevate Ventures of resolving audit findings related to conflicts of interest were extremely high 

in terms of staff time to address the findings, relationships with the state government and co-investors, and 

diversion of resources from operating the program itself. Following the resolution of the issues, Elevate 

Ventures instituted a system to track and assess potential conflicts that became an example for other state 

managers to follow.
171

Iowa

PROGRAM PORTFOLIO OVERVIEW70

Using $13.1 million in SSBCI allocation, Iowa operates two credit support programs, the Iowa Capital Access 

Program (ICAP) and the Iowa Small Business (ISB II) Loan Program, and a venture capital program. With the 

SSBCI program portfolio, the state sought to assist small businesses that have historically faced difficulties when 

trying to access funds for working capital and refinancing.

The Iowa Economic Development Authority (IEDA) contracted with the Iowa Business Growth Corporation 

(IBGC) to implement ICAP and with the Iowa Foundation for Microenterprise and Community Vitality (IFMCV) to 

manage the ISB II Loan Program. 

Table IA-1: Iowa’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Iowa supported 40 loans and investments that generated $44 million in total financing through December 31, 2015. 

Table IA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

40 $7.7 million $0 $44.5 million $1.11 million 5.75:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

473 3 FTEs 2 years 25% 15%

1. Manufacturing

2a. Information

2b. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 70 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Iowa Small Business II Loan Program Loan Participation $30,300 Iowa Foundation for Microenterprise and 

Community Vitality

Iowa Capital Access Program Capital Access $9,600 Iowa Business Growth Corporation

Iowa Demonstration Fund Program Venture Capital $13.02 million IEDA with support from VentureNet Iowa
172

CREDIT SUPPORT PROGRAMS

Loan Participation Program

IFMCV, a non-profit, SBA-certified micro lender managed the ISB II Loan Program. The program purchases

subordinate loan participations from lenders, targeting loan amounts from $50,000 to $100,000. IFMCV directed a 

portion of SSBCI funds to establish a loan loss reserve that would enable the lender to expand its SBA microlending. The program was closed after a lack of demand.

Capital Access Program

ICAP requires the borrower and lender each to contribute to a reserve account, from a minimum combined 

contribution of 3 percent to a maximum of 7 percent of each enrolled loan. IBGC uses SSBCI funds to match the 

combined borrower and lender contributions on a one to one basis. There are no fees for an ICAP loan. The 

program was closed after a lack of demand.

Credit Support Program Outcomes

Due to the low utilization of both credit support programs, IEDA opted to redirect SSBCI funds to the Iowa 

Demonstration Fund venture capital program. Through December 31, 2015, Iowa’s SSBCI credit support programs 

supported 17 loans that generated over $570,000 in total financing. Businesses reported that the loans will help 

create or retain 33 jobs. 

Table IA-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

17 $74,000 $0 $632,000 $37,200 8.54:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

33 1 FTE <1 year 41% 29%

1. Retail Trade

2. Other Services (except Public 

Administration)

3. Health Care and Social 

Assistance

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The forecasted volume projections/demand for ICAP proved too aggressive for a sparsely populated state. 

Despite efforts to market the program through entities that maintained good relationships with many banking 

institutions, ICAP never gained traction because of limited market demand and limited interest in the lending 

community for this program. 

• Much of the ISB II Loan Program money went to establish a loss reserve, and the interest rates charged by the 

contractor were so high that very few loan participations were actually generated. While the infrastructure was 

positioned for success and the program was well marketed, interest in the program among banks and small 

businesses waned. 
173

• It is important to engage in a thorough vetting process for contracted entities managing programs, as well as 

confirm that individual staff members have a proven ability to operate similar programs. 

• When marketing SSBCI credit support programs to banks, it is important to alleviate the concerns that are held 

by many in the banking community about government involvement and bureaucracy. Iowa worked to 

overcome this perception among lenders by communicating program intent and details and building strong 

relationships with the state lenders.

• Early on, SSBCI’s 10 to 1 minimum overall leverage expectation was an intimidating standard, but the state 

became much more comfortable with the requirement after having conversations with and receiving ongoing 

technical support from Treasury.

VENTURE CAPITAL PROGRAM

The Iowa Demonstration Fund (IDF), d/b/a the Iowa Innovation Acceleration Fund (IIAF) received an allocation of

$9.0 million, or 68 percent of the state’s $13.2 million SSBCI allocation. The state economic development agency, 

IEDA, manages IIAF with operational support provided by VentureNet Iowa, a for-profit venture development 

organization. IIAF is the SSBCI-funded complement to the legacy IDF, which was launched in 2007 and has 

invested more than $13 million of state funds in more than 100 small businesses. 

IDF provides proof-of-concept capital for seed stage small businesses, but the IIAF was designed to provide (1) preseed capital for intellectual property development (Iowa LAUNCH) before the company was ready to receive 

investment funds from IDF, (2) seed capital for small businesses after IDF or proof-of-concept stage (Iowa 

PROPEL), and (3) growth capital for later stage small businesses (Iowa INNOVATION EXPANSION). 

Collectively, the legacy IDF program combined with SSBCI capital has broadened Iowa’s capacity to support highpotential small businesses raising investment capital.

Figure IA-4: IDF Program Structure

Iowa Department of Economic Development

Official State Applicant

Iowa Economic Development Authority

State Agency – Program Manager

Iowa Demonstration Fund

$9 million State Venture Capital Program managed by VentureNet Iowa

SSBCI Funds Invested in Small Businesses

Venture Capital Program Design and Operations

IEDA manages the IDF/IIAF funds, but they contract with VentureNet Iowa to provide deal sourcing and 

investment due diligence services. As a state agency, IEDA is prohibited by state law from making equity 

investments in small businesses. Therefore, IDF/IIAF investments are structured as low-interest loans that may also 

include a royalty component.

Historically, IDF investments with state capital averaged less than $150,000 per investment. With SSBCI capital, 

Iowa LAUNCH investments (pre-seed) have averaged $100,000 per investment, Iowa PROPEL investments have 

ranged from $250,000 to $500,000 with an average of about $400,000 per investment, and the Iowa INNOVATION 

EXPANSION investment was for $1,000,000. Co-investors include angel investors and venture capital or private 
174

equity investors. VentureNet Iowa often serves a catalytic role in sourcing deals and assisting small businesses in 

meeting with potential co-investors. 

Venture Capital Program Outcomes

As of December 31, 2015, IDF has expended $7.7 million or 85 percent of its $9.0 million allocation, generated 

almost $44 million in new investment or $5.7 for every $1 in SSBCI funds spent. IDF has reported that the 23 

investments will help create or retain 440 jobs. 

Table IA-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

23 $7.7 million $0 $43.8 million $1.91 million 5.73:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

440 7 FTEs 4 years 13% 4%

1. Manufacturing

2a. Information

2b. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• IEDA program managers temporarily delayed the IDF/IAAF program implementation while the state 

implemented a major reorganization of the agency previously known as the Iowa Department of Economic 

Development. 

• Shortly after the initial IIAF program investments were made in the third quarter of 2012, IEDA modified 

its SSBCI program to increase the IDF/IAAF allocation from $5 million to $9 million. Even after 

increasing the program size by 80 percent, IEDA and VentureNet Iowa were able to rapidly deploy the 

IDF/IAAF program capital.
175

Kansas

PROGRAM PORTFOLIO OVERVIEW71

Using $13.2 million in SSBCI allocation, Kansas operates a loan participation program and a venture capital 

program. With the SSBCI program portfolio, the state sought to continue providing support to small business 

lending in rural areas, expand loans to entrepreneurs in urban environments, and support the momentum of 

businesses that have achieved early success with capital raised from seed and early stage investors.

NetWork Kansas, a state-chartered non-profit organization created by the Kansas Economic Growth Act of 2004, 

manages the program. It enables entrepreneurs and small business owners to connect with its large partnership 

network throughout the state to find education, expertise, and economic resources.

Table KS-1: Kansas’ SSBCI Program Portfolio Summary

Combined Program Outcomes

Kansas supported 81 loans and investments that generated $210 million in total financing through December 31,

2015. 

Table KS-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

81 $12.4 million $314,500 $210.3 million $2.60 million 16.95:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

1,644 7 FTEs 3 years 38% 37%

1. Manufacturing

2. Accommodation and Food 

Services

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 71 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Kansas Capital Multiplier Loan Fund Loan Participation $9.2 million NetWork Kansas

Kansas Capital Multiplier Venture Fund Venture Capital $4 million NetWork Kansas
176

CREDIT SUPPORT PROGRAM

Loan Participation Program

Under the Kansas Capital Multiplier Loan Fund, businesses can apply for matching loans up to 9 percent of 

available private financing, with the state in a subordinate position to the lender. Minority- and women-owned

businesses are eligible for matching loans up to 20 percent. The minimum companion loan amount is $25,000, while 

the maximum amount is $500,000. 

NetWork Kansas requires partners to clearly define a funding gap. Often companion loans are made in conjunction 

with a SBA loan, both 7(a) and 504. Loans are closed and serviced by five NetWork Kansas community 

development corporation partners. NetWork Kansas pays the community development corporations a fixed amount 

to document and close loans and $30 per month per loan to collect and remit payments.

Applications are submitted on the behalf of small businesses by partner organizations, which also provide technical 

assistance to the borrowers. Partner organizations execute loan agreements with the small business and administer 

closed loans. To supplement partner-marketing efforts, NetWork Kansas initiated direct outreach to banks and 

hosted lender roundtable sessions to raise the visibility of the SSBCI program.

NetWork Kansas also taps a certified development company to complete due diligence on the transaction and ready 

loan applications for review committee consisting of a banker from the Kansas Bankers Association, two 

representatives that are NetWork Kansas partners, a Kansas Department of Commerce representative, a NetWork 

Kansas representative, and a NetWork Kansas board member. 

Credit Support Program Outcomes

Through December 31, 2015, Kansas’ loan participation program provided more than $8.8 million in support of 58

transactions and generated nearly $152 million in total financing or $17.20 in total financing for every $1 in SSBCI 

funds spent. Businesses reported that the loans will help create or retain 987 jobs. Accommodations and food 

services and manufacturing businesses comprise the majority of loan participations. 

Table KS-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

58 $8.8 million $314,500 $152.1 million $2.62 million 17.24:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

987 8 FTEs 3 years 41% 43%

1. Accommodation and Food 

Services

2. Manufacturing

3. Retail Trade

*Includes funds expended for administrative costs
177

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The availability of SSBCI funds has changed the market in which NetWork Kansas operates, by allowing 

the organization to pursue much larger transactions than it previously could. The program manager’s staff 

indicate that this has been a “game changer” for its organization. For example, SSBCI is credited for 

NetWork Kansas’ ability to raise its maximum companion loan amount from $45,000 to $500,000. 

• Much of the strength of the Kansas approach is found in the shared and leveraged resources of the multiple 

organizations participating in the NetWork Kansas model. Because NetWork Kansas plays a unique 

convener role, Kansas can help bring together partner organizations to buy into such an arrangement. 

• NetWork Kansas benefits by the allocation of $2 million in annual state income tax credits used to raise 

additional funds for loan and technical assistance programs. NetWork Kansas also receives funding 

support from the Kansas Department of Commerce. This allows NetWork Kansas to use all of its SSBCI 

funds for lending and investing. 

VENTURE CAPITAL PROGRAM

The Kansas Capital Multiplier Venture Fund (KCMVF) is a $4 million co-investment venture capital program 

representing 30 percent of the state’s $13.2 million SSBCI allocation. KCMVF partners with regional venture 

development organizations and angel investor networks to accelerate the closing of investment rounds in highgrowth businesses seeking angel investment. The investment goal is to support the momentum of businesses that 

have achieved success to from seed/early stage investors and are now raising capital to accelerate growth. Many of 

the partner organizations supplying investment opportunities for KCMVF were formerly sponsored by the state 

through substantial technology-based economic development programs that lost state funding after 2011. 

Venture Capital Program Design and Operations

KCMVF seeks referrals from NetWork Kansas partners for profitable investment opportunities in small businesses 

with substantial market validation and commitments from lead and co-investors. Small businesses seeking KCMVF 

participation typically have developed and marketed products with capital from founders, angel investors, or profits 

from seed stage operations and are raising substantial angel rounds or venture capital to finance rapid growth. 

KCMVF will provide contingent commitments of capital that small businesses can use to catalyze decisions by lead 

and co-investors. KCMVF invests on pari passu terms with other investors at no more than 9 percent of the total 

capital invested in the round and a maximum investment of $250,000. KCMVF sources deals through referrals from 

NetWork Kansas partners—regional venture development organizations and angel investor groups that facilitate due 

diligence reviews and investment decisions. These partners include the Wichita Technology Corporation, Midwest 

Venture Alliance, the Enterprise Center of Johnson County, Mid-America Angels, technology 

incubators/accelerators at the University of Kansas and Kansas State University, the Kansas Bioscience Authority,

and the Pipeline entrepreneur mentoring program. 
178

Figure KS-4: KCMF Program Structure

Kansas Department of Commerce

State Applicant

Network Kansas

Quasi-Public Non-profit Contract Administrator

Kansas Capital Multiplier Venture Fund

New State VC Program Operating as an Authorized Co-Investment Fund

SSBCI Funds Invested in Small Businesses

Co-Investment via pre-determined ratio to private investment

Venture Capital Program Outcomes

KCMVF expended $3.6 million or 92 percent of its $4 million allocation through December 31, 2015, and generated 

$58 million in total financing or $16.20 in total financing for each SSBCI dollar spent. The initial leverage ratio per 

transaction ranges from 10:1 to 19:1 primarily due to the policy that KCMVF will not invest more than 9 percent of 

an investment round. Businesses reported that the SSBCI capital will help create or retain over 650 jobs. KCMVF 

has already achieved a profitable exit from a portfolio company when a growth-stage technology company closed an 

investment round with participation from SSBCI capital and subsequently completed a successful IPO.

Table KS-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

23 $3.6 million $0 $58.2 million $2.53 million 16.22:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in

Non-Metro 

Areas Top Industries Assisted

657 5 FTEs 2 years 30% 22%

1. Manufacturing

2. Professional, Scientific, and 

Technical Services

3. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Network Kansas increased the KCMVF allocation from $2.6 million to $3.6 million in response to strong 

demand from partner organizations. 
179

• NetWork Kansas program managers perceive that the program has partially offset the unmet demand for 

venture capital resulting from state budget cuts for organizations that previously invested in Kansas-based 

technology businesses, but noted that its investment strategy is not intended to replace the pre-seed and 

seed stage capital investment programs that helped many of the KCMVF businesses get started. 
180

Kentucky

PROGRAM PORTFOLIO OVERVIEW72

Using $15.5 million in SSBCI allocation, Kentucky operates three credit support programs and a venture capital 

program. The credit support programs include: collateral support (KYCSP), loan participation (KYLPP), and capital 

access (KYCAP). In August 2014, Treasury approved the Kentucky Venture Capital Program (KYVCP), a new 

state venture capital program, for participation under SSBCI. However, Kentucky requested to terminate the 

KYVCP in November 2015 because of inactivity due to lower than anticipated deal flow.

The Cabinet for Economic Development (Cabinet), the state agency responsible for encouraging job creation,

retention and new investment, serves as the SSBCI program manager. The SSBCI program operates under the 

auspices of the Kentucky Economic Development Finance Authority (KEDFA), established within the Cabinet to 

encourage economic development and is responsible for awarding most of the financial incentives offered by the 

Cabinet.

Table KY-1: Kentucky’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Kentucky supported 117 loans that generated almost $83 million in total financing through December 31, 2015. 

Table KY-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

117 $9.9 million $0 $82.7 million $707,200 8.38:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,644 5 FTEs 4 years 43% 47%

1. Manufacturing

2a. Accommodation and Food 

Services

2b. Retail Trade

*Includes funds expended for administrative costs

 72 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Kentucky Collateral Support Program Collateral Support $10.9 million Cabinet for Economic Development

Kentucky Loan Participation Program Loan Participation $1 million Cabinet for Economic Development

Kentucky Capital Access Program Capital Access $115,600 Cabinet for Economic Development

Kentucky Venture Capital Program Venture Capital $3.5 million Cabinet for Economic Development
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CREDIT SUPPORT PROGRAMS

Collateral Support Program

KYCSP provides a pledged asset (cash collateral account) to an enrolled lender of up to 20 percent of their loan in 

order to enhance the collateral coverage of a small business borrower that is otherwise qualified but unable to meet 

the lender’s security requirements. KEDFA reduces the cash collateral account proportionately with the principal 

reduction of the loan. KEDFA can also withdraw interest earned on the cash collateral account. If a cash collateral 

account exceeds the federally insured amount, a lender must provide pledged assets sufficient for compliance with 

state law. For KYCSP, the lender pays KEDFA a closing fee of 1 percent of the initial deposit into the cash 

collateral account for a loan with a term of less than 3 years; 2 percent for a loan term of 3 to 5 years; and 3 percent

for a term in excess of 5 years. The lender may be reimbursed for the closing fee by the borrower. However, to 

date, Kentucky has waived fees for the KYCSP.

Loan Participation Program

KYLPP purchases up to 20 percent of a qualified lender’s small business loan. Unlike KYCSP, KYLPP’s loan 

participation is often on a pari passu basis. Closing fees and late fees are split pro-rata with the lender. KEDFA’s 

participation can carry an interest rate as low as 0 percent and no principal payments for up to 24 months. After this 

initial grace period expires, the interest rate and amortization period will be commensurate with the bank loan.

Capital Access Program 

Modeled on a traditional capital access program that involved borrowers and lenders setting aside a loan loss reserve 

pool, Kentucky found minimal demand for KYCAP. The SSBCI resources allocated to the KYCAP have been 

reduced substantially to meet other financing needs.

KEDFA approves participating lenders based on their marketing plan for LMI communities; the mechanism for 

determining the amount of financial support needed on a per-loan basis; which programs the lender will use and how 

they will use them; and the counties to be served. KEDFA views the participating lenders as the primary 

underwriters of the loans for credit purposes, and KEDFA’s primary responsibility is to review the loan for 

compliance with SSBCI regulations. KEDFA gets a complete underwriting package from the lender – the due 

diligence memo, spreads, appraisals, etc. KEDFA staff members review each package for compliance and any 

significant credit issues. In particular, KEDFA reviews the package to determine how the lender determined the 

amount of state participation or collateral support. Any commitment of lending support in an amount over $250,000 

requires approval from the KEDFA board, based on a summary of the proposed loan. 

Credit Support Program Outcomes

Through December 31, 2015, Kentucky’s credit support programs provided more than $9 million in support of 117

transactions and generated nearly $93 million in total financing or $8.40 in total financing for every $1 in SSBCI 

funds spent. Businesses reported that the loans will help create or retain over 1,600 jobs. See Table KY-2 for 

additional credit support program outcomes.

Kentucky does not collect outcome data beyond that required by Treasury, but the state tracks the geographic 

location of loans to ensure widespread distribution, particularly in rural and low-income areas.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Kentucky experienced more rapid deployment of SSBCI funds when it temporarily waived fees for its KYCSP 

program.
182

• Deployment was low in the KYCAP because it was a new program to Kentucky, it is hard for bankers to 

understand and requires a significant volume of loans before the loss reserves provided through the program are 

effective risk mitigants. 

• KYLPP and KYCSP are in many ways similar products, with the primary difference being the pari passu status 

of KYLPP’s participation. Because KYCSP provides subordinated capital accounts, lenders are more likely to 

use that product.

• Kentucky helped ensure widespread use of SSBCI funds, including in rural areas, by marketing its programs 

extensively in all parts of the state and getting lenders from rural areas enrolled in the program.

• Most of the lending has taken place in urban areas, which highlights the possibility of using Community 

Reinvestment Act credit as a selling point to the banks in the future. 
183

Louisiana

PROGRAM PORTFOLIO OVERVIEW73

Using $12.4 million in SSBCI allocation, Louisiana funded a loan guarantee program and a venture capital program. 

Both programs existed prior to SSBCI funding. 

The Louisiana Department of Economic Development (LED) is the state agency responsible for administering the 

funds that use both the Louisiana Small Business and Guarantee Loan program (SBLP), and a venture capital 

program, the Louisiana Seed Capital Program (LSCP) through its Louisiana Economic Development Corporation 

(LEDC). LED’s mission is to cultivate jobs and economic opportunity for the people of Louisiana.

Table LA-1: Louisiana’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Louisiana supported 61 loans and investments that generated almost $39 million in total financing through 

December 31, 2015. 

Table LA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

61 $5.1 million $0 $38.8 million $635,700 7.59:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

828 4 FTEs 2 years 16% 8%

1. Manufacturing

2. Administrative and Support 

and Waste Management and 

Remediation Services

3. Information

*Includes funds expended for administrative costs

 73 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Small Business Loan Guarantee Loan Guarantee $7.6 million Louisiana Economic Development 

Corporation 

Louisiana Seed Capital Program Venture Capital $4.8 million Louisiana Economic Development 

Corporation 
184

CREDIT SUPPORT PROGRAM

Loan Guarantee Program

Originally created in 1988, the SBLP provides lenders with a maximum guarantee of up to 75 percent of the loan 

amount, with a maximum loan size of $2 million. For the first few years of the program, LEDC charged a fee on the 

guaranteed amount of the loan, ranging from 2 percent to 4 percent, but subsequently LEDC waived fees to 

encourage lenders to use the program. 

Credit Support Program Outcomes

Through December 31, 2015, the program manager expended $3.8 million in SSBCI funds to support 36 

transactions and generated $6.0 in total financing for each SSBCI dollar spent. Businesses reported that the loans 

will help create or retain over 600 jobs. Businesses in the manufacturing industry received one-quarter of the loans.

Table LA-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

36 $3.8 million $0 $22.9 million $636,900 6.02:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

668 6 FTEs 2 years 22% 14%

1. Manufacturing

2. Administrative and Support 

and Waste Management and 

Remediation Services

3a. Construction

3b. Wholesale Trade

*Includes funds expended for administrative costs

LEDC’s primary mission is focused on providing additional access to capital to Louisiana small businesses. These 

efforts directly affect the state’s investments to promote job creation and retention, a goal closely aligned with 

SSBCI. For a loan of $100,000 or less, LEDC expects the borrower to create at least one job. However, for loans 

over $100,000, the company must create at least two permanent jobs. To monitor the success of the program, LED 

has a data sharing agreement to access state wage records from the Louisiana Workforce Commission. LEDC 

requires the applicant company to provide its tax identification numbers and unemployment insurance identifier, 

allowing LED to validate job creation and retention against state wage records. 

LEDC has used SBLP to assist a diverse set of businesses including the service and manufacturing sectors. The 

banking community and small business development centers have been more active in helping businesses in the 

southern part of the state. LEDC is trying to focus more of its marketing efforts to engage more lenders in the 

northern and central parts of the state to address the unmet small business capital needs. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:
185

• LED promotes and encourages the use of SSBCI programs in coordination with other state programs and 

incentives. 

• LEDC has simplified the program to be more user friendly, creating an incentive for lenders to access the 

program.

• LED began by offering a guarantee for the initial three years of the loan, but in December 2013, the agency 

extended the potential length of the guarantee for up to seven years in response to lender concerns. 

• It is invaluable for experienced loan staff to have high enough loan approval authority to allow for quicker 

loan processing.

• Smaller and younger businesses in particular need access to credit enhancement for lines of credit. LEDC 

is concentrating on providing guarantees for lines of credit and equipment acquisition. 

• To increase program usage, LEDC is experimenting with multiple ways to market the program. Some 

approaches involved targeting businesses directly through its small business programs (e.g., an economic 

gardening initiative) and other state-administered programs (including the community development block 

grant and infrastructure loan programs) or incentive programs (e.g., Quality Jobs).

• The decision to charge or waive administrative fees represents a balance between the desire to incentivize 

participation among firms that are least able to participate and the desire to generate resources to cover 

administrative costs and offset potential program losses.

• LED’s lending activities have found a particular niche in providing access to lines of credit for small 

businesses.

VENTURE CAPITAL PROGRAM

The LSCP is a fund of funds supported by an allocation of $5.1 million and administered by the LEDC. The general 

program structure was originally created by the state in the year 2000. However, SSBCI provided the opportunity

for Louisiana to update and support the program with sufficient resources to stimulate private investment in highgrowth potential small businesses. State and regional efforts to revitalize the New Orleans area following Hurricane 

Katrina also led to an increased focus by public and private stakeholders on supporting small businesses and 

emphasizing equity-based capital formation.

The program objective is to spur private investment in high-growth-potential small businesses and build investment 

capacity by supporting the development of new funds focused on seed- and early-stage investments. LEDC selected 

the fund of funds venture capital program structure because the state lacked venture capital investing capabilities 

and had articulated a strategy of engaging private investors to leverage their investing expertise and professional 

networks.

Venture Capital Program Design and Operations 

The program manager contracts with private investment fund managers in Louisiana to source, transact, and manage 

equity investments in Louisiana small businesses. The venture capital program is structured to have LEDC invest as 

a limited partner in each fund, with the state’s financial interest aligned with the other limited partner investors on a 

pari passu basis. 

Contracted investment managers recoup administrative costs from the first 20 percent of investment returns. 

Additionally, the principal investment will be returned to each fund’s limited partners, with any residual capital 

(profits) split 80 percent to the limited partners (including LEDC) and 20 percent to fund managers. 

LEDC managed a competitive process to select participating fund managers, with the organization’s staff assisting 

in the review of applicants and the organization’s board of directors having the decision authority to select 

investment managers and commit SSBCI funds. The LSCP portfolio consists of four investment funds – three nonprofit funds and one for-profit fund (see Table LA-4).
186

Table LA-4: Venture Capital Investment Funds

Investment Fund Name

SSBCI 

Allocation 

Targeted Investment 

Stage Fund Structure Region Served

New Orleans Startup Fund $2 million Seed Nonprofit Greater New Orleans Region

Themelios Ventures $1 million Early to Growth For Profit Baton Rouge, Shreveport

Lafayette General Healthcare 

Fund

$1 million Early Nonprofit Lafayette, New Orleans Region

Catalyst Fund $1 million Seed/Early Nonprofit Baton Rouge

The contracted investment funds can make investments outside the state of Louisiana; however, the program 

manager requires each fund to invest at least 2.5 times the amount of allocated SSBCI funds in Louisiana-based 

businesses (SSBCI capital plus private capital match) before investing in out-of-state opportunities. This 

requirement is documented by a side letter agreement with each fund manager.

Figure LA-5: LSCP Structure

Louisiana Economic Development Corporation

Quasi-state Agency Non-Profit

State Applicant and Program Manager

Louisiana Seed Capital Program

A Fund-of-Funds State Venture Capital Program

New Orleans Startup 

Fund

Contracted Investment 

Manager

($2 million allocation)

Themolios Ventures

Contracted Investment 

Manager

($1 million allocation)

Catalyst Fund

Contracted Investment 

Manager

($1 million allocation)

Lafayette General 

Healthcare Fund

Contracted Investment 

Manager

($1 million allocation)

SSBCI funds are held by LEDC and committed to contracted investment managers on same terms as other 

limited partners in the funds

Venture Capital Program Outcomes

Through December 31, 2015, LEDC expended $1.3 million in SSBCI capital in 25 small business investments. The 

SSBCI capital expended has generated $16 million in total financing or $12.20 in total financing for every $1 in 

SSBCI funds spent.

Table LA-6: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

25 $1.3 million $0 $15.9 million $634,000 12.15:1
187

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro

Areas Top Industries Assisted

160 3 FTEs 2 years 8% 0%

1. Information

2. Professional, Scientific, and 

Technical Services

3. Manufacturing

*Includes funds expended for administrative costs

The program manager collects both quantitative outcome data and noted qualitative outcomes. For example, LEDC 

observed an increase in entrepreneurial activity in both the New Orleans and Baton Rouge areas, with greater 

participation in small business events and an increase in angel investment. The increased activity contributes to 

greater investor confidence and awareness in Louisiana’s entrepreneurial ecosystem to generate and support 

attractive investment deals.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Having a preexisting state program structure available to modify when SSBCI funds became available 

helped LEDC and investment partners respond more quickly during the early design and implementation 

phase.

• In developing investment/entrepreneurial ecosystems, LEDC found it challenging to identify qualified, 

credible equity-based investment managers with which to partner for investment services.

• When contracting with private investment managers to source and transact investments, the state program 

manager does not have control of the pace of capital deployment. The draw and investment of SSBCI 

funds has been slower than anticipated.
188

Maine

PROGRAM PORTFOLIO OVERVIEW74

Using $13.2 million in SSBCI allocation, Maine injected new capital into two existing credit support programs and 

an existing venture capital program. With the SSBCI capital, the state expanded these programs to aid small 

businesses that have often been shut out of traditional debt financing and also help connect technology entrepreneurs 

in small, remote areas to angel investors.

Maine’s Department of Economic and Community Development (DECD), the implementing agency for the state, 

contracted with the Finance Authority of Maine (FAME), to administer the program. FAME is a quasi-independent 

agency established as Maine's business finance agency in 1983.

Table ME-1: Maine’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Maine supported 43 loans and investments that generated almost $45 million in total financing through December 

31, 2015. 

Table ME-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

43 $5.7 million $0 $44.5 million $1.04 million 7.76:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

848 10 FTEs 4 years 28% 12%

1a. Manufacturing 

1b. Professional, Scientific, and 

Technical Services

2. Health Care and Social 

Assistance

*Includes funds expended for administrative costs

 74 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Regional Economic Development 

Revolving Loan Program Loan Participation $7 million Finance Authority of Maine 

Economic Recovery Loan Program Loan Participation $1.9 million Finance Authority of Maine 

Small Enterprise Growth Fund Venture Capital $4.3 million Finance Authority of Maine 
189

CREDIT SUPPORT PROGRAMS

Loan Participation Programs

Through its Regional Economic Development Revolving Loan Program (REDRLP) and Economic Recovery Loan 

Program (ERLP), FAME has a history of providing “gap” financing to Maine’s businesses either directly or by 

partnering with local economic development agencies and commercial banks. 

The ERLP is a direct loan program that provides financing to new or existing small businesses. The maximum loan 

amount is $750,000 but may be increased to $1,000,000 if the project has substantial public benefit. ERLP loans 

have a maximum term of five years with interest rates fixed at prime plus 2 percent and an origination fee of 1 

percent. When used to complete a financing package with a private lender, the ERLP provides subordinate debt.

Similar to the ERLP, the Regional Economic Development Revolving Fund (REDRLP) provides subordinate 

financing to assist businesses in their efforts to remain viable and/or improve productivity. Under the REDRLP, a 

participating regional economic development agency provides financing to eligible borrowers who can demonstrate, 

among other requirements, the financial commitment from other sources of private financing. The agency provides 

up to 50 percent of the funds for loans under $100,000 and 33 percent for loans that exceed $100,000. The 

maximum loan amount under the REDRLP is $350,000. Historically, funds have been used to finance businesses 

with fewer than 50 employees and revenues of $5 million or less. Fifteen lenders (CDFIs and regional economic 

development agencies) currently participate in the REDRLP.

Credit Support Program Outcomes

Through December 31, 2015, FAME participated in 25 loans totaling $3.1 million in SSBCI funding. These loans 

generated $29.4 million in total financing or $9.50 in total financing for every $1 in SSBCI funds spent. Businesses 

reported that the loans will help create or retain about 400 jobs. 

Table ME-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

25 $3.1 million $0 $29.4 million $1.18 million 9.47:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

404 6 FTEs 4 years 32% 16%

1. Health Care and Social 

Assistance

2a. Manufacturing

2b. Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Using SSBCI funding, FAME changed its loan-limit size from $250,000 to $350,000 for REDRLP to allow

FAME to participate in larger deals, which increases both their market opportunities and potential impact. 

• The program manager reports that it is important to ensure that lenders know about capital availability. 

They actively use the Maine Technology Institute and Maine Community Foundation as conduits for 
190

communication. Because these programs have existed for several years, FAME continues to build on

existing relationships, adapts to market needs and partner organizations’ priorities. 

VENTURE CAPITAL PROGRAM

The Small Enterprise Growth Fund (SEGF) is managed by the Maine Venture Fund (MVF), a legislatively created, 

professionally managed venture capital fund whose mission is to provide resources to attract, support, and help 

develop small businesses with the potential for substantial growth and success that will contribute to the prosperity 

of Maine. MVF serves Maine entrepreneurs seeking risk capital for small businesses aspiring to high growth. MVF 

connects technology entrepreneurs in a small, remote and sparse state to angel investors.

Venture Capital Program Design and Operations

Maine’s DECD designated FAME as the SSBCI program manager. FAME initially created MVF in 1996 with a 

one-time $13 million state grant to operate an evergreen fund. It later spun out as an independent non-profit. 

FAME continues to actively partner with MVF and provides oversight and marketing services. The MVF team is 

experienced and very well known throughout Maine’s innovation ecosystems. 

MVF employs experienced venture capital investors to manage the fund with a priority on generating financial 

returns from investments because investment proceeds extend the economic development value of the evergreen 

fund. The primary economic development productivity measure is private capital investment leveraged by MVF 

investments. 

Figure ME-4: SEGF Structure

Maine Department of Economic and Community Development

Official State Applicant

Finance Authority of Maine

State-Sponsored Non-Profit Program Manager

Small Enterprise Growth Fund

$4.3 million State Venture Capital Program 

managed by the Maine Venture Fund

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

As of December 31, 2015, MVF had invested $2.6 million or 60 percent of the $4.3 million SEGF allocation. MVF 

investments have generated about $15 million of new capital or $5.80 in new capital for every $1 in SSBCI funds

spent. Businesses reported that the investments will help create or retain 444 jobs. 

MVF is a significant player in Maine’s innovation ecosystem, which is relatively small and geographically removed 

from New England’s prolific venture capital environment. SSBCI capital helped MVF expand its investment 

capacity by more than 50 percent. 
191

Table ME-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

18 $2.6 million $0 $15.2 million $842,100 5.76:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

444 18.5 FTEs 3.5 years 22% 6%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Construction

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• MVF adjusted its conflicts of interest policy from a model that allows voting members to disclose actual or 

potential conflicts and recuse themselves from voting to a model that removes active angel investors from 

the fiduciary roles of approving investments and monitoring program managers.
192

Maryland

PROGRAM PORTFOLIO OVERVIEW75

Using $23 million in SSBCI allocation, Maryland operates three credit support programs and a venture capital 

program – each existed prior to program implementation and was expanded with federal funds. With the SSBCI 

program portfolio, the state sought to invest in research and positively affect neighborhoods. 

The Maryland Department of Commerce (DOC) administers the loan guarantee and venture capital programs, and 

the Maryland Department of Housing and Community Development (DHCD) administers the Subordinate Debt 

Program. The Maryland Venture Fund (MVF) is a separate corporate entity operated by the Maryland Technology

Development Corporation (TEDCO). 

Table MD-1: Maryland’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Maryland supported 42 loans and investments that generated almost $280 million in total financing through 

December 31, 2015. 

Table MD-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

42 $9.8 million $0 $279.5 million $6.65 million 28.41:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,723 14.5 FTEs 5.5 years 31% 0%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

 75 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Neighborhood Business Works Program Loan Participation $1.5 million Maryland Department of Housing and 

Community Development

Maryland Small Business Development 

Financing Authority Loan Guarantee 

Program

Loan Guarantee $1.5 million Maryland Department of Commerce 

Maryland Industrial Development 

Financing Authority Loan Guarantee 

Program

Loan Guarantee $828,000 Maryland Department of Commerce 

Maryland Venture Fund IV Venture Capital $19.2 million Maryland Venture Fund
193

CREDIT SUPPORT PROGRAMS

Loan Participation Program

DHCD targets projects for the Subordinate Debt Program that positively affect a neighborhood by revitalizing

vacant buildings or increasing first-floor commercial space. Loan amounts can be up to $500,000 or 50 percent of 

total project cost, whichever is less, and up to a 15-year term.

Loan Guarantee Programs

Maryland Small Business Development Financing Authority (MSBDFA) Loan Guarantee Program: This 

program targets small businesses that are owned by socially or economically disadvantaged persons. The program 

guarantees up to 80 percent of a bank or CDFI loan. After slower than anticipated deployment, Maryland 

reallocated all but $1,485,000 of the original allocation amount ($4,500,000) to the venture capital program. 

Maryland Industrial Development Financing Authority (MIDFA) Loan Guaranty Program: This program 

guarantees fixed asset loans, letters of credit, leasing, and other small business working capital needs up to a 

maximum of $2,500,000 per borrower. The maximum guarantee is 80 percent, of which 20 percent of the 

guaranteed portion is set aside in a guarantee reserve fund. The typical guarantee is in the range of 20 percent to 50

percent of the loan amount. After slower than anticipated MIDFA deployment, Maryland shifted all but 

approximately $800,000 from the MIDFA to the venture capital program. 

Credit Support Program Outcomes

Through December 31, 2015, Maryland expended $1.6 million in SSCBI funds to support 20 transactions that 

generated total financing of almost $16 million and achieved a leverage ratio of 9.9 to 1. Businesses reported that 

these loans will help create or retain approximately 500 jobs. 

Table MD-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

20 $1.6 million $0 $15.9 million $793,600 9.96:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

510 3 FTEs 8 years 30% 0%

1. Professional, Scientific, and 

Technical Services

2. Accommodation and Food 

Services

3. Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:
194

• For the MIDFA LGP, the state set a set aside 20 percent of the guarantee amount in cash, and setting aside 

more cash to cover guarantees may have attracted more interest in the program as a strategy for speeding 

the deployment of funds. 

• Overall economic conditions impacted the speed of the deployment of funds by MIDFA and MSBDFA in 

that banks were slow to lend money in general. 

• The state would recommend compliance training for the lenders so that there are no issues when a loan is 

submitted for consideration in a program. 

• The state noted that it would want to have stand-alone SSBCI programs (that are not integrated into the 

current programs) due to two reasons:

o There were administrative complications with the integration of the SSBCI funding into the 

existing programs. 

o There would be less confusion when marketing the programs as SSBCI funds, particularly when 

the federal funds included limitations that were not in the existing state programs such as not 

allowing the funds to be used for passive real estate and refinancing of debt. 

VENTURE CAPITAL PROGRAM 

The Maryland Venture Fund IV (MVF IV) increased the supply and accessibility of venture capital for Marylandbased businesses. The program’s objective is to catalyze private investment in larger risk capital financing 

opportunities targeting early-stage, pre-revenue technology businesses with less than $1 million in annual revenues. 

The program manager has communicated a goal of operating the MVF IV synergistically within Maryland’s 

economic development portfolio of state venture development and investment programs such as the research 

commercialization assistance initiatives at TEDCO and the InvestMaryland fund of funds program.

Venture Capital Program Design and Operations

The MVF IV targets technology business investments, broadly defined by the program manager, which have been

executed as equity rounds or convertible debt instruments. The SSBCI investment size was estimated to be between 

$50,000 and $500,000 from seed to Series A financings, with minimum private investment leverage ratio of 1 to 1 at 

time of initial investment. The MVF IV leads investment rounds, and for some investments is the first outside 

capital invested into a company. Although MVF IV is comprised of both SSBCI and state funds, the former is 

delineated through a separate account for investment in small businesses. 

The entrepreneurial ecosystem and venture capital industry are developing in Maryland, with the MVF IV attracting 

co-investment from institutional venture capital funds and family office funds in the region, as well as from angel 

investors. Furthermore, technology commercialization and venture development assistance is provided through 

TEDCO and a statewide network of partners that includes universities, business incubators/accelerators, and 

economic development organizations. The state’s strategy is to work with and through these partners and programs 

to identify and support investment opportunities from idea stage through company growth stages.

At the conclusion of SSBCI, TEDCO will maintain control over investment funds and any financial returns for 

future deployment into Maryland-based businesses.
195

Figure MD-4: MVF IV Program Structure

Maryland Technology Development Corporation

Quasi-Public State Entity

Assumed Oversight of MVF as Program/Investment 

Manager as of October 1, 2015

Maryland Department of Commerce

State Applicant and Agency Investment Manager

Maryland Venture Fund

Existing VCP with both SSBCI and state funding

Small Business Investments

Venture Capital Program Outcomes

As of December 31, 2015, the MVF IV had invested $8.2 million or 43 percent of the $19.2 million allocation. 

MVF IV investments have generated $264 million in new capital or $32 in new capital for every $1 in SSBCI funds

spent. Businesses reported that the investments will help create and retain over 1,200 jobs.

Table MD-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

22 $8.2 million $0 $263.6 million $11.98 million 31.97:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,213 19 FTEs 5 years 32% 0%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

During the course of program implementation, the MVF IV has experienced a delay in deploying funds to small 

businesses due to concerns over the fund’s status as an “accredited investor,” as defined by the Securities and 

Exchange Commission (SEC). Because the fund is managed within a state government agency and not structured as 

an independent legal entity, the fund does not align clearly with the accredited investor definition. This alignment is 

important to investees because accepting funds from a non-accredited investor creates regulatory filing burdens for 

documenting private equity investments. In early 2013, Maryland DOC requested clarification from the SEC about 

the MVF’s accredited investor status in the form of a “no action” letter; however, the SEC did not provide sufficient

guidance to alleviate concerns. As such, Maryland DOC explored a work around strategy with single purpose 

businesses created for unique investments, which resulted in a 6 – 8 month delay in deploying SSBCI funds.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• SSBCI support of the MVF IV was implemented within the context of a large-scale ($84 million) state venture 

capital initiative called InvestMaryland that provided funding to the MVF IV and a new fund of funds strategy. 
196

With additional capital to deploy, the MVF IV benefitted from the increased activity generated by 

InvestMaryland to attract interest from both businesses and investors while also looking to consolidate and 

streamline program management.

• When state legislative action is needed to authorize use of public funds or modify organizational authority, 

program managers should plan accordingly for a lengthy process. Specific to SSBCI, when a state operates 

more than one approved program, the performance of one program can impact the availability of funds for 

investment by another program. Considering this potential operational impact in advance during the design 

phase can help with effective implementation. 
197

Massachusetts

PROGRAM PORTFOLIO OVERVIEW76

Using $20.4 million in SSBCI allocation, Massachusetts operates three credit support programs – a CAP and two 

separately operated loan participation programs. 

Massachusetts’ Executive Office of Housing and Economic Development (EOHED) manages the programs through 

two partners: the Massachusetts Business Development Corporation (MBDC) and the Massachusetts Growth Capital 

Corporation (MGCC).

Table MA-1: Massachusetts’ SSBCI Program Portfolio Summary

Combined Program Outcomes

Massachusetts supported 776 loans that generated $110 million in total financing through December 31, 2015. 

Table MA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

776 $16.7 million $2.06 million $110.3 million $142,200 6.60:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

8,722 4 FTEs 6 years 26% 3%

1. Retail Trade

2. Construction

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 76 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

MGCC Loan Participation Loan Participation $13.9 million Massachusetts Growth Capital Corporation

MBDC Loan Participation Loan Participation $5 million Massachusetts Business Development 

Corporation 

Massachusetts Capital Access Program Capital Access $1.5 million Massachusetts Business Development 

Corporation 
198

CREDIT SUPPORT PROGRAMS

Loan Participation Program - MGCC

MGCC is non-profit quasi-public entity chaired by the Secretary of EOHED operating a loan participation program

that provides loans of $1million or less directly to small business either as the sole lender or a companion lender, 

depending on the business’s need. Targeted borrowers are small businesses in Massachusetts, including womenand minority-owned businesses and businesses in gateway cities or midsize urban centers that anchor regional 

economies around the state. The average size of an MGCC loan is approximately $375,000, with SSBCI providing 

50 percent of that amount. MGCC underwrites primarily credit lines and contract financing (terms of five year or 

less) and charges an origination fee of 3 points. Because these are higher risk loans, MGCC charges a minimum 

interest rate of 10 percent on its loans; however, MGCC also offers technical assistance on financial issues to help 

its borrowers reduce costs and identify alternative approaches to financing their business. As a result, most MGCC 

borrowers are able to refinance out of their MGCC loans early, allowing MGCC to recycle their funds more quickly 

and assist new borrowers.

Loan Participation Program - MBDC

MBDC is a for-profit certified development company that provides a full array of SBA and private financing, and 

capital investment for small business. It is member-owned and member banks make up a majority of its board of 

directors. MBDC co-funds loans with SSBCI and its own capital or uses SSBCI to make a companion loan to a 

bank loan. On companion loans MBDC generally provides 25 percent of the total financing package, on a 

subordinate basis. The average size of MBDC’s participation is about $500,000 (total financing package $1 to $3 

million). MBDC conducts its own underwriting and charges a one percent origination fee. Interest rates on MBDC 

loans are at market (usually around LIBOR plus 4-5 percent) or higher, based on risk. Loan terms vary from two to 

five years.

Capital Access Program

The Massachusetts CAP requires combined borrower and lender contributions from 2 percent to a maximum of 7

percent of the loan amount into a loan loss reserve. MBDC, which operated the state’s CAP prior to SSBCI, uses 

SSBCI funds to match the borrower and lender contributions on a one to one basis. Until February 2015, MBDC 

used additional state funds to overmatch the CAP above SSBCI’s support with an additional 1.5 percent contribution 

(with that overmatch increasing to 3 percent for loans made to businesses in gateway cities). State budget cuts 

eliminated the resources available for the state overmatch. 

Credit Support Program Outcomes

Through December 31, 2015, Massachusetts’ SSBCI credit support programs supported 776 loans using $16.7 

million in SSBCI funds. These credit support programs generated $110.3 million in total financing or $6.60 in total

financing for every $1 in SSBCI funds spent. Businesses reported that the loans will help create or retain over 8,700 

jobs. See Table MA-2 for additional credit support program outcomes.

Massachusetts primarily collects data on the required Treasury reporting metrics, but the state also monitors the 

amount of lending that occurs in cities targeted by the state for economic development.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Massachusetts partnered with existing quasi-public lenders that were already making loans and were able to 

deploy funds quickly as a result.
199

• In initiating the program quickly, the state used its SSBCI funds for loans before fully understanding some of 

the SSBCI requirements. The implementation of a centralized compliance review process in 2013 significantly 

improved the state's ability to confirm that the loans met SSBCI eligibility requirements. 

• Communicating the compliance plan to stakeholders, especially partner lenders, might have helped to make sure 

everyone understood what was possible under SSBCI and what was not allowed.

• Massachusetts partnered with alternative lenders, a model that can be useful in deploying capital quickly, but 

does not engage the banking industry in leveraging private financing for small businesses. 
200

Michigan

PROGRAM PORTFOLIO OVERVIEW77

Using $79.2 million in SSBCI allocation, Michigan operates three credit support programs and a venture capital 

program. With the SSBCI program portfolio, the state sought to provide a broad spectrum of financing assistance 

for industries that are important for the state. 

The Michigan Economic Development Corporation (MEDC) manages the program as the Michigan Business 

Growth Fund (MBGF). MEDC is a quasi-public organization that offers business assistance services and capital 

programs for business attraction and acceleration.

Table MI-1: Michigan’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Michigan supported 821 loans and investments that generated almost $477 million in total financing through 

December 31, 2015.

