State Small Business Credit 

Initiative

FY 2016

President’s Budget

February 2, 2015
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Resource Detail Table........................................................................................................ 3

1B – Vision, Priorities and Context............................................................................................ 3

Section 2 – Budget Adjustments and Appropriation Language............................................... 7

2.1 – Budget Adjustments Table................................................................................................. 7

2A – Budget Increases and Decreases Description..................................................................... 7

2.2 – Operating Levels Table...................................................................................................... 8

2B – Appropriations Language and Explanation of Changes..................................................... 9

2C – Legislative Proposals.......................................................................................................... 9

Section 3 – Budget and Performance Plan ............................................................................... 10

3A – State Small Business Credit Initiative Program............................................................... 10

3.1.1 – State Small Business Credit Initiative Program Budget and Performance Plan........... 11

3B – State Small Business Credit Initiative Administration..................................................... 11

3.1.2 – State Small Business Credit Initiative Administration Budget and Performance Plan 12

Section 4 – Supplemental Information...................................................................................... 13

4A – Summary of Capital Investments..................................................................................... 13
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Section 1 – Purpose

1A – Mission Statement

To increase the availability of credit for small businesses and to generate jobs and other 

economic development benefits for states, Treasury has implemented the State Small Business 

Credit Initiative (SSBCI).

1.1 – Resource Detail Table

Dollars in Thousands

State Small Business Credit Initiative FY 2014 FY 2015 FY 2016 FY 2015 to FY 2016

Budgetary Resources Actual Estimated Estimated $ Change % Change

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budgetary Resources:

Recovery from Prior Years 0 1,781 0 2,020 0 1,000 0 (1,020) 0.00% -50.50%

Unobligated Balances from Prior Years 0 25,376 0 19,323 0 14,118 0 (5,205) 0.00% -26.94%

Subtotal Budgetary Resources 0 $27,157 0 $21,343 0 $15,118 0 (6,225) 0.00% -29.17%

Other Resources:

SSBCI Program 0 $103 0 $0 0 $0 0 0 0.00% 0.00%

SSBCI Administration 10 $7,731 11 $7,225 9 $6,086 (2) (1,139) -18.18% -15.76%

Subtotal Other Resources 10 $7,834 11 $7,225 9 $6,086 (2) 1,139 -18.18% -15.76%

Net Results 10 $19,323 11 $14,118 9 $9,032 (2) 5,086 -18.18% -36.02%

1B – Vision, Priorities and Context

The SSBCI funds new and existing state programs that support lending to and investment in 

small businesses in order to stimulate economic growth and new jobs. Under the SSBCI, 

participating states use the federal funds for programs that leverage private lending to help 

finance small businesses and manufacturers that are creditworthy but are not getting the loans 

they need to expand and create jobs. 

The Small Business Jobs Act of 2010 (the Act) authorized and appropriated $1.5 billion for 

SSBCI through FY 2017. Due to the success of SSBCI, the FY 2016 President’s Budget 

proposes a new authorization of $1.5 billion to build on the momentum of the program's first 

round, strengthen the Federal government's relationships with state economic development 

agencies, and provide capital to America’s diverse community of entrepreneurs. The new 

authorization would run from FY 2016 through FY 2022.

The SSBCI allows states to build on successful models for state small business lending and 

investment programs, including capital access programs (CAPs), collateral support programs, 

loan guarantee programs, loan participation programs, and venture capital programs. States are

required to demonstrate a reasonable expectation that a minimum of $10 in new private lending 

will result from every $1 in federal funding over the life of the program. The SSBCI aligns with 

Treasury’s strategic goal to promote domestic economic growth and stability while continuing 

reforms of the financial system. 
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Priorities: 

• To provide direct funding support to states for use in programs designed to increase access to 

credit for small businesses.

• To support state CAPs and other credit support programs that support lending to and 

investment in small businesses and small manufacturers.

• To monitor the deployment of SSBCI funds among approved state programs and to ensure 

adherence to all Treasury compliance standards.

• To promote best practices in program design, operations, and marketing among state-run 

programs. 

• To provide technical assistance to states as they implement these programs and deploy funds 

to eligible small businesses.

