State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 1

Please use pages 2 through 12 to provide the following OCSP Program Information: 

1. SECTION 1: A description of the background of the program. Please provide your 

narrative on page 2. 

2. SECTION 2: A description summarizing the program guidelines. Please provide 

your narrative on pages 4-6.

3. SECTION 3: A description of the anticipated benefits of the state, territory, or 

Tribal government’s in-state and out-of-state loans and investments to the state, 

territory, or Tribal government, its businesses, and its residents including the extent 

to which the resulting small business lending and investing will expand economic 

opportunities. Please provide your narrative on pages 8-9. 

4. SECTION 4: A description of how the OCSP will, at a minimum, “cause and result 

in” $1 of new private credit for every $1 of SSBCI funds used by the OCSP. Please 

provide your narrative on page 10.

5. SECTION 5: A description of how the OSCP will ensure a meaningful amount of 

lender/investor capital is at risk. Please provide your narrative on page 11. 

6. SECTION 6: A description of how the OCSP will provide credit support that meets 

the requirements based on borrower or investee size, average principal 

loan/investment amount, and maximum loan/investment amount. Please provide your 

narrative on page 12. 
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 2

SECTION 1: A description of the background of the program, including historic performance of 

the program (for programs that have operated before) and expected performance.
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 3

SECTION 2: A description summarizing the program guidelines. Include information on the 

credit/investment characteristics and the operating mechanics of the OCSP such as: 

a. qualifications or eligibility requirements for small business borrowers/investees and 

lenders/investors 

b. minimum and maximum loan/investment amounts

c. standard loan types (e.g., term loans, lines of credit, etc.) and investments (e.g., 

equity, preferred equity, subordinated debt, etc.) and processes for reviewing nonstandard transactions 

d. limitations on use of loan/investment proceeds 

e. other standard terms required in loan, collateral support or guarantee provided, or 

investment agreement terms

f. sources for loan originations or investment opportunities in the program 

g. processes for negotiating and approving loan/credit support or investment terms 

h. processes for determining and documenting the “cause and result” of private capital 

leverage related to the loan or investment

i. kinds of and rates for fees (e.g., application and origination fees, guarantee fees, 

management fees, etc.) that may be charged

j. processes for monitoring compliance and performance of outstanding 

loans/investments

k. processes for addressing loan defaults or investment write-offs

Also, provide the following information relevant to the type of OCSP as follows: 

Loan Participation Program (LPP) – Describe how the program is structured, that is, explain 

whether the program purchases participation (the state, territory, the District of Columbia, or 

Tribal government purchases a portion of a loan originated by a lender), or originates companion 

loans (or co-lending participation or parallel loans in which a lender originates a senior loan and 

the state, territory, the District of Columbia, or Tribal government originates a second loan to the 

same borrower). Also, include the maximum percentage of the loan that the state, territory, the 

District of Columbia, or Tribal government can participate.

Collateral Support Program (CSP) – Include information on the maximum percentage of the loan 

amount that may be covered by the collateral, the form of collateral to be provided, and where 

the collateral will be held.

Loan Guarantee Program (LGP) – Include information on the maximum percentage of the loan 

that the guarantee will cover and describe how the reserve fund would work. 

Equity Capital Program (Funds) and Equity Capital Program (Direct) – Describe the structure of 

the Equity Capital Program and the capital deployment model. 
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 4

SECTION 2 (continued):
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 5

SECTION 2 (continued):
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 6

SECTION 2 (continued):
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 7

SECTION 3: A description of the anticipated benefits of the state, territory, the District of 

Columbia, or Tribal government’s in-state and out-of-state loans and investments to the state, 

territory, the District of Columbia, or Tribal government, its businesses, and its residents 

including the extent to which the resulting small business lending and investing will expand 

economic opportunities. For example, climate transition investments may result in efficient 

energy use, sustainable jobs, or economic growth in sustainable manufacturing and industrial 

decarbonization, sustainable agriculture, bio-materials, and electric vehicles and changing 

infrastructure. Another example is that investments in areas such as small and mid-size enterprise 

(SME) manufacturing and supply chain resiliency may result in stronger economic growth, highquality jobs, and innovation. Also, investments focused on innovation in supply chains of critical 

products such as semiconductors, critical minerals and materials, and advanced pharmaceuticals 

may provide long-term national and economic security benefits. Refer to the SSBCI Capital 

Program Policy Guidelines, Section VIII. Approving State OCSPs, subsection g. Additional 

Considerations for Approving OCSPs – Anticipated Benefits to the State – 12 U.S.C. § 

5705(d)(1).
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 8

SECTION 3 (continued):
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 9

SECTION 3 (continued):
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 10

SECTION 4: A description of how the OCSP will, at a minimum, “cause and result in” $1 of 

new private credit for every $1 of SSBCI funds used by the OCSP. For example, for OCSPs 

involving equity capital, applicants may specify such safeguards as limiting investments to 

anchor investments, prohibiting SSBCI participation after a fund’s initial close, or only 

permitting investments in funds for which private capital is likely to be catalyzed by SSBCI 

participation based on the funds' age, size, or experience. In addition, please complete the 

leverage ratio tables for this OCSP program in Section 8.1C of the application. Refer to the 

SSBCI Capital Program Policy Guidelines, Section VIII. Approving State OCSPs, subsection c. 

1:1 Financing – 12 U.S.C. § 5705(c)(1).
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 11

SECTION 5: A description of how the OSCP will ensure a meaningful amount of 

lender/investor capital is at risk. If the OCSP provides credit/equity support through a financial 

institution or non-financial institution lender or investor, such lender or investor must have a 

meaningful amount of capital resources at risk. The term “meaningful amount” may vary for 

lenders and investors in different programs, as some will bear risk at the transaction level while 

others bear pooled risk. Capital at risk guidelines for OCSPs are contained in the SSBCI Capital 

Program Policy Guidelines. Refer to the SSBCI Capital Program Policy Guidelines, Section VIII. 

Approving State OCSPs, subsection d. Lender or Investor Capital at Risk – 12 U.S.C. § 

5705(c)(3).
State Small Business Credit Initiative Application 8.1B – OCSP Program Information

Applicant 

Name

Program 

Name

OMB Control # 1505-0227 12

SECTION 6: A description of how the OCSP will provide credit support that meets all of the 

following requirements: 

a. targets an average borrower or investee size of 500 employees* or less; 

b. does not extend support to borrowers or investees that have more than 750 employees; 

c. targets support towards loans or investments with an average principal amount of 

$5,000,000 or less; and 

d. does not extend credit support to loans or investments that exceed a principal amount of 

$20,000,000. 

*The definition at 12 CFR §121.106 should be used to calculate the number of employees. 

Refer to the SSBCI Capital Program Policy Guidelines, Section VIII. Approving State OCSPs, 

subsection e. Borrower/Investee and Loan/Investment Size Requirements – 12 U.S.C. § 

5705(c)(4).