Table MI-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

821 $73.8 million $16 million $476.6 million $580,500 6.46:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

10,084 4 FTEs 5 years 32% 40%

1. Manufacturing

2. Retail Trade

3. Transportation and 

Warehousing

*Includes funds expended for administrative costs

 77 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

MBGF – Collateral Support Program Collateral Support $43.8 million Michigan Economic Development 

Corporation

MBGF – Loan Participation Program Loan Participation $25.1 million Michigan Economic Development 

Corporation

Michigan Capital Access Program Capital Access $2.2 million Michigan Economic Development 

Corporation

Michigan Loan Guarantee Program Loan Guarantee $2 million Michigan Economic Development 

Corporation

Small Business Mezzanine Fund Venture Capital $6 million Michigan Economic Development 

Corporation
201

CREDIT SUPPORT PROGRAMS

Collateral Support Program

The Michigan Business Growth Fund – Collateral Support Program (MCSP) has been the most active of all SSBCI 

credit support programs in Michigan and has recycled approximately 29 percent of its funding through December 

31, 2015. The program allows for collateral support up to 49.9 percent of the loan amount. A majority of financial 

institutions request collateral support in the amount of 33 – 49.9 percent of the total loan. MEDC charges an annual 

fee for collateral support in order to encourage the borrower and lender to release the state support as quickly as 

possible. Michigan has found that banks and credit unions of all assets sizes use the program, including large 

national banks. Additionally, the program is easy for banks to use as the loans are not technically “re-underwritten” 

but reviewed by an analyst to confirm the financial institution’s legitimate need for collateral support, 

appropriateness of the structure, and the perceived level of risk of the project.

Loan Participation Program

MEDC purchases up to 49.9 percent of a loan, with the maximum participation of $5 million through the Michigan 

Business Growth Fund – Loan Participation Program (MLPP). All participations are purchased on a pari passu

basis. MEDC may defer principal repayment or forego interest for a period up to 36 months, an option that typically 

funds expansion efforts with a short term cash flow constraint. Only around 20 percent of MLPP projects include 

any grace period on repayment. The MLPP has been successful with 14 percent of the funds recycled into new 

loans.

Capital Access Program

Michigan’s state-funded CAP was one of the earliest state programs of this type and SSBCI expanded the state’s 

CAP. Borrowers pay from 1.5 percent to 3.5 percent of the enrolled loan amount into a loan loss reserve account, 

which the lender matches so that total contributions range from 3 to 7 percent. Michigan then matches the combined

borrower and lender contributions on a one to one basis. Michigan has been successful with sustained program 

usage by numerous banks of every asset size, with an average loan size of less than $100,000. Enrollment of loans 

is simple and streamlined, as the financial institutions are qualified and registration of a specific loan is completed 

through a one-page application form. 

Michigan reallocated $2 million of its original CAP allocation of $4.2 million to the new Michigan Loan Guarantee 

Program (LGP). Despite strong demand and bank partnerships, the CAP deployed more slowly than MEDC 

expected due to challenges standing up the SSBCI CAP. The SSBCI CAP had different documentation 

requirements compared to the state’s original program. In addition, participating lenders had to establish a second 

loan loss reserve fund, as SSBCI funding could not be comingled with state funding.

Loan Guarantee Program

Michigan designed its LGP to reach micro and small businesses through non-bank CDFIs. Michigan provided a 20 

percent first loss guarantee for loans made by CDFIs for the purpose of funding small business loans.

Credit Support Program Outcomes

Through December 31, 2015, Michigan supported 815 loans from $71 million in SSBCI funding. The credit support 

programs have generated $464 million in total financing or $6.50 in total financing for every $1 in SSBCI funds

spent. Businesses reported that the loans will help create or retain almost 10,000 jobs. 

All of Michigan’s programs promote diversification or expansion in one of the qualified industries: mining, 

manufacturing, research and development, wholesale and trade, film and digital media productions, office 

operations, or high technology.
202

Table MI-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

815 $71 million $16 million $463.6 million $568,800 6.53:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

9,977 4 FTEs 5 years 32% 40%

1. Manufacturing

2. Retail Trade

3. Transportation and 

Warehousing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Even though each CDFI is pre-qualified, disbursements via the LGP were slow because each loan must be 

individually approved. 

• One key to deployment in all programs is continual marketing efforts to both lenders and management. 

• The success of CSP in the state led many other states participating in SSBCI to adopt the “Michigan 

model” as a best program design practice.

• Integration of the SSBCI funds into existing programs took longer than expected due to SSBCI 

documentation requirements. 

VENTURE CAPITAL PROGRAM

The Michigan Small Business Mezzanine Fund (SBMF) is a $6.0 million venture capital program managed by 

MEDC. It represents 7.5 percent of the state’s $79.2 million SSBCI allocation. SBMF is one program in a very 

large portfolio of MEDC-managed economic development investment funds. The state-funded portfolio includes 

$100 million of venture capital and private equity investments under the $295 million Jobs for Michigan Investment 

Fund. 

Due to the large existing state commitments to venture capital investments and the perception that the state’s 

greatest market need at the time of its SSBCI allocation was lending support to manufacturers in need of working 

capital, SBMF invests in later stage growth businesses seeking mezzanine capital which is typically structured as 

subordinated debt with the potential for equity participation or some other returns incentive aligned with the 

company’s growth.

Venture Capital Program Design and Operations

SBMF was designed to allow MEDC to invest directly in small businesses or to invest in venture funds. Late in 

2012, SBMF invested $425,000 of SSBCI capital in an investment round led by Arctaris, a mezzanine capital 

investment fund that uses royalties in lieu of equity participation to enhance investor returns from loans to growing 

small businesses. Based on the positive experience from the initial investment, MEDC elected to commit $4.5 

million to a new fund called the Arctaris Michigan Income and Principal-Protected Growth Fund, LP. With this 

commitment, Arctaris closed an additional $18 million of Limited Partner (LP) investments, creating a $22.5 million 

fund investing exclusively in Michigan growth businesses. Under the terms of the LP agreement, SBMF fully 
203

participates in 6 percent interest payments and 80 percent of profits above the return of principal plus interest 

payments; however, if fund returns fall below the return of principal plus 6 percent annual interest, SBMF’s share of 

the fund will absorb 75 percent of the shortfall up to a full loss of its $4.5 million investment.

Figure MI-4: SBMF Program Structure

Michigan Economic Development Corporation (MEDC)

Official State Applicant and Program Manager

Arctaris Michigan

$24 million Mezzanine Capital Fund Managing

$4.5 million of SSBCI Capital

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

Through December 31, 2015, SBMF expended $2.3 million out of its $6 million allocation. SSBCI investments 

from the program have generated $13 million of new capital investment or $5.70 in new capital for every $1 in 

SSBCI funds spent. Businesses reported that the SBMF investments will help create or retain approximately 100

jobs.

Table MI-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

6 $2.8 million $0 $13.0 million $2.17 million 4.63:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

107 21 FTEs 4 years 33% 0% 1. Manufacturing

2. Information

*Includes funds expended for administrative costs

Additionally, the program manager also collects data on SSBCI capital invested along with co-invested private 

capital leverage, the total employment (as reported by investment managers), and the geographic location of small 

business investments.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Compared to many peer states, Michigan has invested significant resources in state-sponsored venture 

capital funds for economic development purposes over the past decade. Program managers noted that they 

manage SSBCI programs as a component of a much larger state-sponsored economic development 

portfolio. 

• The strategy to use SSBCI capital for a later-stage investment strategy reflects a decision to focus resources 

towards small businesses not already served by the existing portfolio of funds or investment programs.
204

Minnesota

PROGRAM PORTFOLIO OVERVIEW78

Using $15.5 million in SSBCI allocation, Minnesota operates three credit support programs and a venture capital 

program. With the SSBCI program portfolio, the state sought to help lenders that need to increase their capacity to 

do small business lending. 

The Minnesota Department of Employment & Economic Development (DEED), which promotes business 

recruitment, expansion, and retention; international trade; workforce development; and community development,

manages the program.

Table MN-1: Minnesota’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Minnesota supported 228 loans and investments that generated almost $160.7 million in total financing through 

December 31, 2015. 

Table MN-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

227 $10.6 million $0 $160.7 million $707,800 15.15:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

3,323 2 FTEs 4 years 48% 19%

1. Manufacturing

2. Accommodation and Food 

Services

3. Retail Trade

*Includes funds expended for administrative costs

 78 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Emerging Entrepreneurs Fund Loan Participation $6.8 million Minnesota Department of Employment & 

Economic Development 

General Loan Guarantee Program Loan Guarantee $1.5 million Minnesota Department of Employment & 

Economic Development 

Capital Access Program Capital Access $500,000 Minnesota Department of Employment & 

Economic Development 

Angel Loan Fund Venture Capital $6.7 million Minnesota Department of Employment & 

Economic Development 
205

CREDIT SUPPORT PROGRAMS

Loan Participation Program

The Emerging Entrepreneurs Fund (EEF), a loan participation program that engages 11 pre-approved nonprofit 

lenders (mostly CDFIs) selected through a competitive process, is the state’s most active SSBCI credit support 

program. The program helps the nonprofit lenders lend in LMI areas. These lenders received a no fee, zero interest 

loan for 10 years (through 2022) so that they could make direct loans or purchase participation in loans made by 

other lenders. The participating lenders can purchase or contribute up to 50 percent of a loan using SSBCI funds. 

The maximum loan amount is $150,000 for the program, but most transactions are $50,000 or less. The CDFIs are 

primarily making loans to micro-businesses for a wide array of purposes. SSBCI is pari passu with the CDFI in 

these instances. However, in some cases, the CDFI may purchase a participation in a larger bank loan on a 

subordinated basis. In these cases, the SSBCI portion of the purchase is limited to 50 percent of the CDFI’s 

purchase (not the total loan amount). 

Loan Guarantee Program

The General Loan Guarantee program provides a 70 percent guarantee on loans made by CDFIs and non-profit 

lenders. CDFIs have been the primary vehicle for offering the guarantees, which have a maximum of $5 million. 

The guarantees are for the term of the loan, most of which have in the 5- to 7- year range, and carry a fee of 0.25

percent of the guarantee amount. Most of the guaranteed loans finance machinery, equipment, or real estate.

The program has gained only modest traction because there appears to be little interest in loan guarantees outside the 

state’s very active SBA loan program. 

Capital Access Program

Minnesota’s SSBCI program revived a CAP that operated between 1992 and 2011. Of the three SSBCI programs in 

Minnesota, the CAP has gained the least traction. Minnesota’s CAP requires the borrower and lender each to 

contribute from 1 percent to 3.5 percent of the loan amount to a loan loss reserve account so that total contributions 

range from 2 to 7 percent. The state uses SSBCI funds to match the borrower and lender contributions on a one to 

one basis. Two CDFIs, Northland Foundation in Duluth and the Metropolitan Consortium of Community 

Developers in Minneapolis, have enrolled 33 and 38 of the 71 CAP loans, respectively.

Credit Support Program Outcomes

Through December 31, 2015, Minnesota had made 210 loans from $7.7 million in SSBCI funding. The credit 

support programs have generated $127.3 million in total financing or $16.50 in total financing for every $1 in 

SSBCI funds spent. Businesses reported that the loans will help create or retain approximately 3,000 jobs. While a 

variety of industries have benefited from the EEF, SBLG, and CAP programs, personal services and manufacturing 

businesses have received nearly half of the loans and more than half of the amount loaned. SSBCI enabled the state 

to expand the footprint of the EEF program statewide. Previously, the program was limited to lenders in the Twin 

Cities. All of the participating lenders have completed multiple EEF projects with the most activity undertaken by 

the Metropolitan Consortium of Community Developers, the Metropolitan Economic Development Association, the 

Neighborhood Development Center, and the Northeast Entrepreneur Fund. The Northland Foundation has been the 

most active lender in the SBLG and CAP programs. 
206

Table MN-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

210 $7.7 million $0 $127.3 million $606,100 16.49:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

3,010 2 FTEs 4 years 50% 20%

1. Manufacturing

2. Accommodation and Food 

Services

3. Retail Trade

*Includes funds expended for administrative costs

Minnesota has generated 50 percent of their loans in LMI areas, well above the national average of 42 percent. 

Furthermore, Minnesota’s investment in providing interest-free loans to CDFIs has helped expand their 

capitalization substantially and expand their experience in providing small business loans.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• EEF appears to have addressed a niche in assisting nonprofit lenders to leverage private capital for small 

businesses located in LMI areas.

• The fees required to generate the CAP loan loss reserve made the loans too expensive for the types of loans that 

the state wants to see made to small businesses in LMI areas.

• Anticipating demand for new programs proved to be difficult, and Minnesota found that it underestimated the 

amount of time required to launch a new program. This was particularly problematic for SSBCI, which 

emphasized the quick delivery of loans to jumpstart lending.

• Lenders willing to engage with the state in developing new programs rarely participated in the subsequently 

implemented programs because they were operating in a rapidly changing market themselves, had different 

lending priorities than the public sector, or anticipated that the public sector would be more risk tolerant than it 

actually was. Lender relationships are vital, even in the program design phase, because lenders unfamiliar with 

DEED who offered program design ideas were seldom willing to participate even if their ideas were adopted.
207

VENTURE CAPITAL PROGRAM

The Angel Loan Fund (ALF) is Minnesota’s $6.7 million venture capital co-investment program. This new program 

complements an existing Minnesota angel investor tax credit program. ALF provides small businesses that register 

for the angel investor tax credit program and pass a qualitative review by DEED with a 7-year, non-recourse, zero 

percent interest loan for the lesser of $250,000 or 10 percent of the current investment round. Businesses agree to 

repay the loan with a 30 percent premium if the company is sold prior to the maturity date of the 7-year loan. At its 

start, ALF was designed to bridge the capital needs of angel-backed startup businesses in Minnesota should there be 

a gap in state support for the angel tax credit program. ALF investments are focused on seed and early stage 

technology businesses in Minnesota currently raising capital and needing assistance in accelerating the close of 

investment rounds.

Venture Capital Program Design and Operations 

ALF is an agency-managed direct investment fund where the investment amount and structure is prescriptive. ALF 

is designed to support small businesses raising seed and early stage investment capital from primarily angel 

investors to accelerate the close of an active investment round by providing a non-dilutive no-interest loan. The 

program leverages an angel investor tax credit program by requiring ALF applicants to first pre-qualify for the angel 

tax credit program. Program managers at DEED perform an independent, qualitative review and may reject 

applicants based on concerns about the viability of the business, but the requirement to raise private capital at a 10 to 

1 ratio greatly reduces the number of nonviable applicants. DEED will pre-approve applicants for ALF and allow 

one year to raise at least 70 percent of the targeted capital raise prior to executing a loan agreement for no more than 

10 percent or $250,000 of the actual amount raised.

Figure MN-4: ALF Program Structure

Minnesota Department of Employment and Economic Development (DEED)

State Applicant

Angel Loan Fund

New State VC Program Operating as an Authorized Co-Investment Fund

SSBCI Funds Invested in Small Businesses

Zero-interest loans at pre-determined ratio to private investment

Venture Capital Program Outcomes

Through December 31, 2015, ALF expended $3.1 million in SSBCI funds and generated $40 million in total

financing or $12.60 in total financing for every $1 in SSBCI funds spent. ALF helps small businesses accelerate the 

closing of larger investment rounds by shortening the gap between the amount of committed capital and the 

minimum capital required to execute an initial closing of an investment round. In some cases, small businesses with 

investment commitments may work for several months to aggregate enough investors to close a round, so ALF 

participation may allow small businesses to reach financing goals more quickly and focus resources on growing the 

business. Because businesses receiving a commitment of ALF investments have up to a year to close the investment 

round, expended funds may significantly lag obligated funds. 
208

Table MN-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

17 $2.9 million $0 $33.4 million $2.0 million 11.55:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

313 4 FTEs 4 years 35% 0%

1. Manufacturing

2. Professional, Scientific, and 

Technical Services

3. Wholesale Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Prior to SSBCI, the program manager had limited experience managing equity investment programs. 

• Despite positive initial guidance from angel investing experts, the program manager’s initial venture capital 

program received no substantive interest from investors when it was introduced. After modifying the program 

to introduce ALF and reallocating substantially more capital to the venture capital program, program managers 

at DEED observed significant interest and activity in the program.
209

Mississippi

PROGRAM PORTFOLIO OVERVIEW79

Using $13.2 million in SSBCI allocation, Mississippi operates a single credit support program – the Mississippi 

Small Business Loan Guarantee Program (SBLGP). 

The Mississippi Development Authority (MDA), the state’s lead economic and community development agency

administers the SSBCI program.

Table MS-1: Mississippi’s SSBCI Program Portfolio Summary

Program Outcomes

Mississippi supported 116 loans that generated $83 million in total financing through December 31, 2015. 

Table MS-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

116 $11.3 million $0 $83.1 million $716,700 7.34:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,006 2 FTEs 1 year 28% 48%

1. Agriculture, Forestry, Fishing 

and Hunting

2. Retail Trade

3. Manufacturing

 79 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Mississippi Small Business Loan 

Guarantee Program Loan Guarantee $13.2 million Mississippi Development Authority
210

CREDIT SUPPORT PROGRAM

Loan Guarantee Program

The SBLGP provides a maximum 80 percent guarantee on loans up to $10 million. The maximum term for a 

guarantee is 15 years. Terms of the SBLGP changed substantially after the first year of program operations, when 

Mississippi had difficulty gaining traction in the banking community with the new program. MDA increased the 

guarantee to 80 percent from 50 percent to encourage participation from lenders. 

The SBLGP targets to small businesses located in LMI communities, serving minority communities, or representing 

disadvantaged business enterprises. There are no pre-specified targets for these demographics. 

Credit Support Program Outcomes

Through December 31, 2015, MDA expended $11.3 million in SSBCI funds in 116 transactions that generated $83

million in total financing or $7.30 in total financing for every $1 in SSBCI funds spent. Businesses reported that 

these loans will help create or retain approximately 1,000 jobs. More than a third of all loans went to enterprises in 

the agricultural sector. See Table MS-2 above for additional credit support program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Effective onset marketing is vital to success. HOPE Enterprise Corporation (HOPE) was hired to assist 

with these efforts. HOPE completed a survey of banks, created a pamphlet, and conducted marketing 

outreach for the program. A market assessment helped the program manager alter both the program 

structure and the approach taken when partnering with banks.

• Mississippi needed to develop a strategy to avoid concentration any one target industry (i.e., agriculture in 

this case).

• Program staffing requires that certain duties (such as marketing and outreach) be separated to ensure that 

the program is implemented successfully.

• Having flexibility in program design allows the program manager to better respond to market conditions, 

particularly in a changing environment, and to serve a diverse set of industries. 
211

Missouri

PROGRAM PORTFOLIO OVERVIEW80

Using $26.9 million in SSBCI allocation, Missouri operates a venture capital program called the Missouri IDEA 

Fund and a loan participation program through the state’s existing Grow Missouri Loan Fund. The Grow Missouri 

Loan Fund has been used for a few loans, but SSBCI has not been active with the program since 2014.

A new state venture capital program, the Missouri IDEA Fund focused on innovation, development, and 

entrepreneurship advancement. Missouri initiated the program to promote the formation and growth of small 

businesses across the business financing lifecycle, with an emphasis on encouraging research commercialization and 

technology transfer.

The Missouri Department of Economic Development administers the IDEA Funds, and assigns investment 

management responsibilities by contract to the Missouri Technology Corporation (MTC), a quasi-state organization. 

As the nonprofit investment manager, the MTC accepts and evaluates applications directly from businesses through 

a competitive review process, with the investment opportunities often referred by organized angel investor groups or 

regional venture capital funds. 

Table MO-1: Missouri’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Missouri supported 87 loans and investments that generated almost $306 million in total financing through 

December 31, 2015. 

Table MO-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

87 $23.0 million $225,000 $305.6 million $3.51 million 13.31:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,496 2 FTEs 3 years 45% 2%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

 80 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Grow Missouri Loan Fund Loan Participation $2.9 million Missouri Department of Economic 

Development

Missouri IDEA Fund Venture Capital $24 million Missouri Technology Corporation
212

CREDIT SUPPORT PROGRAM

Loan Participation Program

The state initially provided credit support through a Loan Participation Program operated as part of the Grow 

Missouri Loan Fund. The program assisted two businesses in early 2014 totaling $1.9 million in SSBCI 

expenditures, but the program has been largely inactive because the legislature made no new authorizations to 

support the Grow Missouri Loan Fund. 

Credit Support Program Outcomes

Through December 31, 2015, the Grow Missouri Loan Fund expended $2.1 million or 73 percent of its SSBCI 

allocation to support 3 loans, and generated $17 million in total financing.

Table MO-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

3 $2.1 million $0 $17.0 million $5.65 million 7.97:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

142 22 FTEs 10 years 33% 0%

1. Manufacturing

2. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

VENTURE CAPITAL PROGRAM 

The Missouri IDEA Funds’ objective is to stimulate private investment and maximize investment leverage by 

improving the perception among private investors that Missouri has investable deals and by accelerating the closing

of investment rounds. The program supports technology businesses broadly, with a focus on emerging strengths 

such as medical/life science technology. MTC has allotted its resources to the IDEA Funds, four complementary 

components for unique investment profiles (see Table MO-4).

The first three—TechLaunch, Seed Co-Investment, and Venture Capital Co-Investment programs—are all designed 

to make equity or convertible debt investments, while the fourth—the Industrial Expansion program—is designed to 

support growth-stage businesses with low interest loans. MTC commits funding to investees through a competitive 

application process but follows private sector investor practices in establishing final deal terms. MTC was focused 

on deploying capital to small businesses without setting aside capital for follow-on rounds. By increasing risk 

capital supply and leading or participating in due diligence processes, MTC helps businesses gain visibility and 

favorable impressions from potential investment partners. 
213

Table MO-4: IDEA Funds Portfolio

The program manager deploys a rigorous due diligence process, which helps seed and early stage small businesses 

work become investor-ready to increase the credibility of these opportunities among private sector investors that 

have received a contingent SSBCI investment commitment. The MTC team performs preliminary assessments on 

applicants for investment and then scores conforming applications. An Investment Committee, consisting of MTC’s

directors and private sector advisors, reviews the top scoring applicants in each application cycle and makes 

recommendations for investment. The MTC board of directors has the final decision on authorizing approved coinvestments. 

The contingent capital commitments generally have a time limit of three to six months, by which time the company 

must have met its co-investment requirement. In some cases, the commitments are recalled when a company does 

not raise enough private capital, or receives more private capital commitments than sought and therefore elects not

to include the SSBCI capital in the investment round to simplify its compliance and reporting.

Figure MO-5: Missouri IDEA Fund Program Structure

Missouri Department of Economic Development

Official State Applicant and Program Manager

Missouri Technology Corporation

Contracted Quasi-State Investment Manager

Missouri IDEA Fund

New, Contractor Managed-State VC Program

Private Investors

Co-Investment Required to Close 

SSBCI Funding Commitment

SSBCI Funds Committed to Small Businesses Through Competitive Application Process

Final Investment Terms Established by Private Co-Investors

IDEA Funds Portfolio Summary

IDEA Funds Component Name Maximum 

Investment Investment Profile Investment Type

TechLaunch $100,000 Pre-seed investment for proof-of-concept 

tech development and business formation

Equity or convertible 

debt

Seed Capital Co-Investment Fund $500,000 Seed investment for early-stage company 

formation and development

Equity or convertible 

debt

Venture Capital Co-Investment 

Fund $2.5 million Early-stage investment focused on coinvestment with venture capital funds

Equity or convertible 

debt

High-Tech Industrial Expansion 

Fund $3 million Growth stage investment to follow equity investment rounds

Secured low interest 

loan
214

Venture Capital Program Outcomes

Through December 31, 2015, the IDEA Funds stimulated nearly $290 million of new investment or $13.9 in new

investment for every $1 in SSBCI funds spent. Businesses reported the investments will help create or retain over 

1,300 jobs. The program manager also noted that its process can catalyze investments that MTC does not ultimately 

participate in. For example, MTC led the initial due diligence and committed $750,000 to a startup that had not 

previously received traction with investors. The company leveraged the commitment from MTC to garner interest 

from other investors, oversubscribed the round, and elected not to accept the SSBCI capital. In fall 2015, the 

company closed a $17 million Series B venture capital round – results not officially attributed to SSBCI.

Program managers attribute an increase in state funding support for the MTC budget in part to the positive results 

from the SSBCI program which helped demonstrate market demand and earned credibility with entrepreneurs and 

private sector investors.

Table MO-6: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

84 $20.8 million $225,000 $288.7 million $3.44 million 13.85:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,354 2 FTEs 3 years 45% 2%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• MTC made changes to its governance structures to comply with SSBCI requirements as it was rapidly 

implementing its programs and deploying capital. 

• MTC would likely revisit its policy not to reserve capital for follow-on investments to better support 

Missouri businesses and achieve balance between generating financial and economic development returns. 

• In many cases, businesses that participated in the Seed Capital Co-Investment Program with angel investors 

were not allowed to participate in the Venture Capital Co-Investment Program with a follow-on round, a 

policy MTC implemented that was not an SSBCI requirement but that further limited MTC’s ability to 

provide follow-on funding.
215

Montana

PROGRAM PORTFOLIO OVERVIEW81

Using $12.8 million in SSBCI allocation, Montana operates a loan participation program. The Governor’s Office of 

Economic Development (GOED) manages the program and the Montana Department of Commerce (MDOC) and 

Montana Board of Investments (MBOI) assist in program execution. MDOC is an executive branch state agency

and the MBOI board, which has historically managed Montana’s loans and investment programs, is appointed by the 

governor and is administratively attached to MDOC, but operates independently.

Table MT-1: Montana’s SSBCI Program Portfolio Summary

Program Outcomes

Montana supported 48 loans through that generated $120 million in total financing December 31, 2015. 

Table MT-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

48 $12.3 million $0 $120.2 million $2.50 million 9.78:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,009 10 FTEs 11 years 27% 54%

1. Retail Trade

2. Health Care and Social 

Assistance

3. Manufacturing

*Includes funds expended for administrative costs

 81 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Loan Participation Program Loan Participation $12.8 million Governor’s Office of Economic 

Development
216

CREDIT SUPPORT PROGRAM

Loan Participation Program

Montana’s Loan Participation Program (LPP) uses a network of approved CDFI and non-profit local economic 

development agencies with revolving loan funds (RLFs) to close and service transactions. If the lead lender for a 

transaction is a bank or other similar financial institution, GOED uses SSBCI capital to fund a CDFI/RLF, which in 

turn purchases a participation in the loan. If the loan is made directly by a CDFI/RLF, GOED uses Montana SSBCI 

funds to participate directly in the loan made by the CDFI/RLF. The CDFI/RLF retains all interest income earned 

on the loan and returns repaid principal to an account controlled by the Montana SSBCI program until that 

CDFI/RLF identifies another eligible borrower. In 2017, when program restrictions lapse, GOED will grant to each 

participating CDFI/RLF the SSBCI funds that agency has utilized (minus applicable loan losses). The CDFI/RLF 

will continue to recycle those funds in their ongoing small business loan programs.

Montana evaluated numerous RLFs and CDFIs based on prior experience with the groups, organizational and 

management capacity, and internal controls. To ensure widespread geographic coverage, particularly in rural areas, 

Montana approved three CDFIs and six RLFs. Those CDFI/RLFs were able to access Montana’s SSBCI funds on a 

“first-come, first-served” basis.

The SSBCI loan participation can be either subordinated or pari passu, although the majority have been pari passu. 

Montana will participate in up to 50 percent of a loan, subject to a maximum $500,000 participation amount. The 

typical size is a $250,000 participation in a $500,000 loan. The interest rate on the participation is typically 5

percent to 6 percent annually, depending on the term of the loan and other factors, but is reduced 5 basis points (0.05

percent) for each job created up to a total reduction of 2.5 percent. Montana will also offer a fixed interest rate on its 

participation, even if the lead lender’s interest rate is variable. The participating CDFI/RLF pays a 0.5 percent

annual fee to MDOC for each loan. The SSBCI participation has the same term as the lead lender’s loan, with the 

majority of loans being real estate-based transactions with a 15- to 20-year term.

Montana’s program staff completes a separate underwriting analysis of each transaction. A loan committee that 

includes representatives from GOED, MDOC, and MBOI and has other members with substantial lending 

experience approves every transaction. 

Credit Support Program Outcomes

Through December 31, 2015, Montana’s LPP expended $12.3 million to support 48 transactions. The LPP 

generated $120 million in total financing or $9.80 in total financing for every $1 in SSBCI funds spent. Businesses 

reported that the loans will help create or retain approximately 1,000 jobs. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• A simple set of requirements makes it much easier to sell the program to the banking and small business 

communities.

• To help ensure an effective distribution network, Montana selected experienced CDFI/RLF lenders that had 

adequate staffing and systems and proven lending track records.

• By using nine CDFIs/RLFs located throughout the state as its distribution network, Montana helped ensure 

widespread use of SSBCI funds, including in rural areas. Use of this existing network also minimized staffing 

expenses associated with the SSBCI program.

• Because program staff had lending experience, the SSBCI program has provided a valuable opportunity for 

GOED to provide substantial technical assistance to participating CDFIs/RLFs in how to underwrite and 

manage larger and more complex loans. Montana will benefit in the long term from this stronger statewide 

network of small business lenders, particularly in rural areas.
217

• By distributing SSBCI funds to participating CDFIs/RLFs on a first-come, first-served basis, Montana’s SSBCI 

program was able to quickly deploy its allocation. Because those agencies will retain the SSBCI capital when 

the federal restrictions expire in 2017, they also had an incentive to underwrite conservatively the loans they 

make. Finally, because the CDFIs/RLFs retain interest earned, they have an incentive to redeploy repaid 

principal rapidly.
218

Nebraska

PROGRAM PORTFOLIO OVERVIEW82

Using $13.2 million in SSBCI allocation, Nebraska operates a credit support program and a venture capital program. 

The Nebraska Department of Economic Development (NDED) oversees both programs and directly operates the 

Nebraska Progress Loan Fund (NPLF), a companion loan participation program. NDED contracts the management 

of the Nebraska Progress Seed Fund (NPSF) to Invest Nebraska, a state-sponsored non-profit technology basedeconomic development (TBED) organization.

Table NE-1: Nebraska’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Nebraska supported 46 loans and investments that generated almost $66 million in total financing through December 

31, 2015. 

Table NE-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

46 $10.1 million $0 $65.8 million $1.43 million 6.52:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

349 3 FTEs < 1 year 39% 39%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

 82 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Nebraska Progress Loan Fund Loan Participation $9.24 million Nebraska Department of Economic 

Development

Nebraska Progress Seed Fund Venture Capital $3.93 million Nebraska Department of Economic 

Development
219

CREDIT SUPPORT PROGRAM

Loan Participation Program

The NPLF provides subordinate companion loans ranging from $50,000 to $2,000,000, with a 3-year term. The 

NPLF charges a 1 percent origination fee and an interest rate of 2 – 4 percent. NDED operates the program directly, 

including marketing, underwriting, and loan servicing. NPLF may also purchase a fractional interest in a loan 

(purchase participation) but has yet to do so.

Credit Support Program Outcomes

Through December 31, 2015, Nebraska’s SSBCI loan participation program supported 17 loans using $7.9 million 

in SSBCI financing. These loans generated $52 million in total financing or $6.60 in total financing for every $1 in 

SSBCI funds spent. Businesses reported that the loans will help create or retain over 200 jobs. The majority of loan 

proceeds were used for working capital and purchase of equipment.

Table NE-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

18 $7.9 million $0 $51.7 million $2.87 million 6.58:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

271 3 FTEs 2 years 17% 78% 1. Manufacturing

2a. Construction

2b. Transportation & 

Warehousing

2c. Wholesale Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Program income is necessary to sustain program operations. NDED modified its fee/interest rate policies, 

now charging a 1 percent origination fee and 2 – 4 percent interest rate on its loans. The change in fee 

structure was made to allow for sustainability of the program. 

• For some borrowers a three-year term significantly increased debt service costs. As a result, NDED 

allowed for a five-year term. 

• Stand-alone loans versus Purchased Participation: NDED realized the burden of marketing, underwriting,

and servicing a stand-alone loan. NDED had discussions with the Nebraska Bankers Association and 

lenders about developing a purchase participation program. 

• NDED found that developing relationships with both the banking and minority communities is important to 

program success. NDED hired an individual to run their minority program, leading to a loan for a surgical 

center in a distressed minority community.
220

VENTURE CAPITAL PROGRAM

The NPSF complements a state-funded $2 million/year Innovation Seed/Commercialization Fund created by the 

2011 Nebraska Business Innovation Act (NBIA) and also managed by Invest Nebraska. NPSF is managed with a 

goal to maximize financial returns while investing up to $500,000 in seed/early stage technology businesses. The 

primary goal of the NPSF is to augment and accelerate private sector equity investments in Nebraska startups by 

providing up to a 1 to 1 match on pari passu investment terms.

Venture Capital Program Design and Operations

The NPSF is designed to help entrepreneurs with seed and early stage startups developing business models designed 

around innovative technologies. The NPSF helps them to accelerate the close of investment rounds by providing 

matching investments of up to $500,000. The NPSF makes investments in the form of either equity or mandatory 

convertible debt, an equity-like structure that defers the valuation of the business until a future financing event. Coinvestors are primarily angel investors or angel investor groups, but have included regional private equity funds. 

Without leading investment rounds, Invest Nebraska actively works with the state’s regional innovation ecosystem 

to source investment opportunities for NPSF, provide input on pre-investment development plans and refer 

entrepreneurs to potential lead investors. For example, Invest Nebraska monitors a “pipeline” of 40 to 50 

technology startups as it works to place capital in businesses considered likely to produce substantial investment 

returns. Invest Nebraska works with the University of Nebraska tech transfer organization and several accelerators 

primarily in Omaha or Lincoln.

Figure NE-4: NPSF Program Structure

Nebraska Department of Economic Development (NDED)

Official State Applicant

Invest Nebraska

State-Sponsored Non-Profit Program Manager

Nebraska Progress Seed Fund (NPSF)

$3.9 million Seed/Early Stage Investment Fund

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

Through December 31, 2015, Invest Nebraska had invested $2.3 million or 59 percent of the $3.9 million allocated 

to NPSF and generated $14 million in new capital. Businesses reported that these investments will help create or 

retain approximately 80 jobs in Nebraska-based businesses. The portfolio experienced an early success after just 

two years of investing, with one company subsequently raising $11.2 million of follow-on investment capital for a 

robotic medical device technology.
221

Table NE-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

28 $2.2 million $0 $14.1 million $504,700 6.33:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

78 3 FTEs < 1 year 54% 14%

1. Professional, Scientific, and 

Technical Services

2. Information

3. Manufacturing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Though not part of its original plan, Nebraska committed $300,000 to the NMotion Accelerator program in 

2013, which provides $10,000 of SSBCI capital matched by $10,000 of private capital to pre-seed 

technology businesses. Through 2015, NMotion has funded 19 businesses with SSBCI capital matched by 

private investors, and four of the businesses have subsequently raised significant follow-on investment 

rounds. Through this use of SSBCI capital, Invest Nebraska program managers have learned that highpotential businesses developed from accelerator programs can earn substantial leverage on the early 

investments.
222

Nevada

PROGRAM PORTFOLIO OVERVIEW83

Using $13.8 million in SSBCI allocation, Nevada operates two credit support programs and a venture capital 

program. With the SSBCI portfolio, the state sought to provide funding to credit-worthy businesses that could not 

access capital.

The Nevada Governor’s Office of Economic Development (GOED) oversees the operation of state’s SSBCI-funded 

programs. Both the Nevada Collateral Support Program (CSP) and the Nevada Microenterprise Initiative (NMI) are 

new programs, started at the beginning of the SSBCI program. The Battle Born Growth Escalator (Battle Born) is a 

new venture capital program GOED started in September 2014.

Table NV-1: Nevada’s SSBCI Program Portfolio Summary

Program Outcomes

Nevada supported 20 loans and investments that generated $30 million in total financing through December 31,

2015. 

Table NV-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

20 $7.6 million $0 $30.4 million $1.52 million 3.99:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

770 7.5 FTEs 3.5 years 45% 5%

1a. Administrative Support and 

Waste Management and 

Remediation Services

1b. Construction

1c. Finance and Insurance

1d. Health Care & Social 

Assistance

1e. Other Services (except Public 

Administration

*Includes funds expended for administrative costs

 83 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Nevada Collateral Support 

Program Collateral Support $8.3 million Nevada Governor’s Office of Economic Development

Nevada Microenterprise Initiative Loan Participation $500,000 Nevada Governor’s Office of Economic 

Development

Battle Born Growth Escalator Venture Capital $5 million Nevada Governor’s Office of Economic 

Development
223

CREDIT SUPPORT PROGRAMS

Loan Participation Program

Nevada partnered with a NMI, a non-profit CDFI lender, to originate and service microloans. The state lends NMI 

SSBCI funds at a 3 percent interest rate and NMI deploys the SSBCI dollars by funding fifty percent of each 

qualifying small business loan. 

Collateral Support Program

Nevada allocated $8.3 million to its CSP to support larger commercial loans. Based on the Michigan model, the 

CSP provides cash collateral to support loans to otherwise credit-worthy businesses that have a collateral shortfall. 

The lender assesses the collateral value of a potential borrower, and if the loan-to-value (LTV) ratio is less than 

required, the lender can apply to the Nevada program for a cash collateral deposit, to bring the LTV up to the 

required level. The lender has a first position lien on the cash account. Nevada charges a 1.5 – 3.0 percent one-time 

fee for a collateral support deposit of up to 35 percent of the loan amount, targeting loans of $5 million or less. The 

deposit balance is reduced proportionately with the principal reduction of the loan on an annual basis. 

Credit Support Program Outcomes

Through December 31, 2015, Nevada’s SSBCI credit support programs expended $5.8 million in 15 loans, and 

generated $22 million in total financing or $3.80 in total financing for every $1 in SSBCI funds spent. Businesses 

reported that the loans will help create or retain almost 500 jobs. 

Table NV-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

15 $5.9 million $0 $22.2 million $1.48 million 3.77:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

494 7 FTEs 6 years 40% 7%

1. Information

2a. Administrative Support and 

Waste Management and 

Remediation Services

2b. Health Care and Social 

Assistance

2c. Professional, Scientific, and 

Technical Services 

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Nevada had to resolve significant constitutional, legislative, and state administrative issues in order to 

operate its SSBCI programs. Some of these issues proved challenging for quick and efficient deployment 

of funds. For instance, the state undertook a significant reorganization of its economic development 
224

functions by establishing a new Governor’s Office of Economic Development (GOED) which impacted the 

rate of deployment for disbursements. There is also a requirement that the legislature annually appropriate 

SSBCI funds to be lent, invested, or recycled which creates additional steps in the administration process. 

• It is important to continue active marketing efforts with respect to credit support programs, especially when 

they are new like the CSP, and to follow up with bankers. As a result of a Bankers Roundtable in Las 

Vegas in which SSBCI participated, demand for the CSP increased. Additionally, CSP activity increased 

once a bank president saw the value of the program to his operations and became a power user. 

• Nevada has a very limited number of state-based CDFIs, and this has limited the deployment of the 

microenterprise initiative offering loan participations for microloans.

• The state is focusing its SSBCI program efforts on the broader outcomes of increased private-sector funds 

leveraged and sustainability. Initially the desire was to move the money out, but presently program pricing, 

collateral limits, and other program design features are being revisited to make the SSBCI programs 

sustainable over the long term. GOED is also looking to create a state-sponsored nonprofit that can handle 

SSBCI investment and lending activity in the future. 

• The state would like SSBCI programs to better align with efforts to promote targeted industries and 

innovation-based economic development. 

VENTURE CAPITAL PROGRAM

Battle Born is a state venture capital program initiated with $5 million or 36 percent of Nevada’s $13.8 million 

SSBCI allocation. Battle Born invests in technology-rich, high-growth Nevadan businesses in the state’s target 

cluster industries. In a state with no pre-existing state-sponsored equity investment program, Battle Born helps 

Nevada businesses that have self-financed early product or service development or received initial support from 

local angel investors to recruit investors from out-of-state venture capital firms capable of leading significant rounds 

and syndications. 

GOED’s goal for Battle Born is to manage SSBCI capital with the same returns-motivated discipline as private 

sector venture capital funds, earning investment profits and demonstrating the viability of state-managed seed/early 

stage equity funds with complementary economic development benefits. With investment returns in mind, Battle 

Born has focused its investment resources on developing opportunities with early stage businesses that have already 

achieved some traction through self-funded operations or with local angel investors, potentially offering a potential 

return of 3x, and having a team of at least two co-founders with substantial commitment to the business and track 

record of successfully launching a start-up technology-heavy company.

Venture Capital Program Design and Operations

Battle Born is a direct investment venture capital program administered by a state agency, GOED. Investment 

advisory services are provided by a qualified investment professional engaged under contract with the Nevada 

SBDC. Both the GOED program manager and contracted investment manager each have more than 10 years of 

investment experience obtained at major international investment firms and banks. Transactions are typically equity 

and equity-like investments such as convertible notes. Battle Born is authorized to make investments in three 

categories: 1) pre-seed stage company investments of up to $100,000; 2) seed stage company investments of up to 

$500,000; and 3) venture stage company investments of up to $1 million. After one year of investment operations, 

program managers have found that seed stage businesses are best suited for the portfolio, as all five of the initial 

investments have been in this category.

Under contract with GOED, the Nevada SBDC manages the investment portfolio and Valley Economic 

Development Center (VEDC) / NMI holds the ownership interests. This complex structure is place because the state 

constitution prohibits state ownership of private businesses and Nevada was in the process of creating a public 

benefit corporation authorized to hold investments. Legislation passed in 2015 (AB 17) will enable GOED to create 

a state-sponsored non-profit entity authorized to manage Battle Born investment processes and hold its investments 

in small businesses.

While relying on third parties for key administrative and support functions, GOED maintains the authority to 

approve and manage Battle Born investments. To be considered for an investment, small business owners must 
225

“apply” via an online platform, Gust, a global web-based funding platform for the sourcing and management of 

early-stage investments. Nevada SBDC serves as an investment manager that sources potential investment 

opportunities and performs a “first-screen.” This process eliminates approximately 80 percent of applicant 

businesses as unsuitable for the portfolio. 

A GOED-appointed and managed Investment Advisory Committee then reviews the short list of potential 

opportunities and votes on which company will enter into an in-depth due diligence process. The investment 

manager then performs the due diligence work and produces a report submitted to the Investment Advisory 

Committee. The Committee will review the results and vote on whether advise GOED by recommending or 

rejecting an investment proposal. GOED ultimately makes the final investment decision. 

The Investment Advisory Committee currently has four independent voting members made up of exclusively private 

sector experts with substantial experience and five non-voting members comprised of three representatives of the 

state’s universities, an independent IP attorney, and the Chief Executive Officer of VEDC.

Figure NV-4: Battle Born Program Structure

Nevada Governor’s Office of Economic Development (GOED)

Official State Applicant

Contract Advisory Services Provided by Nevada Small Business Development Center

Nevada Microenterprise Initiative (NMI)

Non-Profit Managed Via Contract by Valley Economic Development Center (VEDC)

Battle Born Venture Fund Equity

$5 million State Venture Capital Program

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

From its first investment in September 2014, through December 2015, Battle Born has made investments in five 

businesses totaling $1.6 million, or 32 percent of the Battle Born venture capital program allocation. All of the 

investments have been in the seed stage category. Three of the five businesses closed rounds with additional coinvestments of $1.76 million leveraging $600,000 of SSBCI capital. The two most recent investments are still 

marketing investment rounds that are projected to close approximately $4.8 million of private capital from $1

million of SSBCI capital.
226

Table NV-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

5 $1.7 million $0 $8.2 million $1.63 million 4.75:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

276 8 FTEs 2 years 60% 0%

1. Information

2. Administrative and Support 

and Waste Management and 

Remediation Services

3. Health Care and Social 

Assistance

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Battle Born is the first equity investment program in Nevada, a state with relatively little venture investing 

activity. With persistence, GOED was able to retain capable managers to navigate legal and organizational 

hurdles to enable equity investments in high-potential small businesses.

• Battle Born provides Nevada leaders with an effective case study for future state engagement in the 

development of innovation ecosystems, including reasonable uses of equity investing programs like Battle 

Born via enabling legislation. 
227

New Hampshire

PROGRAM PORTFOLIO OVERVIEW84

Using $13.2 million in SSBCI allocation, New Hampshire operates four credit support programs and a venture 

capital program. With the SSBCI program portfolio, the state sought to create jobs that provide a living wage and 

benefits. SSBCI funds were used to expand three existing credit support programs and create one new credit support

program, the Collateral Shortfall Program, which was modeled after the existing Michigan collateral support 

program. The New Hampshire Venture Capital Fund is a new state program consisting of a single, privately 

managed venture capital fund investing exclusively in New Hampshire-based small businesses.

The New Hampshire Business Finance Authority (NHBFA) administers the state’s programs and SSBCI funds. The 

NHBFA, established in 1992, is a statewide economic development quasi-public organization that operates credit 

enhancement programs.

Table NH-1: New Hampshire’s SSBCI Program Portfolio Summary

Combined Program Outcomes

New Hampshire supported 346 loans and investments that generated almost $172 million in total financing through 

December 31, 2015. 

Table NH-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

346 $12 million $0 $171.9 million $496,900 14.31:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro Areas Top Industries Assisted

4,743 3 FTEs 6 years 36% 55%

1. Construction

2. Accommodation and Food 

Services

3. Manufacturing

*Includes funds expended for administrative costs

 84 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Aid to Local Development 

Organizations Loan Participation $4.2 million New Hampshire Business Finance Authority

Loan Guarantee Reserves Loan Guarantee $2.8 million New Hampshire Business Finance Authority

Collateral Shortfall Program Collateral Support $2.6 million New Hampshire Business Finance Authority

New Hampshire Capital Access 

Program Capital Access $455,000 New Hampshire Business Finance Authority

New Hampshire Venture Capital 

Fund Venture Capital $3.1 million New Hampshire Business Finance Authority
228

CREDIT SUPPORT PROGRAMS

Loan Participation Program

The state’s ten Regional Development Corporations, as well as numerous municipal organizations, provide critical 

development capacity throughout the state. The financing packages these organizations assemble typically involve 

multiple funding sources. The Aid to Local Development Organizations loan participation program fills the gaps in 

available traditional bank financing with subordinated debt from SSBCI. Funds are loaned to the local development 

organizations which relend the funds to small businesses. SSBCI transactions are typically either subordinated debt 

to bank loans or partially fund lines of credit provided by the local development organizations. 

Loan Guarantee Programs 

The Loan Guarantee Reserves Program funded the Guarantee Asset Program (GAP) and Working Capital Line of 

Credit Guarantee (WAG) programs managed by the NHBFA. WAG provides guarantees up to 75 percent on loans 

of $2,000,000 or less. The GAP provides guarantees up to 80 percent on loans secured by fixed assets. The fees for 

the program include a 1 percent closing fee and 1 – 2 percent annual fee based on the outstanding amount of the 

guarantee.