SSBCI Program Activities

On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 

(the Act). Section 3003 of the Act authorized and directed the Secretary of Treasury to establish 

a seven-year SSBCI, which was funded with $1.5 billion to support state programs that support 

lending to small businesses and small manufacturers. Since the passage of the Act, the SSBCI 

has had a positive impact on small business access to capital and local economies around the 

nation, helping over 8,500 businesses create or retain over 95,000 jobs as reported by the small 

businesses who received the loans and investments1

.

Proposal for Extension

The FY 2016 President’s Budget proposes a new authorization of the SSBCI to build on the 

momentum of the program’s first round of funding, strengthen the Federal government’s 

relationships with state economic development agencies, and provide capital to America’s 

diverse community of entrepreneurs. The budget proposes extending SSBCI with a new 

authorization of $1.5 billion awarded in two allocations: $1 billion awarded on a competitive 

basis to states best able to target local market needs, promote inclusion, attract private capital for 

start-up and scale-up businesses, strengthen regional entrepreneurial ecosystems, and evaluate 

results; and $500 million awarded by a need-based formula.

Program Activity to Date

Under the SSBCI, states were offered the opportunity to apply for federal funds for programs 

that support private lending and investing to extend greater credit to small businesses. SSBCI 

support helps borrowers address a credit weakness due to devaluation of collateral, a short track 

record, or short-term reduction in sales or cash flow. The SSBCI allows states to build upon 

existing, successful state-level small business lending and investing programs, such as Capital 

Access Programs (CAPs), collateral support programs, loan participation programs, loan 

guarantee programs, and state-sponsored venture capital programs. If a state did not have an 

existing small business program, the state could establish one in order to access this funding. 

 1 Source for transaction and job creation and retention figures is the annual report data submitted by states for the 

periods ending December 31, 2011, 2012, and 2013.
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By the end of FY 2014, 56 of the 57 program participants reported using SSBCI funds to support 

loans or investments in businesses using disbursed funds. As of September 30, 2014, Treasury 

had outlayed to states approximately $1.14 billion or 79 percent of the total funds available for 

disbursement. Treasury expects states to qualify to receive most of the remaining funds in 

FY 2015 and FY 2016. States report transaction details to Treasury on an annual basis. Data 

through December 2013, the first 32 months of activity, when states expended $590 million in 

SSBCI funds to leverage $4.1 billion in private financing, suggest the following key findings:

• SSBCI funds have already supported thousands of loans and investments that might 

not otherwise have been made to small businesses in a wide range of sectors. SSBCI 

financing reached small businesses in industries ranging from retail trade to manufacturing, 

hospitality, and many types of services. About two-thirds of all loans or investments 

supported by SSBCI were for less than $100,000, and the average loan or investment size 

was $356,000. 

• SSBCI funds have helped create or save more than 95,000 American jobs. The small 

business owners who received financing expect that the loans and investments they received 

will create over 32,000 jobs within two years and help retain more than 63,000 jobs that were 

at risk of loss. 

• SSBCI funds support businesses with the highest potential to create new jobs. More 

than half of all SSBCI loans or investments went to young businesses less than five years old, 

which economic research by the Kauffman Foundation suggests are more likely to create 

new jobs than similarly-sized businesses that are farther along in their development. Nearly 

80 percent of SSBCI loans and investments went to businesses with 10 or fewer employees. 

• Forty-two (42) percent of SSBCI loans and investments were made to businesses in lowand moderate-income communities with incomes at or below 80 percent of the area 

median income. SSBCI has been effective in supporting small businesses in areas that were

hit hardest by the recession and where the need is greatest. 

• Through 2013, SSBCI operations have already generated $6.95 in new small business 

lending or investing for every $1 of federal support. States expect private sector leverage 

to increase to 10 to 1 before the program concludes. 

• SSBCI has helped create over 82 new small business support programs, which account 

for approximately 50 percent of the programs currently disbursing SSBCI funds. 

Through the availability of SSBCI funds, a new infrastructure of state-operated credit support 

programs has been created across the country. 

States were eligible to apply for funds that were allocated by formula in the Act based on each 

state’s decline in employment relative to the overall national decline. Pursuant to the Act, funds 

were available to all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the 

Commonwealth of Northern Mariana Islands, Guam, American Samoa, and the United States 

Virgin Islands. In the event a state chose not to participate in SSBCI, municipalities in that state 

could apply for the state’s allocation. Ultimately, 47 of 50 states applied to participate in SSBCI 

(North Dakota, Wyoming, and Alaska did not participate).

Through FY 2013, Treasury approved a total of 57 allocations to 47 states, the District of 

Columbia, five U.S. territories, and four municipalities (or consortia of municipalities) from 

Alaska, North Dakota, and Wyoming. Once approved, all funding for each respective entity is 

allocated. Treasury transfers funds to participating states in three disbursements (outlays). 

Outlays occur as the participating states expend, obligate, or transfer the funds and submit 
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disbursement requests to Treasury. In addition, less than three percent of the appropriation has 

been allocated to Treasury administrative expenses, which also covers administrative expenses of 

the Office of Inspector General dedicated to auditing the use of SSBCI funds. Treasury will 

expend administrative costs over the seven-year life of the program.

FY 2016 Program Activity

In FY 2016, the SSBCI will continue to monitor and provide technical assistance to states. 

Treasury staff and contractors will provide services that include training and support for program 

design, operations, and outreach to financial institutions. 

Treasury proposes a new SSBCI authorization of $1.5 billion (Round 2). Round 2 would be 

awarded in two parts: $1 billion awarded on a competitive basis to states for applications that 

demonstrate the greatest potential impact and $500 million allocated to states according to a 

need-based formula. Potential categories being considered for competitive scoring include a 

state’s ability to target local market needs, promote inclusion, attract private capital for start-up 

and scale-up businesses, strengthen regional entrepreneurial ecosystems, and evaluate results

among other factors. During FY 2016, SSBCI would administer both the formula and 

competitive award process with some awards made in FY 2016 and the remainder in FY 2017. 

Treasury estimates outlays to states of $210 million in FY 2016 with most of the remaining 

outlays under Round 2 occurring in FY 2017 and FY 2018.

Office of Inspector General (OIG) Activities

In FY 2016 the OIG will continue to provide audit and investigative oversight of SSBCI. The 

authorizing legislation directs the OIG to audit the use of SSBCI funds by participating states so 

that Treasury can recoup any recklessly or intentionally misused funds identified by such audits.

The FY 2016 budget request will support 15 OIG employees through a reimbursable agreement 

and allow the OIG to augment its resources with contractors, as needed, to perform a significant 

number of audits of the use of SSBCI funds. The OIG plans to audit both how the states are 

carrying out their oversight responsibilities and whether the institutions and businesses 

participating in the state programs funded by SSBCI are in compliance with loan-use restrictions 

and requirements. Because many states did not draw on all of their allocated funds by the twoyear anniversary of their Allocation Agreements, Treasury extended the timeframe for the 

disbursement of funds until FY 2015. The OIG is expecting to continue to perform a significant 

number of audits during FY 2016 as states increase their use of funds and request additional 

disbursements from Treasury for Round 1, and if adopted, for Round 2.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

State Small Business Credit Initiative FTE Amount

FY 2015 Estimated 11 $7,225

Changes to Base:

Maintaining Current Levels (MCLs): - $123

Pay-Raise - $19

Pay Annualization - $5

FERS Contribution Increase - $7

Non-Pay - $92

Subtotal Changes to Base - $123

Total FY 2016 Base 11 $7,348

Program Changes:

Program Decreases: (2) ($1,262)

Program Decreases (2) ($1,262)

Total FY 2016 Estimated 9 $6,086

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) .........................................................+$123,000 / +0 FTE

Pay-Raise +$19,000 / +0 FTE 

Funds are required for the proposed January 2016 pay-raise.

Pay Annualization +$5,000 / +0 FTE 

Funds are required for annualization of the January 2015 pay-raise. 

FERS Contribution Increase +$7,000 / +0 FTE 

Funds are required for increases in agency contributions to the Federal Employee Retirement 

System based on updated actuarial estimates.