Collateral Support Program

The new Collateral Shortfall Program serves the needs of businesses that can demonstrate a collateral shortfall when 

applying for a loan for an expansion project. Loan terms for the program average five years. The maximum 

NHBFA participation is $500,000 per project except in a case of extraordinary economic development or job 

creation benefits. NHBFA gives banks the option to establish a cash collateral account or have NHBFA write a 

subordinated loan to accompany a bank loan. In either instance, NHBFA’s exposure is limited to the lesser of the 

amount needed to bring project debt to 100 percent of the appraised value or 100 percent of project cost.

Capital Access Program

The New Hampshire CAP is a loan portfolio insurance program in which NHBFA provides a matching contribution 

to a bank's CAP loan loss reserve when that bank extends credit to a qualified small business. The borrower and 

lender jointly contribute either 3 percent or 4 percent of the loan amount to the bank’s loan loss reserve. NHBFA 

provides a one-to-one matching contribution with SSBCI funding. Through the pre-existing state program, NHBFA 

provides an additional 50 percent matching contribution with state funds. NHBFA has operated a CAP continuously 

since 1992. 

Credit Support Program Outcomes

Through December 31, 2015, New Hampshire’s SSBCI credit support programs expended $10.1 million in 332 

transactions. The credit support programs generated $114 million in total financing or $11.30 in total lending for 

every $1 in SSBCI funds spent. Businesses reported that these loans will help create or retain over 4,300 jobs. 

While a variety of industries have benefited from the four credit support programs, personal services, business 

services, and construction businesses have received more than half of the loans. The program manager measures job 

creation and reports to its board and credit committee annually. 
229

Table NH-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

332 $10 million $0 $114.3 million $344,300 11.38:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

4,311 3 FTEs 6 years 36% 56%

1. Construction

2. Accommodation and Food 

Services

3. Manufacturing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Local development organizations report that over time there has been less flexibility in the Aid to Local 

Development Organizations program, and that they would like to have the ability to use SSBCI money in 

conjunction with other programs, for example, SBA.

• The NHBFA has found that listening to clients (bankers and borrowers) about their problems and financing 

needs can help improve the products they offer. This feedback helped NHBFA better understand market 

conditions and led to the creation of the Collateral Shortfall program. 

VENTURE CAPITAL PROGRAM

The New Hampshire Venture Capital Fund is a new state program supported by SSBCI funding. It consists of a 

single, privately managed venture capital fund (Borealis Granite Fund) with $17 million in total capital raised 

including $3.37 million in SSBCI funds and $13.63 million in private funds. Through a competitive process 

managed by the NHBFA, a private investment fund, Borealis Ventures, was selected to raise private capital 

alongside the SSBCI funds and manage the complete process of identifying investees, conducting investment due 

diligence, closing investment transactions, and building private investor syndicates.

The program objective is to increase venture capital in New Hampshire by supporting the creation of a new statefocused investment fund that attracts private investors. The fund investment strategy is to support seed- and earlystage businesses with target industries of software, communications, and biotechnology where the investment 

manager has expertise.

Venture Capital Program Design and Operations

NHBFA participates in the Borealis Granite Fund, which is structured as a limited partner, first-in, last-out position, 

where the other private limited partners in the fund are paid back first before NHBFA receives its return of principal 

and share of investment profits. This structure means that in the event the investment fund underperforms and loses 

money, the subordinated SSBCI funds provide private investors with downside protection. The decision to offer a 

liquidation preference was made to attract private, institutional investors into the fund that might not otherwise 

participate in a fund restricted to investments in the state of New Hampshire.
230

Most small investments are transacted as convertible debt notes with warrants provided at the seed stage and at some 

Series A equity rounds. The investment manager often leads investment rounds with an investment strategy to 

participate in follow-on financing rounds of portfolio businesses. The fund plays a substantial role in mentoring 

early-stage businesses and connecting businesses to investors in the major investment hubs along the east coast.

As a small state with limited access to institutional venture capital, private co-investment participants are most 

often-individual angel investors for early-stage transactions. The program experienced occasional private coinvestment from institutional venture capital investors in Boston and New York. During the proposal and early 

implementation phase, the investment manager projected an investment portfolio between 10 and 20 small business 

investments, depending on the mix of seed and early-stage businesses and the final fund value size, which were 

unknown at the time of the investment strategy proposal. Fourteen small businesses have received SSBCI 

investment as of December 2015.

Figure NH-4: New Hampshire Venture Capital Program Fund Structure - Borealis Granite Fund

New Hampshire Department of Resources and Economic Development

Official State Applicant and Program Manager

Business Finance Authority of New Hampshire

Quasi-Public Entity Contracted Program Manager

Borealis Granite Fund

$17 million Investment Fund, $3.47 million in SSBCI Funds

Private, For-Profit Investment Manager

Private Limited Partner 

Investors

$13.3 million in Private 

Funds

Investments in New Hampshire-based small businesses

Venture Capital Program Outcomes

Through December 31, 2015, the New Hampshire Venture Capital Fund invested $1.9 million or 62 percent of its 

$3.1 million allocation in 14 investments. The SSBCI investments generated almost $58 million in new capital or 

$29.20 in new capital for every $1 in SSBCI funds spent. Businesses reported the SSBCI investments will help 

create or retain over 400 jobs. 
231

Table NH-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

14 $2 million $0 $57.6 million $4.12 million 29.19:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

432 9.5 FTEs 2 years 57% 43%

1. Professional, Scientific, and 

Technical Services

2. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The program managers noted that estimating a realistic time line and fundraising target for attracting 

private investors to a new venture capital fund was a challenge. The process takes longer than was initially 

anticipated.

• Attracting private institutional investors to participate in a new fund in an underserved area is also likely to 

be more difficult than planned, even with non-traditional incentives such as a liquidation preference. This 

innovative design feature of the New Hampshire Venture Capital Fund helped the fund attract private 

financing, but new fund formation is a real challenge in non-coastal markets. 

• In addition, the program manager communicated the need for a comprehensive marketing and 

communications plan designed to highlight the benefits of state-sponsored capital programs with both 

financial and economic development return expectations.
232

New Jersey

PROGRAM PORTFOLIO OVERVIEW85

Using $33.8 million in SSBCI allocation, New Jersey operates three credit support programs and a venture capital 

program. SSBCI funds have been used to support three existing credit support programs: the New Jersey Credit 

Guarantee Program (CGP), the New Jersey Direct Loan Program (DLP), and the New Jersey Loan Participation 

Program (LPP) and an existing, early stage venture capital program: the New Jersey Venture Capital (VC) Fund 

Program

The New Jersey Department of Treasury (NJDT) contracted with the New Jersey Economic Development Authority 

(NJEDA) to administer all four SSBCI programs. Founded in 1974, NJEDA is an independent, state authority 

which is self-funding. 

Table NJ-1: New Jersey’s SSBCI Program Portfolio Summary

Combined Program Outcomes

New Jersey supported 67 loans and investments that generated almost $107 million in total financing through 

December 31, 2015. 

Table NJ-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

67 $19.7 million $0 $106.6 million $1.59 million 5.40:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,392 17 FTEs 3 years 15% 0%

1. Information

2a. Professional, Scientific, and 

Technical Services 

2b. Real Estate and Rental and 

Leasing

 85 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

New Jersey Loan Participation 

Program Loan Participation $14.25 million New Jersey Economic Development Authority

New Jersey Direct Loan Program Loan Participation $9.26 million New Jersey Economic Development 

Authority

New Jersey Credit Guarantee 

Program Loan Guarantee $3.45 million New Jersey Economic Development Authority

New Jersey Venture Capital Fund 

Program Venture Capital $6.8 million New Jersey Economic Development Authority
233

CREDIT SUPPORT PROGRAMS

Loan Participation Program – Purchase Participations

Under the LPP, NJEDA purchases up to 50 percent of a loan on a subordinate basis to support transactions with 

maturities up to five years. NJEDA requires borrowers to create one job for every $50,000 of NJEDA assistance. 

Pricing is tied to the loan’s risk rating and can range from being slightly below the lead bank’s rate to significantly 

below-market. Loan participation percentages range between 15 percent and 50 percent with a median of 33 percent. 

NJEDA charges a $750 fee at closing. 

Loan Participation Program – Direct Loans

The DLP provides a companion loan up to 50 percent of the lending request on a subordinate basis to support 

transactions with maturities of up to 15 years. NJEDA subordinates on collateral but does not subordinate 

repayment, and pricing is tied to the loan’s risk rating. Direct loans made with SSBCI funds ranged in size from 

$500,000 to $2.0 million through year-end 2015. NJEDA charges a commitment fee of 0.75 percent and a closing 

fee of 0.75 percent. Direct loans ranged between 17 percent and 50 percent of the total amount financed with a 

median of 31 percent. NJEDA uses its internal closing group to prepare loan documentation for DLP loans. 

NJEDA’s “loans to lenders” product provides direct or companion loan product targets CDFIs, micro-lenders, and 

other intermediary finance organizations, which focus on the credit needs of small businesses in LMI communities. 

“Loans to lenders” may carry terms of up to 15 years with interest only for the first 5 years and an interest rate as 

low as 2 percent. NJEDA requires borrowers to lend the funds only in New Jersey and to report regularly on their 

entire portfolios, not just the amount funded by NJEDA. Through 2015, five organizations participated in the “loans 

to lenders” program. 

Loan Guarantee Program

New Jersey initially allotted $5.5 million of its SSBCI allocation to the CGP. This amount was subsequently 

reduced to $3,450,000. The CGP provides a 50 percent guarantee—pari passu with the lender—totaling up to $2 

million per transaction. The amount set aside to support the guarantee is equal to the amount guaranteed. The 

maximum term for loan guarantees is five years although NJEDA will extend the term of the guarantee at maturity if 

necessary. NJEDA relies on the bank to prepare documentation for CGP transactions. The guarantee fee charged 

by NJEDA is a function of the guarantee percentage, the term, and the amount of the loan. 

Terms common to all three credit support programs include a maximum transaction size of $2 million, a $1,000 

application fee, and minimum business age of two years. NJEDA sets rates based on a proprietary risk rating system 

based which takes account of the project, the principles (such as quality of management and collateral values), and

the public purpose of the transaction (such as industry, job creation/retention, and location).

Credit Support Program Outcomes

Through December 31, 2015, NJEDA expended $14.4 million in SSBCI funds to support 28 transactions that 

generated $48 million in total financing or $3.30 in total lending for every $1 in SSBCI funds spent. Businesses 

reported the loans will help create or retain approximately 600 jobs. NJEDA used the SSBCI funds to lend to a 

variety of industries with almost two-thirds of the loans made to borrowers in real estate and rental and leasing, 

manufacturing, and retail trade industries. 

Unlike most states, New Jersey has been able to induce large financial institutions (Prudential and Capital One for 

example) and large regional banks to participate in its credit support programs. TD Bank is the most active 

participant in New Jersey’s SSBCI credit support programs with seven transactions through year-end 2015, followed 

by Manufacturers and Traders Bank with six. These banks acquired New Jersey banks whose local operations are 

still managed by managers who participated in NJEDA legacy credit support programs prior to acquisition. In total, 

twelve banks have participated in New Jersey’s SSBCI credit support programs. 
234

Table NJ-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

28 $14.4 million $0 $47.8 million $1.71 million 3.30:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

610 13 FTEs 16 years 25% 0%

1. Real Estate and Rental 

Leasing

2a. Manufacturing 

2b. Retail Trade

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• By integrating its SSBCI credit support programs into its legacy credit support programs and making them 

as indistinguishable as possible while maintaining throughout the financial crisis an aggressive marketing 

effort targeted at bank partners, NJEDA reinforced long standing relationships between itself and its 

lending partners and facilitated the deployment of its SSBCI funds. This underscores the importance of 

retaining long-term relationships and communication strategies with lenders. 

• Conferring preferred lender status on proven bank lending partners has allowed New Jersey to quickly 

respond to lender requests facilitating the deployment of its SSBCI funds. 

• NJEDA’s SSBCI compliance checklist allows staff to communicate unambiguously with lenders and 

borrowers about the program and has allowed NJEDA to meet SSBCI requirements with minimal 

difficulty.

• A state needs to make sure that its application is in line with actual practice when it is using SSBCI funds to 

augment existing programs. 

• By carefully designing programs and amending pre-existing documentation and procedures, New Jersey 

was able to make SSBCI work to recapitalize its legacy programs without having to create new or 

duplicative programs. This served the needs of NJEDA, its lending partners, and small businesses 

throughout New Jersey. 

• NJEDA has implemented SSBCI through pre-existing programs using personnel, marketing, compliance, 

and technology resources that were already in place. NJEDA appended its existing loan and investment 

documentation with the certifications and reporting requirements mandated by SSBCI. The objective was 

to make NJEDA’s legacy and SSBCI programs indistinguishable. NJEDA management believed this was 

critical for its external audiences, especially its bank partners.

VENTURE CAPITAL PROGRAM

The New Jersey VC Fund Program is an existing venture capital program created by an allocation of $6.8 million in 

SSBCI funding. NJEDA initiated the VC Fund Program to increase the supply and accessibility of risk capital for 

New Jersey based-businesses by partnering with regional investment funds to source and manage investments. A 

primary objective of the program was to build sustainable investment capacity in New Jersey by attracting credible 

venture capital fund managers and demonstrating overall profitability in the program’s investment portfolio. 
235

NJEDA contracted with private investment managers to serve early-stage technology businesses – defined as 

businesses having less than $5 million in annual revenue – with “technology” broadly defined to include information 

technology and life science industries. The private fund managers that contracted with NJEDA all have a strong 

financial track record in the region (PA, NY, or NJ), and have some New Jersey investment track record. The VC 

Fund Program was created to encourage more New Jersey investment by these regional investors. This need for 

additional investment has become more critical since the New Jersey Commission on Science and Technology was 

de-funded and closed.

Venture Capital Program Design and Operations

The specific investment philosophy and deal investment structures were determined by each contracted investment 

manager and not dictated by NJEDA through the fund manager selection process (i.e., NJEDA did not have 

investment approval authority on transactions – investment decisions were made by investment funds independent 

of program manager). However, the early-stage investment focus of the program created an expectation for funds to 

fill a market gap for Series A financings, with the contracted investment managers often investing the first 

institutional venture capital in a small business. Investments were transacted as either convertible debt financings or 

priced equity rounds. The NJEDA board approved the request for proposal process to select investment managers, 

resulting in three active investment funds participating in the VC Fund Program (see Table NJ-4).

Table NJ-4: New Jersey VCP Contracted Investor Portfolio

NJEDA structured the program to participate as a limited partner investor in each contracted fund on the same terms 

as the other limited partners. Through a side letter agreement with each investment fund, NJEDA requested a 

private capital match on SSBCI funding of at least 2 to 1 from other fund sources in businesses located in New 

Jersey.

NJEDA worked to market other state incentive and assistance programs across the complete economic development 

toolkit for high-growth firms while implementing the VC Fund Program. For example, NJEDA staff and partners 

worked to match businesses with capital investment in part supported by SSBCI and also by “cross selling” other 

state incentives targeting high growth firms. 

Investment Fund Name SSBCI Allocation 

($ million)

Investment 

Stage

Fund Location & Investment Focus

Osage Venture Partners III $3.0 Early Philadelphia, PA; technology/financial tech

FF Venture Capital $2.5 Seed/Early New York; technology/media

Milestone Venture Partners $1.3 Early New York; healthcare focus

Next Stage Capital II $0.0* Early Audubon, Pennsylvania

*Next Stage Capital initially allocated $1.5 million capital commitment but the funds were subsequently redeployed to a 

credit support program
236

Figure NJ-5: New Jersey VCP Structure

New Jersey Department of Treasury

Official State Applicant

New Jersey Economic Development Authority

Contracted Independent State Entity as Program Manager

Venture Capital Fund

An Existing State Fund-of-Funds Venture Capital Program

Osage Venture Partners

Contracted Investment Manager 

($3 million)

FF Venture Capital

Contracted Investment Manager 

($2.5 million)

Milestone Venture Partners

Contracted Investment Manager 

($1.3 million)

SSBCI Funds are committed to contracted investment funds and invested alongside private capital with an instate investment requirement

Venture Capital Program Outcomes

Through December 31, 2015 the VC Fund obligated $6.8 million to private investment managers and expended $5.4 

million or 80 percent. The SSBCI capital expended has generated close to $59 million in total financing or $11 in 

total financing for every $1 in SSBCI funds spent.

Table NJ-6: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

39 $5.4 million $0 $58.8 million $1.51 million 10.95:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

782 22 FTEs 2 years 8% 0%

1. Information

2. Professional, Scientific, and 

Technical Services

3. Retail Trade

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• During the early-implementation phase, state program managers identified the following observations and 

assistance opportunities: 
237

1. NJEDA would have benefitted from peer-to-peer information sharing on how to draft standardized 

agreements with private investment managers that align with program compliance requirements. 

2. Because the VC Fund Program co-mingles SSBCI funds with private funds in each contracted 

investment fund, specific guidance on how to account for the flow of SSBCI funds – inside and 

outside the state – is needed.

3. In NJEDA’s historical experience, a New Jersey dedicated sidecar fund, and the associated 

concentration, did not offer enough portfolio de-risking and diversification to provide market rate 

returns. This observation led to the state implementing a model where NJEDA invested in private 

funds as a Limited Partner.
238

New Mexico

PROGRAM PORTFOLIO OVERVIEW86

Using $13.2 million in SSBCI allocation, New Mexico operates a single credit support program, the New Mexico -

Loan Participation Program (LPP), which expands an existing loan participation program and encourages lending in 

rural and underserved areas. 

The New Mexico Economic Development Department (NMEDD) administers the LPP through a partnership with 

the New Mexico Finance Authority (NMFA). 

Table NM-1: New Mexico’s SSBCI Program Portfolio Summary

Program Outcomes

New Mexico supported 16 loans that generated $45 million in total financing through December 31, 2015. 

Table NM-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

16 $7.2 million $0 $45.3 million $2.83 million 6.30:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

207 8 FTEs 7 years 38% 13%

1. Health Care and Social 

Assistance

2a. Accommodation and Food 

Services

2b. Manufacturing

2c. Other Services (except Public 

Administration)

2d. Wholesale Trade

*Includes funds expended for administrative costs

 86 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

New Mexico Loan Participation 

Program Loan Participation $13.2 million New Mexico Economic Development Department
239

CREDIT SUPPORT PROGRAM

New Mexico funded a loan participation program using SSBCI. 

Loan Participation Program

The NMFA purchases up to 40 percent of a loan to a New Mexico business or nonprofit on either a pari passu or 

subordinate basis. NMFA participation is limited to $2 million generally and up to $5 million if “significant 

economic development will occur” because of the credit support. The program manager receives a pro rata share of 

interest income less a 0.25 percent servicing fee. Participating banks originate and underwrite all loans. NMFA 

approval requires participating banks to submit their credit analysis and accompanying documentation to NMFA, 

which in turn completes an independent review and analysis. 

The program targets shorter-term working capital loans, and seeks to encourage lending in rural and underserved 

areas that have difficulty obtaining debt financing because of perceived risk or reduced valuation of assets available 

as underlying collateral. NMFA designed the program based on a legacy program, the Smart Money Loan 

Participation Program, expanding the eligible uses to include the purchase of a subordinate position.

Credit Support Program Outcomes

Through December 31, 2015, the LPP expended $8.2 million to support 17 loan participations and generated almost 

$51 million in total financing or $6.20 in total financing for every $1 in SSBCI funds spent. Businesses reported 

that the loans will help create or retain over 200 jobs. Businesses from a range of industries received loans but are 

concentrated in two industries: health care and social assistance and manufacturing. See Table NM-2 for additional 

credit program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Selecting an administrator with a history of operating similar programs helped implement SSBCI in New 

Mexico. Aligning SSBCI funding with an existing program (Smart Money Loan Participation Program) 

allowed the state to use an established partner and an existing lending network. 

• Providing lines of credit (especially short-term lines) has been a key benefit of SSBCI for the state. It 

attracts business that they would not reach without that capability. 

• Direct outreach to banks in the state is critical to increase lender participation and aid program success. In 

particular, the state felt it could have done a better job with the rollout and initial marketing pitch for the 

new SSBCI program. In retrospect, the state would have used economic development partners and the 

Governor to make a big announcement about the new fund. 

• Making outreach a priority helped form relationships between the state and banks that did not previously 

exist and addressed the perception that the SSBCI program was a competitor to SBA programs. 

• The program manager noted that branches of large financial institutions may not feel empowered to adopt 

SSBCI because of corporate protocols. 

• A good understanding of administrative law facilitated the implementation of New Mexico’s SSBCI 

program. In New Mexico’s case, a modification to existing state law was needed to put its new SSBCI 

program in place. The state mandates the NMFA to seek legislative authorization to provide loans. 

However, understanding the rigorous time constraints of the SSBCI funding, the NMFA Legislative 

Oversight Committee endorsed a moratorium on the legislative authorization requirements, which was fully 

supported by the Governor and signed into law. 
240

New York

PROGRAM PORTFOLIO OVERVIEW87

Using $55.4 million in SSBCI allocation, New York supports two existing credit support programs and a new 

venture capital program. Empire State Development (ESD), a public-benefit corporation and the state’s economic 

development agency, administers the programs. 

Table NY-1: New York’s SSBCI Program Portfolio Summary

Combined Program Outcomes

New York supported 1,107 loans and investments that generated $334 million in total financing through December 

31, 2015. 

Table NY-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

1,107 $35.4 million $0 $333.6 million $301,400 9.42:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

5,868 2 FTEs 3 years 56% 1%

1. Other Services (except Public 

Administration)

2. Retail Trade

3. Transportation and 

Warehousing

*Includes funds expended for administrative costs

 87 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

New York Bonding Guarantee 

Assistance Program Loan Guarantee $10.4 million Empire State Development

New York Capital Access 

Program Capital Access $7.9 million Empire State Development

Innovate New York Fund Venture Capital $37 million Empire State Development
241

CREDIT SUPPORT PROGRAMS

Loan Guarantee Program

New York designed the Bonding Guarantee Assistance Program (BGAP) to enable small and minority- and womenowned business enterprises construction firms to secure the bid bonds, bid lines, performance bonds, or payment 

bonds needed to compete for and win New York City and New York State funded contracts. BGAP provides a 

guarantee of up to 30 percent of the contract dollar amount or $600,000, whichever is less, to the surety company on 

behalf of the contractor. The surety company provides a bond for the full amount of the contract and BGAP 

assumes the first loss position (up to 30 percent of the contract) if there is a claim. The program manager requires 

the surety to conduct an independent credit evaluation on the contractor. BGAP supplements its credit support with 

technical assistance and counseling to help subcontractors become bond-ready.

Capital Access Program 

New York CAP provides a loan loss reserve for a pool of loans enrolled by a participating lender. Lenders (usually 

a CDFI) and their borrowers contribute a combined 3 percent to 7 percent of an enrolled loan to the reserve that the 

state matches on a one to one basis using SSBCI funds. The New York CAP allows the lender to determine how the 

contribution is split with the borrower. 

Credit Support Program Outcomes

Through December 31, 2015, the program manager expended $6.5 million in SSBCI funds to support 958 

transactions through the BGAP and CAP. Working with 20 non-bank financial institutions, these transactions 

generated almost $57 million in total financing or $8.70 in total financing for every $1 in SSBCI funds spent. 

Businesses reported that these loans will help to create or retain almost 4,200 jobs. Businesses in LMI communities 

received 62 percent of the total number of SSBCI loans. 

Table NY-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

958 $6.5 million $0 $56.8 million $59,300 8.73:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

4,183 2 FTEs 3 years 62% 0.3%

1. Other Services (except Public 

Administration)

2. Retail Trade

3. Transportation and 

Warehousing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:
242

• Few traditional banks have been interested in participating in CAP, as is the case across the country. 

Unlike some states, New York did not have a network of banks that historically participated in CAP. 

• CDFIs throughout the state have seen tremendous value in participating in the program, especially higher 

capacity CDFIs that have the flexibility and volume to make CAP work. Since the CDFIs tend to do a high 

volume of low dollar loans, New York was able to reallocate $8 million from CAP to Innovate NY while 

still meeting market needs. 

• National CDFIs that have a New York presence (including Accion) have been especially interested in 

participating in New York’s CAP because it allows lenders to determine how they split the loan loss 

reserve contribution with the borrower. 

• The state’s surety bond assistance program is unique. Bond guarantee assistance programs have typically 

not been financially sustainable because it is difficult for new small contractors to succeed and costly for 

surety companies to underwrite. New York is exploring additional models in order to do more guarantees 

and encourage more surety participation. 

• The BGAP has helped businesses grow and access public contracts. However, small businesses face limits 

in fulfilling public contracts and accessing sufficient working capital. In response, New York launched 

“Bridge to Success,” a $20 million program to expand access to short term bridge loans for minority- and 

women-owned business enterprises.

• Engaging individual sureties with SSBCI is extremely challenging because they are not traditional lenders. 

Many surety companies’ lawyers rejected the required SSBCI certifications (e.g., auditing, sex offender, or 

retention of records), even when their clients had agreed in principle to participate. Surety companies

perceive these requirements as intrusive and too burdensome for their business models.

• BGAP’s technical assistance component is critical, both for helping contractors become bond ready and 

also for maximizing the chances that contracts will be completed successfully. 

VENTURE CAPITAL PROGRAM

The Innovate New York (NY) Fund Program is a fund of funds state venture capital program. In addition to the 

SSBCI funds allocated to Innovate New York, ESD attracted $10.3 million in financial support from the Goldman 

Sachs Urban Investment Group for program administrative expenses and additional investment capital.

In 2010, state economic development leaders participated in a small business task force with regional focus groups 

to identify small business financing gaps in New York. A consensus emerged from regional stakeholders that seedand early-stage equity-based capital was not adequately accessible to small businesses, particularly outside of the 

New York City area. State officials concluded a new state venture capital program was needed to spur small 

business investment and help diversify the state’s economy.

The objective of the Innovate NY Fund is to support seed and early-stage small businesses seeking equity-based 

investment that are likely to stay in New York and grow, generate revenue, create jobs, and contribute to economic 

diversification and expansion. As a fund of funds program investing capital through private fund managers, a 

complementary program goal is to build additional private investment capacity in the form of more funds serving 

New York’s regional ecosystems, creating new touch points.

Venture Capital Program Design and Operations

With SSBCI funds and private funds from Goldman Sachs allocated to the Innovate NY Fund, the program manager 

contracted with a third party general partner, the Community Development Venture Capital Alliance (CDVCA), to 

assist with fund administration. The eight investment managers were competitively selected by ESD, out of 

approximately twenty applicants reviewed through a formal competitive process, to invest in high-growth potential 

firms in New York (see Table NY-4).
243

Table NY-4: Innovate NY Venture Funds

*Innovate NY investments on hold for Canrock Ventures as of November 2013

All funds are required to secure at least a 2 to 1 match from private sources on its aggregate portfolio at the time of 

investment, and each fund sets its own investment strategy and investment terms, with an expectation to invest in the 

form of equity or convertible debt. SSBCI funding may not exceed $500,000 per investment or $750,000 for a 

biotechnology investment. SSBCI funds are deployed from sidecar or special purpose funds managed by each 

selected investment manager, with Innovate NY Fund investments made on the same terms as private investors. 

Private co-investor participation in the program can come from individual angel investors, institutional venture 

funds, and corporate ventures.

The Innovate NY Fund investment criteria includes a requirement to invest a portion of proceeds in businesses 

located in lower income communities, or to meaningfully employ individuals from these communities, as well as 

focus on women- and minority-owned businesses.

Investment Fund SSBCI 

Allocation

Industry Targets New York State Regions Served

Canrock Ventures* $4,500,000 Software and IT Long Island

Cayuga Venture Fund $5,869,962 Emerging Tech Central, Southern Tier, Finger Lakes, 

Western

Excell Partners $4,000,000 Emerging Tech Central, Finger Lakes, Southern

ff Asset Management $4,500,000 Tech, Life Science, Consumer New York City Metro

Golden Seeds $4,000,000 Tech, Life Science, Consumer Statewide

Partnership Fund of New York $3,139,000 Life Science New York City Metro

SCP Buffalo Incubator/Z80 

Labs $4,500,000 IT, Digital Media, Life Science Central, Finger Lakes, Southern, Western

Stonehenge Growth Capital $5,000,000 Tech, Life Science, Health IT Statewide
244

Figure NY-5: Innovate NY Program Structure

Empire State Development (ESD)

Public Benefit Corporation

Official State Applicant and Program Manager

Innovate New York

$45 million Fund-of-Funds State Venture Capital Program

$10 million

Private Funds 

From Goldman Sachs

Community Development Venture Capital Alliance (CDVCA)

Contracted Fund-of-Funds Manager

ff Asset 

Management

$4.5 million 

allocation

Cayuga 

Venture

Fund

$5.9

million 

allocation

Canrock 

Ventures

$4.5 

million 

allocation

Excell 

Partners

$4 million 

allocation

Golden 

Seeds

$4 million 

allocation

Partnership 

Fund of 

New York

$3.1 million 

allocation

Stonehenge 

Growth 

Capital

$5 million 

allocation

SCP 

Buffalo 

Incubator

$4 million 

allocation

SSBCI funds are invested through sidecar funds created by the eight contracted private investment managers for the 

small business investments made in New York State

Venture Capital Program Outcomes

All contracts with funds were executed between December 2012 and February 2013. Since that time, more than $28 

million has been invested into 149 businesses across New York. SSBCI capital generated $277 million of new

capital investment, of which 32 of the 149 businesses have received one or more follow-on investments. The 

average initial investment amount of SSBCI funds is $191,000. 

Table NY-6: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

149 $28.9 million $0 $276.9 million $1.86 million 9.57:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,685 5 FTEs 3 years 19% 6%

1. Information

2. Manufacturing

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

The program’s financial objective is not to maximize financial returns, but instead to focus on filling the seed- and 

early-stage financing gap that is not addressed by other state funding programs. 
245

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• As a new fund of funds program, lessons were learned on the complexity of establishing a program 

structure that uses private investment managers. For example, stakeholders learned new methods for 

setting up administrative systems for fund management, how to create sidecar structures and Limited 

Partnership (LP) agreements, and how to manage capital calls from multiple private investment funds.

• The requirements of SSBCI resulted in some creative thinking for how to engage and compensate fund 

managers, deploy funds on a short time line, and implement a conflicts of interest policy. Communicating 

with SSBCI and receiving technical assistance was helpful in maintaining active oversight of investment 

managers.

• When risk capital availability is concentrated in one part of a state, specifically seeking investment partners 

with the capability to serve other regions can help distribute funds to better meet market demands in 

underserved areas.

• Having targets for serving under-represented populations helped maintain focus on this important outcome.
246

North Carolina

PROGRAM PORTFOLIO OVERVIEW88

Using $46.1 million in SSBCI allocation, North Carolina operates two credit support programs and a venture capital 

program. With SSBCI, the state sought to provide a broad spectrum of financing assistance to meet the debt and 

equity investment needs of high-growth potential small businesses. One of the SSBCI programs, the Capital Access 

Program (CAP), operated successfully between 1994 and 2007 until funds were no longer available. The other two 

programs were newly created with SSBCI funds. 

The North Carolina Department of Commerce contracted with the North Carolina Rural Economic Development 

Center (Rural Center), a private nonprofit organization devoted to rural economic development and advancement, to 

administer the programs. While the Rural Center’s primary service area is 85 rural North Carolina counties, the 

agency provides SSBCI financing to lenders and borrowers in all 100 counties. 

Table NC-1: North Carolina’s SSBCI Program Portfolio Summary

Combined Program Outcomes

North Carolina supported 642 loans and investments that generated $563 million in total financing through 

December 31, 2015. 

Table NC-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

642 $44.0 million $2.3 million $563.3 million $877,400 12.80:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

9,897 5 FTEs 5 years 17% 13%

1. Professional, Scientific, and 

Technical Services

2. Health Care and Social 

Assistance

3. Manufacturing

*Includes funds expended for administrative costs

 88 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

North Carolina Loan 

Participation Program Loan Participation $34 million Rural Center

North Carolina Capital Access 

Program Capital Access $1.8 million Rural Center

North Carolina Venture Capital 

Fund of Funds Program Venture Capital $10.3 million Rural Center
247

CREDIT SUPPORT PROGRAMS

Loan Participation Program

North Carolina created the NC-LPP program to address significant declines in collateral values and more stringent 

loan-to-value requirements for commercial loans. The NC-LPP allows the Rural Center to buy participations on a 

subordinated basis in term loans of up to 15 percent of the total loan amount for a maximum of 10 years. That 

shifted from an earlier enhancement of up to 20 percent or as much as a $750,000 participation in loans as large as 

$5 million. For many deals, the loan structure is based on a 5-year term using a 20-year amortization as is 

commonly used in the types of loans that finance owner-occupied real estate. 

Lenders were attracted to the NC-LPP because it provides credit enhancement for near-bankable deals with no fees 

and limited required forms in addition to the banks’ own documents under their own underwriting process. The 

lender maintains all liens – the Rural Center’s lien position is documented with a commitment letter to the lender 

and the terms of the subordination are detailed in the lender’s master agreement. The lenders service the entire loan 

at no charge to the Rural Center and in exchange, the Rural Center does not charge a fee for the NC-LPP credit 

support.

Capital Access Program

With the SSBCI allocation, the Rural Center restarted the North Carolina Capital Access Program (NC-CAP). The

NC-CAP requires the borrower and lender each to contribute to a reserve account with combined contributions 

ranging from 2 percent to 7 percent of each enrolled loan. The Rural Center uses SSBCI funds to match the 

combined borrower and lender contributions on a one to one basis. Lines of credit and similar working capital loans 

(of $150,000 or below) are the program’s most important niches. The average loan size for the program is less than 

$8,000 per transaction. 

Credit Support Program Outcomes

Through December 2015, the program manager expended $36 million of SSBCI to support 567 loans that generated 

$8.30 for every $1 in SSBCI funds spent. Businesses reported that these loans will help to create or retain over 

8,800 jobs. The average loan participation is $147,000 on loans averaging $978,000. Thus far, credit enhancements 

have been largely tied to businesses in owner-occupied facilities. 

Beyond the data required for reporting to Treasury, the Rural Center requests information from participating banks 

about the demographics of the company’s owners (including race/ethnic group and gender), as well as the location 

of company (rural or urban). Approximately 45 percent of the loans are made in the state’s 80 rural and five urbantransitioning counties. Approximately 16 percent of loans have been made to companies that have Veteran 

ownership, 38 percent to those with female ownership and 14 to those with percent African American, Asian, 

American Indian or Pacific Islander ownership.

Table NC-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

567 $35.7 million $2.35 million $297 million $523,800 8.31:1
248

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

8,832 5 FTEs 5 years 15% 15%

1. Health Care and Social 

Assistance

2. Accommodation and Food 

Services

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Lenders have become more willing to pay a reasonable fee for credit enhancements as the SSBCI program 

matures.

• NC-CAP had limited appeal because the model requires banks to charge a 2 percent net fee in an 

environment in which there was available funding and lower borrower demand. Lenders suggest that the 

program may work better in a higher interest rate environment in which the 2 percent fee can be 

incorporated easily into the interest-rate spread. 

• The Rural Center found the most important niche for loans using the NC-CAP was for lines of credits and 

similar working capital loans of $150,000 or below.

• SSBCI programs can increase leverage by purchasing a lower percentage of the deal, but early on it was 

more important to get lenders to engage with the program. Fortunately, as the economy improves, real 

estate values are improving thereby reducing the loan-to-value collateral gap in many projects. This is 

serendipitous because, today with the experience it has developed with lenders, the Rural Center may be 

able to provide sufficient credit enhancement at a lower percentage of the loan just as the Rural Center’s 

SSBCI funding is getting tighter.

• As the program is presently structured, the Rural Center estimates that it needs to generate about $8 million 

per year in recycled NC-LPP funds to sustain the program and meet current demand. 

• The Rural Center has a contract for services to manage the SSBCI program through 2025. This has helped 

to ensure program sustainability over time and ensure that credit support partners will continue to be 

committed to using the program.

• Lenders have become more willing to pay a reasonable fee for credit enhancements as the SSBCI program 

matures.

VENTURE CAPITAL PROGRAM

The North Carolina Venture Capital Fund of Funds (NC-FOF) is a new state venture capital program created with an 

allocation of $10 million in SSBCI funding to meet the equity investment needs of high-growth potential small 

businesses. The strategic objective of the NC-FOF, as defined by the Rural Center, was to “make the venture capital 

pie bigger in North Carolina” in support of fund-raising and investing for in-state venture funds. The Rural Center 

managed a competitive process to select investment fund managers, with a goal of identifying funds with 

complementary investment strategies in regards to industry and stage. The fund of funds program is focused on 

stimulating investment across the capital continuum, from seed- and early-stage investments to growth equity 

financings. Targeted industries for investment were determined by the selected fund managers and not specifically 

defined by the Rural Center.
249

Venture Capital Program Design and Operations 

The Rural Center’s board established an investment committee to assist with the fund manager selection process and 

overall program management. The Rural Center board of directors appointed the investment committee, which was 

formed in partnership with the Department of Commerce. The process began with a letter of intent to manage funds, 

which led to formal request for proposals from fund managers. Twelve funds were asked to submit formal proposals 

presented to the investment committee, leading to six finalists. After fund due diligence and agreement negotiation, 

four investment managers were approved for an SSBCI allocation in the NC-FOF portfolio (see Figure NC-4). Each 

of the funds provides financing to meet a slightly different market niche.

Table NC-4: NC-FOF Investment Fund Portfolio

The contracted investment funds received management fees ranging between 1 and 2 percent of allocated funds until 

the SSBCI administrative expense limit for the program was reached. After the administrative cap was reached, the 

contracted investment funds will be paid management fees from repayments to the state’s SSBCI funded credit

support programs. The funds charging 1 percent management fees receive 25 percent of the investment proceeds 

(profits) and those charging 2 percent management fees receive 20 percent of fund proceeds after returning the 

principle SSBCI investment to the Rural Center. SSBCI funds are invested through an independent sidecar fund for 

all contracted investment managers. 

Figure NC-5: NC-FOF Program Structure

North Carolina Department of Commerce

Official State Applicant

North Carolina Rural Center

Contracted Private, Non-profit State Program Manager with Responsibility for Selecting Private Investment 

Funds

North Carolina Fund of Funds

A New State Venture Capital Program

Hatteras Venture 

Partners

Contracted Private Fund

($4.7 million SSBCI 

allocation)

Salem Investment 

Partners

Contracted Private Fund

($2.5 million SSBCI 

allocation)

IDEA Fund Partners

Contracted Private Fund

($2.5 million SSBCI 

allocation)

Inception Micro Angel 

Fund

Contracted Private Fund

($300,000 SSBCI 

allocation)

SSBCI funds are committed to contracted private investment managers and either held in sidecar funds or 

invested alongside private capital

Investment Fund Name SSBCI 

Allocation

Investment Stage Fund Characteristics

Hatteras Venture Partners $4.7 million Early Sidecar, Life Science Focus

Salem Investment Partners $2.5 million Growth Equity Invested In/Through Single Investment Fund

IDEA Fund Partners $2.5 million Seed/Early Sidecar, Leverages NC IDEA Grant Program

Inception Micro Angel Fund $300,000 Seed/Early Multiple Angel Funds, Regionally Focused
250

Venture Capital Program Outcomes

Through December 31, 2015, the NC-FOF expended $8.3 million to support 75 investments. The SSBCI 

investments generated $266 million in new capital or $32.10 in new capital for every $1 in SSBCI funds spent. 

Businesses reported that the SSBCI investments will help create or retain over 1,000 jobs. 

The Rural Center indicated that its financial objective of the NC-FOF is being aligned with each of the investment 

fund partners, who are focused on financial returns. However, the overall program objective is to stimulate equitybased financings in high-growth North Carolina small businesses, with the alignment of financial incentives 

expected to achieve this goal. The residual capital from the program will stay with the Rural Center through 2025.

Table NC-6: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

75 $8.3 million $0 $266.3 million $3.55 million 32.13:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,066 4 FTEs 4 years 29% 3%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Establishing open communication channels with contracted investment managers helps make 

implementation easier, especially in regards to managing requirements and task requests.

• For contracted organizations managing a fund selection/allocation process or company investment 

decisions, having a large board of directors can be problematic due to real or perceived conflicts of interest. 

Developing appropriate organization governance structures and policies early to handle these decisions is a 

critical success factor for venture capital programs.

• By engaging private investment funds to manage deal sourcing and investing, changes in state funding 

support for the Rural Center did not impact the NC-FOF implementation. 
251

North Dakota-Carrington

PROGRAM PORTFOLIO OVERVIEW89

Using $3.4 million in SSBCI allocation, the North Dakota, City of Carrington consortium of municipalities (the 

Carrington Consortium) operates a credit support program and a venture capital program. With the SSBCI program 

portfolio, the program sought to fill the gaps in small business financing equity and caters to niche markets. 

The Carrington Consortium, which comprises 36 municipalities representing 47 percent of the state’s population, is 

authorized to manage the SSBCI capital. These communities are geographically located among the eastern and 

central part of the state. The City of Carrington contracted with the Red River Corridor Fund (RRCF) to implement 

the program. RRCF was a newly formed limited liability company managed by the Development Capital Network 

(DCN) and Praxis Strategy Group, LLC, both for-profit companies that provide economic development consulting 

services to public and quasi-public entities.

Table ND-C-1: North Dakota-Carrington’s SSBCI Program Portfolio Summary

Combined Program Outcomes

North Dakota’s Carrington Consortium supported 18 loans and investments that generated $7 million in total

financing through December 31, 2015. 

Table ND-C-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

18 $2.8 million $300,000 $7.2 million $401,300 2.59:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

107 3 FTEs 2.5 years 6% 83%

1. Retail Trade

2. Manufacturing

3a. Administrative and Support and 

Waste Management and Remediation 

Services

3b. Health Care and Social Assistance

3c. Other Services (except Public 

Administration)

*Includes funds expended for administrative costs

 89 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Credit Guarantee Program Collateral Support $3.25 million Red River Corridor Fund

Seed Capital Network Program Venture Capital $182,000 Red River Corridor Fund
252

CREDIT SUPPORT PROGRAM

Collateral Support Program

The Credit Guarantee Program (CGP) provides cash collateral for small business loans in the form of a certificate of 

deposit (CD) purchased at the lending bank. RRCF pledges the CD as a guarantee for up to 50 percent of the 

qualifying loan. The current maximum term for the credit guarantee is five years. The fee structure is 2 percent of 

the loan amount for a 50 percent guarantee and a full five-year commitment. Shorter-term loans and/or loans with 

less than 50 percent coverage bear reduced fees. In the event of a non-payment, banks may recover the cash 

collateral after all other collateral is liquidated and guarantees are enforced.

Credit Support Program Outcomes

Through December 31, 2015, the Carrington Consortium expended $2.6 million of SSBCI funds to support 17 

transactions through the CGP. The SSBCI funds generated $6.4 million in total financing or $2.40 in total financing

for every $1 in SSBCI funds spent. Businesses reported that the loans will help create or retain approximately 100

jobs. 

Table ND-C-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

17 $2.6 million $300,000 $6.4 million $374,900 2.41:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

101 3 FTEs 2 years 6% 82%

1. Retail Trade

2. Manufacturing

3. Administrative and Support 

and Waste Management and 

Remediation Services

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The RRCF outreach to bankers is mainly one-on-one, generally traveling to banks to provide an overview 

of the program. The RRCF staff provides examples of types of financing that will help the banker make a 

higher risk loan. This strategy has enabled them to launch the CGP. This strategy works well in rural areas 

and with community banks that know their small business base, but have difficulty with some government 

programs. 

• The unique aspect of the Carrington Consortium is that it is municipality driven, and several of the projects 

have come from referrals from community and local economic developers. The result is a unique and 

interested network of players that “own” the program.

• In creating the SSBCI programs, DCN and Praxis studied other states and helped local leaders to develop 

the program. 
253

• The RRCF guarantees up to 50 percent to give the program maximum flexibility and assist higher risk 

projects. This strategy also helped to deploy capital. 

• In order to help the program flow, the RRCF responds to the bank request, rather than making it a 

negotiation.

• Until December 2015, most SSBCI reports required the sign-off among all the cities. This process has been 

streamlined through an amendment to the Allocation Agreement that allows the authorized lead 

Consortium official to sign reports. 

VENTURE CAPITAL PROGRAM

The Carrington Consortium, through RRCF, operates a venture capital program called the Seed Capital Network 

Program (SCNP). RRCF invests in angel funds or seed funds that invest in small businesses in the participating 

municipalities. The board of participating municipalities helps to ensure widespread participation in sourcing 

investment opportunities. RRCF’s objectives are to facilitate seed, early, or growth capital investments in North 

Dakota small businesses with participation from local investors and to earn investment profits that will seed an 

evergreen investment fund that can be joined by individual angel investors. 

The consortium selected DCN to manage the program with Praxis based on DCN’s experience managing angel 

funds and fund of funds programs in rural states such as Arkansas, Iowa, and Oklahoma.

Venture Capital Program Design and Operations 

To facilitate collaborative investments with angel investors, RRCF created the Red River Angel Fund, a structure 

that aggregates capital from investors on a deal-by-deal basis into a distinct segment of the fund for investment into 

a single company. The model enables angel investors to participate in the deals they like, while still enjoying the 

benefits of a fund structure. The model is designed to help individuals with business-building experience learn the 

methods of seed investing and join together with their peers to support entrepreneurs in a region with historically 

very little venture capital activity.

Figure ND-C-4: SCNP Structure

Carrington, ND Consortium of 36 Municipalities

State Authorized Applicant

Seed Capital Network

New State Venture Capital Program Operating as an Authorized Co-Investment Fund

Red River Corridor

Special Purpose LLC Managed by Development Capital Networks and Praxis Group

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

To date, RRCF has reviewed more than ten investment opportunities and executed one commitment – a $125,000 

investment in a medical device company that has since been acquired by a public company. Despite the success of 

this initial investment, RRCF has not achieved the volume it expected at the time the strategy was developed.
254

Table ND-C-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

1 $136,100 $0 $850,000 $850,000 6.24:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

6 1 FTE 6 years 0% 100% Wholesale Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Program managers have learned that North Dakota angel investors, while open to joining organized funds, 

tend to prefer existing funds that seek projects in border communities of Minnesota and South Dakota, as 

well as North Dakota. These funds do not meet RRCF objectives. Due to this challenge, program 

managers transferred the majority of the SCNP allocation to the RRCF’s credit guarantee program which 

had deployed 78 percent of its allocated funds as of December 2015. 

• The Consortium’s difficulties match those of other SSBCI venture capital program experiments in states or 

regions with largely rural populations that have very little venture capital investment activity and large 

geographic distances between collaborating communities. 

• RRCF operates as an evergreen fund and over time expects to return to making qualifying SCNP 

investments with recycled funds as opportunities are found. 
255

North Dakota-Mandan

PROGRAM PORTFOLIO OVERVIEW90

Using $9.7 million in SSBCI allocation, the City of Mandan, North Dakota consortium of municipalities (the 

Mandan Consortium), operates a single credit support program – a loan participation program.