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

Funds are required for non-labor costs such as travel, contracts, rent, and equipment.

Program Decreases .....................................................................................-$1,262,000 / -2 FTE

Program Decreases -$1,262,000 / -2 FTE 

Contract and personnel support related to state technical assistance will decrease as the funding 

allocated to the states and municipalities becomes fully expended.
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2.2 – Operating Levels Table

Dollars in Thousands

State Small Business Credit Initiative FY 2014 FY 2015 FY 2016

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 1,285 1,425 1,108

11.9 - Personnel Compensation (Total) 1,285 1,425 1,108

12.0 - Personnel benefits 395 505 394

Total Personnel and Compensation Benefits $1,680 $1,930 $1,502

21.0 - Travel and transportation of persons 64 125 125

23.1 - Rental payments to GSA 246 214 214

23.3 - Communication, utilities, and misc charges 4 0 0

25.1 - Advisory and assistance services 2,589 1,591 1,013

25.2 - Other services 2 0 0

25.3 - Other purchases of goods & serv frm Govt accounts 3,239 3,335 3,202

26.0 - Supplies and materials 10 30 30

Total Non-Personnel 6,154 5,295 4,584

Total Budgetary Resources $7,834 $7,225 $6,086

Budget Activities:

SSBCI Program 103 0 0

SSBCI Administration 7,731 7,225 6,086

Total Budgetary Resources $7,834 $7,225 $6,086

FTE 10 11 9
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2B – Appropriations Language and Explanation of Changes

SSBCI does not receive a discretionary appropriation authority from Congress. Therefore, no 

appropriations language is proposed.

2C – Legislative Proposals

Treasury recommends new legislation authorizing a $1.5 billion extension of the SSBCI. $1 

billion will be competitively awarded to states best able to target local market needs, promote 

inclusion, attract private capital for start-up and scale-up businesses, strengthen regional 

entrepreneurial ecosystems, and evaluate results among other factors. An additional $500 

million will be allocated to states according to a need-based formula. 

Justification

SSBCI effectively supports state-sponsored public-private partnerships to increase lending and 

investment to small businesses and manufacturers. SSBCI is already achieving results: the first 

$590 million in program expenditures supported loans and investments of $4.1 billion to more 

than 8,500 small businesses across the country—creating or saving more than 95,000 American 

jobs as reported by the small businesses who received the loans and investments. The FY 2016 

President’s Budget proposes to improve the targeting of SSBCI funding through competitive 

awards. A second round of SSBCI funding would also increase the impact of states’ newly 

developed relationships with lenders and investors from the program’s first round and would 

solidify a role for state economic development agencies which are highly responsive to capital 

needs in local markets. Further, because an extended program would build on the successes of 

newly created programs or legacy programs that were restarted with SSBCI funding, Treasury 

estimates that it would outlay funds at a faster rate than under the first round of funding.
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Section 3 – Budget and Performance Plan

3A – State Small Business Credit Initiative Program

($0 from mandatory appropriations): 

On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 

(the “Act”). Section 3003 of the Act authorized and directed the Secretary of Treasury to 

establish a seven-year SSBCI, which was funded with $1.5 billion to support state programs that 

support lending to small businesses and small manufacturers. The SSBCI supports new small 

business lending and investment through innovative state and local programs that help 

entrepreneurs expand their businesses and create new jobs. 

Under the SSBCI, participating states use the federal funds for programs that leverage private 

lending to help finance small businesses and manufacturers that are creditworthy but are not 

getting the loans they need to expand and create jobs. The SSBCI allows states to build on 

successful models for state small business programs, including CAPs, collateral support 

programs, loan guarantee programs, loan participation programs, and venture capital programs. 

Existing and new state programs are eligible for support under the SSBCI. 

By the end of FY 2013, states reported expending, obligating, or transferring over $677 million 

in SSBCI funds, more than double the total at the end of FY 2012. States have continued to 

deploy funds such that by June 30, 2014, states had expended, obligated, or transferred $891 

million. As of September 30, 2014, Treasury had disbursed over $1.14 billion, or 79 percent of 

allocations to states. SSBCI estimates disbursing cumulative totals of approximately $1.40 

billion by the end of FY 2015 and $1.44 billion by the end of FY 2016, as states request 

disbursement of their approved allocations under the program. 