The Lewis and Clark Regional Development Council (LCRDC) manages the program on behalf of the Mandan 

Consortium of 38 municipalities. LCRDC is a nonprofit organization dedicated to supporting economic 

development in ten North Dakota counties. It was formed as a non-profit in 1973 and has operated revolving loan 

funds since 1993, maintaining a loss rate under 4 percent.

Table ND-M-1: North Dakota–Mandan’s SSBCI Program Portfolio Summary

Program Outcomes

North Dakota’s Mandan Consortium supported 39 loans that generated almost $72 million in total financing through 

December 31, 2015. 

Table ND-M-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

39 $9.7M $2.4M $71.7M $1.84M 7.37:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate- Income 

Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

564 10 FTEs 1 year 36% 33%

1. Accommodation and Food 

Service

2. Retail Trade

3. Other

*Includes funds expended for administrative costs

 90 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Loan Participation Program Loan Participation $9.7 million Lewis and Clark Regional Development 

Council
256

CREDIT SUPPORT PROGRAM

Loan Participation Program

Under the Loan Participation Program (LPP), the consortium has the option to provide direct loans but may also 

purchase participations up to 50 percent of total financing. The LPP supports loans up to $10,000,000 and limits its 

participation in a single transaction to $1,000,000. The loan participations are mainly interim financing related to 

SBA 504 funding.

LRDC sources, underwrites, and recommends transactions for approval to the consortium. A Steering Committee, 

comprised of one member appointed by each municipality in the consortium, oversees LCRDC and appointed a 15-

member Loan Committee (Review Committee) responsible for reviewing each transaction and for conducting an 

annual assessment of LCRDC. The Steering Committee also assists official municipal authorities with the 

responsibility of reviewing and verifying the accuracy of quarterly and annual reports submitted by LCRDC, 

maintaining records and complying with all reporting requirements of Treasury, and meeting annually to assess 

LCRDC’s performance. 

Credit Support Program Outcomes

Through December 31, 2015, the LPP expended $9.7 million in 39 transactions and generated $71.7 million in total

financing or $7.40 in total financing for every $1 in SSBCI funds spent. Businesses reported that the loans will help 

create or retain over 550 jobs. See Table ND-M-2 for additional credit support program outcomes. Credit unions 

and community banks have been active participants in the program, whereas large regional or national banks have 

not. The few CDFIs located in North Dakota have not participated in the program. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Lenders have been attracted to the program due to the subordination of the security position and the 

flexibility of the program. 

• Banks have indicated that they would like to use the program for passive real estate and affordable housing 

deals, purposes currently prohibited by SSBCI rules.

• In the past, there were administrative issues getting signatures from all 38 municipalities, which has 

delayed or even prohibited time-sensitive deals.

• The fact that the program is deployed by municipalities instead of the state has led to increased 

participation by local economic development officials. 

• In 2014, the Mandan Consortium approached Treasury with a modification request to address the 

cumbersome nature of their authorization process, namely that it required signatures from all members of 

the Mandan Consortium. In early 2015, the consortium amended their Allocation Agreement so that only 

one authorized signature was required for annual and quarterly reports. 
257

Northern Mariana Islands

PROGRAM PORTFOLIO OVERVIEW91

Using $13.2 million in SSBCI allocation, the Commonwealth of the Northern Mariana Islands (CNMI) operates two 

credit support programs – the Loan Purchase Participation Program (LPPP) and a Collateral Support Program 

(CSP). 

The CNMI Department of Commerce (DOC) contracted with the Commonwealth Development Authority (CDA) to 

administer the program. CDA is a public agency that is primarily responsible for stimulating economic development 

in the commonwealth. The Authority’s economic development lending activities are conducted through the 

Development Corporation Division (DCD).

Table MP-1: North Mariana Islands’ SSBCI Program Portfolio Summary

Program Outcomes

CNMI supported 22 loans that generated almost $6 million in total financing through December 31, 2015. 

Table MP-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

22 $2.9 million $0 $5.7 million $257,600 1.93:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

474 8 FTEs 6 years 0% 82%

1. Accommodation and Food 

Services

2a. Manufacturing 

2b. Wholesale Trade

*Includes funds expended for administrative costs

 91 All data and program descriptions presented here are as of December 31, 2015

Program Name Program Type Allocation Day-to-Day Administering Agency

CNMI Collateral Support

Program Collateral Support $8.6 million Commonwealth Development Authority

CNMI Loan Purchase 

Participation Program Loan Participation $4.6 million Commonwealth Development Authority
258

CREDIT SUPPORT PROGRAMS

Collateral Support Program

The Collateral Support Program (CSP) has been CNMI’s most popular program. It enables small businesses to 

acquire necessary financing that might otherwise be unavailable due to a collateral shortfall. The CSP places up to 

50 percent cash collateral in an account with a lender to complement an approved borrower’s collateral. The 

program charges no fees, and there is a five year term for the collateral support. Amortization for the loan receiving 

support is set at the bank’s interest rate and can be calculated for a period of longer than the five-year term. CNMI 

provides collateral support for loans up to $600,000.

Loan Participation Program

The Loan Purchase Participation Program (LPPP) is designed to assist lenders and borrowers in financing economic 

diversification activities. The program enables businesses to acquire financing that might otherwise be unavailable 

due to a cash flow shortage according to the lender's analysis. The program manager purchases up to 40 percent of a 

loan, with a deferment of payments for up to three years. The loans in the LPPP tend to be larger than those of the 

CSP. The LPPP can be used as credit enhancement by allowing CNMI to share the risk on loans up to $500,000.

Credit Support Program Outcomes

Through December 31, 2015, CDA expended $2.9 million in SSBCI funds to support 22 transactions and generated 

$1.90 in total financing for every $1 in SSBCI funds spent. Businesses reported that the loans will help create or 

retain over 470 jobs. Accommodation and food services, wholesale trade, manufacturing, and retail trade businesses

received two-thirds of the SSBCI loans. See Table MP-2 for additional credit support program outcomes.

The CSP has provided credit enhancements for 16 loans, and the LPP has been used to support five loans. CNMI 

views these credit support programs as self-sustaining, and at some point in the future, CDA will likely integrate the 

program with commonwealth funds designed to continue supporting the program.

CNMI is focused on serving not only the most populous island (Saipan), but also the neighboring islands of Rota 

and Tinian. Therefore, CNMI monitors the number of loans in those areas. Thus far, CNMI has supported two 

loans on Rota, representing 80 percent of the value of its portfolio. In addition, CNMI seeks to generate at least one 

job for loans over $60,000 of lending and at least two jobs for more than $100,000.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• SSBCI provides credit enhancement that has helped to attract foreign investment to the islands in ways that 

no other program has been able to do. 

• SSBCI has helped leverage interest in CNMI from investors and helped to leverage capital from the Bank 

of Guam, contributing to CNMI efforts to develop a relationship with the Bank.

• CDA was able to use the power of the network of states by developing an MOU with the Michigan 

Economic Development Corporation (MEDC), an active and experienced SSBCI program participant, to 

provide technical assistance in support of its two new programs until it could develop its own staff 

capacity. 

• The development of a memorandum of agreement between the CNMI Department of Commerce and CDA 

introduced a significant delay in trying to quickly deploy funds. Furthermore, the procurement process, 

including, a technical assistance services agreement with the MEDC, another source of delay in deploying 

funds. A more efficient mechanism for procuring support services would have expedited deployment. 
259

Ohio

PROGRAM PORTFOLIO OVERVIEW92

Using $55.1 million in SSBCI allocation, Ohio operates two credit support programs and a venture capital program. 

The state uses its programs to reach small businesses throughout the state, to provide disadvantaged businesses with 

capital, and to increase jobs and private investment. One of the SSBCI programs, the Ohio Capital Access Program 

(OCAP), operated prior to SSBCI’s introduction. The other two programs were newly created with SSBCI funds. 

The Ohio Development Services Agency (ODSA) implements SSBCI and directly manages the venture capital 

program, the Ohio Targeted Investment Program (TIP). ODSA’s Minority Business Development Division 

administers the OCAP and the Small Business Collateral Enhancement Program (SBCEP). 

Table OH-1: Ohio’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Ohio supported 499 loans and investments that generated $148 million in total financing through December 31,

2015. 

Table OH-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

499 $39 million $0 $148.2 million $297,000 3.80:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

7,896 4 FTEs 5 years 27% 14%

1. Accommodation and Food 

Services

2. Retail Trade

3. Manufacturing

*Includes funds expended for administrative costs

 92 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Small Business Collateral 

Enhancement Program Collateral Support $46.16 million Ohio Development Services Agency

Ohio Capital Access Program Capital Access $525,000 Ohio Development Services Agency

Ohio Targeted Investment 

Program Venture Capital $8.45 million Ohio Development Services Agency
260

CREDIT SUPPORT PROGRAMS

Collateral Support Program

The SBCEP supplies pledged cash collateral accounts to lending institutions to enhance collateral coverage of 

individual small business loans. SBCEP funds these accounts using SSBCI funds up to 50 percent of the loan 

amount for minority- and women-owned businesses and up to 30 percent for all other businesses; to a maximum 

collateral deposit or allocation of $1.5 million and a loan term of 15 years. The state charges a one-time, 2 percent 

fee on the deposit. Ohio modified the CEP in December 2012 to increase the maximum collateral deposit size, 

expanded the list of eligible industries to include any industries not prohibited by SSBCI, and included CDFIs as 

eligible lenders.

Capital Access Program

The OCAP provides portfolio insurance for business loans through separate loan-loss reserve accounts for each 

participating bank. Both the borrower and lender contribute from 1.5 percent to 3 percent of the principal loan 

amount to the loan-loss reserve account. OCAP uses SSBCI funds to match lender and borrower contributions on a 

one to one basis. There are no fees for a CAP loan.

Credit Support Program Outcomes

Through December 31, 2015, ODSA expended $31 million to support 492 loans that generated $131 million in total

financing or $4.20 in total financing for every $1 in SSBCI funds spent. Businesses reported the loans will help 

create or retain 7,700 jobs.

Table OH-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

492 $31.2 million $0 $130.9 million $266,100 4.20:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

7,700 4 FTEs 5 years 27% 14%

1. Accommodation and Food 

Services

2. Retail Trade

3. Manufacturing

*Includes funds expended for administrative costs

Borrowers represent a range of industries but are concentrated in nine industries for OCAP and nine for SBCEP. 

Due to the low utilization of the OCAP, ODSA redirected more SSBCI funds to the SBCEP. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Before launching this SSBCI program, Ohio conducted focus groups throughout the state to gauge interest.

Lenders were more enthusiastic about the collateral support program. 
261

• Many states interpreted the federal criteria differently. Understanding Treasury program requirements from 

the onset and better communication would have helped Ohio and other states get SSBCI programs off the 

ground more quickly. 

• Having a broad definition of industries eligible for the CEP aided its success. When Ohio sought to 

broaden reach to industries that were originally restricted (retail, franchises, etc.), the SBCEP became more 

successful. 

• Banks may be slow to adopt SSBCI credit support programs because they are seen as rivals to other federal 

programs and because SSBCI funding has an expiration date. More interest in the state’s SSBCI credit 

support programs has come from community banks and credit unions. 

• Ohio has 212 banks, and more than 12 percent are participating in the SSBCI program. The program 

manager used a survey to better understand how lenders perceive the SSBCI program and received positive 

comments about the simplicity and ease of programs and the quick approval turnaround time. 

• Most of the lending has taken place in urban areas, which highlights the possibility of using Community 

Reinvestment Act credit as a selling point to the banks in the future. 

• To sustain SBCEP and cover its costs, fees and length of deposit or allocations may need adjusting. 

• The state cited Treasury-sponsored peer-to-peer working groups, conferences, and reports as being helpful 

in making beneficial adjustments to the program. 

VENTURE CAPITAL PROGRAM

The Ohio Targeted Investment Program (TIP) is a state-agency managed investment fund that works to meet the 

financing needs of growth-stage small businesses. The venture debt program fills a gap in Ohio’s comprehensive 

portfolio of small business financing initiatives, which was identified by state officials as assisting businesses that 

have received equity financing and need debt financing for growth opportunities in targeted industries.

The TIP was created in the context of an existing portfolio of innovation-based development programs within the 

large-scale Ohio Third Frontier initiative. The Ohio Third Frontier is a multi-year $2.1 billion state funded initiative 

created to diversify and strengthen Ohio’s economy and ultimately changes the course of the state’s economy to be 

more globally competitive in emerging industries. Historical funding for Third Frontier came from multiple sources 

(state bonding, tobacco settlement funding, state general fund), and the economic development initiative now 

operates on proceeds from the most recent state bond issuance. 

With significant state investment supporting early-stage financings, state programs offering statewide assistance 

services for growth-oriented firms (e.g., Entrepreneurial Signature Program), and a strong network of regional 

venture development organizations assisting early-stage businesses (e.g., Rev1Ventures, JumpStart), program 

managers concluded that a gap in the capital continuum remained for “next stage” company financing and 

development. Next stage financings were described as investments made in small businesses after the early-stage 

seed round or first institutional venture capital round (Series A). Ohio designed the TIP as a complement to existing

Ohio small business finance programs focused on supporting Ohio’s manufacturers in the production and logistics 

value chains.

Venture Capital Program Design and Operations 

SSBCI funds are deployed as part of larger financing rounds, with a private investment leverage target of 4 to 1 and 

requirement of 1 to 1 for each investment at time of initial closing. The program targets pre-revenue and revenuegenerating businesses needing capital to expand sales. TIP is a venture debt investment program, where the 

investments are structured as loans on a case-by-case basis and might include creative features for enhanced returns 

to the investment manager, such as a success fee offered as a percentage of the loan value.

For the ODSA-managed small business credit support programs, many operational processes were in place for 

evaluating deal flow and outsourcing due diligence. ODSA built on these processes to manage the deal sourcing and 

application process for the venture capital program as well, including a competitive evaluation system. ODSA staff 

and leadership make the investment decision. Potential investment opportunities come through a network of 

regional partners, primarily via Third Frontier-supported seed funds and venture development organizations that 

filter the most attractive opportunities for the financing.
262

Figure OH-4: TIP Structure

Ohio Development Services Agency

Official State Applicant and Program/Investment Manager

Targeted Investment Program

New State Agency Managed Venture Debt Program

SSBCI Funds Invested in Small Businesses

SSBCI Funds Invested with Minimum 1:1 Private Investment

Venture Capital Program Outcomes

Through December 31, 2015, the TIP had invested $7.8 million or 92 percent of its $8.5 million allocation. The

seven TIP investments generated over $17 million in total capital. Businesses reported that the investments will 

help create or retain almost 200 jobs in Ohio-based businesses. 

Table OH-4: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

7 $7.8 million $0 $17.3 million $2.50 million 2.22:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

196 11 FTEs 5 years 57% 14%

1. Manufacturing

2. Information

3a. Retail Trade

3b. Wholesale Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Organizational restructuring of economic development functions impacted TIP implementation, resulting in 

delays in processing TIP transactions. With so much organizational change affecting hundreds of millions 

of dollars in state program investments, the SSBCI supported program was caught up in shifting state 

priorities and staff turnover. 

• Even with existing processes, personnel, capabilities and state resources in place, it can be challenging to 

launch a new initiative when other funding sources are available.

• Managing capital programs with funds being held until pre-specified milestone processes are achieved 

helps ensure program compliance and credibility with stakeholders.
263

• Identifying the right gaps in a state’s program portfolio and attracting the right mix of partners to market 

the program and build awareness is important to get the program launched and positioned properly for 

success.

• State program managers worked to design the program with flexibility to operate within defined boundaries 

– small business definition, businesses receiving prior equity investments, entering growth phase, private 

investment match. However, program managers recommend states avoid being too rigid with definitions 

during the program design phase to avoid creating unnecessary obstacles to supporting small businesses 

with financing needs.
264

Oklahoma

PROGRAM PORTFOLIO OVERVIEW93

Using $13.2 million in SSBCI allocation, Oklahoma operates a venture capital program called the Accelerate 

Oklahoma Fund (Accelerate OK). The program is designed to fill gaps in the state’s demand for equity investment 

capital not served by the Oklahoma Seed Capital Fund (OSCF) – an existing state supported program.

A state-sponsored nonprofit organization, i2E, Inc. manages technology-based economic development programs for 

the state and manages both Accelerate OK and OSCF. The Oklahoma Department of Commerce contracted with 

i2E to manage the SSBCI program.

Table OK-1: Oklahoma’s SSBCI Program Portfolio Summary

Program Outcomes

Oklahoma supported 45 investments that generated $74 million in total financing through December 31, 2015. 

Table OK-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

45 $11.0 million $0 $74 million $1.64 million 6.75:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

555 3 FTEs 3 years 82% 7%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Health Care and Social 

Assistance

*Includes funds expended for administrative costs

 93 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Accelerate Oklahoma Fund Venture Capital $13.2 million Oklahoma Department of Commerce
265

VENTURE CAPITAL PROGRAM

i2E identified three opportunities to complement existing investment programs in Oklahoma with SSBCI Funds: 1) 

post proof-of-concept “accelerator” investments ranging from $100,000 to $250,000 in businesses needing to build a 

prototype or launch a concept product with initial customers; 2) growth stage investments in established businesses

with existing products or services generating revenue from customers and needing greater than $1 million in new 

capital to expand product offerings or acquire new customers, and 3) “any stage” investments up to $500,000 

designed to enhance angel investment activity in Oklahoma. 

i2E often leads investment rounds, filling a leadership gap in the state’s innovation ecosystem resulting from the 

lack of active venture funds in the state. Deal structures vary based on the preferences of co-investors and stage of 

company development, ranging from convertible debt to preferred stock with normal venture investor terms, but are 

always made pari passu with the terms of co-investors. Businesses seeking investments from i2E often receive 

mentoring and business advisory services, including introductions to potential co-investors. In alignment with 

private co-investors, i2E aims to earn appropriate risk adjusted returns with every decision to invest, but also accepts 

the inherent risk of high failure rates from equity investments in seed and early stage technology businesses.

While the Oklahoma Center for the Advancement of Science and Technology (OCAST) serves as an intermediary 

between the State and i2E for many of the pre-existing services and investment programs, i2E manages the SSBCI 

allocation via a direct contract with the Oklahoma Department of Commerce. i2E is a 501(c)(3) managed by a 31-

member board of directors, comprised of business leaders, investors and key stake holders. The Executive Director 

of OCAST is also a member of i2E’s board. i2E utilizes a separate investment committee comprised of i2E board 

members and business leaders to approve SSBCI investments. 

Figure OK-3: INCITE Co-Investment Fund Structure

Oklahoma Department of Commerce

Official State Applicant and Program Manager

Accelerate Oklahoma Fund

$13 million State Venture Capital Program

SSBCI Funds Invested in Small Businesses

Three Strategies Employed:

1) “Accelerator Investments in post proof-of-concept technology businesses;

2) Co-investments in angel-investor backed startups at any stage of development

3) Growth stage co-investments backed by venture capital funds

Venture Capital Program Outcomes

Through December 31, 2015, i2E has invested $11 million or 83 percent of the $13.2 million allocation in 45 

investments. The investments generated $74 million in total capital or $6.80 in total financing for every $1 in 

SSBCI funds spent. Businesses reported that the investments will help create or retain over 550 jobs. See Table 

OK-2 above for additional venture capital program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Although i2E has a base team of approximately 20 staff members, many of whom can contribute in 

managing SSBCI, the unique compliance requirements for SSBCI required the organization to add a role of 

“investment compliance officer” to the duties of one team member.
266

Oregon

PROGRAM PORTFOLIO OVERVIEW94

Using $16.5 million in SSBCI allocation, Oregon expanded three credit support programs to provide increased debt 

financing support for underserved communities. 

Oregon Business Development Department (OBDD), also known as Business Oregon, manages the programs. 

Business Oregon uses its business development officers to market SSBCI to credit unions, bankers, industry 

associations, and chambers of commerce. It also works through the governor’s office to promote the program 

through events to groups such as Oregon Bankers Association. 

Table OR-1: Oregon’s SSBCI Program Portfolio Summary

Program Outcomes

Oregon supported 236 loans that generated almost $153 million in total financing through December 31, 2015. 

Table OR-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

236 $16.3 million $0 $152.7 million $647,100 9.34:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,506 7 FTEs 5 years 35% 22%

1. Manufacturing

2. Construction

3. Retail Trade

*Includes funds expended for administrative costs

 94 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Credit Enhancement Fund Loan Guarantee $12.85 million Business Oregon

Oregon Business Development 

Fund Loan Participation $3.5 million Business Oregon

Oregon Capital Access Program Capital Access $166,000 Business Oregon
267

CREDIT SUPPORT PROGRAMS

Loan Guarantee Program

The Credit Enhancement Fund (CEF) provides guarantees of up to 80 percent of the loan amount. The focus of this 

program is primarily on operating lines of credit and secondarily on term loans for equipment and commercial real 

estate. Oregon’s CEF is limited to businesses that sell goods or services to a national or international market. 

However, if a business is located in a distressed area, this limitation is waived. 

Loan Participation Program

The Oregon Business Development Fund (OBDF), started in 1983, provides subordinate financing for up to 40 

percent of total project costs on loans up to $1 million. The fund primarily provides financing for fixed asset loans. 

The program was modeled after the SBA 504 real estate and equipment loans program, and it focuses on 

manufacturing businesses. This program gives preference to projects that are located in distressed areas, and it 

requires a $200 application fee and a 0.75 percent commitment fee. Oregon charges a 1.5 percent origination fee (of 

the OBDF financed amount) that can be reduced in half if a commitment fee was also collected. Finally, Oregon 

charges a fixed interest rate of U.S. Treasury Bills plus 1 percent (with a 4 percent minimum).

Capital Access Program

The Oregon CAP provides portfolio insurance for business loans based on separate loan-loss reserve accounts at 

each bank participant. Since its inception in 1991, Oregon’s CAP has targeted on underserved and rural small 

businesses. Oregon uses SSBCI funds to match dollar for dollar the combined lender and borrower contributions to 

the loan-loss reserve accounts ranging from 3 percent to 7 percent of the loan amount. 

Credit Support Program Outcomes

Through December 31, 2015, Business Oregon expended $16.3 million of SSBCI funds to support 236 loans and 

generated almost $153 million in total financing or $9.30 in total financing for every $1 in SSBCI funds spent. 

Businesses reported that the loans will help create or retain more than 1,500 jobs. More than 80 of these 

transactions or 35 percent were in LMI communities. Most of these loans were made to manufacturing and 

construction businesses. See Table OR-2 for additional credit support program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The CEF has been valuable for lenders looking for credit enhancement to better serve business customers 

and to assist those businesses with growth and expansion. 

• Open channels of communication with banks have helped Business Oregon meet their needs. Deepening 

relationships with the lending community combined with the CEF’s ease of use have led more regional 

banks to consider Business Oregon’s programs. 

• The simplicity of the CEF regulations compared to those of SBA and other credit enhancement programs is 

a major advantage.

• Low pricing for the OBDF has attracted borrowers, but its relatively high leverage requirements have 

limited the number of deals that have closed. 

• Business Oregon has a strong connection with the Oregon Bankers Association and a strong understanding 

of what local bankers are and are not comfortable with; this helps deal flow.

• Participating lenders have raised concerns about SSBCI’s required disclosures. In addition, there have 

been concerns about structuring compliant lease agreements for owner occupied properties.
268

Pennsylvania

PROGRAM PORTFOLIO OVERVIEW95

Using $29.2 million in SSBCI allocation, Pennsylvania operates three credit support programs and a venture capital 

program. Using the SSBCI program portfolio, the state sought to serve underserved communities. The 

Pennsylvania Department of Community and Economic Development (DCED) administers all programs.

Table PA-1: Pennsylvania’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Pennsylvania supported 156 loans and investments that generated $208 million in total financing through December 

31, 2015. 

Table PA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

156 $15.7 million $678,500 $208.0 million $1.33 million 13.27:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

2,916 2 FTEs 3 years 44% 13%

1a. Accommodation and Food 

Services

1b. Manufacturing

2. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 95 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Machinery and Equipment Loan 

Fund Loan Participation $9 million Pennsylvania Department of Community and Economic Development

Pennsylvania Economic 

Development Finance Authority 

Program

Loan Participation $8.7 million Pennsylvania Department of Community and 

Economic Development

Pennsylvania Community 

Development Bank Program Loan Participation $6.5 million Pennsylvania Department of Community and Economic Development

Ben Franklin Technology 

Partners and Life Sciences 

Greenhouse Partners

Venture Capital $5 million Pennsylvania Department of Community and 

Economic Development
269

CREDIT SUPPORT PROGRAMS

Loan Participation Program - MELF

The MELF program was created in 2000 to provide direct and companion low-interest loans to acquire and install 

new or used machinery and equipment or to upgrade existing machinery and equipment. In most cases, MELF is 

subordinate to its partnering lender. MELF’s loans may be up to 50 percent of the total financing, with a maximum 

credit support by MELF of $5 million. Current pricing for the program is the 10-year Treasury rate plus 100 points, 

which as of May 2015, was 3.00 percent. DCED changes this offer rate every quarter and has 5, 7, or 10 year terms.

MELF is one of a number of revolving-loan funds that are managed by DCED. The SSBCI program is an important 

source of loan capital for the agency, as state budget cuts affected MELF and other credit support programs. 

Loan Participation Programs – PEDFA and PCD Bank

The Pennsylvania Economic Development Finance Authority Program (PEDFA) and the Pennsylvania Community 

Development Bank Program (PCD) have been outsourced to revolving loan funds and CDFIs. The PEDFA and 

PCD Bank programs are structured as contractual capital pass-throughs of SSBCI funds to community development 

corporations and CDFIs, respectively that lend funds to qualifying small and micro businesses. The capital to be 

leveraged by the SSBCI funds through PEDFA can either be third-party financing, the revolving loan fund’s own 

capital, or both. The PCD Bank program provides debt financing for CDFIs. Loans to small businesses range from 

$250,000 to $5 million. The CDFIs leverage their own lending capital in loans to small businesses in addition to 

utilizing third party lending.

Credit Support Program Outcomes

Through December 31, 2015, Pennsylvania’s SSBCI credit support programs supported 122 loans resulting in 

$102.5 million in total financing from $12.6 million in SSBCI funds or $8.11 in total financing for every $1 in 

SSBCI funds spent. Businesses reported that these transactions will help create or retain over 2,500 jobs. 

Businesses that received loans represent a range of industries but are concentrated in three industries, with 24 

percent of all loans going to businesses in the accommodation and food services industry, 16 percent in 

manufacturing and 10 percent in retail trade. Twelve lending institutions made loans utilizing the programs through 

year-end 2015. Pennsylvania made efforts to ensure that contractors represented the full geography of the state. 

Table PA-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

122 $12.6 million $658,500 $102.5 million $839,900 8.11:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

2,571 1 FTEs 2 years 48% 15%

1. Accommodation and Food 

Services

2. Manufacturing

3. Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:
270

• CDFIs appear to be the lenders that have enjoyed the greatest success with their SSBCI funds in 

Pennsylvania’s structure largely because the program has allowed them to raise significant amounts of 

“matching” capital. In addition, CDFIs can mix and match SSBCI monies with monies from other federal, 

state, and private sources to fund transactions.

• DCED disbursed funding to its contractors on a proportional basis for each disbursement from Treasury, 

rather than on a first come first served basis up to the maximum funding level. This resulted in delays for 

some contractors with faster disbursement rates. 

• The iterative process DCED created for the competitive process for selecting participating CDFIs was an 

important contributor to the success of the implementation and overall program outcomes.

• DCED uses both incentives and punishments for these organizations that refer deals to them: the incentive 

of shared interest income and the punishment of expulsion from the program for those institutions that refer 

bad deals. 

• Historically, MELF’s typical deal size exceeds $20 million, which is the SSBCI cap. This has caused 

issues for the program in attracting and closing deals. 

• Since MELF’s typical transaction involves many lenders and a “lasagna” structuring in which machinery 

and equipment (M&E) are the last to be financed, there is a significant lag time between sourcing, 

approving, and closing transactions. 

• DCED audits all of their contractors and reviews every transaction for compliance as soon as a loan is 

made.
271

VENTURE CAPITAL PROGRAM

DCED allocated 17 percent of the state’s SSBCI allocation for venture capital investments and selected seven 

existing state-sponsored nonprofit organizations to serve as administer the program: four regional organizations with 

the Ben Franklin Technology Partners (BFTP) and three regional organizations, the Life Science Greenhouses 

(LSG). These programs have been leading seed and early stage equity investments in Pennsylvania small businesses 

for more than 32 years and 14 years, respectively. With SSBCI capital, these programs focused on supporting 

follow-on rounds in existing portfolio businesses that have achieved early milestones and need private capital to 

continue their development.

Venture Capital Program Design and Operations 

BFTP and LSG managers often begin working with technology businesses in their formative stages, providing 

technical assistance and mentoring services in addition to the opportunity to apply for investment capital. The 

regional offices of these organizations support extensive networks at universities, accelerators, angel investor 

groups, and venture capital firms to identify emerging and established businesses developing technologies or 

strategies with the potential to grow quickly and/or interest private investors. 

Pre-existing investment programs enable BFTP and LSG to invest very early in seed and early stage businesses. 

They are often the first institutional investors in start-up businesses aiming to prove concepts and show a 

manageable risk profile for future private investors. With SSBCI capital, BFTP and LSG focused on opportunities 

to accelerate private capital investment rounds in small businesses that previously had received BFTP or LSG 

investments on pari passu terms with private investors. 

Figure PA-4: Pennsylvania Venture Capital Program Structure

Pennsylvania Department of Economics and Community Development (DCED)

Official State Applicant

Biotechnology 

Greenhouse of 

Southeast PA

Life Sciences 

Greenhouse 

of Central 

PA

Pittsburgh 

Life Sciences 

Greenhouse

Innovation 

Works, 

Pittsburgh

BFTP of 

Northeast 

and 

Central PA

BFTP of 

Southeastern 

PA

BFTP of 

Northeastern 

PA

SSBCI Funds Invested in Small Businesses

Venture Capital Program Outcomes

Through December 31, 2015, BFTP and LSG managers had invested $3 million or 60 percent of the 

Commonwealth’s VCP allocation. The investments generated $105.6 million of total capital investment or $34.70

in total capital for every $1 in SSBCI funds spent. Businesses reported that the investments will help create or retain 

nearly 350 jobs. Investment managers used SSBCI capital primarily to support investment rounds led by private 

venture capital firms or corporate venture capital funds. The comparatively large leverage ratio demonstrates the 

program’s highly selective SSBCI investments, due to a strong pipeline of portfolio businesses from pre-existing 

programs seeking follow-on investments and the relatively small allocation of SSBCI capital to the VCP.
272

Table PA-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

34 $3.05 million $20,000 $105.6 million $3.11 million 34.65:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

345 3 FTEs 4 years 32% 9%

1. Professional, Scientific, and 

Technical Services

2. Manufacturing

3. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The relatively small $5 million allocation to the BFTP and LSG combined with the sub-allocation to seven 

well-established venture development organizations resulted in very small pools of SSBCI capital for each 

program manager. 

• Due to some of the unique SSBCI compliance and reporting requirements, the BFTP and LSG could have 

been more efficiently managed by involving fewer program managers in roles that required understanding 

of SSBCI rules and regulations.
273

Puerto Rico

PROGRAM PORTFOLIO OVERVIEW96

Using $14.5 million in SSBCI allocation, Puerto Rico operates a loan participation program and a venture capital 

program. Puerto Rico’s Treasury Department contracted with the Economic Development Bank (EDB) for Puerto 

Rico, a component unit of the commonwealth of Puerto Rico, to manage both programs. The EDB’s mission is to 

support the development of Puerto Rican entrepreneurs. EDB has operated a direct loan participation program since 

its inception in 1985 and has operated a venture capital program since the late 1980s. 

Table PR-1: Puerto Rico’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Puerto Rico supported 24 loans and investments that generated $46 million in total financing through December 31,

2015. 

Table PR-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

24 $14.5 million $4.3 million $46.0 million $1.92 million 3.16:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

2,663 27 FTEs 9 years 29% 13%

1. Educational Services

2. Manufacturing

3. Professional, Scientific, and 

Technical Services

 96 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Loan Participation Program Loan Participation $13.5 million Economic Development Bank

Venture Capital Program Venture Capital $1 million Economic Development Bank
274

CREDIT SUPPORT PROGRAM

Loan Participation Program 

Under its loan participation program (LPP), the EDB uses its SSBCI funds to participate in loans originated by 

commercial banks and in direct loans by the EDB. Through the LPP the EDB provides credit lines (term up to 1 

year), working capital loans (term up to 5 years), equipment financing (term up to 7 years), real estate improvement 

loans (term up to 10 years) and financing for real estate purchases (term up to 30 years). The interest rate may be 

fixed or variable and ranges from 8 – 11.75 percent based on underwriting and collateral. The maximum loan 

amount for credit lines is $500,000. For all other loans, the maximum amount is $1,000,000. SSBCI funds are used 

to participate in bank loans or co-fund loans led by the EDB.

Credit Support Program Outcomes

Through December 31, 2015, Puerto Rico’s credit support program had expended $13.5 million in 23 transactions 

and generated $37 million in total financing or $2.70 in total financing for every $1 in SSBCI funds spent. 

Businesses reported that the loans will help create or retain over 2,250 jobs. Credit lines have been the most popular 

product. 

Table PR-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

23 $13.5 million $4.3 million $36.9 million $1.61 million 2.73:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

2,262 25 FTEs 9 years 30% 13%

1. Accommodation and Food 

Services

2. Manufacturing

3. Retail Trade

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Banks have been unwilling to participate in the program, which led the EDB to use its own assets as the 

private capital. 

• The EDB’s prior experience operating credit support programs helped with the initial deployment of 

SSBCI funds. 
275

VENTURE CAPITAL PROGRAM

Puerto Rico’s EDB manages a single venture capital program. EDB deactivated the VCP after making a one 

investment to focus SSBCI capital on other economic development priorities in the Commonwealth. The Puerto 

Rico Treasury Department initially designated $2 million of SSBCI capital to support an existing but mostly inactive 

VCP managed by the Puerto Rico Economic Development Bank (PREDB). Created in the 1980s, the VCP 

previously made $45 million of direct equity investments in small businesses and $50 million of limited partner 

investments in venture capital funds actively investing in Puerto Rico small businesses. However, venture capital 

activity in Puerto Rico since the 2008 financial crisis has been severely constrained, with just $4.6 million invested 

in Puerto Rican small businesses in the six years from 2009-14 compared to $72.9 million in the four years from 

2005-08. 

Venture Capital Program Design and Operations 

EDB’s Venture Capital Program (VCP) can invest in businesses in two different ways; either directly into local 

businesses equity, or through local investment funds. Its preferred method is direct investment in businesses.

Venture Capital Program Outcomes

As of December 31, 2015, EDB had invested $1 million or 100 percent of its adjusted VCP allocation, which 

generated just over $9 million in total new financing. 

Table PR-4: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

1 $1.0 million $0 $9.05 million $9.05 million 9.05:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

401 101 FTEs 1 year 0% 0% Transportation and Warehousing

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Given the limited resources and great need for commercial financing today, Puerto Rico decided its SSBCI 

funds could accomplish more and recycle faster through its LPP.
276

Rhode Island

PROGRAM PORTFOLIO OVERVIEW97

Using $13.2 million in SSBCI allocation, Rhode Island expanded a credit support program and created two venture 

capital programs. 

The Rhode Island Commerce Corporation (RI Commerce), a quasi-public agency that serves as a government and 

community resource to help streamline business expansion, administers the credit support program. The Rhode 

Island Small Business Loan Fund Corporation, a nonprofit subsidiary of RI Commerce, oversees the venture capital 

programs.

Table RI-1: Rhode Island’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Rhode Island supported 71 loans and investments that generated almost $96 million in total financing through 

December 31, 2015. 

Table RI-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

71 $5.4 million $0 $95.7 million $1.35 million 17.75:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

296 2 FTEs < 1 year 72% 0%

1. Information

2. Professional, Scientific, and 

Technical Services

3. Manufacturing

*Includes funds expended for administrative costs

 97 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Small Business Loan Fund Loan Participation $2.2 million Rhode Island Commerce Corporation

Slater Technology Fund Venture Capital $9 million Rhode Island Small Business Loan Fund 

Corporation

Betaspring Venture Capital $2 million Rhode Island Small Business Loan Fund 

Corporation
277

CREDIT SUPPORT PROGRAM

Loan Participation Program

The Small Business Loan Fund (SBLF) provides subordinated loans up to $500,000 to small businesses for working 

capital as well as fixed asset financing with maturity dates ranging from 5 to 15 years. RI Commerce charges a 3 

percent upfront fee on the amount loaned, $250 application fee, and 3 percent upon closing the loan up to $3,500. 

Rhode Island targets new and existing businesses that create jobs through innovation, those in LMI areas, and only 

in cases where it is clear that private financing alone is not available to complete the project. Retail businesses and 

restaurants are ineligible for financing through the SBLF. The program requires the company to create a minimum 

of one job for every $50,000 in funds loaned. Since the SBLF has historically provided a leverage ratio of 4.2 to 1 

and SSBCI has targeted a minimum leverage ratio of 10 to 1, RI Commerce has not found many lenders ready to use 

the program. The two successful loan participations involved layered financing with other public as well as private 

financing. 

Credit Support Program Outcomes

Through December 31, 2015, the credit support program expended $506,900 in three transactions and generated $5 

million in total financing or $9.90 in total financing for every $1 in SSBCI funds spent. Businesses reported that the 

loans will help create or retain 75 jobs. The state measures success by the number of jobs created and retained; 

support for growth sectors including health care, advanced manufacturing, green industries, tourism, design, or 

technology; and the impact in re-branding and revitalizing urban areas. 

Table RI-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

3 $506,900 $0 $5.03 million $1.68 million 9.92:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

75 9 FTEs 9 years 0% 0%

1a. Health Care and Social 

Assistance

1b. Manufacturing

1c. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• It is not always easy to incorporate new funding streams with distinct program requirements into a wellestablished loan fund. Program managers viewed the goal of 10 to 1 leverage for micro-loans with skepticism. 

• Knowledge-based small- and mid-size businesses are often constrained by traditional lending parameters. 

Given their typically weaker balance sheets, these firms often lack sufficient equity to satisfy bank down 

payment requirements. 
278

• Rhode Island was standing up its SSBCI programs in the wake of the failure of a high profile state-sponsored 

transaction funded by a different program. The negative press related to this transaction caused private sector 

partners to be cautious about participating with in the state’s SSBCI programs.

• Sustained program champions’ engagement and executive sponsorship are important when trying to institute 

new partnerships to support small business lending.

VENTURE CAPITAL PROGRAMS

Rhode Island implemented two venture capital programs supported by $11 million of SSBCI funds. An existing 

state-supported nonprofit investment fund, the Slater Technology Fund, received a $9 million from SSBCI to 

strengthen early-stage small business investment activities in Rhode Island. In addition, a newly established forprofit accelerator fund, Betaspring, received a $2 million SSBCI allocation to fill a void in the state’s entrepreneurial 

ecosystem at the pre-seed stage of business investment. Betaspring primarily serves the greater Providence area.

The Rhode Island Small Business Loan Fund Corporation administers the programs in partnership with two 

investment managers. With these two complementary equity capital programs, Rhode Island aimed to improve the 

state’s business environment for entrepreneurs by supporting small businesses with high-growth potential across the 

early-stage capital continuum.

Created in 1997, the Slater Fund is a contractor-managed investment fund with expertise and operational capacity to 

support equity-based investing in Rhode Island. The Slater Fund has helped more than 100 businesses through 

investments of more than $22 million in state funds. According to the Slater Fund management team, the 

commitment of federal funding support is critically important to the Fund’s goal of becoming financially selfsustaining over time. The Slater Fund focuses on supporting new high-growth potential ventures in Rhode Island 

that could have transformational economic development impact, especially helping firms commercializing 

innovations in the life sciences industry. Betaspring is a contractor-managed start-up accelerator fund that provides

capital and support services to digital media entrepreneurs at the pre-seed stage. Betaspring presented program 

managers an opportunity to create a public-private partnership that could fill another identified gap on the capital 

continuum – when businesses are first being formed.

Venture Capital Program Design and Operations 

Betaspring takes common stock equity interest positions at predetermined company valuations, investing an average 

of $50,000 in cash and accelerator services in exchange for 6 – 8 percent equity, to align ownership interests with 

the entrepreneurs participating in the program. The Slater Fund makes equity or convertible debt investments, 

depending on company characteristics and needs, as well as preferences of participating co-investors. The SSBCI 

funds in both programs were used for investments only – neither investment manager charged management fees out 

of the allocated funds. 

Department officials organized stakeholder conversations throughout Rhode Island and the surrounding region (i.e.,

the Boston metro area) to collect information on the needs and solutions for capital formation in the state. Along 

with the need to increase local and regional supply of risk capital, the “equity capital summits” highlighted the need 

to strengthen the pipeline of investable deals.

Betaspring runs a national competition for participation in the accelerator program, which provides twelve weeks of 

intensive technical assistance in the form of business services including the assignment of business mentors, access 

to professional services like legal and accounting, market analysis, and connections to potential private investors. 

The SSBCI capital is comingled with private capital in the Betaspring fund, making the state an investor in the fund. 

The Slater Fund is governed by a board of directors, with a designated investment committee consisting of two 

directors, two investment professionals, and two industry sector specialists. 
279

Figure RI-4: Rhode Island Venture Capital Fund Structure

Rhode Island Department of Administration

Official State Applicant

Rhode Island Small Business Loan Fund Corporation

Contracted State Program Manager

Slater Technology Fund

Existing Contractor-Managed State Investment Fund 

(Non-Profit)

$9 million SSBCI Allocation

Betaspring

Contractor-Managed Start-Up Business Accelerator 

Fund (For Profit)

$2 million SSBCI Allocation

Venture Capital Program Outcomes

Through December 31, 2015, the venture capital programs expended $4.9 million or 44 percent of the $11 million 

allocation, generated almost $91 million in total investment or $18.60 in total capital for every $1 in SSBCI funds

spent. Businesses reported that the 68 investments will help create or retain over 200 jobs. 

Table RI-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

68 $4.9 million $0 $90.7 million $1.33 million 18.57:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

221 2 FTEs < 1 year 75% 0%

1. Information

2. Professional, Scientific, and 

Technical Services

3. Manufacturing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The program managers and investment managers communicated the importance of creating practical and easy 

to understand program policies for deploying funds, maintaining program compliance, and managing potential 

conflicts of interest. This was viewed as especially important when participating in a new governmentsponsored initiative. 

• The investment managers noted this lesson learned also applies to policies enacted by the state and not required 

by SSBCI such as investment covenants for investees to remain in Rhode Island. 

• Educating public sector stakeholders in Rhode Island on the differences between loan financing and equity 

financing is important to designing and implementing programs effectively. 
280

• With new capital formation initiatives, sharing information between program and investment managers on 

objectives and requirements is valuable during strategy design and execution. 

• Having consistent state leadership to oversee program compliance and communicate effectively between 

program and investment managers is important to deploying funds and supporting small business investments.
281

South Carolina

PROGRAM PORTFOLIO OVERVIEW98

Using $18 million in SSBCI allocation, South Carolina operates two credit support programs.

The Business Development Corporation of South Carolina (BDC) administers the programs on behalf of the South 

Carolina Jobs and Economic Development Authority (JEDA). BDC is a state-chartered nonprofit with a sister SBA 

certified development company that together promote business and industry and provide promising businesses with 

a source for commercial loans not usually undertaken by traditional lending institutions.

Table SC-1: South Carolina’s SSBCI Program Portfolio Summary

Combined Program Outcomes

South Carolina supported 171 loans that generated almost $143 million in total financing through December 31,

2015. 

Table SC-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

171 $17.8 million $6.9 million $142.7 million $834,708 8.01:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

2,892 47 FTEs 7 years 21% 15%

1. Health Care and Social 

Assistance

2a. Construction

2b. Professional, Scientific, and 

Technical Services

 98 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

South Carolina Loan 

Participation Program Loan Participation $17.9 million Business Development Corporation of South Carolina

South Carolina Capital Access 

Program Capital Access $130,700 Business Development Corporation of South Carolina
282

CREDIT SUPPORT PROGRAMS

Loan Participation Program

The South Carolina LPP (SC-LPP) purchases the lesser of $1 million or 25 percent of the total loan amount, 

although the program manager can make exceptions. The maximum loan term is 20 years, and the typical term is 

approximately five years. The bank determines interest rates and fees, subject to BDC’s concurrence, with BDC 

usually sharing in fees and interest proportionately. All participations to date have been subordinate, but they can be 

pari passu. BDC underwrites the loan using the lead bank’s due diligence package. The lead bank is responsible for 

servicing, collections, and liquidation. 

The SC-LPP program helps fill the collateral gap that small business borrowers often encounter; enables 

participating banks to avoid rejecting an otherwise high loan-to-value (LTV) loan; keeps these high LTV loans from 

being regulatory exceptions for those banks; and frees up more working capital for small businesses, which 

otherwise would have to invest their capital in the asset being financed. 

The SC-LPP has achieved greater acceptance in the marketplace and accounts for more than 98 percent of total 

dollar volume expended through South Carolina’s SSBCI program.

Capital Access Program

The South Carolina CAP provides a loan loss reserve for a pool of loans enrolled by a participating lender. It can 

support for-profit or nonprofit businesses and has no borrower revenue limits. The borrower and lender are each 

required to contribute from 1 percent to 3.5 percent to the reserve account. BDC matches their combined 

contributions on a one to one basis using SSBCI funds.

Credit Support Program Outcomes

Through December 31, 2015, BDC expended 100 percent of its SSBCI funding in 171 transactions, generated 

almost $143 million in total financing or $8.00 in total financing for every $1 in SSBCI funds spent. Businesses 

reported that the loans will help create or retain almost 2,900 jobs. See Table SC-2 for additional credit support 

program outcomes.

The SC-LPP program expended $18 million to support 127 transactions that generated over $136 million in total

financing. Over 70 percent of the loans purchased were for healthcare and social assistance; construction; 

professional, scientific, and technical services; retail trade; and manufacturing.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• To date, South Carolina’s SSBCI CAP has not seen the volume originally anticipated, primarily due to 

competition from the state-funded CAP, high fees, and the necessity of a bank having to enroll several loans 

before the reserve fund is meaningful.

• A key reason for the success of the SC-LPP is that it is easy for banks to use and addresses a clearly defined 

capital gap that exists in otherwise creditworthy loans. There is also no additional cost to the borrower or the 

bank to participate in the program.

• South Carolina was able to deploy its SSBCI capital quickly in large part because BDC has deep experience in 

running government-supported loan programs (including SBA) and had a strong pre-existing network of banks 

participating in those programs.

• The SC-LPP is more sustainable longer-term than the SC-CAP due to its higher volume and ability to collect 

fee and interest income. To make SC-LPP capital available for more transactions, BDC now generally limits 

participations to no more than 25 percent of the bank loan, well below the 50 percent maximum participation 

allowed.
283

South Dakota

PROGRAM PORTFOLIO OVERVIEW99

Using $13.2 million in SSBCI funds, South Dakota operates one credit support program, a loan participation 

program marketed as the South Dakota WORKS Loan Program (SD WORKS).

The Governor’s Office of Economic Development (GOED) operates SD WORKS. Since the late 1980s, GOED has 

managed a variety of credit support programs addressing the fixed asset financing needs of the state’s small 

businesses.

Table SD-1: South Dakota’s SSBCI Program Portfolio Summary

Program Outcomes

South Dakota supported 16 loans that generated $65 million in total financing through December 31, 2015. 

Table SD-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

16 $8.0 million $0 $65.0 million $4.06 million 8.10:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

706 47 FTEs 7 years 50% 13%

1. Manufacturing

2a. Health Care and Social 

Assistance

2b. Retail Trade

*Includes funds expended for administrative costs

 99 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

South Dakota WORKS Loan 

Program Loan Participation $13.2 million Governor’s Office of Economic Development
284

CREDIT SUPPORT PROGRAM

Loan Participation Program

SD WORKS is a direct lender providing credit support by originating a “companion” loan to borrowers in 

conjunction with a bank loan. The program provides up to 40 percent of the borrower’s financing needs with a soft 

cap of $1,000,000. Borrower must provide at least 10 percent in equity. 

For working capital loans GOED’s companion loans generally represent up to 20 percent of total financing. SD 

WORKS typically offers 5-year fully amortized loans with a rate that is 1 percent less than the bank lender’s rate. 

For property purchases and development, SD WORKS provides interim financing in conjunction with the state’s 

Revolving Economic Development and Initiative (REDI) Fund, South Dakota’s Economic Development Finance 

Authority (EDFA) bond program, or the SBA 504 loan program. GOED’s maximum participation in a project is 

about 35 percent to 40 percent of the total loan request. GOED also charges an origination fee of 1.5 percent to 

cover some of administrative fees and servicing costs for SD WORKS.

Credit Support Program Outcomes

Through December 31, 2015, GOED expended 61 percent of its allocation to support 16 loans, which generated $65 

million in total financing or $8.10 in total financing for every $1 in SSBCI funds spent. Businesses reported that the 

loans will help create or retain approximately 700 jobs. A variety of industries have received loans from SD 

WORKS, including business services, construction, health and education, personal services, and retail. Twelve 

banks have participated in the 16 loans made through SD WORKS. See Table SD-2 for additional credit support

program outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Relationship marketing has helped SD WORKS succeed. Relationships with key lenders have driven lending 

activity, and they must build from past efforts.

• The technical assistance and networking offered by Treasury proved critical for South Dakota in identifying 

ways to improve their program design and best practices. 

• If more funding were available, GOED would like more flexibility to work in partnership with other federal 

programs. For instance, GOED can do interim SBA 504 construction financing, but sometimes it can be hard to 

separate assets so that they can be used as collateral for multiple transactions (e.g., for 504 or USDA loans).

• Engaging BankWest to close and service the loans helped to build confidence in partner banks and contributed 

to the program’s success. 

• The state hopes to sustain the program beyond 2017 by keeping repayments and fees at the level needed to 

support continued lending. However, an alternative is to integrate SD WORKS with GOED’s pre-existing 

programs at some point in the future to reduce administrative burden. 
285

Tennessee

PROGRAM PORTFOLIO OVERVIEW100

Using $29.7 million in SSBCI allocation, Tennessee operates a venture capital program – the Tennessee INCITE 

Co-investment Fund (INCITE Fund). The INCITE Fund seeks to leverage and support existing investors serving 

Tennessee small businesses.

The Tennessee Department of Economic and Community Development (TNECD), the state’s primary economic 

development agency, is responsible for implementing a statewide innovation-focused effort named INCITE –

INnovation, Commercialization, Investment, Technology, Entrepreneurship. The INCITE Fund is the capital 

formation strategy within this effort. TNECD designed the co-investment venture capital program and contracted 

with the Tennessee Technology Development Corporation (d/b/a LaunchTN) to manage the program. LaunchTN is 

a quasi-public nonprofit established in 1998 with responsibility for Tennessee’s statewide innovation-based 

economic development agenda. 

Table TN-1: Tennessee’s SSBCI Program Portfolio Summary

Program Outcomes

Tennessee supported 83 investments that generated almost $147 million in total financing through December 31,

2015. 

Table TN-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average Financing

Size Leverage Ratio

83 $28.9 million $0 $147.3 million $1.77 million 5.10:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

1,458 7 FTEs 3 years 40% 13%

1. Information

2. Professional, Scientific, and 

Technical Services

3. Manufacturing

*Includes funds expended for administrative costs

 100 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Tennessee INCITE Venture Capital $29.7 million LaunchTN
286

VENTURE CAPITAL PROGRAM 

Venture Capital Program Design and Operations

The program and investment managers describe Tennessee’s entrepreneurial ecosystem as an emerging market for 

high-growth potential businesses, with the state’s economic development goal as “making Tennessee the #1 place in 

the Southeast to start and grow a business.” Tennessee created the INCITE Fund in this context as a strategy to spur 

private investment and increase the size of equity investment rounds in Tennessee-based businesses. The program 

does not target specific investment stages or industry sectors but rather matches private investment within defined 

program parameters. 

The INCITE Fund operates as an authorized co-investment fund with “approved investors” – investors submitting an 

application to LaunchTN and meeting minimum requirements set by the state – receiving capital from the program 

for qualified business investments. Program managers communicated a goal of attracting a diverse mix of private 

investors, specifically out-of-state venture funds, to participate as co-investors. INCITE co-investments are made on 

a first-come, first-accepted basis as funds remain available. The co-investment amounts are determined based on 

pre-determined ratios compared with the size of the private investment round:

Table TN-3: INCITE Co-Investment Fund Tiers

Investment Tier/Stage SSBCI Match Private Investment 

Requirement

INCITE Fund CoInvestment Range

Tier I: Seed Stage 50% $200,000 to $1,000,000 $100,000 to $500,000

Tier II: Early/Growth Stage 33% $1,000,001 to $4,500,000 $330,000.33 to $1,485,000

Tier III: Expansion Stage 25% $4,500,001 to $12,000,000 $1,125,000.25 to $3,000,000

A unique feature of the INCITE Fund is the absence of a subjective, qualitative review and evaluation process by the 

investment manager. Rather, INCITE Fund administrators created a multi-layer review process for first approving 

investors and then processing co-investment requests submitted by the approved investors. All co-investments 

approved by the administrator are subject to verification that the small business receiving the investment meets all 

SSBCI program guidelines. After an application for funding is approved and private funds are wired to the business, 

the INCITE funds are transferred to the business.

From the proceeds of liquidated investments, the INCITE Fund will first recover the cost of its investment on pari 

passu terms with co-investors. For profitable investments, the INCITE Fund will receive 75 percent of its pari passu

returns and reward the “approved investor” with 25 percent of the state’s profits as a “carried interest” for sourcing 

and managing the investment transaction.
287

Figure TN-4: INCITE Co-Investment Fund Structure

Tennessee Department of Economic & Community Development

State Applicant

Tennessee Technology Development Corporation

Quasi-Public Non-profit Contract Administrator

INCITE Fund

New State VC Program Operating as an Authorized Co-Investment Fund

Approved Investors

Approved Investors Meeting Minimum Eligibility Requirements Apply for Co-Investment

SSBCI Funds Invested in Small Businesses

C0-Investment via pre-determined ratio to private investment on first-come, first-serve basis

Venture Capital Program Outcomes

Through December 31, 2015, Tennessee expended $29 million in co-investments or 97 percent of the allocated 

SSBCI capital in 83 investments. The SSBCI capital expended generated $147 million in total financing or $5.1 in 

total capital for every $1 in SSBCI funds spent. Businesses reported that the SSBCI investments will help create or 

retain over 1,450 jobs. See Table TN-2 for additional venture capital program outcomes. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The investor application and investment review processes resulted in high third party professional service costs 

that other SSBCI programs did not incur. Program managers recommended exploring a range of cost-effective 

options for reliable, credible assistance with program administration.

• States should consider the risk/reward scenario for removing subjective investment decision reviews. The 

decision can keep government employees, or organizations associated with state government, out of “picking 

winners and losers”; however, it also creates a potential risk that private investors are allowed to direct public 

funds into struggling business interests or in businesses that might not be aligned with a state’s economic 

development objectives.

• When designing a new program, managers and administrators should think carefully about how to establish 

processes, definitions, and criteria that satisfy requirements without creating unnecessary burdens on private 

investors. For example, the program manager needed to adjust definitions and co-investment ratios during 

implementation, which might have restricted or reduced investor participation at times.
288

Texas

PROGRAM PORTFOLIO OVERVIEW101

Using $46.6 million in SSBCI allocation, the Texas Department of Agriculture (TDA) operates a venture capital 

program called Jobs for Texas –Venture Capital (J4T-VC), a new program that primarily focuses on increasing the 

supply of committed investor capital for seed and early stage investments in high-growth small businesses in any 

industry. 

Table TX-1: Texas’ SSBCI Program Portfolio Summary

Program Outcomes

Texas supported 42 investments that generated $461 million in total financing through December 31, 2015. 

Table TX-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI 

Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average Financing

Size Leverage Ratio

42 $38.6M $0 $461.2 M $10.98M 11.96:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

1,173 9 FTEs 6 years 24% 2%

1. Information

2. Professional, Scientific, and 

Technical Services

3. Manufacturing

*Includes funds expended for administrative costs

 101 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Jobs for Texas-Venture 

Capital Venture Capital $46.6M Texas Department of Agriculture
289

VENTURE CAPITAL PROGRAM

J4T-VC used two distinct approaches for deploying SSBCI funding. In Phase 1, J4T-VC committed $27 million or 

58 percent of the state’s allocation to two sidecar funds managed by national CAPCO firms. The proposed funds

satisfied the request for proposal parameters of having at least $100 million of capital under management and 

engaging developmental venture capital activities as the focus of its business. In Phase II, TDA modified the J4TVC to invest in new funds managed by regional angel investor groups and seed and early stage venture capital firms. 

In Phase 2, J4T-VC committed $19.5 million or 42 percent of its allocation to five new funds that were required to 

raise private capital alongside the state’s funds.

The Phase 1 strategy was to support job retention and creation with firms actively managing investment funds in the 

state. Both Phase 1 allocation recipients were active participants in the state’s $400 million Certified Capital 

Companies (CAPCO) program, under which they managed private investment funds primarily capitalized with 

allocations of state tax credits passed through to fund investors. Phase 1 fund managers frequently used their Texas

CAPCO funds as the sole source of matching funds and capital at risk in SSBCI investments, which were held in 

special purpose vehicles as a stand-alone fund under management. The participating funds deferred management 

fees until investment returns were realized, recouping them along with their negotiated share of investment profits.

The J4T-VC Phase 2 strategy was focused on capital formation – specifically, the creation of new funds with private 

sector limited partners (LPs). J4T-VC required Phase 2 allocation recipients to raise private capital investments for 

their funds alongside SSBCI capital, which could not exceed 40 percent of their funds. 

J4T-VC also negotiated unique limited partnership agreements with the funds to comply with SSBCI limitations and 

to prioritize the return of principal to the state. Participating funds cannot charge a management fee on SSBCI 

capital; they must return J4T-VC capital prior to any profit distributions; and they can only use SSBCI capital for 

investments in Texas-based businesses. In exchange for these restrictions, J4T-VC provided participating funds 

with a substantial carried interest – up to 75 percent compared to 20 – 30 percent. J4T-VC program managers 

describe Phase 2 as an “emerging fund managers” program as this phase is designed to help new fund managers 

raise capital and demonstrate a track record of investment gains in addition to supporting businesses with direct 

investment.

The state holds SSBCI capital in a dedicated J4T-VC fund and disburses capital to small businesses for each 

transaction after a compliance review. Proceeds from liquidated investments are returned directly to the J4T-VC

fund.
290

Figure TX-3: J4T-VC Structure

Texas Department of Agriculture

Official State Applicant and Program Manager

Jobs 4 Texas (J4T)

$46 million Fund-of-Funds State Venture Capital Program

Phase 1

Growth Capital and Debt 

Funds

Phase 2

Seed and Early Stage Venture and Angel Funds

Advantage 

Capital 

Partners

$17 million 

allocation

Enhanced 

Capital 

Partners

$10 million 

allocation

Live Oak 

Ventures

$9 million 

allocation

Texas 

HALO Fund

$2.5 million 

allocation

BandGap 

Ventures

$2 million 

allocation

Blue Sage 

Capital

$2 million 

allocation

Targeted 

Technology 

Fund

$4 million 

allocation

Venture Capital Program Outcomes

Through December 31, 2015, participating J4T-VC funds expended $38.6 million or 83 percent of allocated 

program capital, with a leverage ratio of 12 to 1. Through year-end 2015, 98 percent of program investments were 

made in metro areas, which are generally not the focus of TDA programs. See Table TX-2 for additional venture 

capital program outcomes.

With the emphasis on job counts, Phase 1 funds invested significantly in a small number of later stage businesses. 

The average investment size was $1.5 million and company age of 8.5 years. Phase 1 investees reported the 

investments will help create or retain approximately 260 jobs. The pace of Phase 1 fund investments was slower 

than expected, and J4T-VC program managers eventually recalled $5 million of committed capital.

Phase 2 fund managers were able to establish new funds anchored with SSBCI capital. For example, one J4T-VC

investment enabled a new venture capital firm to accelerate the close on the first $60 million tranche for its 

inaugural fund.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• J4T-VC program managers developed an SSBCI compliance checklist to approve cash disbursements for 

investments authorized by private fund managers managing program allocations. The method was hailed 

as an administrative best practice by Office of Inspector General auditors.102 

• J4T-VC program managers adapted to market feedback and its own research to modify the program after 

the Phase 1 allocations to develop a fund of funds program that can lead to capacity building through 

forming sustainable private venture capital sources.

 102 Office of Inspector General, report number: OIG-SBLF-13-003, “State Small Business Credit Initiative: Texas’ Use of Federal Funds for 

Other Credit Support Programs,” January 29, 2013.
291

Utah

PROGRAM PORTFOLIO OVERVIEW103

Using $13.2 million in SSBCI allocation, the Utah Housing and Community Development Division (HCDD) 

operates two credit support programs. With the SSBCI program portfolio, the state sought to increase credit 

opportunities for eligible small businesses and target the lower tier of customers not currently bankable under 

traditional lending underwriting criteria. The Utah Small Business Growth Initiative (USBGI), a nonprofit private 

entity, manages the new credit support programs. Treasury approved a state venture capital program, the Equity 

Investment Program (EIP), in 2013; however, the $4 million in SSBCI funds allocated to the EIP were subsequently 

reallocated to the credit support programs. 

Table UT-1: Utah’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Utah supported 34 loans and investments that generated $47 million in total financing through December 31, 2015. 

Table UT-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

34 $7.6 million $0 $47.0 million $1.38 million 6.16:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,669 15 FTEs 7 years 38% 12%

1. Manufacturing

2. Administrative and Support 

and Waste Management and 

Remediation Services

3a. Accommodation and Food 

Services

3b. Construction

3c. Information

3d. Retail Trade

*Includes funds expended for administrative costs

 103 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Utah Small Business Loan 

Participation Program Loan Participation $6.4 million Utah Small Business Growth Initiative

Utah Small Business Loan 

Guarantee Program Loan Guarantee $5.4 million Utah Small Business Growth Initiative

Equity Investment Program Venture Capital $1.4 million Utah Small Business Growth Initiative
292

CREDIT SUPPORT PROGRAMS

Loan Participation Program

The Utah Small Business Loan Participation (LPP) purchases loan participations up to 50 percent of the transaction 

amount or makes direct companion loans to eligible businesses. 

The LPP aims to reach those businesses operating in defined target areas, such as in rural areas. Businesses come to 

the LPP via referrals from a participating financial institution or via a direct application from an eligible small 

business. As with the LGP, the LPP operates in close coordination with the Utah Small Business Credit Advisory 

Council (CAC). The CAC is composed of volunteers from the USBGI Board of Directors. The group is chaired by 

the Director for HCDD, which considers and make recommendations for all loans. A fee of 0.5 percent to 2 percent 

of the LPP amount is charged at closing along with USBGI receiving interest on the loan and a return of capital.

Loan Guarantee Program

The LGP will guarantee up to 80 percent of a qualified loan, term or line of credit. An amount equal to 10 percent 

of each guaranteed amount is placed into a state-managed reserve account that can pay claims to a partner bank after 

all collection efforts have been made by that financial institution. 

All applicants to the LGP must have a financial institution sponsor to apply, with loans underwritten by financial 

institutions and subject to the review and recommended approval for program enrollment by the CAC. The loan 

guarantees have proven particularly useful in facilitating deals that refinance SBA loans with step-ups for expansion, 

businesses hurt by the recession but now have prospects to return to traditional business operations, bridge 

construction loans to the SBA 504 program, and working capital lines of credit with maturities in the 1 to 2 year 

range. Fees for participation in the LGP amount vary from 2 – 4 percent of the guaranteed portion of a transaction.

The loss reserve amounts and loan terms of the Loan Guarantee Programs (LGP) are based on the design features of 

the California Small Business Loan Guarantee Program and from discussions with the Utah Bankers Association 

and local lenders. 

Credit Support Program Outcomes

Through December 31, 2015, Utah’s SSBCI lending programs supported 30 loans using $6.6 million in SSBCI 

financing. The SSBCI loans generated $38 million in total financing or $5.80 in total financing for every $1 in 

SSBCI funds spent. Businesses reported that the transactions will help create or retain almost 1,650 jobs. The LGP 

has used $5.4 million in SSBCI funds to support 26 loans and generated $30.8 million in total financing for a 

leverage ratio of 5.7 to 1. The LPP has used $1.3 million in SSBCI funds to support 4 loans and generated $7.4 

million in total financing for a leverage ratio of 5.9 to 1. 
293

Table UT-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

30 $6.6 million $0 $38.3 million $1.28 million 5.77:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,646 15 FTEs 8 years 40% 13%

1. Manufacturing

2. Administrative and Support 

and Waste Management and 

Remediation Services

3a. Accommodation and Food 

Services

3b. Construction

3c. Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• The LGP has worked well for several start-up businesses in the state, providing critical capital by offsetting 

lenders’ reluctance to lend when a business has limited financial history. 

• Utah added a contractor with significant banking experience, USBGI, to help administer their LGP and LPP 

programs once they determined that they didn’t have sufficient staff experience in-house. This program 

modification along with intensified marketing and outreach efforts to bankers led to increased SSBCI program 

activity. 

• Sustainability of the programs has been a top priority for the state from the outset. Important to this end is 

maintaining deal flow, collecting loan fees, monitoring all loan payments, and tracking losses. 

• While an initial intention for the LPP and LGP programs was to serve as part of a comprehensive approach to 

improving underserved communities, in conjunction with other federal funds targeting housing, in practice 

many deals have fallen outside these parameters. A wider net was cast in order to build the deal pipeline, meet 

market demand, and create sustainability. 

• Refinancing on non-matured loans with the same financial institution is not possible under SSBCI guidelines

and this has been a problem for the state.

VENTURE CAPITAL PROGRAM

In early 2013, Utah was approved for a new venture capital program, the Utah Equity Investment Program (EIP) that 

was designed to complement an existing state venture capital fund of funds program by supporting early-stage 

investments. However, after working through early program implementation, the program manager opted to support 

the EIP with state funds and reallocate SSBCI funds to approved credit support programs.

Venture Capital Program Outcomes

Through December 31, 2015, the EIP invested $1 million in four businesses and generated almost $9 million of new

capital investment. Businesses reported that the capital will help create or retain over 20 jobs. 
294

Table UT-4: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

4 $1.0 million $0 $8.7 million $2.18 million 8.73:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

23 17 FTEs 2 years 25% 0%

1. Information

2. Finance and Insurance

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs
295

Vermont

PROGRAM PORTFOLIO OVERVIEW104

Using $13.2 million in SSBCI allocation, Vermont operates two credit support programs. Vermont Economic 

Development Authority (VEDA) manages the program. VEDA, a quasi-public agency, was formed in 1974 and has 

a long history of operating loan guarantee and direct loan programs, among other small business financing 

programs. 

Table VT-1: Vermont’s SSBCI Program Portfolio Summary

Program Outcomes

Vermont supported 165 loans that generated almost $162 million in total financing through December 31, 2015. 

Table VT-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

165 $13.2 million $3.0 million $161.7 million $980,100 12.28:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,815 8 FTEs 10 years 13% 66%

1. Manufacturing

2. Accommodation and Food 

Services

3. Retail Trade

 104 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Commercial Participation 

Program Loan Participation $7.8 million Vermont Economic Development Authority

Small Business Participation 

Program Loan Participation $5.4 million Vermont Economic Development Authority
296

CREDIT SUPPORT PROGRAMS

VEDA operates two direct loan programs and generally funds a portion of each loan with SSBCI dollars and the 

remainder with its own capital. In some cases, VEDA provides a companion loan, which is subordinate to a loan 

from a financial institution. 

Loan Participation Programs

Commercial Participation Program: Under the Commercial Participation Program, VEDA will finance up to 40 

percent of a project. Another financial institution and the borrower will fund 50 percent and 10 percent, respectively, 

of the project. The total financing (including SSBCI funds) may be up to $1.5 million or 40 percent of the total 

project (whichever is less). Currently, VEDA charges an interest rate of 2.5 percent for up to three years. After that, 

rates vary with the VEDA index (3 percent today) for the remainder of the loan. The commitment fee is 1 percent of 

the loan amount, up to $3,500 for commercial entities. 

Small Business Participation Program: Under the Small Business Participation Program (loans up to $500,000), 

VEDA lends direct or can participate as a companion lender by providing a subordinate loan (of up to 40 percent) 

for the project. The commitment fee is 1.25 percent, up to $2,500 for small businesses. VEDA charges a fixed rate 

for five years and a variable rate thereafter. 

Credit Support Program Outcomes

Through December 31, 2015, VEDA expended all of its allocation to support 165 loans, generated almost $162 

million in total financing, and achieved an overall leverage ratio of 12.3 to 1. VEDA noted that it was able to 

achieve the target level of leverage with the help of recycled funds. Businesses reported that the loans will help 

create or retain over 1,800 jobs. Approximately 58 percent of business that received funds had 10 or fewer than fulltime employees. See Table VT-2 for additional credit support program outcomes.

The program manager noted VEDA’s nonperforming loans total less than $500,000 for both the commercial and 

small business portfolio. As of year-end 2015, the smallest loan was $22,100 and the largest project was $20 

million. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Banks of all sizes have participated in the programs: VEDA noted participation in the program ranged from the 

larger national banks (TD Bank, People’s United, and Key Bank) to some of the state’s community banks. 

Vermont has one CDFI providing small business loans, but because the CDFI loans were so small, VEDA’s 

participation was not needed.

• VEDA learned that ease of use was important to banks. The reason for low usage of CAP was that banks found 

the enrollment procedures to be burdensome. VEDA considered automating the CAP enrollment process but 

finally decided against this option. Additionally, VEDA decided to merge its Technology Support Participation 

Program and Commercial Participation Program for ease of reporting for banks.

• Although Vermont has a number of development corporations, these nonprofits were not active in VEDA 

programs. VEDA noted that the majority of the loans made by these entities do not qualify for SSBCI funds 

because the projects involve the purchase of passive real estate, an activity prohibited by SSBCI rules. 
297

Virgin Islands

PROGRAM PORTFOLIO OVERVIEW105

Using $13.2 million in SSBCI allocation, the U.S. Virgin Islands (USVI) operates three credit support programs –

two loan guarantee programs and a collateral support program. 

The Virgin Islands Economic Development Authority (VIEDA), a quasi-public agency, manages the programs.

Table VI-1: USVI’s SSBCI Program Portfolio Summary

Program Outcomes

USVI supported 26 loans that generated $12 million in total financing through December 31, 2015. 

Table VI-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

26 $4.3 million $0 $12.0 million $462,100 2.79:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

432 7 FTEs 2 years 12% 100%

1. Health Care and Social 

Assistance

2. Accommodation and Food 

Services

3a. Arts, Entertainment and 

Recreation

3b. Retail Trade

*Includes funds expended for administrative costs

 105 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Credit Guarantee Program Loan Guarantee $6.9 million Virgin Islands Economic Development 

Authority

Collateral Support Collateral Support $3.8 million Virgin Islands Economic Development 

Authority

Payment, Surety and Performance 

Bonding Program Loan Guarantee $2.5 million Virgin Islands Economic Development Authority
298

CREDIT SUPPORT PROGRAMS

Loan Guarantee Programs

Credit Guarantee Program (CGP): The CGP guarantees up to 80 percent of the loan amount. Unlike most 

guarantee programs, funds backing 100 percent of the guarantee are placed on deposit at the bank as cash collateral.

Payment, Surety and Performance Bonding Program (PSPBP): The PSPBP provides for guarantees up to 30 

percent of the value of a performance or payment bond issued by a private surety company (or through a bankissued standby letter of credit that serves the same purpose of a bond) on behalf of a small construction business. 

This bond is often required for small contractors seeking to successfully bid on work offered by larger general 

contractors.

Collateral Support Program

The Collateral Support Program provides cash collateral in an amount up to 50 percent of the loan. Due to requests 

for support that were larger than expected, USVI amended its Collateral Support Program in 2012 to increase the 

maximum dollar amount per borrower from $150,000 to $500,000. 

Credit Support Program Outcomes

Through December 31, 2015, USVI expended $4.3 million to support 26 transactions and generated nearly $12 

million in total financing or $2.80 in total financing for every $1 in SSBCI funds spent. Businesses reported that the 

loans will help create and retain approximately 430 jobs. See Table VI-2 for additional credit support program 

outcomes.

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Marketing helped increase program activity, especially in 2014.

• VIEDA noted a shift in its SSBCI program use from the CSP to the LGP. The CSP was initially popular 

because banks used real estate as collateral for many loans.

• The program manager recommended shorter loan terms.
299

Virginia

PROGRAM PORTFOLIO OVERVIEW106

Using $18 million in SSBCI allocation, Virginia operates three credit support programs and a venture capital 

program. With the SSBCI program portfolio, the state used SSBCI funds to complement an array of business 

financing programs such as a pre-existing Economic Development Loan Fund (EDLF) – a loan participation 

program, pre-existing capital access program (CAP), and microloan programs. 

The Virginia Small Business Financing Authority (VSBFA), the state’s economic development and business 

financing arm administers the program. It provides tax-exempt bond financing for small manufacturers and 

501(c)(3) nonprofits. 

Table VA-1: Virginia’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Virginia supported 215 loans and investments that generated almost $89 million in total financing through 

December 31, 2015. 

Table VA-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

215 $15.7 million $0 $88.7 million $412,600 5.65:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

4,071 5 FTEs 4 years 30% 21%

1. Professional, Scientific, and 

Technical Services

2a. Accommodation and Food 

Services

2b. Information

*Includes funds expended for administrative costs

 106 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Cash Collateral Program Collateral Support $14 million Virginia Small Business Financing Authority

Economic Development Loan 

Fund Loan Participation $500,000 Virginia Small Business Financing Authority

Virginia Capital Access Program Capital Access $400,000 Virginia Small Business Financing Authority

Center of Innovation Technology 

(CIT) Gap Fund Venture Capital $3 million Virginia Small Business Financing Authority
300

CREDIT SUPPORT PROGRAMS

Collateral Support Program

With the Cash Collateral Program (CCP), VSBFA provides cash collateral for up to 40 percent of the bank’s loan 

amount, with $500,000 maximum cash collateral provided. The maximum term of the collateral support is 5 years 

for term loans. Lines of credit may be renewed up to two times, with a maximum term for the collateral support of 3 

years. The application fee is $200. A fee of 1.5 percent of the cash collateral amount can be collected at closing, 

although that fee has been waived in transactions to date. Banks must liquidate other collateral before collecting 

against the collateral account.

VSBFA underwrites loans in the CCP and direct loan/purchased participation programs including a review of the 

bank’s credit memorandum and the borrower’s financials. VSBFA’s chief credit and chief executive officers, who 

have lending authority up to $500,000, must approve all SSBCI-funded loans.

Loan Participation Program

The Economic Development Loan Fund makes companion loans equal to the lesser of 40 percent of total project 

costs and $500,000. Interest rates are at market rates or below, depending on risk.

Capital Access Program

Virginia CAP (VCAP) requires the borrower and lender each to contribute to a reserve account with combined 

contributions ranging from 2 percent to 7 percent of the enrolled loan amount. VSBFA uses SSBCI funds to match 

the combined borrower and lender contributions on a one to one basis. The maximum enrolled loan amount is 

$500,000. Although the bank may have a longer term and amortization period, the maximum term the loan can 

remain enrolled in VCAP is 10 years. 

Credit Support Program Outcomes

Through December 31, 2015, Virginia’s credit support programs expended $13.1 million in 186 transactions, and 

generated $46.5 million in total financing or $3.60 in total financing for every $1 in SSBCI funds spent. Businesses 

reported that these loans will help create or retain over 3,200 jobs. 

Table VA-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

186 $13.1 million $0 $46.5 million $250,100 3.56:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

3,234 4 FTEs 5 years 34% 24%

1. Professional, Scientific, and 

Technical Services

2. Accommodation and Food 

Services

3. Other Services (except Public 

Administration)

*Includes funds expended for administrative costs
301

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Community banks have been the primary users of Virginia’s SSBCI programs. Large multi-state banks require 

uniformity of credit enhancement products across state lines and larger enhancement programs that can be more 

relevant to their scale of institution. 

• Although small businesses are the end user, banks are the primary point of marketing contact. Direct marketing 

to small businesses can lead to lots of time-consuming phone calls and inquiries that yield a modest number of 

creditworthy applicants.

• The Virginia Bankers Association is a key marketing partner, providing a point of entry to a state’s banking 

community.

• The program’s website is a crucial and efficient conduit for up-to-date information and marketing materials for 

both banks and small businesses. Because the site was originally hosted and maintained by the state, it was 

difficult to quickly update information for end users. Once the Virginia Banker’s Association took over 

management of the program’s web presence, the program manager was able to provide its partners with 

comprehensive and timely information.

• Lenders prefer the CCP program because it is efficient, low- or no-cost, and maximizes their loans outstanding. 

• The deposit relationship created through the CCP is attractive to banks as well, although its importance in 

Virginia is lessened by the state requirement that deposits be collateralized.

VENTURE CAPITAL PROGRAM

The CIT GAP Funds is a venture capital program managed by the Center for Innovative Technology (CIT), a 

Virginia state-sponsored non-profit venture development organization. The program manager contracted with CIT 

to manage $3 million of the state’s $18 million SSBCI allocation. The SSBCI-financed CIT GAP Funds invest in 

science- and technology-based startups with high-growth potential. In most cases, it will lead or co-lead small 

equity investment rounds in seed stage technology startups with the potential to develop and raise much larger 

follow-on investment rounds.

Venture Capital Program Design and Operations

CIT GAP Funds is a program of CIT, a non-profit technology-based economic development (TBED) organization 

created by the Commonwealth of Virginia in 1985. CIT invests in businesses that specialize in life sciences, 

information technology, and energy technologies. The CIT GAP Fund allocation is invested alongside non-SSBCI 

funds appropriated to CIT by the Commonwealth of Virginia. The CIT GAP Funds team sources deals, performs 

due diligence and syndicates investment rounds with angel investors and seed/early stage venture funds. The typical 

CIT GAP Funds investment is $100,000 – $200,000, with co-investors raising the initial investment rounds of 

$200,000 – $1 million. 

With experienced investment managers on staff and accomplished private sector executives on its investment 

committees, CIT provides a seed stage startup with much-needed credibility with angel investors and early stage 

venture funds. CIT’s governance systems ensure that investment decisions are insulated from government influence 

or perceptions of government influence. In addition to providing the role of lead investor, CIT also has mentoring 

and other support services, such as educational programs and networking events, available for first-time 

entrepreneurs. 
302

Figure VA-4: CIT GAP Fund Structure

Virginia Small Business Financing Authority

Official State Applicant

Center for Innovative Technology (CIT)

Contracted Private, Non-profit Investment Manager

CIT GAP Fund

A New State Venture Capital Program

($3 million SSBCI allocation)

SSBCI funds are invested by the state sponsored, non-profit investment manager into eligible Virginia small 

businesses

Venture Capital Program Outcomes

Following Treasury’s approval, the CIT GAP Fund became operational in March 2014 and made its first investment 

commitments in the third quarter of 2014. In just one year, CIT GAP Funds committed $1.9 million or 95 percent of 

the $2 million of allocated SSBCI capital. Through December 31, 2015, CIT GAP Fund investments had achieved a 

leverage ratio of 15.8 to 1. Businesses reported that the SSBCI investments will help create or retain almost 840 

jobs. In December 2015, Virginia reallocated $1 million to CIT GAP Funds from other SSBCI programs 

administered by VSBFA, increasing the total allocation to the CIT GAP Fund to $3 million.

Table VA-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

29 $2.6 million $0 $42.2 million $1.46 million 16.06:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- andModerateIncome AreasTransactions in 

Non-Metro 

Areas Top Industries Assisted

837 6 FTEs 2 years 7% 0%

1. Information

2. Professional, Scientific, and 

Technical Services

3a. Manufacturing

3b. Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:
303

• Virginia modified its program to include an established venture capital program with a good investment and 

leverage track record that was overlooked in the initial allocation decisions. 

• The program manager recognized the value of including a venture capital option within its SSBCI program 

portfolio and CIT recognized that it needed to be more attuned to various state programs and funding 

opportunities.
304

Washington

PROGRAM PORTFOLIO OVERVIEW107

Using $19.7 million in SSBCI allocation, Washington operates a new capital access program (CAP), a loan 

participation program, a collateral support program, and a venture capital program (the W Fund). 

The Washington Department of Commerce (Commerce) administers the credit support programs and the collateral 

support program directly. Commerce contracted with Craft3 Fund, a CDFI, to manage the loan participation 

program as a revolving loan fund. Commerce also contracted with the W Fund to administer the venture capital 

program. 

Table WA-1: Washington’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Washington supported 73 loans and investments that generated almost $150 million in total financing through 

December 31, 2015. 

Table WA-2: Combined Program Activities and Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

73 $15.8 million $1.43 $149.9 million $2.05 million 9.51:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,692 9 FTEs 6 years 40% 12%

1. Manufacturing

2. Construction

3. Professional, Scientific, and 

Technical Services

*Includes funds expended for administrative costs

 107 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Craft3 Fund Loan Participation $9.9 million Washington Department of Commerce

Collateral Support Program Collateral Support $4.5 million Washington Department of Commerce

Capital Access Program Capital Access $300,000 Washington Department of Commerce

W Fund Venture Capital $5 million W Fund Management, LLC
305

CREDIT SUPPORT PROGRAMS

Loan Participation

The Craft3 Fund was designed so that SSBCI monies would be leveraged with additional funds that Craft3 would 

raise from banks and other sources. Washington chose Craft3 as the administrator due to its successful history 

lending to businesses located in underserved communities throughout Washington. Additionally, Craft3 had the 

structure, staff, policies, and procedures in place to be able to underwrite, disburse, and monitor loans. 

To date, most transactions have been term loans or lines of credit secured by receivables. The average term is five 

to seven years offered at a 7 percent to 9 percent interest rate and fees charged between 1 percent and 2 percent of 

the participation amount. Commerce maintains close contact with Craft3 and has twice monthly meetings to discuss 

new loans. Craft3 was able to participate in loans totaling its full allotment, and Craft3 began using recycled funds. 

The program was designed such that the funds will remain with Craft3 after the SSBCI expires to continue pursuing 

the mission of providing capital to small businesses.

Collateral Support Program

Commerce designed the Collateral Support Program to support short-term loans, primarily as a SBA 504 bridge 

fund, where financing is needed for construction projects that will ultimately be taken out by SBA 504 financing. 

Commerce offers a maximum collateral support of 20 percent of the loan amount for loans with terms less than 6 

months and 15 percent of the loan amount for loans with terms more than 6 months. The collateral support amount 

will not exceed $500,000 per borrower. 

Capital Access Program

Under Washington’s CAP, the borrower and lender each to contribute to a reserve account with combined 

contributions ranging from 2 percent to 7 percent of the principal loan amount. Washington uses SSBCI funds to 

match the borrower and lender contributions on a one to one basis. Washington prequalifies the banks and, when 

the deal is being completed, the underwriting package is provided to Washington to review for compliance. Smaller 

community banks have been the primary users of the CAP. The program is currently dormant with only a small 

amount (less than $100,000) in the reserve account. After the roll out of the other programs, lenders were not 

interested in participating in the CAP for various reasons including the need to disburse a significant amount of 

loans to achieve sufficient reserve amounts. 

Credit Support Program Outcomes

Through December 31, 2015, Washington’s credit support programs expended $10.8 million to support 52 

transactions, and generated $111 million in total financing or $10.30 in total financing for every $1 in SSBCI funds

spent. Businesses reported that the loans will help create or retain almost 1,580 jobs. While a variety of industries 

have benefited from the three credit support programs, businesses in manufacturing and construction industries have 

received around 60 percent of the loans. 

Table WA-3: Credit Support Program Activities and Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

52 $10.8 million $1.43 $111.2 million $2.14 million 10.33:1
306

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,577 18 FTEs 12 years 52% 17%

1. Manufacturing

2. Construction

3. Accommodation and Food 

Services

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Commerce did not require Craft3 to continue reporting its ongoing impact data after 2017. If it had, these 

impacts could be captured and report by the agency. 

• Washington noted that best results (funds deployed) were seen when marketing was directed at financial

institutions, not businesses. 

• One hurdle that Craft3 did not foresee was the difficulty in raising additional bank monies for the Fund, which 

was needed to leverage the SSBCI funds. 

• Washington has also identified a need for microloans and agricultural lending as the businesses in these 

industries have difficulty obtaining credit. 

• Staff resources are important to support program marketing and design improvements. 

VENTURE CAPITAL PROGRAM OVERVIEW

The W Fund is a new venture capital program supported by SSBCI funding. The program consists of a single 

private venture capital fund with an investment focus on start-ups from research institutions. The W Fund raised 

$19.1 million in total capital – $5 million in SSBCI funds and $14.1 million in private funds. The W Fund was 

initiated at the impetus of the technology transfer office at the University of Washington (UW), but is independent 

from the university and supported with SSBCI funds to increase the supply and accessibility of risk capital for earlystage businesses in Washington.

During the strategy design phase, program leaders met with local investors to measure the new investment fund 

strategy with perceived market need. The research and market feedback confirmed low levels of early-stage capital 

supply in Washington, particularly in industries such as life sciences that are outside the existing regional strengths 

of information technology and digital media.

UW leadership recognized the importance of nurturing startup activity as an effective way to leverage research 

activity, commercialize new technologies, retain valuable talent, and encourage statewide economic development. 

The initial idea was for a capital program exclusive to UW, but the strategy broadened to include a statewide 

footprint for attracting a larger investee and investor pool. 

Venture Capital Program Design and Operations

The W Fund aims to support small businesses that would not likely have received private investment without W 

Fund involvement. Investments are typically structured as convertible notes led by the W Fund at either the seed 

stage or at the Series A equity round. The W Fund was designed to evaluate and make initial early-stage 

investments, but the Fund is not positioned to carry investments through company growth stages. The Fund plays a 

substantial role in building investor syndicates for raising private co-investment in investees.
307

Commerce’s financial participation in the W Fund is structured as a limited recourse loan with capped interest to the 

W Fund General Partnership. WDC committed the $5 million in SSBCI funds in tranches paid out once the W Fund 

achieved performance milestones and an investment trajectory. The investment manager accelerated deployment of 

SSBCI funds with a guaranteed investment match from the fund’s private investors. SSBCI funds are disbursed to 

investees with no management fees charged.

The W Fund’s General Partner is a Limited Liability Company led by a board of five members. The fund has an 

investment committee with twenty members, eight of whom have responsibility for investment decisions. The 

investment committee is segmented into specialized sector groups for review of potential investments to be decided 

on by the full investment committee. WDC staff participates as a silent observer on the investment committee with 

no voting rights. Private co-investment participants were most often individual angel investors or angel investment 

funds for seed stage transactions, with occasional co-investment from institutional investors. To attract additional 

private financing to W Fund early-stage investments, the investment manager is working to form a new angel group 

called W Angels, comprised of investors in the W Fund and other accredited investors.

Figure WA-4: Washington Venture Capital Program Structure

Washington Department of Commerce

Official State Applicant

$5 million in SSBCI Funds

structured as limited recourse loan

W Fund Management

W Fund General Partner

W Fund

$19.1 million Private, For-Profit Venture Fund

Private Limited Partner 

Investors

$14.1 million

Investments in Washington-based small businesses

Once the anticipated first round investment funds had been depleted, the investment manager shifted focus to 

support follow-on financing founds of the most promising portfolio businesses. The investment portfolio leverage is 

7.5 to 1.

Venture Capital Program Outcomes

Through December 31, 2015, the W Fund expended $5 million in SSBCI capital to support 21 small business 

investments that have generated almost $39 million in total financing. Businesses reported that the investments will 

help create or retain 115 jobs.
308

Table WA-4: Venture Capital Program Activities and Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

21 $5 million $0 $38.7 million $1.84 million 7.74:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

115 3 FTEs 1 year 10% 0%

1a. Manufacturing

1b. Professional, Scientific, and 

Technical Services

1. Information

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Commerce felt that attracting the very best executive talent to align with company strategies was important in 

developing a strong investment portfolio that could deliver both financial and economic development returns.

• Leveraging resources – people, innovation, facilities – at leading research universities is a smart, effective 

economic development strategy. Financial capital is often the missing link to job creation and economic 

impact. However, identifying opportunities at universities is not sufficient. It is also important to have highlevel university support for research commercialization and entrepreneurship initiatives.

• The investment manager witnessed the benefit of attracting non-dilutive funding for early-stage businesses

developing technology, so providing assistance for the grant writing process can be valuable assistance.

• The managers learned that limiting real or perceived “red tape” issues helped to facilitate more investment 

opportunities with private investors. 
309

West Virginia

PROGRAM PORTFOLIO OVERVIEW108

Using $13.2 million in SSBCI allocation, West Virginia operates three credit support programs and a venture capital 

program. With the SSBCI program portfolio, the state funded venture capital, direct lending, collateral support, and 

loan guarantee programs. West Virginia structured its programs to encourage the participation of economic 

development agencies throughout the state, including rural areas. 

The West Virginia Jobs Investment Trust Board (WVJIT) is a state-sponsored nonprofit organization that has 

managed small evergreen funds since 1992. WVJIT is experienced in early-stage investment in small businesses, 

having invested $19.2 million in 25 businesses that has resulted in $350 million in private financing prior to SSBCI.

Table WV-1: West Virginia’s SSBCI Program Portfolio Summary

Combined Program Outcomes

West Virginia supported 53 loans and investments that generated almost $91 million in total financing through 

December 31, 2015. 

Table WV-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

53 $10.8 million $60,000 $90.8 million $1.71 million 8.40:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

Moderate -

Income Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,165 6 FTEs 6 years 34% 40%

1. Manufacturing

2. Professional, Scientific, and 

Technical Services

3a. Health Care and Social 

Assistance

3b. Other Services (except Public 

Administration)

*Includes funds expended for administrative costs

 108 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Subordinated Debt Program Loan Participation $5.4 million West Virginia Jobs Investment Trust Board

West Virginia Loan Guarantee 

Program Loan Guarantee $152,000 West Virginia Jobs Investment Trust Board

West Virginia Collateral Support 

Program Loan Guarantee $828,000 West Virginia Jobs Investment Trust Board

Seed Capital Co-Investment Fund Venture Capital $6.8 million West Virginia Jobs Investment Trust Board
310

CREDIT SUPPORT PROGRAMS

WVJIT marketed the State’s SSBCI program as the West Virginia Capital Access Program (WVCAP), which 

includes loan guarantee, collateral support, and loan participation products. Loans made through WVCAP are 

identified and funded through eight economic development agencies, including WVJIT. Each participating 

economic development agency is responsible for identifying projects, negotiating the transaction, as well as closing 

and servicing SSBCI loans made by them. WVJIT does not re-underwrite each loan from a credit perspective, 

which is the responsibility of the originating economic development agency. Using a grant from the Benedum 

Foundation, WVCAP can provide loan applicants access to technical assistance, including business planning, 

financial modeling, and market research.

WVCAP generally requires (subject to leverage ratios) loans funded through SSBCI to be repaid in two years, at 

which point the participating economic development agency has to return the funds to WVJIT until it identifies a 

replacement loan. Loans with higher leverage ratios can have a term of up to five years. WVJIT formed a standing 

oversight committee for the SSBCI program that includes representatives from WVJIT, the other participating 

economic development agencies and the state’s Economic Development Authority and Small Business Development 

Centers. This oversight committee reports directly to WVJIT’s board; among its principal duties, the committee 

selected participating lenders and approves proposed loans with a focus on compliance. WVJIT’s internal 

accounting, financial reporting, and related administrative functions are performed under an inter-agency agreement 

with the West Virginia Housing Development Fund.

When the SSBCI program restrictions expire, each participating economic development agency will retain the 

principal amount of the SSBCI funds that the agency has utilized.

Loan Participation Program

The subordinated loan product is a loan from the participating economic development agency to the borrower, with 

a bank or other lender providing the senior debt. The loan proceeds can be used to purchase equipment, facility 

expansion or permanent working capital. WVCAP will provide up to 50 percent of the total financing, with a 

maximum loan amount of $500,000, with the typical percentage being 20 percent or less. The program manager 

charges a 1 percent commitment fee. The interest rate on the loan is at or below prevailing interest rates.

Collateral Support Program

Through the West Virginia Collateral Support Program (CSP), the participating economic development agency 

provides cash collateral for a loan being made by a bank or other lender for up to 20 percent of the loan amount, 

with $250,000 maximum cash collateral provided. WVCAP charges a fee of 2 percent of the loan amount, with a 

maximum loan amount of $1.25 million. 

Loan Guarantee Program

Guarantees are up to 20 percent of the loan amount for working capital loans, up to a maximum loan guarantee 

amount of $250,000 and with a similar fee structure to the CSP. 

Credit Support Program Outcomes

Through December 31, 2015, West Virginia’s credit support programs expended $5.6 million in 23 transactions and 

generated $44.6 million in total financing or $8.00 in total financing for every $1 in SSBCI funds spent. Businesses 

reported that the loans will help create or retain almost 630 jobs. The CSP expended almost $800,000 in 4 

transactions and generated $5 million in total financing. The Subordinated Debt Program expended $4.8 million in 

18 transactions and generated $39.4 million in total financing. Finally, the Loan Guarantee Program expended 

$28,000 in one transaction and generated $140,000 in total financing.
311

TableWV-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

23 $5.6 million $60,000 $44.6 million $1.94 million 7.96:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

627 9 FTEs 6 years 22% 65%

1. Health Care and Social 

Assistance

2a. Accommodation and Food 

Services

2b. Manufacturing

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• By using eight economic development agencies located through the state as its distribution network, WVCAP 

helped ensure widespread use of SSBCI funds throughout the state, including in rural areas.

• Because the participating economic development agencies gained access to West Virginia’s SSBCI funds on a 

“first-come, first-served” basis, the program was able to quickly deploy its allocation. Because those agencies 

will retain the SSBCI capital when the federal restrictions expire in 2017, the economic development agencies 

also had an incentive to underwrite conservatively the loans they made.