In FY 2016, Treasury will continue to monitor the performance of state programs, tracking loans 

and investments made with SSBCI funds and disbursing obligated funds to states. In addition, 

Treasury will process requests from states to modify their allocation agreements to reapportion 

funds from lower to higher performing programs and to optimize program design in order to 

improve performance. Treasury plans to approve or deny 90 percent of all state requests for 

modifications and subsequent disbursements within 90 calendar days of final receipt. 

Additionally, Treasury plans to collect 90 percent of all quarterly reports within five days of the 

deadline to report. Treasury will also provide on-going technical support to recipients, including 

the dissemination of practices among recipients on such elements as program design, operations, 

and marketing.

Treasury proposes a new SSBCI authorization of $1.5 billion. In FY 2016, Treasury will process 

applications for need-based awards and will prepare and release the application for competitive 

awards. 
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3.1.1 – State Small Business Credit Initiative Program Budget and Performance Plan

Dollars in Thousands

SSBCI Program Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Estimated Estimated

 Mandatory Resources $0 $1,258,900 $188,384 $13,198 $103 $0 $0

Budget Activity Total $0 $1,258,900 $188,384 $13,198 $103 $0 $0

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

Actual Actual Actual Target Target

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

State Subsequent Disbursement Requests Approved or Denied 

within 90 days (%) 100 100 96 90 90

State Requests to Modify Allocation Agreements Approved or Denied 

within 90 days (%) 100 90 95 90 90

Receive State Quarterly Reports within five business days of 

reporting deadline (%) 100 93 95 90 90

As a source of funding for credit support and investment programs that increase access to capital 

for small businesses, SSBCI is aligned to Treasury’s Strategic Goal 1 “Promote domestic 

economic growth and stability while continuing reforms of the financial system” including 

managing and exiting emergency programs. Additionally, the SSBCI is aligned with Treasury’s 

Strategic Goal 2, “Enhance U.S. competitiveness and job creation, and promote international 

financial stability and more balanced global growth” by supporting lending to and investment in 

startup and early stage companies.

SSBCI sets three performance goals to measure the efficiency of program operations where 

Treasury can expressly influence the outcomes. The first goal is that Treasury approves or 

denies 90 percent of states’ requests for a subsequent disbursement of funds within 90 days of 

receipt of a formal submission. In FY 2014, SSBCI processed 96 percent of requests within 90 

days, excluding requests that were delayed due to ongoing or unresolved audits by the 

OIG. Similarly, SSBCI aims to process 90 percent of all requests by states to modify the 

Allocation Agreement with Treasury within 90 days. In FY 2014, SSBCI processed 95 percent 

of requests within 90 days. Finally, SSBCI aims to collect 90 percent of all quarterly reports 

within five days of the deadline to report. In FY 2014, SSBCI received 95 percent of quarterly 

reports from states within five business days of the reporting deadline.

3B – State Small Business Credit Initiative Administration 

($6,086,000 from mandatory appropriations): 

The authority to pay administrative expenses is provided by Section 3009 (b) of the Act which 

appropriates $1.5 billion to carry out the state small business credit program “including to pay 

reasonable costs of administering the program.” Administrative expenses include the costs of 

government employee salaries, contract support, and reimbursement to the Treasury Office of 

Inspector General for program audits.
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3.1.2 – State Small Business Credit Initiative Administration Budget and Performance Plan

Dollars in Thousands

SSBCI Administration Budget Activity

Resource Level FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Actual Actual Actual Actual Actual Estimated Estimated

 Mandatory Resources $0 $5,393 $4,746 $6,431 $7,731 $7,225 $6,086

Budget Activity Total $0 $5,393 $4,746 $6,431 $7,731 $7,225 $6,086
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Section 4 – Supplemental Information

4A – Summary of Capital Investments

SSBCI uses Departmental Office’s (DO) systems and is part of DO’s capital investment strategy.

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed and downloaded 

at http://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx

This website also contains a digital copy of this document.