• To help ensure an effective distribution network, WVJIT established clear criteria for economic development 

agencies who could qualify, screening for experienced lenders that had adequate staffing and systems.

• When compared to CSP or the Loan Guarantee Program (LGP), the Subordinated Debt Program achieved 

higher volume because it was an extension of the existing loan programs of the eight participating economic 

development agencies. The CSP and LGP were new efforts, and thus required a substantially greater initial 

marketing effort. In 2012, West Virginia reallocated additional capital to the subordinated loan program.

• In West Virginia, the best point of contact for marketing WVCAP is at the bank branch manager level because 

they are the point of entry into the bank for most business borrowers. Community banks are important partners 

in ensuring program success.

VENTURE CAPITAL PROGRAM

WVJIT manages the Seed Capital Co-Investment Fund (SCCF) – a venture capital program with an SSBCI 

allocation of $6.8 million or 52 percent of the state’s allocation. The governor’s office selected WVJIT to convene 

multiple public and private organizations to discuss strategies for deploying SSBCI capital before approving the 

WVJIT plan to create the SCCF alongside a loan program.

SCCF provides seed- and early-stage equity investments for technology entrepreneurs in a state where there are no 

active resident venture capital firms. The innovative model managed by WVJIT supports regional non-profit 

venture development organizations (VDOs) by transferring the rights to SSBCI capital investments sourced by the 

regional partners following the successful harvest of investments and the conclusion of the SSBCI program. This 

policy is intended to help establish multiple small evergreen funds managed by regional partners.
312

Venture Capital Program Design and Operations

SCCF has many characteristics of a co-investment fund in which eight pre-approved VDOs, including WVJIT, 

source deals and aggregate private investors to at least match the SSBCI capital investment; however, SCCF 

requires a critical review from WVJIT and a vote by its board of directors on the qualitative aspects of each deal. 

That board is comprised of thirteen members including five ex officio and eight gubernatorial appointments, so is 

best classified as an investment fund managed by a state-sponsored non-profit organization. 

SCCF is unique within the portfolio SSBCI venture capital programs for the mechanism by which partner VDOs 

will ultimately be granted ownership rights to the SSBCI capital invested by their recommendations – and any gains 

derived from the investments – once the SSBCI program is concluded in 2017. Program managers developed this 

model as an incentive for private non-profit VDOs to perform essential functions of SCCF promotion and deal 

sourcing while compensating only for performance. INNOVA, Natural Capital Investment Fund, and WVJIT are 

the non-profit VDOs authorized to source deals and earn a vested interest in the return of principal and profit from 

successful investments that are focused on seed capital equity investments. Small businesses receiving investments 

may be referred from university tech transfer offices but most often originate from angel investors or angel investor 

groups as well as accelerator operations managed by the VDOs. VDO-managed investment funds or angel investors 

most often provide matching capital.

Figure WV-4: West Virginia Venture Program Structure

West Virginia Office of the Governor

State Applicant

West Virginia Jobs Investment Trust

Quasi-Public Non-profit Contractor Administrator

Seed Capital Co-Investment Fund

New State VC Program Operating as an Authorized Co-Investment Fund

SSBCI Funds Invested in Small Businesses in West Virginia

Co-investment via pre-determined ratio to private investment on first-come, first-served basis

Venture Capital Program Outcomes

As of December 31, 2015, the SCCF expended $5.2 million or 76 percent of the $6.8 million SCCF allocation. The 

leverage ratio on expended SSBCI funds is 8.9 to 1. A total of 80 percent of SCCF capital has been expended in 

metropolitan regions. Businesses reported that SSBCI investments will help create or retain almost 540 jobs.
313

Table WV-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

30 $5.2 million $0 $46.3 million $1.54 million 8.88:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

538 4 FTEs 6 years 43% 20%

1. Manufacturing

2. Professional, Scientific, and 

Technical Services

3. Construction

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Recognizing the uniqueness of their model to transfer the financial interests in SSBCI investments to partner 

organizations, WVJIT program managers confirmed that this decision is helping to support the creation of 

regional micro funds in the absence of active venture capital funds or organized angel investor groups. 

• SSBCI capital helped the state develop more organized angel investor groups and regional VDOs actively 

sourcing investments and providing co-investment capital.

• After a clean audit report from the Office of Inspector General, WVJIT leaders are hopeful that the results from 

SCCF will encourage state legislators to revisit renewed funding for seed/early stage equity funds in the near 

future.
314

Wisconsin

PROGRAM PORTFOLIO OVERVIEW109

Using $22.4 million in SSBCI allocation, Wisconsin operates the Wisconsin Equity Fund (WEF) to address gaps in 

the state’s capabilities to support high-growth potential businesses at different stages of business development that 

include early-stage equity and growth-stage venture debt financing solutions.

The Wisconsin Department of Administration designated the Wisconsin Housing and Economic Development 

Authority (WHEDA) as the program manager after it performed an initial market demand and strategy response 

analysis soon after SSBCI federal funding opportunity first became available. The Department of Administration 

maintains responsibility for reporting, compliance and overall program administration. 

WHEDA, a quasi-governmental entity established by the state legislature in 1973, manages the program. WHEDA 

used 94 percent of its SSBCI resources to support the Wisconsin Equity Fund, which capitalized two programs: the 

Wisconsin Equity Investment Fund (WEIF) capitalized with $8.5 million in SSBCI funding and the Wisconsin 

Venture Debt Fund (WVDF) capitalized with $12.5 in SSBCI funding. Treasury initially approved two credit 

support programs – the Wisconsin Capital Access Program (CAP) and the WHEDA Guarantee Program; however 

Wisconsin terminated the CAP in July 2013 and the funds allocated to the CAP were shifted to the venture capital 

program. The WHEDA Guarantee Program has not deployed any SSBCI funds as of December 2015.

Table WI-1: Wisconsin’s SSBCI Program Portfolio Summary

Program Outcomes

Wisconsin supported 59 investments that generated $106 million in total financing through December 31, 2015. 

Table WI-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

59 $11.6 million $0 $106.0 million $1.8 million 9.12:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

1,277 8 FTEs 3 years 31% 7%

1. Manufacturing

2. Professional, Scientific, and 

Technical Services

3. Information

*Includes funds expended for administrative costs

 109 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Wisconsin Equity Fund Venture Capital $21 million Wisconsin Housing and Economic 

Development Authority (WHEDA)

WHEDA Guarantee Loan Guarantee $1.4 million Wisconsin Housing and Economic 

Development Authority (WHEDA)
315

CREDIT SUPPORT PROGRAM

Loan Guarantee Program

Wisconsin allocated $1.4 million of SSBCI funds to the existing WHEDA Loan Guarantee Program. The SSBCI 

funds constitute a 50 percent pro rata guarantee with WHEDA setting aside a cash reserve of 20 percent of the 

guaranteed portion of each loan. As of December 2015, Wisconsin had not enrolled any guarantees under the 

WHEDA Guarantee Program.

VENTURE CAPITAL PROGRAM

The WEIF is a fund of funds program designed to spur equity investments in early-stage Wisconsin businesses by 

contracting with private venture investors for managing deal sourcing and investment transactions. The WVDF is a 

venture debt financing program targeting growing businesses that create new, high-quality jobs in Wisconsin. These 

subordinate debt funds are invested by private, nonprofit economic development partners through contracts with 

WHEDA, and they are intended to complement early stage equity investments by allowing businesses to access 

capital for growth at predictable costs. WHEDA opted not to dictate the investment strategies for each program –

investment stage, target industries, deal terms, co-investment partners. Instead, the investment strategies were 

determined by each contracted investment manager in response to a competitive process.

WHEDA selected four investment managers – an equity investment fund and three partners for venture debt (see 

Table WI-3).

Table WI-3: Wisconsin Equity Fund Investor Portfolio

Wisconsin Equity Investment Fund

Investment Fund Name Allocation ($ millions) Investment Stage Fund Characteristics

New Capital Fund II $3.0 Early

Sidecar to a fund targeting life 

sciences, material sciences and IT 

businesses

Wisconsin Venture Debt Fund

Investment Fund Name Allocation ($ millions) Investment Stage Fund Characteristics

Wisconsin Economic Development 

Corp. $8.0 Early/Growth Complements existing program portfolio

Madison Development Corp. $3.0 Growth

Existing capabilities, Consortium of 

financial partners for private coinvestment

Milwaukee Economic 

Development Corp. $1.5 Growth New program serving southeast Wisconsin

WEIF focuses on investing in early-stage life science, material science, and information technology investments. 

These investments are executed as priced equity rounds or convertible debt instruments. The SSBCI funds are 

invested into eligible Wisconsin-based small businesses through a set-aside (or “sidecar”) fund. The average SSBCI 

investment size was expected to be $250,000 with a leverage ratio of 4 to 1 at the time of financing. With only one 

contracted fund manager under the WEIF, WHEDA expects to contract with additional investment fund managers 

that might include participation by CDFI funds.
316

For the WVDF, three economic development partners were selected to manage SSBCI funds – two with regional 

footprints and one with statewide reach. The WVDF investments are structured as subordinate debt that might have 

a voluntary convertible feature to equity. Loans typically range from $100,000 to $500,000 with interest only or 

deferred payment features for the first 9-12 months. The Madison Development Corporation works with a financial 

consortium that often provides the private investment match to SSBCI funds. The Wisconsin Economic 

Development Corporation, the state’s quasi-public economic development agency, operates other state capital 

programs that can also help to leverage private investment match. Each contracted partner manages a standardized 

checklist for requesting and receiving funds from WHEDA to support transactions. 

Figure WI-4: Wisconsin Equity Fund Program Structure

Wisconsin Department of Administration

Official State Applicant

Wisconsin Housing & Economic Development Authority (WHEDA)

Quasi-Public Authority Serving as State Program Manager

Wisconsin Equity Fund

A New State Venture Capital Program 

($21 million)

Wisconsin Equity 

Investment Fund

A Fund-of-Funds Equity 

Investment Program

($8.5 million allocation)

Wisconsin Venture Debt Fund

A Venture Debt Financing Program

($12.5 million allocation)

New Capital Fund II

Contracted Investment 

Manager

($3 million)

Wisconsin Economic 

Development Corp.

Contracted Investment 

Manger

($8 million)

Madison 

Development Corp. 

Contracted Investment 

Manager

($3 million)

Milwaukee Economic 

Development Corp.

Contracted Investment 

Manager

($1.5 million)

SSBCI funds are committed to contracted investment managers for either equity investment or venture debt 

investment in small businesses in Wisconsin.

Venture Capital Program Outcomes

WHEDA expended $11.6 million or 96 percent of its venture capital allocation through December 31, 2015. The 

SSBCI capital expended has generated $106 million in total financing or $9.12 in total capital for every $1 in SSBCI 

funds spent. Businesses reported that the SSBCI investments will help create or retain over 1,200 jobs. See Table 

WI-2 for additional venture capital program outcomes. 

Lessons learned implementing the Wisconsin Equity Fund informed the review and design of complementary statefunded capital initiatives such as the Badger Fund.
317

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• WHEDA saw limited demand for the Wisconsin’s debt programs and greater demand for equity and venture 

debt programs. 

• For the equity investment program, the amount of capital competitively available for management was not 

attractive to some private investment funds and the requirement of a sidecar fund structure was viewed as 

burdensome and an obstacle for limited partner acceptance. 

• WHEDA committed $4 million to a second equity investment manager in the Milwaukee region. However, the 

contracted manager had difficulty disbursing funds on the agreed upon timeline, so WHEDA acted to deobligate the funds and seek another equity investment partner to participate in the WEIF.
318

Wyoming-Laramie

PROGRAM PORTFOLIO OVERVIEW110

Using $13.2 million in SSBCI allocation, the Wyoming consortium of 17 municipalities led by the City of Laramie

(the Laramie Consortium), operates two new programs: a collateral support program – the Credit Guarantee 

Program (CGP) and a venture capital program – the Seed Capital Network Program (SCNP). 

The Laramie Consortium, which formed when the state of Wyoming opted not to apply, represents about half of the 

state’s population. The City of Laramie contracted with Wyoming Smart Capital Network, LLC (WSCN) to 

manage the programs. WSCN also provides local staff support to market the CGP and SCNP to lenders and 

investors. WSCN is managed by Development Capital Networks, LLC (DCN) – a national firm that specializes in 

developing regional economic strategies and helping networks of investors build capital. 

Table WY-1: Wyoming-Laramie’s SSBCI Program Portfolio Summary

Combined Program Outcomes

Wyoming’s Laramie Consortium supported 64 loans and investments that generated almost $46 million in total

financing through December 31, 2015. 

Table WY-2: Overall Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

64 $11.3 million $0 $45.9 million $717,100 4.07:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

512 1.5 FTEs 2 years 17% 64%

1. Retail Trade

2. Mining, Quarrying, and Oil 

and Gas Extraction

3a. Accommodation and Food 

Services

3b. Other Services (except 

Public Administration)

*Includes funds expended for administrative costs

 110 All data and program descriptions presented here are as of December 31, 2015.

Program Name Program Type Allocation Day-to-Day Administering Agency

Credit Guarantee Program Collateral Support $12.2 million Wyoming Smart Capital Network, LLC

Seed Capital Network Program Venture Capital $1 million Wyoming Smart Capital Network, LLC
319

CREDIT SUPPORT PROGRAM

Collateral Support Program

The CGP provides collateral support in the form of a certificate of deposit for up to 50 percent of a loan and for as 

long as five years. The maximum support is $1 million, but WSCN has approved only two transactions near that 

limit. WSCN charges a fee of up to 2 percent of the loan amount (not the collateral amount) for the collateral 

support if it is required for the maximum five-year term and lower fees for lower levels of support and shorter terms.

WSCN reviews the lender’s credit memo and reviews the loan for compliance with SSBCI eligibility rules enabling 

an approval within one week. Prior to closing the loan, WSCN also requests that an external accountant and 

attorney review each credit request to assess legal issues and regulatory compliance. The program has been used for 

a variety of purposes, but the CGP has proved most appealing in the financing of specialized equipment purchases, 

lines of credit, and land acquisition and facility construction/renovation. Community banks, especially those too 

small to develop the capacity to offer SBA loans, participated in the program. The lenders point to the availability 

of cash collateral provided to the bank and the ease of use as being the most significant benefits. 

Credit Support Program Outcomes

Through December 31, 2015, the Laramie Consortium expended $10.8 million in SSBCI funds to support 53 loans. 

The loans have generated $45 million in total financing or $4.20 in total financing for every $1 in SSBCI funds

spent. Businesses reported that the loans will help create or retain approximately 500 jobs.

Table WY-3: Credit Support Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

53 $10.8 million $0 $45 million $848,900 4.16:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome Areas

Transactions in 

Non-Metro 

Areas Top Industries Assisted

509 2 FTEs 2 years 21% 77%

1. Retail Trade

2. Mining, Quarrying, and Oil 

and Gas Extraction

3a. Accommodation and Food 

Services

3b. Other Services (except Public 

Administration)

*Includes funds expended for administrative costs

In addition to the measures typically required by Treasury, WSCN also monitors the number of minority- and 

women-owned businesses assisted, as well as projected future employment and wages being offered. 

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Expedited application processing and approval process helps to build lender confidence in the program and 

ensure customer satisfaction. 
320

• Other cities considered becoming part of the consortium at the time of application, but they did not have time or 

make a formal decision to do so. Since the initial grant was made to the Consortium of the 17 communities, 

Treasury would need to accept new communities and legal agreements would need to be modified and 

approved. Also, there is no financial incentive to add new members under the current SSBCI program structure.

• Building credibility with the lending community has helped enhance relationships with the state economic 

development agency (Wyoming Business Council) and the legislature, setting the stage for potential future 

outreach for state investment in the program. 

• Marketing the program involved talking with bankers one-on-one at their banks and sharing (in a structured and 

visually stimulating way) examples that are relevant to their work. WSCN also conducted a webinar in 2014 to 

reinforce the message and has attended many banker conferences and meetings.

• Loan officers from larger banks must turn to central processing centers for approval to use the program and that 

has typically been a barrier for broader participation, especially in getting sign-off on certain statutorily required 

certifications. 

• Geographic distribution, especially under the consortium city model of management, is important both from 

diversifying the portfolio but also in sustaining political support.

• A successful loan program, especially if it seeks to invest in targeted populations of need, must help borrowers 

build networks and connections to opportunities for growth and to potential sources of capital.

• In rural areas, small retail and local service businesses need access to capital, and they represent significant 

economic development priorities for local leaders.

• Developing a collateral support program in Wyoming that is able to sustain itself on fees and interest income 

will require serving a broader marketplace (i.e., the entire state) and a $23 to $30 million fund, double the 

current size of the CGP.

• With 17 co-applicant communities, each municipality originally had to sign any reports. Wyoming requested 

and Treasury approved a modification to the Allocation Agreement that provided a streamlined process in 

which for the Authorized Representative of the Lead City could sign off most documents on behalf of the 

Consortium Board. 

VENTURE CAPITAL PROGRAM

The Laramie Consortium’s SCNP is a $3 million commitment of the WSCN and DCN to invest in angel funds 

supporting investments in Wyoming small businesses. The consortium of 17 authorized municipalities, led by the 

City of Laramie, selected WSCN and DCN to manage the program that received an SSBCI allocation of $13.2 

million. The stated goal of the SCNP is to build and support angel funds that support Wyoming businesses by 

partnering with organized angel groups having $2 million to $20 million in total commitments.

Venture Capital Program Design and Operations

The consortium selected WSCN and DCN based on a thorough review of their qualifications and strategy for 

organizing and co-investing with angel funds in Wyoming. DCN designed the program similar to another DCNmanaged SSBCI-approved municipality program in the City of Carrington, North Dakota, where the intent is to first 

leverage program capital through the creation of the angel funds, and then achieve further leverage as the angel 

funds invest in small businesses.

The program allows DCN the flexibility to accept preferred, pari passu or subordinate terms to other investors. 

Targeted businesses are expected to have some degree of traction from self-financed operations or other capital 

sources in order to reduce the inherent investment risk typical of seed and early stage businesses, as the program 

managers perceive high importance to delivering a successful investing experience in order to encourage further 

participation.
321

Figure WY-4: SCNP Structure

Laramie, Wyoming Consortium of 17 Municipalities

State Authorized Applicant

Seed Capital Network Program

New State VC Program Operating as an Authorized Co-Investment Fund and Managed by the Wyoming Smart

Capital Network and Development Capital Networks

SSBCI Funds Invested in Small Businesses in Wyoming

Venture Capital Program Outcomes

To date, WSCN has reviewed several investment opportunities and executed one investment in a company building 

compressed natural gas fueling stations in several consortium communities. WSCN attracted angel investors from 

Colorado, Missouri, and Oklahoma to support the project and made its investment through the iSelect Angel Fund. 

WSCN committed $500,000 towards a targeted $1.5 million investment round that closed June 12, 2015. WSCN 

has funded its commitment in 11 increments with a total of approximately $452,000 contributed through December 

31, 2015. Despite this initial success, WSCN has not achieved the volume of participation it expected at the time the 

strategy was developed.

Table WY-5: Venture Capital Program Impacts, cumulative through December 31, 2015

Number of 

Transactions

SSBCI 

Funds 

Expended*

SSBCI Funds 

Recycled

Total Financing 

Generated by 

SSBCI Funds

Average 

Financing Size Leverage Ratio

11 $470,000 $0 $903,700 $82,200 1.92:1

Jobs Created 

or Retained

per 

Businesses

Median 

Business Size

Median 

Business Age

Transactions in 

Low- and 

ModerateIncome AreasTransactions in 

Non-Metro Areas Top Industries Assisted

3 1 FTE 3 years 0% 0% Retail Trade

*Includes funds expended for administrative costs

Management Perspectives

The following section summarizes lessons learned and other observations as communicated by state program 

management:

• Program managers have learned that potential angel investors in Wyoming are open to co-investing through ad 

hoc networks, but disinclined to invest through angel funds. 

• Due to the lack of fund opportunities, program managers have transferred the majority of the SCNP allocation 

to the $12.1 million credit guarantee program which has deployed more than 89 percent of its allocated funds as 

of December 31, 2015. The Laramie consortium’s results are similar to other SSBCI venture capital program 

experiments in states or regions with largely rural populations, very little venture capital investment activity, 

and large geographic distances between collaborating communities. 

• WSCN operates as an evergreen fund and through time expects to return to making qualifying SCNP 

investments with recycled funds as opportunities are found.

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

Center for Regional Economic Competitiveness & Cromwell Schmisseur

OCTOBER 2016

Appendix 4: 

SSBCI Transaction Data 

Summaries
APPENDIX 4:

SSBCI Transaction Data Summaries

This appendix 4 summarizes transaction data for the 152 Approved State111 Programs funded by the State Small 

Business Credit Initiative (SSBCI). All transaction data presented are as of December 31, 2015.

Table A shows: 

1. Participating State

2. Approved State Program

3. Program Type

4. Type of Administering Entity (Public, Quasi-Public, Private) or VCP Strategy (Funds, SSE, State Agency, 

Co-investment Model)

5. Allocation

6. SSBCI Funds Expended for Loans or Investments

7. SSBCI Funds Expended for Program Administration

8. Recycled112 Funds Expended

9. Percent of SSBCI Funds Expended

10. Number of Transactions

11. Total Financing Leveraged

12. Leverage Ratio113

13. Estimated Number of Jobs to be Created114

14. Estimated Number of Jobs to be Retained115

15. Median Size of Business Supported (Full-Time Equivalents)

16. Median Age of Business Supported (Years)

17. Percent of Transactions in low- and moderate-income116 (LMI) census tracts (by Number)

18. Percent of Transactions in LMI census tracts (by Principal Loan or Investment Amount)

19. Percent of Transactions in Non-Metro Areas (by Number)

20. Percent of Transactions in Non-Metro Areas (by Principal Loan or Investment Amount)

Tables 1 through 5 that follow Table A break out the data listed above by program type. Tables B through F present 

the following data on the typical transaction for each program type:

1. Participating State

2. Approved State Program

3. Number of Loans or Investments

4. Minimum Principal Loan or Investment Amount

5. Maximum Principal Loan or Investment Amount

6. Median Principal Loan or Investment Amount

7. Median Percent SSBCI Support per Loan or Investment

8. Median Size of Business Supported (FTEs)

9. Median Age of Business Supported (Years)

10. Median Revenue of Business Supported

11. Top Three Industries Assisted (by number of transactions)

 

111 Treasury approved SSBCI applications from 47 states, the District of Columbia, five territories, and municipalities in three 

states (collectively referred to as “states”).

112 “Recycled” funds refer to program income, interest earned, or principal repayments that states expend to support new 

transactions.

113 “Leverage Ratio” is the amount of new small business financing leveraged divided by the amount of SSBCI funds expended

for loans or investments. 

114 “Jobs Created” include the number of new Full-Time Equivalent (FTE) jobs that the business indicated it expects to create 

as a direct result of the transaction within two years of the closing. 

115 “Jobs Retained” is the number of FTE jobs that the business indicated are at risk of loss without the support of the 

transaction.

116 Based on 2010 Census Bureau’s 5-year American Community Survey. “Low income” households earn less than 50 percent 

of area median income. “Moderate income” households earn between 50 percent and 80 percent of area median income. These 

standards were set based on definition that HUD Community Planning and Development uses for low- and moderate-income 

households. (http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/glossary/l). 
Table of Contents

A. ALL APPROVED STATE PROGRAMS................................................................................326

1. Capital Access Programs (CAPs) ........................................................................................333

2. Loan Guarantee Programs ...................................................................................................334

3. Collateral Support Programs................................................................................................335

4. Loan Participation Programs ...............................................................................................336

5. Venture Capital Programs....................................................................................................338

B. TYPICAL CAP TRANSACTIONS.........................................................................................340

C. TYPICAL LOAN GUARANTEE TRANSACTIONS.............................................................342

D. TYPICAL COLLATERAL SUPPORT TRANSACTIONS.....................................................344

E. TYPICAL LOAN PARTICIPATION TRANSACTIONS .......................................................345

F. TYPICAL VENTURE CAPITAL TRANSACTIONS.............................................................348
All Approved State Programs 326

A. ALL APPROVED STATE PROGRAMS, cumulative through December 31, 2015

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

1 Alabama Alabama CAP Program CAP Public Agency $1,870,000 $9,873 $163,801 $0 9% 8 $197,451 20.00 17 23 3 2 13% 29% 25% 26%

2 Alabama Alabama Loan Guarantee Program Loan Guarantee Public Agency $27,561,498 $27,561,498 $0 $45,193,120 100% 387 $146,573,481 5.32 1,440 2,413 4 4 35% 33% 47% 30%

3 Alabama

Alabama Loan Participation 

Program Loan Participation Public Agency $1,870,000 $838,575 $340,223 $0 63% 5 $5,735,750 6.84 16 48 11 7 20% 28% 0% 0%

Alabama Total $31,301,498 $28,409,946 $504,024 $45,193,120 92% 400 $152,506,682 5.27 1,473 2,484 4 4 35% 33% 46% 29%

4

Alaska -

Anchorage 49th State Venture Fund Venture Capital State Agency; Fund $13,168,350 $862,250 $393,412 $0 10% 8 $5,614,500 6.51 36 6 5 1 25% 66% 0% 0%

Alaska -

Anchorage Total $13,168,350 $862,250 $393,412 $0 10% 8 $5,614,500 4.47 36 6 5 1 25% 66% 0% 0%

5 American Samoa American Samoa Venture Fund Venture Capital SSE $10,500,000 $0 $171,178 $0 2% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

American Samoa Total $10,500,000 $0 $171,178 $0 2% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

6 Arizona Arizona Expansion Fund Loan Participation Quasi-Public Agency $18,204,217 $17,537,945 $666,273 $234,177 100% 52 $75,406,192 4.30 2,194 1,235 15 5 52% 40% 2% 4%

Arizona Total $18,204,217 $17,537,945 $666,273 $234,177 100% 52 $75,406,192 4.14 2,194 1,235 15 5 52% 40% 2% 4%

7 Arkansas Arkansas Capital Access Program CAP Quasi-Public Agency $41,522 $31,438 $10,084 $7,902 100% 94 $1,109,148 35.28 102 208 2 2 37% 38% 22% 32%

8 Arkansas

Arkansas Development Finance 

Authority Co-investment Fund Venture Capital SSE $3,595,156 $3,274,521 $113,364 $0 94% 13 $23,997,759 7.33 117 0 11 3 46% 67% 0% 0%

9 Arkansas

Bond Guaranty/ Loan 

Participation Program Loan Participation Quasi-Public Agency $4,690,312 $4,577,211 $113,101 $76,789 100% 14 $67,044,000 14.65 459 59 5 2 21% 19% 57% 61%

10 Arkansas

Disadvantaged Business 

Enterprise/ Small Business Loan 

Guaranty Program Loan Guarantee Quasi-Public Agency $720,071 $477,509 $15,303 $672,341 68% 11 $1,635,500 3.43 43 28 10 6 45% 48% 9% 2%

11 Arkansas Risk Capital Matching Fund Venture Capital SSE $1,297,352 $1,233,035 $30,419 $462,923 97% 13 $96,769,187 78.48 55 7 8 4 85% 90% 0% 0%

12 Arkansas Seed and Angel Capital Network Venture Capital Fund $2,823,937 $2,059,623 $101,510 $0 77% 94 $24,895,865 12.09 435 29 2 0 50% 55% 1% 0%

Arkansas Total $13,168,350 $11,653,338 $383,780 $1,219,955 91% 239 $215,451,458 17.90 1,211 331 2 1 45% 43% 13% 32%

13 California

California Capital Access Program 

(CalCAP) CAP Public Agency $19,574,379 $10,455,126 $1,702,525 $275,147 62% 6,592 $237,017,869 22.67 3,341 29,031 2 5 53% 47% 1% 1%

14 California

California Collateral Support 

Program (CalCSP) Collateral Support Public Agency $64,700,000 $47,730,069 $168,221 $0 74% 113 $135,129,584 2.83 620 2,740 15 9 39% 33% 1% 0%

15 California

California Property Assessed 

Clean Energy Program (CalPACE) Loan Participation Public Agency $0 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

16 California

California Small Business Loan 

Guarantee Program Loan Guarantee Private Agency $83,481,263 $49,326,387 $1,092,600 $10,383,428 60% 995 $421,429,141 8.54 6,785 27,820 10 6 38% 38% 2% 1%

California Total $167,755,641 $107,511,582 $2,963,346 $10,658,575 66% 7,700 $793,576,594 7.18 10,746 59,591 2 5 51% 40% 1% 1%

17 Colorado Colorado Capital Access Program CAP Quasi-Public Agency $300,000 $12,166 $150,850 $0 54% 18 $603,283 49.59 18 0 2 1 100% 100% 100% 100%

18 Colorado

Colorado Cash Collateral Support 

Program Collateral Support Quasi-Public Agency $16,933,489 $15,867,006 $264,000 $0 95% 157 $101,385,144 6.39 693 271 2 4 39% 37% 41% 23%

Colorado Total $17,233,489 $15,879,172 $414,850 $0 95% 175 $101,988,428 6.26 711 271 2 4 45% 38% 47% 24%

19 Connecticut

Connecticut Capital Access 

Program (CT-CAP) CAP Quasi-Public Agency $0 $179,215 $4,299 $0 0% 35 $5,812,671 32.43 57 435 5 3 23% 33% 6% 6%

20 Connecticut

Seed and Early Stage Investment 

Fund (SESIF) Venture Capital SSE $13,301,126 $6,289,002 $2,163 $0 47% 10 $46,045,020 7.32 55 145 13 6 40% 31% 0% 0%

Connecticut Total $13,301,126 $6,468,217 $6,462 $0 49% 45 $51,857,691 8.01 112 580 6 5 27% 32% 4% 1%

21 Delaware Delaware Access Program CAP Public Agency $1,000,000 $152,805 $0 $0 15% 78 $4,598,897 30.10 236 433 3 4 23% 26% 23% 18%

22 Delaware

DSF Participation and Loan 

Program Loan Participation Public Agency $12,168,350 $8,221,025 $0 $0 68% 32 $54,506,676 6.63 272 522 5 3 47% 16% 31% 66%

Delaware Total $13,168,350 $8,373,830 $0 $0 64% 110 $59,105,572 7.06 508 955 3 3 30% 17% 25% 61%
All Approved State Programs 327

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

23

District of 

Columbia DC Collateral Support Program Collateral Support Public Agency $5,802,021 $5,653,198 $146,973 $0 100% 21 $13,388,500 2.37 127 509 9 8 43% 61% 0% 0%

24

District of 

Columbia DC Loan Participation Program Loan Participation Public Agency $4,366,329 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

25

District of 

Columbia Innovation Finance Program Venture Capital Co-investment Model $3,000,000 $50,000 $108 $0 2% 1 $160,000 3.20 0 8 8 1 100% 100% 0% 0%

District of 

Columbia Total $13,168,350 $5,703,198 $147,080 $0 44% 22 $13,548,500 2.32 127 517 9 8 45% 61% 0% 0%

26 Florida Direct Loan Program Loan Participation Private Agency $100,000 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

27 Florida Florida Capital Access Program CAP Public Agency $2,000,000 $24,040 $318,622 $0 17% 60 $962,115 40.02 45 173 2 3 30% 21% 0% 0%

28 Florida Florida Export Support Program Loan Guarantee Private Agency $5,000,000 $1,641,500 $136,631 $0 36% 7 $7,600,000 4.63 20 63 5 4 14% 14% 0% 0%

29 Florida Florida Venture Capital Program Venture Capital Fund $43,500,000 $20,971,851 $657,059 $0 50% 44 $113,443,944 5.41 652 476 13 5 61% 47% 0% 0%

30 Florida Loan Guarantee Program Loan Guarantee Private Agency $15,000,000 $13,806,213 $398,727 $5,672,676 95% 39 $67,543,395 4.89 1,215 224 21 10 36% 42% 5% 2%

31 Florida Loan Participation Program Loan Participation Private Agency $32,062,349 $31,583,935 $478,414 $7,002,344 100% 52 $108,556,823 3.44 734 56 4 3 29% 28% 8% 13%

Florida Total $97,662,349 $68,027,539 $1,989,454 $12,675,020 72% 202 $298,106,277 4.26 2,666 992 5 4 37% 38% 3% 5%

32 Georgia Georgia Capital Access Program CAP Public Agency $2,000,000 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

33 Georgia Georgia Funding for CDFIs Loan Participation Private Agency $20,000,000 $19,500,647 $499,353 $450,000 100% 73 $113,779,199 5.83 701 340 6 4 48% 44% 26% 18%

34 Georgia

Georgia Loan Participation 

Program Loan Participation Public Agency $8,000,000 $4,308,622 $440,926 $0 59% 15 $36,469,632 8.46 211 85 7 4 67% 43% 20% 24%

35 Georgia

Georgia Small Business Credit 

Guarantee Program Loan Guarantee Private Agency $17,808,507 $7,664,400 $703,466 $30,000 47% 283 $53,050,800 6.92 871 959 4 5 28% 27% 6% 6%

Georgia Total $47,808,507 $31,473,669 $1,643,745 $480,000 69% 371 $203,299,631 6.14 1,783 1,384 4 5 33% 39% 10% 16%

36 Guam Guam Capital Access Program CAP Quasi-Public Agency $658,417 $0 $14,223 $0 2% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

37 Guam Guam Credit Guarantee Program Loan Guarantee Quasi-Public Agency $9,876,262 $5,303,885 $445,840 $0 58% 41 $9,978,996 1.88 520 265 3 1 32% 56% 93% 98%

38 Guam Guam Loan Participation Program Loan Participation Quasi-Public Agency $2,633,671 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

Guam Total $13,168,350 $5,303,885 $460,063 $0 44% 41 $9,978,996 1.73 520 265 3 1 32% 56% 93% 98%

39 Hawaii

HSDC Venture Capital Investment 

Program Venture Capital Fund $13,168,350 $3,193,451 $204,642 $0 26% 77 $74,099,511 23.20 148 184 3 0 23% 26% 13% 2%

Hawaii Total $13,168,350 $3,193,451 $204,642 $0 26% 77 $74,099,511 21.81 148 184 3 0 23% 26% 13% 2%

40 Idaho Collateral Support Program Collateral Support Quasi-Public Agency $13,136,544 $12,655,537 $481,006 $7,179,508 100% 253 $163,944,897 12.95 852 1,658 8 6 24% 26% 30% 25%

Idaho Total $13,136,544 $12,655,537 $481,006 $7,179,508 100% 253 $163,944,897 12.48 852 1,658 8 6 24% 26% 30% 25%

41 Illinois Capital Access Program CAP Public Agency $50,000 $20,470 $0 $0 41% 12 $644,898 31.50 54 47 2 6 17% 12% 0% 0%

42 Illinois Collateral Support Program Collateral Support Public Agency $1,622,500 $1,622,500 $0 $0 100% 5 $16,626,215 10.25 113 50 35 7 0% 0% 20% 80%

43 Illinois Conditional Direct Loan Program Loan Participation Public Agency $500,000 $500,000 $0 $0 100% 1 $3,698,573 7.40 35 0 0 10 100% 100% 0% 0%

44 Illinois Participation Loan Program Loan Participation Public Agency $70,141,764 $48,621,032 $2,889,283 $1,500,000 73% 166 $394,392,418 8.11 1,883 1,064 13 7 38% 42% 16% 12%

45 Illinois Venture Capital Program Venture Capital Public Agency $6,051,000 $6,051,000 $0 $0 100% 24 $87,525,502 14.46 392 176 4 3 17% 15% 0% 0%

Illinois Total $78,365,264 $56,815,002 $2,889,283 $1,500,000 76% 208 $502,887,606 8.42 2,477 1,337 10 6 34% 35% 13% 14%

46 Indiana Indiana Capital Access Program CAP Quasi-Public Agency $1,500,000 $319,438 $0 $0 21% 125 $8,190,054 25.64 160 282 3 4 33% 21% 8% 7%

47 Indiana State Venture Capital Program Venture Capital

Co-investment Model; 

SSE $32,839,074 $14,620,665 $603,108 $0 46% 77 $46,578,371 3.19 431 317 6 3 29% 15% 5% 8%

Indiana Total $34,339,074 $14,940,103 $603,108 $0 45% 202 $54,768,425 3.52 591 599 5 4 31% 16% 7% 8%

48 Iowa Iowa Capital Access Program CAP Private Agency $9,624 $9,624 $32,846 $0 441% 3 $215,563 22.40 5 1 1 20 0% 0% 100% 100%

49 Iowa

Iowa Demonstration Fund 

Program Venture Capital State Agency $13,025,065 $7,500,000 $153,809 $0 59% 23 $43,834,800 5.84 273 167 7 4 13% 12% 4% 3%
All Approved State Programs 328

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

50 Iowa

Iowa Small Business Loan 

Program Loan Participation Private Agency $30,331 $31,455 $74 $0 104% 14 $416,400 13.24 13 15 1 0 50% 57% 14% 17%

Iowa Total $13,065,020 $7,541,080 $186,729 $0 59% 40 $44,466,763 5.75 291 183 3 2 25% 13% 15% 5%

51 Kansas

Kansas Capital Multiplier Loan 

Fund Loan Participation Quasi-Public Agency $9,217,845 $8,621,551 $196,530 $314,481 96% 58 $152,057,853 17.64 569 418 8 3 41% 47% 43% 54%

52 Kansas

Kansas Capital Multiplier Venture 

Fund Venture Capital Co-investment Model $3,950,505 $3,484,235 $106,191 $0 91% 23 $58,231,485 16.71 572 85 5 2 30% 37% 22% 19%

Kansas Total $13,168,350 $12,105,786 $302,722 $314,481 94% 81 $210,289,338 16.95 1,141 503 7 3 38% 44% 37% 44%

53 Kentucky Kentucky Capital Access Program CAP Public Agency $115,602 $3,102 $2,202 $0 5% 2 $105,306 33.95 15 2 28 10 50% 62% 0% 0%

54 Kentucky

Kentucky Collateral Support 

Program Collateral Support Public Agency $10,921,196 $9,510,750 $82,457 $0 88% 111 $76,443,342 8.04 803 804 5 4 43% 50% 46% 37%

55 Kentucky

Kentucky Loan Participation 

Program Loan Participation Public Agency $1,000,000 $271,029 $5,971 $0 28% 4 $6,195,147 22.86 4 16 6 3 25% 25% 100% 100%

56 Kentucky

Kentucky Venture Capital 

Program Venture Capital SSE $3,451,200 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

Kentucky Total $15,487,998 $9,784,882 $90,630 $0 64% 117 $82,743,795 8.38 822 822 5 4 43% 50% 47% 39%

57 Louisiana Louisiana Seed Capital Program Venture Capital Fund $4,775,767 $1,255,000 $49,967 $0 27% 25 $15,851,084 12.63 27 133 3 2 8% 4% 0% 0%

58 Louisiana Small Business Loan Guarantee Loan Guarantee Public Agency $7,590,291 $3,700,184 $106,063 $0 50% 36 $22,927,483 6.20 327 341 6 2 22% 30% 14% 24%

Louisiana Total $12,366,058 $4,955,184 $156,030 $0 41% 61 $38,778,567 7.59 354 474 4 2 16% 19% 8% 14%

59 Maine Economic Recovery Loan Fund Loan Participation Quasi-Public Agency $1,851,515 $1,130,521 $40,908 $0 63% 5 $12,327,011 10.90 18 119 14 8 20% 58% 20% 14%

60 Maine

Regional Economic Development 

Revolving Loan Loan Participation Quasi-Public Agency $7,000,000 $1,874,200 $57,412 $0 28% 20 $17,057,417 9.10 143 124 4 4 35% 23% 15% 8%

61 Maine Small Enterprise Growth Fund Venture Capital SSE $4,316,835 $2,537,812 $95,832 $0 61% 18 $15,157,728 5.97 129 315 19 4 22% 33% 6% 1%

Maine Total $13,168,350 $5,542,533 $194,153 $0 44% 43 $44,542,156 7.76 290 558 10 4 28% 36% 12% 8%

62 Maryland

DHCD - Neighborhood Business 

Works Program Loan Participation Public Agency $1,500,000 $495,000 $57,574 $0 37% 1 $2,110,000 4.26 25 2 2 3 0% 0% 0% 0%

63 Maryland Maryland Venture Fund IV Venture Capital SSE $19,212,931 $8,064,083 $180,175 $0 43% 22 $263,588,815 32.69 585 628 19 5 32% 35% 0% 0%

64 Maryland MIDFA Loan Guarantee Public Agency $827,778 $724,164 $70,387 $0 96% 7 $11,671,500 16.12 93 234 9 10 43% 90% 0% 0%

65 Maryland MSBDFA Loan Guaranty Loan Guarantee Public Agency $1,485,000 $234,600 $12,364 $0 17% 12 $2,090,000 8.91 73 83 1 5 25% 36% 0% 0%

Maryland Total $23,025,709 $9,517,847 $320,500 $0 43% 42 $279,460,315 28.41 776 947 15 6 31% 39% 0% 0%

66 Massachusetts Capital Access Program CAP Public Agency $1,500,000 $995,100 $185,930 $0 79% 693 $31,022,272 31.18 572 3,997 3 5 25% 24% 3% 4%

67 Massachusetts MBDC Loan Participation Loan Participation Private Agency $5,013,000 $4,719,600 $13,348 $444,900 94% 14 $54,478,000 11.54 57 794 35 23 21% 24% 7% 2%

68 Massachusetts MGCC Loan Participation Loan Participation Quasi-Public Agency $13,932,072 $10,793,305 $0 $1,616,770 77% 69 $24,820,150 2.30 452 2,850 22 18 29% 31% 1% 3%

Massachusetts Total $20,445,072 $16,508,005 $199,278 $2,061,670 82% 776 $110,320,422 6.60 1,081 7,641 4 6 26% 26% 3% 3%

69 Michigan Capital Access Program CAP Quasi-Public Agency $2,200,000 $1,368,637 $0 $0 62% 693 $70,801,338 51.73 1,067 3,620 3 5 31% 27% 42% 35%

70 Michigan

Michigan Business Growth Fund/ 

Collateral Support Collateral Support Quasi-Public Agency $43,808,853 $43,808,853 $0 $12,519,077 100% 83 $292,274,445 6.67 3,472 472 29 13 34% 38% 23% 19%

71 Michigan

Michigan Business Growth Fund/ 

Loan Participations Loan Participation Quasi-Public Agency $25,148,889 $24,796,758 $873,823 $3,444,775 102% 33 $99,242,700 4.00 1,180 133 16 15 61% 75% 61% 73%

72 Michigan

Michigan Loan Guarantee 

Program Loan Guarantee Quasi-Public Agency $2,000,000 $86,050 $35,578 $0 6% 6 $1,280,000 14.88 33 0 6 4 50% 30% 0% 0%

73 Michigan Small Business Mezzanine Fund Venture Capital Fund $6,000,000 $1,875,767 $936,633 $0 47% 6 $13,015,000 6.94 107 0 21 4 33% 52% 0% 0%

Michigan Total $79,157,742 $71,936,065 $1,846,035 $15,963,852 93% 821 $476,613,483 6.46 5,859 4,225 4 5 32% 45% 40% 32%

74 Minnesota Angel Loan Fund Venture Capital Co-investment Model $6,700,000 $2,800,300 $92,050 $0 43% 17 $33,409,757 11.93 142 171 4 4 35% 36% 0% 0%

75 Minnesota Capital Access Program CAP Public Agency $500,000 $335,831 $19,973 $0 71% 71 $23,457,070 69.85 291 584 3 6 51% 59% 20% 42%

76 Minnesota Emerging Entrepreneurs Fund Loan Participation Public Agency $6,792,967 $5,707,013 $204,026 $0 87% 130 $64,110,641 11.23 561 1,271 2 3 48% 42% 18% 32%
All Approved State Programs 329

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

77 Minnesota General Loan Guarantee Program Loan Guarantee Public Agency $1,470,215 $1,397,115 $53,031 $0 99% 9 $39,703,319 28.42 121 182 22 2 67% 63% 44% 53%

Minnesota Total $15,463,182 $10,240,259 $369,079 $0 69% 227 $160,680,788 15.15 1,115 2,208 2 4 48% 41% 19% 13%

78 Mississippi

Small Business Loan Guaranty 

Program Loan Guarantee Public Agency $13,168,350 $11,329,406 $2,489 $0 86% 116 $83,142,581 7.34 794 212 2 1 28% 26% 48% 62%

Mississippi Total $13,168,350 $11,329,406 $2,489 $0 86% 116 $83,142,581 7.34 794 212 2 1 28% 26% 48% 62%

79 Missouri Grow Missouri Loan Fund Loan Participation Quasi-Public Agency $2,904,353 $2,094,293 $33,201 $0 73% 3 $16,960,711 8.10 31 111 22 10 33% 45% 0% 0%

80 Missouri Missouri IDEA Fund Venture Capital SSE $24,025,941 $20,030,895 $807,375 $225,000 87% 84 $288,651,850 14.41 1,129 225 2 3 45% 50% 2% 1%

Missouri Total $26,930,294 $22,125,188 $840,576 $225,000 85% 87 $305,612,560 13.31 1,160 336 2 3 45% 49% 2% 1%

81 Montana Loan Participation Program Loan Participation Public Agency $12,765,037 $11,935,203 $351,804 $0 96% 48 $120,197,791 10.07 824 185 10 11 27% 24% 54% 47%

Montana Total $12,765,037 $11,935,203 $351,804 $0 96% 48 $120,197,791 9.78 824 185 10 11 27% 24% 54% 47%

82 Nebraska Nebraska Progress Loan Fund Loan Participation Public Agency $9,240,980 $7,563,156 $289,445 $0 85% 18 $51,667,537 6.83 265 6 3 2 17% 9% 78% 93%

83 Nebraska Nebraska Progress Seed Fund Venture Capital SSE $3,927,370 $2,171,500 $60,881 $0 57% 28 $14,130,891 6.51 28 50 3 0 54% 51% 14% 26%

Nebraska Total $13,168,350 $9,734,656 $350,326 $0 77% 46 $65,798,428 6.52 293 56 3 0 39% 21% 39% 74%

84 Nevada

Battle Born Growth Escalator 

(BBGE) Venture Capital SSE $5,000,000 $1,600,000 $118,794 $0 34% 5 $8,160,000 5.10 194 82 8 2 60% 72% 0% 0%

85 Nevada

Nevada Collateral Support 

Program Collateral Support Public Agency $8,303,176 $5,609,035 $186,914 $0 70% 14 $22,044,495 3.93 252 209 10 5 43% 20% 7% 28%

86 Nevada Nevada Microenterprise Initiative Loan Participation Public Agency $500,000 $100,000 $6,840 $0 21% 1 $200,000 2.00 23 10 2 17 0% 0% 0% 0%

Nevada Total $13,803,176 $7,309,035 $312,548 $0 55% 20 $30,404,495 3.99 469 301 8 4 45% 36% 5% 19%

87 New Hampshire

Aid to Local Development 

Organizations Loan Participation Quasi-Public Agency $4,178,400 $4,177,400 $200 $0 100% 17 $27,757,087 6.64 208 977 21 4 18% 5% 6% 0%

88 New Hampshire Capital Access Program CAP Quasi-Public Agency $454,895 $454,887 $0 $0 100% 300 $14,169,520 31.15 242 1,672 2 6 38% 28% 60% 48%

89 New Hampshire Collateral Shortfall Program Collateral Support Quasi-Public Agency $2,594,851 $2,594,851 $0 $0 100% 7 $31,380,195 12.09 92 320 50 31 0% 0% 29% 38%

90 New Hampshire Loan Guarantee Reserves Loan Guarantee Quasi-Public Agency $2,813,821 $2,813,820 $0 $0 100% 8 $40,995,807 14.57 31 769 31 20 13% 2% 38% 34%

91 New Hampshire Venture Capital Fund Venture Capital Fund $3,126,383 $1,922,822 $50,800 $0 63% 14 $57,610,806 29.96 162 270 10 2 57% 64% 43% 36%

New Hampshire Total $13,168,350 $11,963,779 $51,000 $0 91% 346 $171,913,415 14.31 735 4,008 3 6 36% 28% 55% 32%

92 New Jersey

New Jersey Credit Guarantee 

Program Loan Guarantee Quasi-Public Agency $3,450,000 $2,227,500 $0 $0 65% 7 $4,455,000 2.00 49 49 7 20 0% 0% 0% 0%

93 New Jersey New Jersey Direct Loan Program Loan Participation Quasi-Public Agency $9,260,698 $4,750,000 $0 $0 51% 5 $16,799,000 3.54 73 25 14 5 20% 36% 0% 0%

94 New Jersey

New Jersey Loan Participation 

Program Loan Participation Quasi-Public Agency $14,250,000 $7,391,900 $0 $0 52% 16 $26,577,044 3.60 105 309 19 13 38% 33% 0% 0%

95 New Jersey

New Jersey Venture Capital Fund 

Program Venture Capital Fund $6,800,000 $5,367,518 $0 $0 79% 39 $58,774,027 10.95 564 218 22 2 8% 11% 0% 0%

New Jersey Total $33,760,698 $19,736,918 $0 $0 58% 67 $106,605,071 5.40 791 601 17 3 15% 26% 0% 0%

96 New Mexico

New Mexico Loan Participation 

Program Loan Participation Public Agency $13,168,350 $6,926,459 $262,284 $0 55% 16 $45,314,930 6.54 194 13 8 7 38% 36% 13% 18%

New Mexico Total $13,168,350 $6,926,459 $262,284 $0 55% 16 $45,314,930 6.30 194 13 8 7 38% 36% 13% 18%

97 New York

Bonding Guarantee Assistance 

Program Loan Guarantee Public Agency $10,405,173 $4,345,000 $226,995 $0 44% 14 $23,350,000 5.37 0 0 7 11 36% 39% 0% 0%

98 New York Innovate New York Fund Venture Capital Fund $37,022,791 $28,478,636 $438,386 $0 78% 149 $276,857,922 9.72 786 899 5 3 19% 33% 6% 2%

99 New York

New York Capital Access 

Program CAP Public Agency $7,923,570 $1,751,431 $178,515 $0 24% 944 $33,421,217 19.08 1,372 2,812 2 3 62% 47% 0% 2%

New York Total $55,351,534 $34,575,067 $843,896 $0 64% 1,107 $333,629,139 9.42 2,158 3,711 2 3 56% 35% 1% 2%

100 North Carolina

North Carolina Capital Access 

Program CAP Private Agency $1,761,319 $690,269 $1,071,050 $19,505 100% 338 $32,849,621 47.59 1,017 2,721 4 4 14% 10% 8% 8%

101 North Carolina

North Carolina Loan Participation 

Program Loan Participation Private Agency $34,000,000 $33,677,752 $291,396 $2,328,664 100% 229 $264,132,398 7.84 1,410 3,685 9 7 16% 17% 24% 18%
All Approved State Programs 330

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

102 North Carolina

North Carolina Venture Capital 

Fund-of-Funds Program Venture Capital Fund $10,300,000 $7,966,378 $323,398 $0 80% 75 $266,324,292 33.43 350 716 4 4 29% 32% 3% 3%

North Carolina Total $46,061,319 $42,334,399 $1,685,844 $2,348,169 96% 642 $563,306,310 12.80 2,777 7,121 5 5 17% 22% 13% 12%

103

North Dakota -

Carrington Credit Guarantee Program Collateral Support Private Agency $3,251,445 $2,535,000 $114,565 $300,000 81% 17 $6,372,711 2.51 31 70 3 2 6% 6% 82% 82%

104

North Dakota -

Carrington Seed Capital Network Program Venture Capital Fund $182,264 $125,000 $11,109 $0 75% 1 $850,000 6.80 4 2 1 6 0% 0% 100% 100%

North Dakota -

Carrington Total $3,433,709 $2,660,000 $125,674 $300,000 81% 18 $7,222,711 2.59 35 72 3 3 6% 5% 83% 84%

105

North Dakota -

Mandan Loan Participation Program Loan Participation Private Agency $9,734,641 $9,495,593 $239,048 $2,358,861 100% 39 $71,738,273 7.55 405 159 10 1 36% 23% 33% 18%

North Dakota -

Mandan Total $9,734,641 $9,495,593 $239,048 $2,358,861 100% 39 $71,738,273 7.37 405 159 10 1 36% 23% 33% 18%

106

Northern Mariana 

Islands CNMI Collateral Support Program Collateral Support Public Agency $8,553,157 $2,380,221 $106,462 $0 29% 17 $4,642,000 1.95 135 295 12 7 0% 0% 82% 84%

107

Northern Mariana 

Islands

CNMI Loan Purchase 

Participation Program Loan Participation Public Agency $4,615,193 $410,268 $32,951 $0 10% 5 $1,025,671 2.50 26 18 4 1 0% 0% 80% 71%

Northern Mariana 

Islands Total $13,168,350 $2,790,489 $139,413 $0 22% 22 $5,667,671 1.93 161 313 8 6 0% 0% 82% 81%

108 Ohio Ohio Capital Access Program CAP Public Agency $525,000 $518,088 $0 $0 99% 252 $14,176,384 27.36 1,135 1,785 4 5 22% 24% 13% 13%

109 Ohio

Small Business Collateral 

Enhancement Collateral Support Public Agency $46,163,373 $29,659,014 $1,004,374 $0 66% 240 $116,733,526 3.94 1,972 2,808 6 6 32% 24% 14% 12%

110 Ohio Targeted Investment Program Venture Capital State Agency $8,450,000 $7,593,725 $189,684 $0 92% 7 $17,288,449 2.28 118 78 11 5 57% 63% 14% 7%

Ohio Total $55,138,373 $37,770,828 $1,194,058 $0 71% 499 $148,198,359 3.80 3,225 4,671 4 5 27% 28% 14% 12%

111 Oklahoma Accelerate Oklahoma Fund Venture Capital SSE $13,168,350 $10,780,090 $175,965 $0 83% 45 $73,983,938 6.86 502 53 3 3 82% 74% 7% 5%

Oklahoma Total $13,168,350 $10,780,090 $175,965 $0 83% 45 $73,983,938 6.75 502 53 3 3 82% 74% 7% 5%

112 Oregon Capital Access Program CAP Public Agency $166,197 $149,781 $16,416 $0 100% 89 $12,129,379 80.98 196 461 4 3 26% 20% 10% 3%

113 Oregon Credit Enhancement Fund Loan Guarantee Public Agency $12,850,000 $12,727,207 $122,793 $0 100% 136 $119,956,193 9.43 465 224 9 8 40% 38% 31% 28%

114 Oregon

Oregon Business Development 

Fund Loan Participation Public Agency $3,500,000 $2,948,750 $378,461 $0 95% 11 $20,637,492 7.00 142 18 15 2 45% 68% 18% 28%

Oregon Total $16,516,197 $15,825,738 $517,670 $0 99% 236 $152,723,064 9.34 803 703 7 5 35% 41% 22% 26%

115 Pennsylvania

Ben Franklin Technology Partners 

and Life Sciences Greenhouse 

Partners Venture Capital SSE $5,000,000 $2,964,666 $82,165 $20,000 61% 34 $105,580,661 35.61 163 182 3 4 32% 23% 9% 21%

116 Pennsylvania

Machinery and Equipment Loan 

Fund Loan Participation Public Agency $9,000,000 $3,413,000 $20,652 $0 38% 2 $6,993,734 2.05 0 193 97 64 50% 20% 0% 0%

117 Pennsylvania

Pennsylvania Community 

Development Bank Program Loan Participation Private Agency $6,512,500 $3,850,321 $81,474 $596,981 60% 89 $34,943,925 9.08 349 351 1 1 55% 47% 13% 10%

118 Pennsylvania

Pennsylvania Economic 

Development Finance Authority 

Program Loan Participation Public Agency $8,728,732 $5,186,719 $81,989 $61,500 60% 31 $60,530,476 11.67 510 1,168 12 6 26% 16% 19% 6%

Pennsylvania Total $29,241,232 $15,414,706 $266,280 $678,481 54% 156 $208,048,795 13.27 1,022 1,894 2 3 44% 25% 13% 10%

119 Puerto Rico Loan Participation Loan Participation Quasi-Public Agency $13,540,057 $13,540,057 $0 $4,320,559 100% 23 $36,941,572 2.73 624 1,638 25 9 30% 15% 13% 11%

120 Puerto Rico Venture Capital Venture Capital SSE $1,000,000 $1,000,000 $0 $0 100% 1 $9,050,000 9.05 300 101 101 1 0% 0% 0% 0%

Puerto Rico Total $14,540,057 $14,540,057 $0 $4,320,559 100% 24 $45,991,572 3.16 924 1,739 27 9 29% 12% 13% 8%

121 Rhode Island Betaspring Venture Capital Fund $2,000,000 $1,869,284 $46,980 $0 96% 54 $16,300,371 8.72 18 108 2 0 83% 84% 0% 0%

122 Rhode Island Slater Technology Fund Venture Capital SSE $9,000,000 $2,852,940 $116,384 $0 33% 14 $74,408,928 26.08 19 76 4 4 43% 24% 0% 0%

123 Rhode Island Small Business Loan Fund Loan Participation Quasi-Public Agency $2,168,350 $450,000 $56,858 $0 23% 3 $5,030,000 11.18 5 70 9 9 0% 0% 0% 0%

Rhode Island Total $13,168,350 $5,172,224 $220,222 $0 41% 71 $95,739,299 17.75 42 254 2 0 72% 26% 0% 0%

124 South Carolina

South Carolina Capital Access 

Program CAP Private Agency $130,716 $130,716 $0 $0 100% 44 $6,717,112 51.39 82 686 16 6 25% 27% 11% 14%
All Approved State Programs 331

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

125 South Carolina

South Carolina Loan Participation 

Program Loan Participation Private Agency $17,859,699 $17,688,976 $0 $6,852,200 99% 127 $136,018,021 7.69 432 1,692 10 8 20% 17% 16% 14%

South Carolina Total $17,990,415 $17,819,692 $0 $6,852,200 99% 171 $142,735,133 8.01 514 2,378 11 7 21% 17% 15% 14%

126 South Dakota

South Dakota Works Loan 

Program Loan Participation Public Agency $13,168,350 $7,863,045 $166,851 $0 61% 16 $65,004,557 8.27 401 305 47 7 50% 58% 13% 13%

South Dakota Total $13,168,350 $7,863,045 $166,851 $0 61% 16 $65,004,557 8.10 401 305 47 7 50% 58% 13% 13%

127 Tennessee INCITE Fund Venture Capital Co-investment $29,672,070 $27,884,688 $969,368 $0 97% 83 $147,279,309 5.28 338 1,121 7 3 40% 35% 13% 12%

Tennessee Total $29,672,070 $27,884,688 $969,368 $0 97% 83 $147,279,309 5.10 338 1,121 7 3 40% 35% 13% 12%

128 Texas Jobs for Texas-Venture Capital Venture Capital Fund $46,553,879 $37,224,566 $1,336,501 $0 83% 42 $461,195,024 12.39 594 579 9 6 24% 31% 2% 2%

Texas Total $46,553,879 $37,224,566 $1,336,501 $0 83% 42 $461,195,024 11.96 594 579 9 6 24% 31% 2% 2%

129

U.S. Virgin 

Islands Collateral Support Collateral Support Public Agency $3,770,387 $833,825 $88,029 $0 24% 12 $2,527,390 3.03 46 104 4 2 8% 4% 100% 100%

130

U.S. Virgin 

Islands Loan Guarantees Loan Guarantee Public Agency $6,925,551 $3,253,300 $130,959 $0 49% 14 $9,487,000 2.92 65 217 12 4 14% 9% 100% 100%

131

U.S. Virgin 

Islands

Payment, Surety, and Performance 

Bonding Program Loan Guarantee Public Agency $2,472,413 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

U.S. Virgin 

Islands Total $13,168,350 $4,087,125 $218,987 $0 33% 26 $12,014,390 2.79 111 321 7 2 12% 8% 100% 100%

132 Utah Equity Investment Program Venture Capital Fund $1,394,989 $950,001 $50,844 $0 72% 4 $8,737,570 9.20 11 12 17 2 25% 65% 0% 0%

133 Utah

Utah Small Business Loan 

Guarantee Program Loan Guarantee Private Agency $5,348,171 $5,181,789 $185,527 $0 100% 26 $30,830,340 5.95 249 1,268 15 8 38% 21% 15% 1%

134 Utah

Utah Small Business Loan 

Participation Program Loan Participation Private Agency $6,425,190 $1,032,000 $228,160 $0 20% 4 $7,430,000 7.20 49 81 15 9 50% 17% 0% 0%

Utah Total $13,168,350 $7,163,790 $464,531 $0 58% 34 $46,997,910 6.16 308 1,361 15 7 38% 29% 12% 0%

135 Vermont Commercial Participation Program Loan Participation Quasi-Public Agency $7,818,618 $7,818,616 $0 $3,020,940 100% 60 $108,631,031 13.89 1,044 201 32 17 13% 37% 58% 57%

136 Vermont

Small Business Participation 

Program Loan Participation Quasi-Public Agency $5,349,732 $5,349,734 $0 $0 100% 105 $53,086,880 9.92 558 12 4 9 13% 11% 70% 67%

Vermont Total $13,168,350 $13,168,351 $0 $3,020,940 100% 165 $161,717,911 12.28 1,602 213 8 10 13% 29% 66% 60%

137 Virginia Cash Collateral Program Collateral Support Public Agency $14,053,191 $12,219,060 $104,504 $0 88% 79 $35,183,953 2.88 500 597 4 6 30% 16% 18% 11%

138 Virginia

Center for Innovative Technology 

(CIT) GAP Fund Venture Capital SSE $3,000,000 $2,627,532 $0 $0 88% 29 $42,196,553 16.06 628 209 6 2 7% 3% 0% 0%

139 Virginia

Economic Development Loan 

Fund Loan Participation Public Agency $500,000 $500,000 $0 $0 100% 1 $3,000,000 6.00 10 65 65 5 100% 100% 0% 0%

140 Virginia Virginia Capital Access Program CAP Public Agency $400,000 $241,331 $0 $0 60% 106 $8,327,016 34.50 1,159 903 4 5 36% 37% 29% 21%

Virginia Total $17,953,191 $15,587,923 $104,504 $0 87% 215 $88,707,522 5.65 2,297 1,774 5 4 30% 18% 21% 8%

141 Washington Capital Access Program CAP Public Agency $300,000 $47,750 $44,022 $0 31% 4 $945,034 19.79 20 15 15 5 25% 21% 0% 0%

142 Washington Collateral Support Program Collateral Support Public Agency $4,478,158 $1,085,973 $171,672 $0 28% 3 $10,797,493 9.94 35 55 20 14 33% 20% 0% 0%

143 Washington Craft3 Fund Loan Participation Private Agency $9,944,357 $9,242,515 $174,627 $1,425,000 95% 45 $99,473,467 10.76 674 778 18 12 56% 76% 20% 32%

144 Washington W Fund Venture Capital Fund $5,000,000 $4,975,737 $24,263 $0 100% 21 $38,723,479 7.78 64 51 3 1 10% 10% 0% 0%

Washington Total $19,722,515 $15,351,975 $414,583 $1,425,000 80% 73 $149,939,473 9.51 793 899 9 6 40% 56% 12% 22%

145 West Virginia Seed Capital Co-investment Fund Venture Capital SSE $6,800,017 $5,037,500 $173,453 $0 77% 30 $46,271,365 9.19 312 226 4 6 43% 63% 20% 20%

146 West Virginia Subordinated Debt Program Loan Participation Quasi-Public Agency $5,388,998 $4,653,000 $119,159 $60,000 89% 18 $39,426,483 8.47 371 110 6 2 17% 4% 56% 53%

147 West Virginia

West Virginia Collateral Support 

Program Collateral Support Quasi-Public Agency $827,601 $779,600 $18,544 $0 96% 4 $5,005,800 6.42 25 96 25 18 50% 37% 100% 100%

148 West Virginia

West Virginia Loan Guarantee 

Program Loan Guarantee Quasi-Public Agency $151,734 $28,000 $666 $0 19% 1 $140,000 5.00 9 16 14 10 0% 0% 100% 100%

West Virginia Total $13,168,350 $10,498,100 $311,823 $60,000 82% 53 $90,843,648 8.40 717 448 6 6 34% 27% 40% 46%
All Approved State Programs 332

#

Participating 

State Approved State Program Program Type 

Type of Administering 

Entity (Public, QuasiPublic, Private) or 

VCP Strategy (Funds, 

SSE, State Agency, 

Co-investment Model) Allocation 

SSBCI Funds 

Expended for 

Loans or 

Investments

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

149 Wisconsin WHEDA Guarantee Program Loan Guarantee Quasi-Public Agency $0 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

150 Wisconsin Wisconsin Equity Fund Venture Capital SSE; Fund $21,000,000 $11,104,413 $520,555 $0 55% 59 $105,973,737 9.54 728 549 8 3 31% 39% 7% 12%

Wisconsin Total $22,363,554 $11,104,413 $520,555 $0 52% 59 $105,973,737 9.12 728 549 8 3 31% 39% 7% 12%

151

Wyoming -

Laramie Credit Guarantee Program Collateral Support Private Agency $12,168,350 $10,351,485 $464,228 $0 89% 53 $44,990,412 4.35 294 215 2 2 21% 5% 77% 43%

152

Wyoming -

Laramie Seed Capital Network Program Venture Capital Fund $1,000,000 $451,831 $17,734 $0 47% 11 $903,662 2.00 3 0 0 3 0% 0% 0% 0%

Wyoming -

Laramie Total $13,168,350 $10,803,316 $481,962 $0 86% 64 $45,894,073 4.25 297 215 2 2 17% 5% 64% 42%

Total $1,456,685,731 $1,013,917,119 $30,155,621 $119,069,568 72% 16,919 $8,377,577,675 **8.02 63,891 126,509 3 5 42% 34% 12% 17%

*The overall leverage ratio for each state includes SSBCI funds expended for program administration; however, the leverage ratio shown for each approved state program does not include funds expended for program administration

**SSBCI overall leverage ratio includes SSBCI funds expended for program administration
Capital Access Programs 333

1. Capital Access Programs (CAPs), cumulative through December 31, 2015

# Participating State Approved State Program Type 

Type of 

Administering 

Entity (Public, 

Quasi-Public, 

Private) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administration

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total 

Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Percent of 

Loans in 

LMI 

Areas (by 

#)

Percent of 

Loans in 

LMI 

Areas (by 

$)

Percent of 

Loans in 

Non-Metro 

Areas 

(by #)

Percent of 

Loans in 

Non-Metro 

Areas 

(by $)

1 Alabama Alabama CAP Program CAP Public Agency $1,870,000 $9,873 $163,801 $0 9% 8 $197,451 20.00 17 23 3 2 13% 29% 25% 26%

2 Arkansas Arkansas Capital Access Program CAP Quasi-Public 

Agency $41,522 $31,438 $10,084 $7,902 100% 94 $1,109,148 35.28 102 208 2 2 37% 38% 22% 32%

3 California California Capital Access Program 

(CalCAP) CAP Public Agency $19,574,379 $10,455,126 $1,702,525 $275,147 62% 6,592 $237,017,869 22.67 3,341 29,031 2 5 53% 47% 1% 1%

4 Colorado Colorado Capital Access Program CAP Quasi-Public 

Agency $300,000 $12,166 $150,850 $0 54% 18 $603,283 49.59 18 0 2 1 100% 100% 100% 100%

5 Connecticut Connecticut Capital Access Program 

(CT-CAP) CAP Quasi-Public Agency $0 $179,215 $4,299 $0 0% 35 $5,812,671 32.43 57 435 5 3 23% 33% 6% 6%

6 Delaware Delaware Access Program CAP Public Agency $1,000,000 $152,805 $0 $0 15% 78 $4,598,897 30.10 236 433 3 4 23% 26% 23% 18%

7 Florida Florida Capital Access Program CAP Public Agency $2,000,000 $24,040 $318,622 $0 17% 60 $962,115 40.02 45 173 2 3 30% 21% 0% 0%

8 Georgia Georgia Capital Access Program CAP Public Agency $2,000,000 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

9 Guam Guam Capital Access Program CAP Quasi-Public 

Agency $658,417 $0 $14,223 $0 2% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

10 Illinois Capital Access Program CAP Public Agency $50,000 $20,470 $0 $0 41% 12 $644,898 31.50 54 47 2 6 17% 12% 0% 0%

11 Indiana Indiana Capital Access Program CAP Quasi-Public 

Agency $1,500,000 $319,438 $0 $0 21% 125 $8,190,054 25.64 160 282 3 4 33% 21% 8% 7%

12 Iowa Iowa Capital Access Program CAP Private Agency $9,624 $9,624 $32,846 $0 441% 3 $215,563 22.40 5 1 1 20 0% 0% 100% 100%

13 Kentucky Kentucky Capital Access Program CAP Public Agency $115,602 $3,102 $2,202 $0 5% 2 $105,306 33.95 15 2 28 10 50% 62% 0% 0%

14 Massachusetts Capital Access Program CAP Public Agency $1,500,000 $995,100 $185,930 $0 79% 693 $31,022,272 31.18 572 3,997 3 5 25% 24% 3% 4%

15 Michigan Capital Access Program CAP Quasi-Public 

Agency $2,200,000 $1,368,637 $0 $0 62% 693 $70,801,338 51.73 1,067 3,620 3 5 31% 27% 42% 35%

16 Minnesota Capital Access Program CAP Public Agency $500,000 $335,831 $19,973 $0 71% 71 $23,457,070 69.85 291 584 3 6 51% 59% 20% 42%

17 New Hampshire Capital Access Program CAP Quasi-Public 

Agency $454,895 $454,887 $0 $0 100% 300 $14,169,520 31.15 242 1,672 2 6 38% 28% 60% 48%

18 New York New York Capital Access Program CAP Public Agency $7,923,570 $1,751,431 $178,515 $0 24% 944 $33,421,217 19.08 1,372 2,812 2 3 62% 47% 0% 2%

19 North Carolina North Carolina Capital Access Program CAP Private Agency $1,761,319 $690,269 $1,071,050 $19,505 100% 338 $32,849,621 47.59 1,017 2,721 4 4 14% 10% 8% 8%

20 Ohio Ohio Capital Access Program CAP Public Agency $525,000 $518,088 $0 $0 99% 252 $14,176,384 27.36 1,135 1,785 4 5 22% 24% 13% 13%

21 Oregon Capital Access Program CAP Public Agency $166,197 $149,781 $16,416 $0 100% 89 $12,129,379 80.98 196 461 4 3 26% 20% 10% 3%

22 South Carolina South Carolina Capital Access Program CAP Private Agency $130,716 $130,716 $0 $0 100% 44 $6,717,112 51.39 82 686 16 6 25% 27% 11% 14%

23 Virginia Virginia Capital Access Program CAP Public Agency $400,000 $241,331 $0 $0 60% 106 $8,327,016 34.50 1,159 903 4 5 36% 37% 29% 21%

24 Washington Capital Access Program CAP Public Agency $300,000 $47,750 $44,022 $0 31% 4 $945,034 19.79 20 15 15 5 25% 21% 0% 0%

Total $44,981,240 $17,901,117 $3,915,357 $302,554 49% 10,561 $507,473,217 **23.12 11,202 49,888 2 5 47% 38% 7% 9%

*The leverage ratio shown for each approved state program does not include funds expended for program administration

**CAP overall leverage ratio includes SSBCI funds expended for program administration
Loan Guarantee Programs 334

2. Loan Guarantee Programs, cumulative through December 31, 2015

# Participating State Approved State Program Program Type 

Type of 

Administering 

Entity (Public, 

Quasi-Public, 

Private) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

TransactionsTotal Financing 

Leveraged

*Leverage 

Ratio

Estimated # 

of Jobs to 

be Created

Estimated # 

of Jobs to 

be Retained

Median Size 

of Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Percent of 

Loans in 

LMI 

Areas (by 

#)

Percent of 

Loans in 

LMI 

Areas (by 

$)

Percent of 

Loans in 

Non-Metro 

Areas (by #)

Percent of 

Loans in 

Non-Metro 

Areas (by $)

1 Alabama Alabama Loan Guarantee Program Loan Guarantee Public Agency $27,561,498 $27,561,498 $0 $45,193,120 100% 387 $146,573,481 5.32 1,440 2,413 4 4 35% 33% 47% 30%

2 Arkansas

Disadvantaged Business Enterprise/ 

Small Business Loan Guaranty 

Program

Loan Guarantee Quasi-Public 

Agency $720,071 $477,509 $15,303 $672,341 68% 11 $1,635,500 3.43 43 28 10 6 45% 48% 9% 2%

3 California California Small Business Loan 

Guarantee Program Loan Guarantee Private Agency $83,481,263 $49,326,387 $1,092,600 $10,383,428 60% 995 $421,429,141 8.54 6,785 27,820 10 6 38% 38% 2% 1%

4 Florida Florida Export Support Program Loan Guarantee Private Agency $5,000,000 $1,641,500 $136,631 $0 36% 7 $7,600,000 4.63 20 63 5 4 14% 14% 0% 0%

5 Florida Loan Guarantee Program Loan Guarantee Private Agency $15,000,000 $13,806,213 $398,727 $5,672,676 95% 39 $67,543,395 4.89 1,215 224 21 10 36% 42% 5% 2%

6 Georgia Georgia Small Business Credit 

Guarantee Program Loan Guarantee Private Agency $17,808,507 $7,664,400 $703,466 $30,000 47% 283 $53,050,800 6.92 871 959 4 5 28% 27% 6% 6%

7 Guam Guam Credit Guarantee Program Loan Guarantee Quasi-Public 

Agency $9,876,262 $5,303,885 $445,840 $0 58% 41 $9,978,996 1.88 520 265 3 1 32% 56% 93% 98%

8 Louisiana Small Business Loan Guarantee Loan Guarantee Public Agency $7,590,291 $3,700,184 $106,063 $0 50% 36 $22,927,483 6.20 327 341 6 2 22% 30% 14% 24%

9 Maryland MIDFA Loan Guarantee Public Agency $827,778 $724,164 $70,387 $0 96% 7 $11,671,500 16.12 93 234 9 10 43% 90% 0% 0%

10 Maryland MSBDFA Loan Guaranty Loan Guarantee Public Agency $1,485,000 $234,600 $12,364 $0 17% 12 $2,090,000 8.91 73 83 1 5 25% 36% 0% 0%

11 Michigan Michigan Loan Guarantee Program Loan Guarantee Quasi-Public 

Agency $2,000,000 $86,050 $35,578 $0 6% 6 $1,280,000 14.88 33 0 6 4 50% 30% 0% 0%

12 Minnesota General Loan Guarantee Program Loan Guarantee Public Agency $1,470,215 $1,397,115 $53,031 $0 99% 9 $39,703,319 28.42 121 182 22 2 67% 63% 44% 53%

13 Mississippi Small Business Loan Guaranty 

Program Loan Guarantee Public Agency $13,168,350 $11,329,406 $2,489 $0 86% 116 $83,142,581 7.34 794 212 2 1 28% 26% 48% 62%

14 New Hampshire Loan Guarantee Reserves Loan Guarantee Quasi-Public 

Agency $2,813,821 $2,813,820 $0 $0 100% 8 $40,995,807 14.57 31 769 31 20 13% 2% 38% 34%

15 New Jersey New Jersey Credit Guarantee 

Program Loan Guarantee Quasi-Public Agency $3,450,000 $2,227,500 $0 $0 65% 7 $4,455,000 2.00 49 49 7 20 0% 0% 0% 0%

16 New York Bonding Guarantee Assistance 

Program Loan Guarantee Public Agency $10,405,173 $4,345,000 $226,995 $0 44% 14 $23,350,000 5.37 0 0 7 11 36% 39% 0% 0%

17 Oregon Credit Enhancement Fund Loan Guarantee Public Agency $12,850,000 $12,727,207 $122,793 $0 100% 136 $119,956,193 9.43 465 224 9 8 40% 38% 31% 28%

18 U.S. Virgin Islands Loan Guarantees Loan Guarantee Public Agency $6,925,551 $3,253,300 $130,959 $0 49% 14 $9,487,000 2.92 65 217 12 4 14% 9% 100% 100%

19 U.S. Virgin Islands Payment, Surety, and Performance 

Bonding Program Loan Guarantee Public Agency $2,472,413 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

20 Utah Utah Small Business Loan 

Guarantee Program Loan Guarantee Private Agency $5,348,171 $5,181,789 $185,527 $0 100% 26 $30,830,340 5.95 249 1,268 15 8 38% 21% 15% 1%

21 West Virginia West Virginia Loan Guarantee 

Program Loan Guarantee Quasi-Public Agency $151,734 $28,000 $666 $0 19% 1 $140,000 5.00 9 16 14 10 0% 0% 100% 100%

22 Wisconsin WHEDA Guarantee Program Loan Guarantee Quasi-Public 

Agency $1,363,553 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

Total $231,769,651 $153,829,527 $3,739,419 $61,951,566 68% 2,155 $1,097,840,536 **6.95 13,202 35,366 6 5 35% 34% 18% 17%

*The leverage ratio shown for each approved state program does not include funds expended for program administration

**LGP overall leverage ratio includes SSBCI funds expended for program administration
Collateral Support Programs 335

3. Collateral Support Programs, cumulative through December 31, 2015

# Participating State Approved State Program Program Type 

Type of 

Administering 

Entity (Public, 

Quasi-Public, 

Private) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

TransactionsTotal Financing 

Leveraged

*Leverage 

Ratio

Estimated # 

of Jobs to 

be Created

Estimated # 

of Jobs to 

be Retained

Median Size 

of Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Percent of 

Loans in 

LMI 

Areas (by 

#)

Percent of 

Loans in 

LMI 

Areas (by 

$)

Percent of 

Loans in 

Non-Metro 

Areas (by #)

Percent of 

Loans in 

Non-Metro 

Areas (by $)

1 California California Collateral Support 

Program (CalCSP) Collateral Support Public Agency $64,700,000 $47,730,069 $168,221 $0 74% 113 $135,129,584 2.83 620 2,740 15 9 39% 33% 1% 0%

2 Colorado Colorado Cash Collateral Support 

Program Collateral Support Quasi-Public Agency $16,933,489 $15,867,006 $264,000 $0 95% 157 $101,385,144 6.39 693 271 2 4 39% 37% 41% 23%

3 District of Columbia DC Collateral Support Program Collateral Support Public Agency $5,802,021 $5,653,198 $146,973 $0 100% 21 $13,388,500 2.37 127 509 9 8 43% 61% 0% 0%

4 Idaho Collateral Support Program Collateral Support Quasi-Public 

Agency $13,136,544 $12,655,537 $481,006 $7,179,508 100% 253 $163,944,897 12.95 852 1,658 8 6 24% 26% 30% 25%

5 Illinois Collateral Support Program Collateral Support Quasi-Public 

Agency $1,622,500 $1,622,500 $0 $0 100% 5 $16,626,215 10.25 113 50 35 7 0% 0% 20% 80%

6 Kentucky Kentucky Collateral Support 

Program Collateral Support Public Agency $10,921,196 $9,510,750 $82,457 $0 88% 111 $76,443,342 8.04 803 804 5 4 43% 50% 46% 37%

7 Michigan Michigan Business Growth Fund/ 

Collateral Support Collateral Support Quasi-Public Agency $43,808,853 $43,808,853 $0 $12,519,077 100% 83 $292,274,445 6.67 3,472 472 29 13 34% 38% 23% 19%

8 Nevada Nevada Collateral Support Program Collateral Support Public Agency $8,303,176 $5,609,035 $186,914 $0 70% 14 $22,044,495 3.93 252 209 10 5 43% 20% 7% 28%

9 New Hampshire Collateral Shortfall Program Collateral Support Quasi-Public 

Agency $2,594,851 $2,594,851 $0 $0 100% 7 $31,380,195 12.09 92 320 50 31 0% 0% 29% 38%

10 North Dakota -

Carrington Credit Guarantee Program Collateral Support Private Agency $3,251,445 $2,535,000 $114,565 $300,000 81% 17 $6,372,711 2.51 31 70 3 2 6% 6% 82% 82%

11 Northern Mariana 

Islands CNMI Collateral Support Program Collateral Support Public Agency $8,553,157 $2,380,221 $106,462 $0 29% 17 $4,642,000 1.95 135 295 12 7 0% 0% 82% 84%

12 Ohio Small Business Collateral 

Enhancement Collateral Support Public Agency $46,163,373 $29,659,014 $1,004,374 $0 66% 240 $116,733,526 3.94 1,972 2,808 6 6 32% 24% 14% 12%

13 U.S. Virgin Islands Collateral Support Collateral Support Public Agency $3,770,387 $833,825 $88,029 $0 24% 12 $2,527,390 3.03 46 104 4 2 8% 4% 100% 100%

14 Virginia Cash Collateral Program Collateral Support Public Agency $14,053,191 $12,219,060 $104,504 $0 88% 79 $35,183,953 2.88 500 597 4 6 30% 16% 18% 11%

15 Washington Collateral Support Program Collateral Support Public Agency $4,478,158 $1,085,973 $171,672 $0 28% 3 $10,797,493 9.94 35 55 20 14 33% 20% 0% 0%

16 West Virginia West Virginia Collateral Support 

Program Collateral Support Quasi-Public Agency $827,601 $779,600 $18,544 $0 96% 4 $5,005,800 6.42 25 96 25 18 50% 37% 100% 100%

17 Wyoming - Laramie Credit Guarantee Program Collateral Support Private Agency $12,168,350 $10,351,485 $464,228 $0 89% 53 $44,990,412 4.35 294 215 2 2 21% 5% 77% 43%

Total $261,088,292 $204,895,978 $3,442,081 $19,998,585 80% 1,189 $1,078,870,102 **5.13 10,062 11,273 6 6 31% 29% 29% 21%

*The leverage ratio shown for each approved state program does not include funds expended for program administration

**CSP overall leverage ratio includes SSBCI funds expended for program administration
Loan Participation Programs 336

4. Loan Participation Programs, cumulative through December 31, 2015

# Participating State Approved State Program Program Type 

Type of 

Administering 

Entity (Public, 

Quasi-Public, 

Private) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

TransactionsTotal Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median Size 

of Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Percent of 

Loans in 

LMI 

Areas (by 

#)

Percent of 

Loans in 

LMI 

Areas (by 

$)

Percent of 

Loans in 

Non-Metro 

Areas (by #)

Percent of 

Loans in 

Non-Metro 

Areas (by $)

1 Alabama Alabama Loan Participation Program Loan Participation Public Agency $1,870,000 $838,575 $340,223 $0 63% 5 $5,735,750 6.84 16 48 11 7 20% 28% 0% 0%

2 Arizona Arizona Expansion Fund Loan Participation Quasi-Public 

Agency $18,204,217 $17,537,945 $666,273 $234,177 100% 52 $75,406,192 4.30 2,194 1,235 15 5 52% 40% 2% 4%

3 Arkansas Bond Guaranty/ Loan Participation 

Program Loan Participation Quasi-Public Agency $4,690,312 $4,577,211 $113,101 $76,789 100% 14 $67,044,000 14.65 459 59 5 2 21% 19% 57% 61%

4 California California Commercial Property 

Assessed Clean Energy (CalPACE) Loan Participation Public Agency $0 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

5 Delaware DSF Participation and Loan Program Loan Participation Public Agency $12,168,350 $8,221,025 $0 $0 68% 32 $54,506,676 6.63 272 522 5 3 47% 16% 31% 66%

6 District of Columbia DC Loan Participation Program Loan Participation Public Agency $4,366,329 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

7 Florida Direct Loan Program Loan Participation Private Agency $100,000 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

8 Florida Loan Participation Program Loan Participation Private Agency $32,062,349 $31,583,935 $478,414 $7,002,344 100% 52 $108,556,823 3.44 734 56 4 3 29% 28% 8% 13%

9 Georgia Georgia Funding for CDFIs Loan Participation Private Agency $20,000,000 $19,500,647 $499,353 $450,000 100% 73 $113,779,199 5.83 701 340 6 4 48% 44% 26% 18%

10 Georgia Georgia Loan Participation Program Loan Participation Public Agency $8,000,000 $4,308,622 $440,926 $0 59% 15 $36,469,632 8.46 211 85 7 4 67% 43% 20% 24%

11 Guam Guam Loan Participation Program Loan Participation Quasi-Public 

Agency $2,633,671 $0 $0 $0 0% 0 $0 0.00 0 0 N/A N/A N/A N/A N/A N/A

12 Illinois Conditional Direct Loan Program Loan Participation Public Agency $500,000 $500,000 $0 $0 100% 1 $3,698,573 7.40 35 0 0 10 100% 100% 0% 0%

13 Illinois Participation Loan Program Loan Participation Public Agency $70,141,764 $48,621,032 $2,889,283 $1,500,000 73% 166 $394,392,418 8.11 1,883 1,064 13 7 38% 42% 16% 12%

14 Iowa Iowa Small Business Loan Program Loan Participation Private Agency $30,331 $31,455 $74 $0 104% 14 $416,400 13.24 13 15 1 0 50% 57% 14% 17%

15 Kansas Kansas Capital Multiplier Loan Fund Loan Participation Quasi-Public 

Agency $9,217,845 $8,621,551 $196,530 $314,481 96% 58 $152,057,853 17.64 569 418 8 3 41% 47% 43% 54%

16 Kentucky Kentucky Loan Participation Program Loan Participation Public Agency $1,000,000 $271,029 $5,971 $0 28% 4 $6,195,147 22.86 4 16 6 3 25% 25% 100% 100%

17 Maine Economic Recovery Loan Fund Loan Participation Quasi-Public 

Agency $1,851,515 $1,130,521 $40,908 $0 63% 5 $12,327,011 10.90 18 119 14 8 20% 58% 20% 14%

18 Maine Regional Economic Development 

Revolving Loan Loan Participation Quasi-Public Agency $7,000,000 $1,874,200 $57,412 $0 28% 20 $17,057,417 9.10 143 124 4 4 35% 23% 15% 8%

19 Maryland DHCD - Neighborhood Business 

Works Program Loan Participation Public Agency $1,500,000 $495,000 $57,574 $0 37% 1 $2,110,000 4.26 25 2 2 3 0% 0% 0% 0%

20 Massachusetts MBDC Loan Participation Loan Participation Private Agency $5,013,000 $4,719,600 $13,348 $444,900 94% 14 $54,478,000 11.54 57 794 35 23 21% 24% 7% 2%

21 Massachusetts MGCC Loan Participation Loan Participation Quasi-Public 

Agency $13,932,072 $10,793,305 $0 $1,616,770 77% 69 $24,820,150 2.30 452 2,850 22 18 29% 31% 1% 3%

22 Michigan Michigan Business Growth Fund/ Loan 

Participations Loan Participation Quasi-Public Agency $25,148,889 $24,796,758 $873,823 $3,444,775 102% 33 $99,242,700 4.00 1,180 133 16 15 61% 75% 61% 73%

23 Minnesota Emerging Entrepreneurs Fund Loan Participation Public Agency $6,792,967 $5,707,013 $204,026 $0 87% 130 $64,110,641 11.23 561 1,271 2 3 48% 42% 18% 32%

24 Missouri Grow Missouri Loan Fund Loan Participation Quasi-Public 

Agency $2,904,353 $2,094,293 $33,201 $0 73% 3 $16,960,711 8.10 31 111 22 10 33% 45% 0% 0%

25 Montana Loan Participation Program Loan Participation Public Agency $12,765,037 $11,935,203 $351,804 $0 96% 48 $120,197,791 10.07 824 185 10 11 27% 24% 54% 47%

26 Nebraska Nebraska Progress Loan Fund Loan Participation Public Agency $9,240,980 $7,563,156 $289,445 $0 85% 18 $51,667,537 6.83 265 6 3 2 17% 9% 78% 93%

27 Nevada Nevada Microenterprise Initiative Loan Participation Public Agency $500,000 $100,000 $6,840 $0 21% 1 $200,000 2.00 23 10 2 17 0% 0% 0% 0%

28 New Hampshire Aid to Local Development 

Organizations Loan Participation Quasi-Public Agency $4,178,400 $4,177,400 $200 $0 100% 17 $27,757,087 6.64 208 977 21 4 18% 5% 6% 0%

29 New Jersey New Jersey Direct Loan Program Loan Participation Quasi-Public 

Agency $9,260,698 $4,750,000 $0 $0 51% 5 $16,799,000 3.54 73 25 14 5 20% 36% 0% 0%

30 New Jersey New Jersey Loan Participation Program Loan Participation Quasi-Public 

Agency $14,250,000 $7,391,900 $0 $0 52% 16 $26,577,044 3.60 105 309 19 13 38% 33% 0% 0%

31 New Mexico New Mexico Loan Participation 

Program Loan Participation Public Agency $13,168,350 $6,926,459 $262,284 $0 55% 16 $45,314,930 6.54 194 13 8 7 38% 36% 13% 18%
Loan Participation Programs 337

# Participating State Approved State Program Program Type 

Type of 

Administering 

Entity (Public, 

Quasi-Public, 

Private) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

TransactionsTotal Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median Size 

of Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Percent of 

Loans in 

LMI 

Areas (by 

#)

Percent of 

Loans in 

LMI 

Areas (by 

$)

Percent of 

Loans in 

Non-Metro 

Areas (by #)

Percent of 

Loans in 

Non-Metro 

Areas (by $)

32 North Carolina North Carolina Loan Participation 

Program Loan Participation Private Agency $34,000,000 $33,677,752 $291,396 $2,328,664 100% 229 $264,132,398 7.84 1,410 3,685 9 7 16% 17% 24% 18%

33 North Dakota -

Mandan Loan Participation Program Loan Participation Private Agency $9,734,641 $9,495,593 $239,048 $2,358,861 100% 39 $71,738,273 7.55 405 159 10 1 36% 23% 33% 18%

34 Northern Mariana 

Islands

CNMI Loan Purchase Participation 

Program Loan Participation Public Agency $4,615,193 $410,268 $32,951 $0 10% 5 $1,025,671 2.50 26 18 4 1 0% 0% 80% 71%

35 Oregon Oregon Business Development Fund Loan Participation Public Agency $3,500,000 $2,948,750 $378,461 $0 95% 11 $20,637,492 7.00 142 18 15 2 45% 68% 18% 28%

36 Pennsylvania Machinery and Equipment Loan Fund Loan Participation Public Agency $9,000,000 $3,413,000 $20,652 $0 38% 2 $6,993,734 2.05 0 193 97 64 50% 20% 0% 0%

37 Pennsylvania Pennsylvania Community Development 

Bank Program Loan Participation Private Agency $6,512,500 $3,850,321 $81,474 $596,981 60% 89 $34,943,925 9.08 349 351 1 1 55% 47% 13% 10%

38 Pennsylvania Pennsylvania Economic Development 

Finance Authority Program Loan Participation Public Agency $8,728,732 $5,186,719 $81,989 $61,500 60% 31 $60,530,476 11.67 510 1,168 12 6 26% 16% 19% 6%

39 Puerto Rico Loan Participation Loan Participation Quasi-Public 

Agency $13,540,057 $13,540,057 $0 $4,320,559 100% 23 $36,941,572 2.73 624 1,638 25 9 30% 15% 13% 11%

40 Rhode Island Small Business Loan Fund Loan Participation Quasi-Public 

Agency $2,168,350 $450,000 $56,858 $0 23% 3 $5,030,000 11.18 5 70 9 9 0% 0% 0% 0%

41 South Carolina South Carolina Loan Participation 

Program Loan Participation Private Agency $17,859,699 $17,688,976 $0 $6,852,200 99% 127 $136,018,021 7.69 432 1,692 10 8 20% 17% 16% 14%

42 South Dakota South Dakota Works Loan Program Loan Participation Public Agency $13,168,350 $7,863,045 $166,851 $0 61% 16 $65,004,557 8.27 401 305 47 7 50% 58% 13% 13%

43 Utah Utah Small Business Loan Participation 

Program Loan Participation Private Agency $6,425,190 $1,032,000 $228,160 $0 20% 4 $7,430,000 7.20 49 81 15 9 50% 17% 0% 0%

44 Vermont Commercial Participation Program Loan Participation Quasi-Public 

Agency $7,818,618 $7,818,616 $0 $3,020,940 100% 60 $108,631,031 13.89 1,044 201 32 17 13% 37% 58% 57%

45 Vermont Small Business Participation Program Loan Participation Quasi-Public 

Agency $5,349,732 $5,349,734 $0 $0 100% 105 $53,086,880 9.92 558 12 4 9 13% 11% 70% 67%

46 Virginia Economic Development Loan Fund Loan Participation Public Agency $500,000 $500,000 $0 $0 100% 1 $3,000,000 6.00 10 65 65 5 100% 100% 0% 0%

47 Washington Craft3 Fund Loan Participation Private Agency $9,944,357 $9,242,515 $174,627 $1,425,000 95% 45 $99,473,467 10.76 674 778 18 12 56% 76% 20% 32%

48 West Virginia Subordinated Debt Program Loan Participation Quasi-Public 

Agency $5,388,998 $4,653,000 $119,159 $60,000 89% 18 $39,426,483 8.47 371 110 6 2 17% 4% 56% 53%

Total $470,745,846 $366,188,180 $9,692,639 $36,108,940 80% 1,690 $2,611,922,662 **6.95 18,257 21,330 8 6 33% 33% 26% 27%

*The leverage ratio shown for each approved state program does not include funds expended for program administration

**LPP overall leverage ratio includes SSBCI funds expended for program administration
Venture Capital Programs 338

5. Venture Capital Programs, cumulative through December 31, 2015

# Participating State Approved State Program Program Type 

VCP Category 

(Funds, StateSupported 

Entities, State 

Agencies, and 

Contractual CoInvestment) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median Size 

of Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

1 Alaska - Anchorage 49th State Venture Fund Venture Capital State Agency; 

Fund $13,168,350 $862,250 $393,412 $0 10% 8 $5,614,500 6.51 36 6 5 1 25% 66% 0% 0%

2 American Samoa American Samoa Venture Fund Venture Capital SSE $10,500,000 $0 $131,045 $0 1% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

3 Arkansas Arkansas Development Finance 

Authority Co-investment Fund Venture Capital SSE $3,595,156 $3,274,521 $113,364 $0 94% 13 $23,997,759 7.33 117 0 11 3 46% 67% 0% 0%

4 Arkansas Risk Capital Matching Fund Venture Capital SSE $1,297,352 $1,233,035 $30,419 $462,923 97% 13 $96,769,187 78.48 55 7 8 4 85% 90% 0% 0%

5 Arkansas Seed and Angel Capital Network Venture Capital Fund $2,823,937 $2,059,623 $101,510 $0 77% 94 $24,895,865 12.09 435 29 2 0 50% 55% 1% 0%

6 Connecticut Seed and Early Stage Investment 

Fund (SESIF) Venture Capital SSE $13,301,126 $6,289,002 $2,163 $0 47% 10 $46,045,020 7.32 55 145 13 6 40% 31% 0% 0%

7 District of 

Columbia Innovation Finance Program Venture Capital Co-investment Model $3,000,000 $50,000 $108 $0 2% 1 $160,000 3.20 0 8 8 1 100% 100% 0% 0%

8 Florida Florida Venture Capital Program Venture Capital Fund $43,500,000 $20,971,851 $657,059 $0 50% 44 $113,443,944 5.41 652 476 13 5 61% 47% 0% 0%

9 Hawaii HSDC Venture Capital Investment 

Program Venture Capital Fund $13,168,350 $3,193,451 $204,642 $0 26% 77 $74,099,511 23.20 148 184 3 0 23% 26% 13% 2%

10 Illinois Venture Capital Program Venture Capital State Agency $6,051,000 $6,051,000 $0 $0 100% 24 $87,525,502 14.46 392 176 4 3 17% 15% 0% 0%

11 Indiana State Venture Capital Program Venture Capital Co-investment 

Model; SSE $32,839,074 $14,620,665 $603,108 $0 46% 77 $46,578,371 3.19 431 317 6 3 29% 15% 5% 8%

12 Iowa Iowa Demonstration Fund Program Venture Capital State Agency $13,025,065 $7,500,000 $153,809 $0 59% 23 $43,834,800 5.84 273 167 7 4 13% 12% 4% 3%

13 Kansas Kansas Capital Multiplier Venture 

Fund Venture Capital Co-investment Model $3,950,505 $3,484,235 $106,191 $0 91% 23 $58,231,485 16.71 572 85 5 2 30% 37% 22% 19%

14 Kentucky Kentucky Venture Capital Program Venture Capital SSE $3,451,200 $0 $0 $0 0% 0 $0 0.00 N/A N/A N/A N/A N/A N/A N/A N/A

15 Louisiana Louisiana Seed Capital Program Venture Capital Fund $4,775,767 $1,255,000 $49,967 $0 27% 25 $15,851,084 12.63 27 133 3 2 8% 4% 0% 0%

16 Maine Small Enterprise Growth Fund Venture Capital SSE $4,316,835 $2,537,812 $95,832 $0 61% 18 $15,157,728 5.97 129 315 19 4 22% 33% 6% 1%

17 Maryland Maryland Venture Fund IV Venture Capital SSE $19,212,931 $8,064,083 $180,175 $0 43% 22 $263,588,815 32.69 585 628 19 5 32% 35% 0% 0%

18 Michigan Small Business Mezzanine Fund Venture Capital Fund $6,000,000 $1,875,767 $936,633 $0 47% 6 $13,015,000 6.94 107 0 21 4 33% 52% 0% 0%

19 Minnesota Angel Loan Fund Venture Capital Co-investment 

Model $6,700,000 $2,800,300 $92,050 $0 43% 17 $33,409,757 11.93 142 171 4 4 35% 36% 0% 0%

20 Missouri Missouri IDEA Fund Venture Capital SSE $24,025,941 $20,030,895 $807,375 $225,000 87% 84 $288,651,850 14.41 1,129 225 2 3 45% 50% 2% 1%

21 Nebraska Nebraska Progress Seed Fund Venture Capital SSE $3,927,370 $2,171,500 $60,881 $0 57% 28 $14,130,891 6.51 28 50 3 0 54% 51% 14% 26%

22 Nevada Battle Born Growth Escalator 

(BBGE) Venture Capital SSE $5,000,000 $1,600,000 $118,794 $0 34% 5 $8,160,000 5.10 194 82 8 2 60% 72% 0% 0%

23 New Hampshire Venture Capital Fund Venture Capital Fund $3,126,383 $1,922,822 $50,800 $0 63% 14 $57,610,806 29.96 162 270 10 2 57% 64% 43% 36%

24 New Jersey New Jersey Venture Capital Fund 

Program Venture Capital Fund $6,800,000 $5,367,518 $0 $0 79% 39 $58,774,027 10.95 564 218 22 2 8% 11% 0% 0%

25 New York Innovate New York Fund Venture Capital Fund $37,022,791 $28,478,636 $438,386 $0 78% 149 $276,857,922 9.72 786 899 5 3 19% 33% 6% 2%

26 North Carolina North Carolina Venture Capital 

Fund-of-Funds Program Venture Capital Fund $10,300,000 $7,966,378 $323,398 $0 80% 75 $266,324,292 33.43 350 716 4 4 29% 32% 3% 3%

27 North Dakota -

Carrington Seed Capital Network Program Venture Capital Fund $182,264 $125,000 $11,109 $0 75% 1 $850,000 6.80 4 2 1 6 0% 0% 100% 100%

28 Ohio Targeted Investment Program Venture Capital State Agency $8,450,000 $7,593,725 $189,684 $0 92% 7 $17,288,449 2.28 118 78 11 5 57% 63% 14% 7%

29 Oklahoma Accelerate Oklahoma Fund Venture Capital SSE $13,168,350 $10,780,090 $175,965 $0 83% 45 $73,983,938 6.86 502 53 3 3 82% 74% 7% 5%

30 Pennsylvania

Ben Franklin Technology Partners 

and Life Sciences Greenhouse 

Partners

Venture Capital SSE $5,000,000 $2,964,666 $82,165 $20,000 61% 34 $105,580,661 35.61 163 182 3 4 32% 23% 9% 21%
Venture Capital Programs 339

# Participating State Approved State Program Program Type 

VCP Category 

(Funds, StateSupported 

Entities, State 

Agencies, and 

Contractual CoInvestment) Allocation

SSBCI Funds 

Expended for 

Loans or 

Investments 

SSBCI Funds 

Expended for 

Program 

Administratio

n

Recycled 

Funds 

Expended

Percent of 

SSBCI 

Funds 

Expended

# of 

Transactions

Total Financing 

Leveraged

*Leverage 

Ratio

Estimated 

# of Jobs 

to be 

Created

Estimated 

# of Jobs 

to be 

Retained

Median Size 

of Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Percent of 

Transactions 

in LMI Areas 

(by #)

Percent of 

Transactions 

in LMI Areas 

(by $)

Percent of 

Transactions 

in NonMetro Areas 

(by #)

Percent of 

Transactions 

in NonMetro Areas 

(by $)

31 Puerto Rico Venture Capital Venture Capital SSE $1,000,000 $1,000,000 $0 $0 100% 1 $9,050,000 9.05 300 101 101 1 0% 0% 0% 0%

32 Rhode Island Betaspring Venture Capital Fund $2,000,000 $1,869,284 $46,980 $0 96% 54 $16,300,371 8.72 18 108 2 0 83% 84% 0% 0%

33 Rhode Island Slater Technology Fund Venture Capital SSE $9,000,000 $2,852,940 $116,384 $0 33% 14 $74,408,928 26.08 19 76 4 4 43% 24% 0% 0%

34 Tennessee INCITE Fund Venture Capital Co-investment 

Model $29,672,070 $27,884,688 $969,368 $0 97% 83 $147,279,309 5.28 338 1,121 7 3 40% 35% 13% 12%

35 Texas Jobs for Texas-Venture Capital Venture Capital Fund $46,553,879 $37,224,566 $1,336,501 $0 83% 42 $461,195,024 12.39 594 579 9 6 24% 31% 2% 2%

36 Utah Equity Investment Program Venture Capital Fund $1,394,989 $950,001 $50,844 $0 72% 4 $8,737,570 9.20 11 12 17 2 25% 65% 0% 0%

37 Virginia Center for Innovative Technology 

(CIT) GAP Fund Venture Capital SSE $3,000,000 $2,627,532 $0 $0 88% 29 $42,196,553 16.06 628 209 6 2 7% 3% 0% 0%

38 Washington W Fund Venture Capital Fund $5,000,000 $4,975,737 $24,263 $0 100% 21 $38,723,479 7.78 64 51 3 1 10% 10% 0% 0%

39 West Virginia Seed Capital Co-investment Fund Venture Capital SSE $6,800,017 $5,037,500 $173,453 $0 77% 30 $46,271,365 9.19 312 226 4 6 43% 63% 20% 20%

40 Wisconsin Wisconsin Equity Fund Venture Capital SSE; Fund $21,000,000 $11,104,413 $520,555 $0 55% 59 $105,973,737 9.54 728 549 8 3 31% 39% 7% 12%

41 Wyoming - Laramie Seed Capital Network Program Venture Capital Fund $1,000,000 $451,831 $17,734 $0 47% 11 $903,662 2.00 3 0 0 3 0% 0% 0% 0%

Total $448,100,702 $271,102,317 $9,366,125 $707,923 63% 1,324 $3,081,471,158 **11.08 11,169 8,652 5 2 36% 36% 6% 5%

*The leverage ratio shown for each approved state program does not include funds expended for program administration

**VCP overall leverage ratio includes SSBCI funds expended for program administration
Typical CAP Transaction, by Approved State Program 340

B. TYPICAL CAP TRANSACTION, by Approved State Program, cumulative through December 31, 2015

Principal Loan Amount Top 3 Industries Assisted

# Participating 

State Approved State Program # of Loans Minimum Maximum Median

Median

% SSBCI 

Support 

per Loan

Median 

Size of 

Business 

Supported 

(FTEs)

Median 

Age of 

Business 

Supported 

(Years)

Median 

Revenue 

of 

Business 

Supported

#1 #2 #3

1 Alabama Alabama CAP Program 8 $9,215 $56,723 $23,116 5.0% 3 2 $25,893 Retail Trade

Construction

Agriculture, Forestry, Fishing and Hunting

Professional, Scientific, and Technical Services

Accommodation and Food Services

Other Services (except Public Administration)

N/A

2 Arkansas Arkansas Capital Access Program 94 $1,000 $58,094 $10,000 3.0% 2 2 $20,400 Retail Trade Manufacturing Professional, Scientific, and Technical Services

3 California California Capital Access Program 

(CalCAP) 6,592 $500 $2,900,000 $9,841 7.0% 2 5 $114,000 Retail Trade Accommodation and Food Services Transportation and Warehousing

4 Colorado Colorado Capital Access Program 18 $2,500 $89,300 $25,000 2.0% 2 1 $147,650 Accommodation and Food Services Health Care and Social Assistance

Professional, Scientific, and Technical Services

Finance and Insurance

Real Estate and Rental and Leasing

Retail Trade

Wholesale Trade

Manufacturing

Other Services (except Public Administration)

5 Connecticut Connecticut Capital Access 

Program (CT-CAP) 35 $15,000 $500,000 $120,000 3.0% 5 3 $1,065,838 Retail Trade Other Services (except Public Administration) ConstructionHealth Care and Social Assistance

6 Delaware Delaware Access Program 78 $7,000 $277,391 $50,000 3.0% 3 4 $286,786 Accommodation and Food Services Retail Trade

Professional, Scientific, and Technical Services

Administrative and Support and Waste 

Management and Remediation Services

Construction

Health Care and Social Assistance

7 Florida Florida Capital Access Program 60 $2,500 $176,000 $7,500 3.1% 2 3 $103,404 Transportation and Warehousing Other Services (except Public Administration) Construction

Wholesale Trade

8 Georgia Georgia Capital Access Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

9 Guam Guam Capital Access Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

10 Illinois Capital Access Program 12 $7,500 $200,000 $27,500 3.0% 2 6 $121,000

Professional, Scientific, and Technical Services

Manufacturing

Wholesale Trade

Construction

Other Services (except Public Administration)

Arts, Entertainment, and Recreation

Transportation and Warehousing N/A

11 Indiana Indiana Capital Access Program 125 $3,000 $525,000 $35,000 3.0% 3 4 $365,000 Retail Trade Construction Accommodation and Food Services

12 Iowa Iowa Capital Access Program 3 $55,563 $95,000 $65,000 4.0% 1 20 $120,000

Other Services (except Public Administration)

Transportation and Warehousing

Retail Trade

N/A N/A

13 Kentucky Kentucky Capital Access Program 2 $40,000 $65,306 $52,653 3.0% 28 10 $3,026,876 Manufacturing

Health Care and Social Assistance N/A N/A

14 Massachusetts Capital Access Program 693 $1,000 $750,000 $25,000 3.0% 3 5 $376,117 Retail Trade Construction Other Services (except Public Administration)

15 Michigan Capital Access Program 693 $2,000 $664,000 $35,000 3.0% 3 5 $235,809 Retail Trade Manufacturing Transportation and Warehousing

16 Minnesota Capital Access Program 71 $2,000 $500,000 $25,000 4.0% 3 6 $238,614 Manufacturing Construction Accommodation and Food Services

17 New 

Hampshire Capital Access Program 300 $1,150 $200,000 $30,000 3.0% 2 6 $278,006 Construction Accommodation and Food Services Other Services (except Public Administration)

18 New York New York Capital Access Program 944 $500 $500,000 $20,000 7.0% 2 3 $70,406 Other Services (except Public Administration) Retail Trade Transportation and Warehousing

19 North Carolina North Carolina Capital Access 

Program 338 $2,500 $908,650 $41,250 3.0% 4 4 $208,489 Professional, Scientific, and Technical Services Accommodation and Food Services Retail Trade
Typical CAP Transaction, by Approved State Program 341

20 Ohio Ohio Capital Access Program 252 $5,000 $350,000 $44,750 3.0% 4 5 $270,118 Retail Trade Accommodation and Food Services Other Services (except Public Administration)

21 Oregon Capital Access Program 89 $5,000 $2,385,000 $35,000 3.0% 4 3 $450,000 Construction

Professional, Scientific, and Technical Services Accommodation and Food Services Manufacturing

22 South Carolina South Carolina Capital Access 

Program 44 $5,000 $375,000 $123,750 2.0% 16 6 $2,362,725 Construction ManufacturingAccommodation and Food Services

Retail Trade

Professional, Scientific, and Technical Services

23 Virginia Virginia Capital Access Program 106 $5,000 $500,000 $50,000 3.0% 4 5 $320,847 Accommodation and Food Services Other Services (except Public Administration) Retail Trade

Agriculture, Forestry, Fishing and Hunting

24 Washington Capital Access Program 4 $100,000 $345,034 $250,000 5.2% 15 5 $2,201,393

Retail Trade

Professional, Scientific, and Technical Services

Health Care and Social Assistance

Manufacturing

N/A N/A

Total 10,561 $500 $2,900,000 $14,753 7.0% 2 5 $129,996 Retail Trade Accommodation and Food Services Transportation and Warehousing
Typical Loan Guarantee Transaction, by Approved State Program 342

C. TYPICAL LOAN GUARANTEE TRANSACTION, by Approved State Program, cumulative through December 31, 2015

Principal Loan Amount Top 3 Industries Assisted

# Participating 

State Approved State Program # of Loans Minimum Maximum Median

Median % 

SSBCI 

Support per 

Loan

Median Size 

of Business 

Supported 

(FTEs)

Median Age of 

Business 

Supported 

(Years)

Median Revenue

of Business 

Supported

#1 #2 #3

1 Alabama Alabama Loan Guarantee Program 387 $3,000 $5,000,000 $135,000 50.0% 4 4 $293,000 Retail Trade Manufacturing Other Services (except Public 

Administration)

2 Arkansas Disadvantaged Business Enterprise/ Small Business 

Loan Guaranty Program 11 $35,000 $300,000 $128,500 70.0% 10 6 $696,426 Manufacturing Professional, Scientific, and Technical Services Construction

3 California California Small Business Loan Guarantee Program 995 $11,000 $6,612,500 $200,000 16.0% 10 6 $1,046,000 Accommodation and Food Services Retail Trade Manufacturing

4 Florida Florida Export Support Program 7 $110,000 $1,600,000 $550,000 44.5% 5 4 $2,561,481 Wholesale Trade

Manufacturing

Administrative and Support and Waste 

Management and Remediation Services

Construction

N/A

5 Florida Loan Guarantee Program 39 $150,000 $6,270,000 $962,000 50.0% 21 10 $4,500,000 Accommodation and Food Services

Wholesale Trade

Other Services (except Public 

Administration)

Construction

Health Care and Social Assistance

Administrative and Support and Waste 

Management and Remediation Services

Retail Trade

Professional, Scientific, and Technical 

Services

6 Georgia Georgia Small Business Credit Guarantee Program 283 $10,000 $1,000,000 $100,000 10.0% 4 5 $250,000 Professional, Scientific, and Technical 

Services Manufacturing Construction

7 Guam Guam Credit Guarantee Program 41 $2,600 $1,642,500 $100,000 75.0% 3 1 $201,554 Accommodation and Food Services Retail Trade Professional, Scientific, and Technical 

Services

8 Louisiana Small Business Loan Guarantee 36 $47,327 $3,224,000 $401,500 18.8% 6 2 $0 Manufacturing Administrative and Support and Waste 

Management and Remediation Services

Wholesale Trade

Construction

9 Maryland MIDFA 7 $100,000 $8,600,000 $240,000 8.4% 9 10 $1,700,000 Professional, Scientific, and Technical 

Services Retail Trade ConstructionManufacturing

10 Maryland MSBDFA Loan Guaranty 12 $60,000 $350,000 $150,000 10.0% 1 5 $61,122 Accommodation and Food Services Professional, Scientific, and Technical 

Services Retail Trade

11 Michigan Michigan Loan Guarantee Program 6 $40,000 $750,000 $75,000 5.0% 6 4 $22,579 Accommodation and Food Services

Retail Trade

Wholesale Trade

Arts, Entertainment, and Recreation

Educational Services

N/A

12 Minnesota General Loan Guarantee Program 9 $74,100 $750,000 $250,000 42.0% 22 2 $1,160,000 Health Care and Social Assistance Manufacturing

Accommodation and Food Services

Other Services (except Public 

Administration)

Construction

13 Mississippi Small Business Loan Guaranty Program 116 $50,000 $6,000,000 $447,068 15.0% 2 1 $0 Agriculture, Forestry, Fishing and 

Hunting Retail Trade Manufacturing

14 New 

Hampshire Loan Guarantee Reserves 8 $350,000 $11,893,392 $2,762,505 7.5% 31 20 $4,762,000 Manufacturing

Wholesale Trade

Transportation and Warehousing

Arts, Entertainment, and Recreation

Accommodation and Food Services

Health Care and Social Assistance

N/A

15 New Jersey New Jersey Credit Guarantee Program 7 $100,000 $1,150,000 $800,000 50.0% 7 20 $959,000 Real Estate and Rental and Leasing

Accommodation and Food Services

Retail Trade

Construction

Manufacturing

N/A

16 New York Bonding Guarantee Assistance Program 14 $550,000 $4,000,000 $1,000,000 30.0% 7 11 $957,605 Construction

Wholesale Trade

Administrative and Support and Waste 

Management and Remediation Services

N/A

17 Oregon Credit Enhancement Fund 136 $15,000 $5,914,000 $400,000 16.7% 9 8 $1,507,960 Manufacturing Construction Retail Trade

18 U.S. Virgin 

Islands Loan Guarantees 14 $20,000 $2,250,000 $315,500 10.0% 12 4 $1,318,000 Health Care and Social Assistance Accommodation and Food Services

Retail Trade

Arts, Entertainment, and Recreation

Transportation and Warehousing

Wholesale Trade

Administrative and Support and Waste 

Management and Remediation Services

Construction
Typical Loan Guarantee Transaction, by Approved State Program 343

Principal Loan Amount Top 3 Industries Assisted

# Participating 

State Approved State Program # of Loans Minimum Maximum Median

Median % 

SSBCI 

Support per 

Loan

Median Size 

of Business 

Supported 

(FTEs)

Median Age of 

Business 

Supported 

(Years)

Median Revenue

of Business 

Supported

#1 #2 #3

19 U.S. Virgin 

Islands

Payment, Surety, and Performance Bonding 

Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

20 Utah Utah Small Business Loan Guarantee Program 26 $20,000 $5,500,000 $387,500 40.0% 15 8 $2,016,374 Manufacturing Administrative and Support and Waste 

Management and Remediation Services

Retail Trade

Construction

Accommodation and Food Services

21 West Virginia West Virginia Loan Guarantee Program 1 $140,000 $140,000 $140,000 20.0% 14 10 $2,000,000 Manufacturing N/A N/A

22 Wisconsin WHEDA Guarantee 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Total 2,155 $2,600 $11,893,392 $200,000 16.0% 6 5 $609,000 Manufacturing Retail Trade Construction
Typical Collateral Support Transaction, by Approved State Program 344

D. TYPICAL COLLATERAL SUPPORT TRANSACTION, by Approved State Program, cumulative through December 31, 2015

Principal Loan Amount Top 3 Industries Assisted

# Participating State Approved State Program # of 

Loans Minimum Maximum Median

Median % 

SSBCI 

Support per 

Loan

Median Size 

of Business 

Supported 

(FTEs)

Median Age of 

Business 

Supported 

(Years)

Median Revenue 

of Business 

Supported

#1 #2 #3

1 California California Collateral Support Program 

(CalCSP) 113 $50,000 $10,000,000 $500,000 50.0% 15 9 $2,504,408 Manufacturing Retail Trade Construction

2 Colorado Colorado Cash Collateral Support Program 157 $10,000 $5,000,000 $175,000 25.0% 2 4 $235,831 Accommodation and Food Services Manufacturing

Health Care and Social Assistance Retail Trade

3 District of Columbia DC Collateral Support Program 21 $25,000 $2,000,000 $375,000 50.0% 9 8 $3,640,501 Construction Accommodation and Food Services Health Care and Social Assistance

Manufacturing

4 Idaho Collateral Support Program 253 $4,765 $5,000,000 $345,000 14.8% 8 6 $969,169 Health Care and Social Assistance Manufacturing Retail Trade

5 Illinois Collateral Support Program 5 $100,000 $12,728,800 $634,915 20.0% 35 7 $8,000,000 Retail Trade

Professional, Scientific, and Technical 

Services

Manufacturing

Other Services (except Public 

Administration)

N/A

6 Kentucky Kentucky Collateral Support Program 111 $25,000 $6,100,000 $245,000 20.0% 5 4 $243,000 Manufacturing Retail Trade

Accommodation and Food Services Health Care and Social Assistance

7 Michigan Michigan Business Growth Fund/ Collateral 

Support 83 $100,000 $20,000,000 $825,000 39.7% 29 13 $5,500,000 Manufacturing Wholesale Trade

Professional, Scientific, and Technical 

Services

Transportation and Warehousing

8 Nevada Nevada Collateral Support Program 14 $40,000 $5,167,000 $794,048 35.0% 10 5 $1,177,889

Other Services (except Public 

Administration)

Health Care and Social Assistance

Administrative and Support and Waste 

Management and Remediation Services

Construction

Professional, Scientific, and Technical 

Services

Manufacturing

Retail Trade

Arts, Entertainment, and Recreation

Accommodation and Food Services

Finance and Insurance

N/A

9 New Hampshire Collateral Shortfall Program 7 $333,172 $10,760,000 $2,050,000 14.2% 50 31 $6,933,000 Manufacturing Wholesale Trade

Information N/A

10 North Dakota -

Carrington Credit Guarantee Program 17 $20,000 $1,000,000 $390,000 43.0% 3 2 $185,000 Retail Trade Manufacturing

Administrative and Support and Waste 

Management and Remediation Services

Health Care and Social Assistance

Other Services (except Public 

Administration)

11 Northern Mariana 

Islands CNMI Collateral Support Program 17 $50,000 $1,500,000 $150,000 50.0% 12 7 $308,930 Accommodation and Food Services Manufacturing Wholesale Trade

12 Ohio Small Business Collateral Enhancement 240 $10,000 $5,000,000 $270,000 29.9% 6 6 $407,000 Accommodation and Food Services Real Estate and Rental and Leasing Manufacturing

13 U.S. Virgin Islands Collateral Support 12 $16,000 $823,000 $175,000 45.4% 4 2 $870,000 Accommodation and Food Services

Health Care and Social Assistance

Retail Trade

Arts, Entertainment, and Recreation

Real Estate and Rental and Leasing

Other Services (except Public 

Administration)

14 Virginia Cash Collateral Program 79 $12,800 $3,900,000 $350,000 40.0% 4 6 $397,000 Professional, Scientific, and Technical 

Services

Retail Trade

Manufacturing

Other Services (except Public 

Administration)

15 Washington Collateral Support Program 3 $803,624 $5,273,099 $1,483,670 20.3% 20 14 $4,608,262

Accommodation and Food Services

Real Estate and Rental and Leasing

Manufacturing

N/A N/A

16 West Virginia West Virginia Collateral Support Program 4 $525,000 $2,152,947 $1,051,500 20.0% 25 18 $2,381,083 Manufacturing

Professional, Scientific, and Technical 

Services

Accommodation and Food Services

N/A

17 Wyoming - Laramie Credit Guarantee Program 53 $10,000 $13,490,581 $236,371 49.0% 2 2 $392,844 Retail Trade Mining, Quarrying, and Oil and Gas 

Extraction

Other Services (except Public 

Administration)

Accommodation and Food Services

Total 1,189 $4,765 $20,000,000 $305,000 25.0% 6 6 $662,710 Manufacturing Retail Trade Accommodation and Food Services
Typical Loan Participation Transaction, by Approved State Program 345

E. TYPICAL LOAN PARTICIPATION TRANSACTION, by Approved State Program, cumulative through December 31, 2015

Principal Loan Amount Top 3 Industries Assisted

# Participating State Approved State Program # of 

Loans Minimum Maximum Median

Median % 

SSBCI 

Support per 

Loan

Median Size 

of Business 

Supported 

(FTEs)

Median Age of 

Business 

Supported 

(Years)

Median Revenue 

of Business 

Supported

#1 #2 #3

1 Alabama Alabama Loan Participation Program 5 $318,750 $1,800,000 $1,560,000 10.0% 11 7 $746,000

Other Services (except Public 

Administration)

Accommodation and Food Services

Professional, Scientific, and Technical 

Services

Finance and Insurance

Health Care and Social Assistance

N/A N/A

2 Arizona Arizona Expansion Fund 52 $61,709 $9,319,367 $731,750 28.9% 15 5 $1,091,744 Manufacturing Construction Health Care and Social Assistance

3 Arkansas Bond Guaranty/ Loan Participation Program 14 $50,000 $12,490,000 $3,798,109 9.5% 5 2 $0 Manufacturing Construction

Manufacturing N/A

3 California California Property Assessed Clean Energy 

Program (CalPACE) 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

4 Delaware DSF Participation and Loan Program 32 $24,000 $20,000,000 $279,800 28.1% 5 3 $146,366 Accommodation and Food Services

Retail Trade

Other Services (except Public 

Administration)

Manufacturing

Health Care and Social Assistance

5 District of Columbia DC Loan Participation Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

6 Florida Direct Loan Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

7 Florida Loan Participation Program 52 $75,000 $15,000,000 $1,141,250 41.2% 4 3 $303,000 Accommodation and Food Services Real Estate and Rental and Leasing Health Care and Social Assistance

8 Georgia Georgia Funding for CDFIs 73 $25,000 $13,200,000 $686,000 25.0% 6 4 $237,666 Accommodation and Food Services

Retail Trade

Other Services (except Public 

Administration)

Professional, Scientific, and Technical 

Services

Manufacturing

9 Georgia Georgia Loan Participation Program 15 $325,000 $9,029,190 $681,000 18.8% 7 4 $583,271 Health Care and Social Assistance Accommodation and Food Services Real Estate and Rental and Leasing

10 Guam Guam Loan Participation Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

11 Illinois Conditional Direct Loan Program 1 $3,698,573 $3,698,573 $3,698,573 13.5% 0 10 $0 Accommodation and Food Services N/A N/A

12 Illinois Participation Loan Program 166 $20,000 $8,000,000 $401,946 37.2% 13 7 $1,488,000 Manufacturing Accommodation and Food Services Construction

13 Iowa Iowa Small Business Loan Program 14 $6,000 $50,000 $27,975 7.5% 1 0 $0 Retail Trade

Other Services (except Public 

Administration)

Health Care and Social Assistance

Finance and Insurance

Professional, Scientific, and Technical 

Services

Administrative and Support and Waste 

Management and Remediation Services

Accommodation and Food Services

Educational Services

Information

Manufacturing

14 Kansas Kansas Capital Multiplier Loan Fund 58 $154,000 $12,852,843 $1,490,900 7.7% 8 3 $754,344 Accommodation and Food Services Manufacturing Retail Trade

15 Kentucky Kentucky Loan Participation Program 4 $85,000 $530,147 $370,000 20.0% 6 3 $401,135

Professional, Scientific, and Technical 

Services

Manufacturing

Construction

Health Care and Social Assistance

N/A N/A

16 Maine Economic Recovery Loan Fund 5 $615,000 $7,887,000 $1,900,000 8.8% 14 8 $3,300,000 Health Care and Social Assistance

Manufacturing Wholesale Trade N/A

17 Maine Regional Economic Development Revolving 

Loan 20 $154,000 $9,757,950 $425,000 15.3% 4 4 $205,571 Retail Trade Health Care and Social AssistanceAccommodation and Food Services

Real Estate and Rental and Leasing

Other Services (except Public 

Administration)

Manufacturing

18 Maryland DHCD - Neighborhood Business Works 

Program 1 $2,110,000 $2,110,000 $2,110,000 23.5% 2 3 $0 Information N/A N/A

19 Massachusetts MBDC Loan Participation 14 $225,000 $3,540,000 $2,150,000 18.6% 35 23 $10,901,500 Wholesale Trade Retail Trade Arts, Entertainment, and Recreation

Manufacturing
Typical Loan Participation Transaction, by Approved State Program 346

Principal Loan Amount Top 3 Industries Assisted

# Participating State Approved State Program # of 

Loans Minimum Maximum Median

Median % 

SSBCI 

Support per 

Loan

Median Size 

of Business 

Supported 

(FTEs)

Median Age of 

Business 

Supported 

(Years)

Median Revenue 

of Business 

Supported

#1 #2 #3

20 Massachusetts MGCC Loan Participation 69 $50,000 $1,000,000 $250,000 50.0% 22 18 $3,895,000 Manufacturing Construction Professional, Scientific, and Technical 

Services

21 Michigan Michigan Business Growth Fund/ Loan 

Participations 33 $75,000 $6,000,000 $1,333,348 49.9% 16 15 $6,037,000 Manufacturing

Information

Wholesale Trade

Transportation and Warehousing

N/A

22 Minnesota Emerging Entrepreneurs Fund 130 $4,000 $406,000 $41,000 50.0% 2 3 $155,819 Accommodation and Food Services Retail Trade Manufacturing

23 Missouri Grow Missouri Loan Fund 3 $2,532,711 $7,608,000 $6,820,000 8.9% 22 10 $8,208,000 Manufacturing Professional, Scientific, and Technical 

Services N/A

24 Montana Loan Participation Program 48 $150,000 $999,900 $445,636 49.6% 10 11 $1,704,500 Retail Trade Health Care and Social Assistance Manufacturing

25 Nebraska Nebraska Progress Loan Fund 18 $15,000 $7,500,000 $498,156 39.2% 3 2 $198,312 Manufacturing

Construction

Wholesale Trade

Transportation and Warehousing

N/A

26 Nevada Nevada Microenterprise Initiative 1 $200,000 $200,000 $200,000 50.0% 2 17 $403,398 Finance and Insurance N/A N/A

27 New Hampshire Aid to Local Development Organizations 17 $25,000 $17,100,000 $225,000 80.0% 21 4 $2,696,000 Manufacturing Accommodation and Food Services

Construction

Educational Services

Retail Trade

Arts, Entertainment, and Recreation

28 New Jersey New Jersey Direct Loan Program 5 $1,000,000 $6,840,000 $2,484,000 30.9% 14 5 $2,261,543

Professional, Scientific, and Technical 

Services

Finance and Insurance

Wholesale Trade

Manufacturing

Other Services (except Public 

Administration)

N/A N/A

29 New Jersey New Jersey Loan Participation Program 16 $313,500 $8,310,000 $1,038,125 33.3% 19 13 $4,509,849 Real Estate and Rental and Leasing Retail Trade Health Care and Social Assistance

Manufacturing

30 New Mexico New Mexico Loan Participation Program 16 $200,000 $7,397,000 $1,336,626 15.2% 8 7 $1,006,154 Health Care and Social Assistance

Wholesale Trade

Other Services (except Public 

Administration)

Accommodation and Food Services

Manufacturing

Administrative and Support and Waste 

Management and Remediation Services

Mining, Quarrying, and Oil and Gas 

Extraction

Retail Trade

31 North Carolina North Carolina Loan Participation Program 229 $60,000 $12,293,575 $625,000 15.0% 9 7 $1,137,109 Health Care and Social Assistance Accommodation and Food Services Retail Trade

32 North Dakota -

Mandan Loan Participation Program 39 $17,114 $17,600,000 $608,000 25.0% 10 1 $1,353,200 Accommodation and Food Services Retail Trade Other Services (except Public Administration)

33 Northern Mariana 

Islands CNMI Loan Purchase Participation Program 5 $50,000 $540,671 $80,000 40.0% 4 1 $175,038

Retail Trade

Agriculture, Forestry, Fishing and 

Hunting

Wholesale Trade

Educational Services

Other Services (except Public 

Administration)

N/A N/A

34 Oregon Oregon Business Development Fund 11 $291,750 $4,800,000 $668,200 24.5% 15 2 $1,653,950 Manufacturing

Transportation and Warehousing

Professional, Scientific, and Technical 

Services

Wholesale Trade

Educational Services

Other Services (except Public 

Administration)

N/A

35 Pennsylvania Machinery and Equipment Loan Fund 2 $1,426,000 $5,802,580 $3,614,290 48.3% 97 64 $386,445,285 Wholesale Trade

Manufacturing N/A N/A

36 Pennsylvania Pennsylvania Community Development Bank 

Program 89 $1,000 $6,056,000 $83,500 50.0% 1 1 $0 Accommodation and Food Services Manufacturing Retail Trade

37 Pennsylvania Pennsylvania Economic Development Finance 

Authority Program 31 $50,000 $12,750,000 $400,000 19.7% 12 6 $695,898 Manufacturing Accommodation and Food Services

Real Estate and Rental and Leasing

Retail Trade

Health Care and Social Assistance
Typical Loan Participation Transaction, by Approved State Program 347

Principal Loan Amount Top 3 Industries Assisted

# Participating State Approved State Program # of 

Loans Minimum Maximum Median

Median % 

SSBCI 

Support per 

Loan

Median Size 

of Business 

Supported 

(FTEs)

Median Age of 

Business 

Supported 

(Years)

Median Revenue 

of Business 

Supported

#1 #2 #3

38 Puerto Rico Loan Participation 23 $200,000 $6,800,000 $1,361,642 50.0% 25 9 $3,958,489 Educational Services Manufacturing Professional, Scientific, and Technical 

Services

39 Rhode Island Small Business Loan Fund 3 $300,000 $4,530,000 $615,000 8.1% 9 9 $516,925

Health Care and Social Assistance

Professional, Scientific, and Technical 

Services

Manufacturing

N/A N/A

40 South Carolina South Carolina Loan Participation Program 127 $114,000 $4,950,000 $630,000 23.1% 10 8 $1,200,000 Health Care and Social Assistance Professional, Scientific, and Technical 

Services Retail Trade

41 South Dakota South Dakota Works Loan Program 16 $283,000 $17,000,000 $1,250,000 17.7% 47 7 $4,343,476 Manufacturing Health Care and Social Assistance

Retail Trade

Other Services (except Public 

Administration)

Construction

Professional, Scientific, and Technical 

Services

Public Administration

Wholesale Trade

Information

Arts, Entertainment, and Recreation

Accommodation and Food Services

42 Utah Utah Small Business Loan Participation 

Program 4 $120,000 $2,520,000 $457,500 37.5% 15 9 $2,782,862

Real Estate and Rental and Leasing

Manufacturing

Educational Services

Information

N/A N/A

43 Vermont Commercial Participation Program 60 $50,911 $20,000,000 $809,150 10.0% 32 17 $7,365,519 Manufacturing Accommodation and Food Services Wholesale Trade

44 Vermont Small Business Participation Program 105 $22,101 $2,580,000 $368,600 10.0% 4 9 $523,629 Manufacturing Accommodation and Food Services Retail Trade

45 Virginia Economic Development Loan Fund 1 $3,000,000 $3,000,000 $3,000,000 16.7% 65 5 $8,500,000 Manufacturing N/A N/A

46 Washington Craft3 Fund 45 $32,217 $5,000,000 $692,000 12.5% 18 12 $3,783,776 Manufacturing Construction Wholesale Trade

Accommodation and Food Services

47 West Virginia Subordinated Debt Program 18 $40,000 $7,500,000 $668,000 33.3% 6 2 $224,657 Health Care and Social Assistance Accommodation and Food Services Arts, Entertainment, and Recreation

Retail Trade

Total 1,690 $1,000 $20,000,000 $495,000 24.5% 8 6 $893,597 Manufacturing Accommodation and Food Services Health Care and Social Assistance
Typical Venture Capital Transaction, by Approved State Program 348

F. TYPICAL VENTURE CAPITAL TRANSACTION, by Approved State Program, cumulative through December 31, 2015

Principal Investment Amount Top 3 Industries Assisted

# Participating 

State Approved State Program # Investments Minimum Maximum Median

Median % 

SSBCI 

Support per 

Investment

Median Size of 

Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Median 

Revenue of 

Business 

Supported

#1 #2 #3

1 Alaska -

Anchorage 49th State Venture Fund 8 $30,000 $2,400,000 $189,750 50.0% 5 1 $0

Professional, Scientific, and 

Technical Services

Manufacturing

Wholesale Trade

Retail Trade

Agriculture, Forestry, Fishing and 

Hunting

Information

N/A

2 American 

Samoa American Samoa Venture Fund 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

3 Arkansas Arkansas Development Finance Authority 

Co-investment Fund 13 $93,750 $4,500,000 $1,000,000 20.0% 11 3 $352,598 Manufacturing Information Professional, Scientific, and Technical Services

4 Arkansas Risk Capital Matching Fund 13 $125,000 $5,000,000 $900,000 19.4% 8 4 $537,600 Professional, Scientific, and 

Technical Services

Retail Trade

Information N/A

5 Arkansas Seed and Angel Capital Network 94 $15,000 $1,375,000 $87,500 13.8% 2 0 $3,500 Professional, Scientific, and 

Technical Services Information Retail Trade

6 Connecticut Seed and Early Stage Investment Fund 

(SESIF) 10 $250,009 $10,000,000 $3,170,580 21.7% 13 6 $98,000 Professional, Scientific, and Technical Services

Wholesale Trade

Retail Trade

Information

Administrative and Support and Waste 

Management and Remediation Services

Manufacturing

7 District of 

Columbia Innovation Finance Program 1 $130,000 $130,000 $130,000 38.5% 8 1 $444,929 Retail Trade N/A N/A

8 Florida Florida Venture Capital Program 44 $100,000 $17,000,000 $820,658 32.5% 13 5 $505,000 Information Manufacturing Finance and Insurance

9 Hawaii HSDC Venture Capital Investment 

Program 77 $10,000 $15,000,000 $20,000 50.0% 3 0 $0 Information

Wholesale Trade

Retail Trade

Professional, Scientific, and Technical 

Services

Manufacturing

10 Illinois Venture Capital Program 24 $162,500 $5,400,000 $1,622,355 19.9% 4 3 $0 Professional, Scientific, and 

Technical Services Manufacturing Information

11 Indiana State Venture Capital Program 77 $40,000 $5,136,000 $325,000 49.9% 6 3 $140,650 Professional, Scientific, and 

Technical Services Information Manufacturing

12 Iowa Iowa Demonstration Fund Program 23 $200,000 $2,000,000 $600,000 50.0% 7 4 $350,000 Manufacturing

Information

Professional, Scientific, and Technical 

Services

Educational Services

Wholesale Trade

Retail Trade

13 Kansas Kansas Capital Multiplier Venture Fund 23 $310,000 $7,634,999 $2,345,000 7.6% 5 2 $0 Manufacturing Professional, Scientific, and Technical 

Services Information

14 Kentucky Kentucky Venture Capital Program 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

15 Louisiana Louisiana Seed Capital Program 25 $25,000 $5,300,000 $200,000 25.0% 3 2 $4,123 Information Professional, Scientific, and Technical 

Services Manufacturing

16 Maine Small Enterprise Growth Fund 18 $100,000 $2,500,000 $590,000 19.5% 19 4 $796,000 Professional, Scientific, and 

Technical Services Manufacturing Construction

17 Maryland Maryland Venture Fund IV 22 $475,000 $16,800,000 $3,543,304 5.6% 19 5 $673,391 Professional, Scientific, and 

Technical Services Manufacturing Information

18 Michigan Small Business Mezzanine Fund 6 $273,836 $3,700,000 $1,077,500 20.0% 21 4 $8,178,659 Manufacturing Information N/A

19 Minnesota Angel Loan Fund 17 $302,500 $3,750,000 $2,040,326 9.1% 4 4 $155,000 Manufacturing Professional, Scientific, and Technical 

Services Wholesale Trade
Typical Venture Capital Transaction, by Approved State Program 349

Principal Investment Amount Top 3 Industries Assisted

# Participating 

State Approved State Program # Investments Minimum Maximum Median

Median % 

SSBCI 

Support per 

Investment

Median Size of 

Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Median 

Revenue of 

Business 

Supported

#1 #2 #3

20 Missouri Missouri IDEA Fund 84 $37,718 $8,158,170 $500,000 46.0% 2 3 $0 Professional, Scientific, and 

Technical Services Manufacturing Information

21 Nebraska Nebraska Progress Seed Fund 28 $20,000 $2,500,000 $20,000 50.0% 3 0 $0 Professional, Scientific, and 

Technical Services Information Manufacturing

22 Nevada Battle Born Growth Escalator (BBGE) 5 $500,000 $4,000,000 $1,265,000 25.2% 8 2 $338,000 Information

Professional, Scientific, and Technical 

Services

Administrative and Support and 

Waste Management and Remediation 

Services

Health Care and Social Assistance

N/A

23 New 

Hampshire Venture Capital Fund 14 $101,373 $12,160,000 $2,667,502 4.1% 10 2 $0 Professional, Scientific, and Technical Services Information N/A

24 New Jersey New Jersey Venture Capital Fund 

Program 39 $50,000 $1,900,000 $250,000 41.1% 22 2 $917,954 Information Professional, Scientific, and Technical Services Retail Trade

25 New York Innovate New York Fund 149 $13,490 $12,000,000 $750,000 22.3% 5 3 $109,273 Information Manufacturing Professional, Scientific, and Technical 

Services

26 North Carolina North Carolina Venture Capital Fund-ofFunds Program 75 $39,500 $11,500,000 $722,132 8.8% 4 4 $131,971 Professional, Scientific, and 

Technical Services Manufacturing Information

27 North Dakota -

Carrington Seed Capital Network Program 1 $850,000 $850,000 $850,000 14.7% 1 6 $49,496 Wholesale Trade N/A N/A

28 Ohio Targeted Investment Program 7 $1,085,999 $4,187,450 $2,000,000 50.0% 11 5 $371,123 Manufacturing Information Wholesale Trade

Retail Trade

29 Oklahoma Accelerate Oklahoma Fund 45 $80,000 $2,330,000 $615,000 42.9% 3 3 $6,896 Professional, Scientific, and 

Technical Services Manufacturing Health Care and Social Assistance

30 Pennsylvania Ben Franklin Technology Partners and 

Life Sciences Greenhouse Partners 34 $60,000 $3,750,000 $303,422 25.7% 3 4 $0 Professional, Scientific, and Technical Services Manufacturing Information

31 Puerto Rico Venture Capital 1 $9,050,000 $9,050,000 $9,050,000 11.0% 101 1 $41,540,734 Transportation and Warehousing N/A N/A

32 Rhode Island Betaspring 54 $52,000 $74,545 $60,128 64.8% 2 0 $0 Information Professional, Scientific, and Technical 

Services Manufacturing

33 Rhode Island Slater Technology Fund 14 $100,000 $11,500,000 $645,000 22.8% 4 4 $22,771 Manufacturing Professional, Scientific, and Technical 

Services

Information

Utilities

34 Tennessee INCITE Fund 83 $32,000 $6,534,061 $900,000 31.4% 7 3 $328,985 Information Professional, Scientific, and Technical 

Services Manufacturing

35 Texas Jobs for Texas-Venture Capital 42 $100,000 $20,000,000 $3,500,000 25.0% 9 6 $262,331 Information Professional, Scientific, and Technical 

Services Manufacturing

36 Utah Equity Investment Program 4 $850,000 $4,975,000 $940,785 27.2% 17 2 $702,685 Information

Professional, Scientific, and Technical 

Services

Finance and Insurance

N/A

37 Virginia Center for Innovative Technology (CIT) 

GAP Fund 29 $88,335 $9,600,000 $355,000 25.0% 6 2 $29,000 Information Professional, Scientific, and Technical Services

Retail Trade

Manufacturing

38 Washington W Fund 21 $35,000 $2,500,000 $500,000 75.0% 3 1 $0

Professional, Scientific, and 

Technical Services

Manufacturing

Information Mining, Quarrying, and Oil and Gas 

Extraction

39 West Virginia Seed Capital Co-investment Fund 30 $75,000 $3,230,000 $280,000 50.0% 4 6 $784,810 Manufacturing Professional, Scientific, and Technical 

Services Construction

40 Wisconsin Wisconsin Equity Fund 59 $54,246 $4,000,000 $600,000 23.3% 8 3 $156,000 Manufacturing Professional, Scientific, and Technical 

Services Information
Typical Venture Capital Transaction, by Approved State Program 350

Principal Investment Amount Top 3 Industries Assisted

# Participating 

State Approved State Program # Investments Minimum Maximum Median

Median % 

SSBCI 

Support per 

Investment

Median Size of 

Business 

Supported 

(FTEs)

Median Age 

of Business 

Supported 

(Years)

Median 

Revenue of 

Business 

Supported

#1 #2 #3

41 Wyoming -

Laramie Seed Capital Network Program 11 $20,400 $200,000 $73,000 50.0% 0 3 $0 Retail Trade N/A N/A

Total 1,324 $10,000 $20,000,000 $500,000 28.0% 5 2 $27,831 Professional, Scientific, and 

Technical Services Information Manufacturing

PROGRAM EVALUATION OF THE US DEPARTMENT OF TREASURY 

STATE SMALL BUSINESS CREDIT INITIATIVE 

OCTOBER 2016

PREPARED BY

CENTER FOR REGIONAL ECONOMIC COMPETITIVENESS

CROMWELL SCHMISSEUR