State Small Business Credit Initiative 

Program Summary by Budget Activity 

(Dollars in thousands)

Budget Activity FY 2010 FY 2011 FY 2012 Change FY10-FY12 

Actual Estimated Estimated $ Change % Change

 SSBCI Program $0 $487,000 $732,000 $245,000 50.3%

 Administration $0 $6,410 $7,488 $1,078 16.9%

Total Outlays $0 $493,410 $739,488 $246,488 49.9%

Total FTE 0 9 12 3 33.3%

Summary 

 

The State Small Business Credit Initiative 

(SSBCI) is a Federal program that provides 

direct funding support to states for use in 

programs designed to increase access to credit 

for small businesses. The SSBCI was 

appropriated with $1.5 billion to support State 

capital access programs (CAPs) and other 

credit support programs (OCSP) that support 

lending to small businesses and small 

manufacturers. CAPs provide portfolio 

insurance for business loans based on a 

separate loan loss reserve fund for each 

participating financial institution. OCSPs 

include collateral support programs, loan 

participation programs, state-sponsored 

venture capital programs, loan guarantee 

programs or similar programs. 

The estimated outlays for FYs 2011 and 2012 

anticipate disbursement of at least one third of 

the total $1.5 billion appropriation in FY 

2011, as all states are required to apply no 

later than June 27, 2011, and $732 million in 

FY 2012. 

Purpose of Program 

 

The purpose of the SSBCI is to increase the 

availability of credit for small business, to 

generate jobs and other economic 

development benefits for states. It is expected 

to help spur up to $15 billion in lending to 

small businesses. Under SSBCI, participating 

states will 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. SSBCI will 

allow states to build on successful models for 

state small business programs, including 

Capital Access Programs (CAPs), collateral 

support programs, and loan guarantee 

programs. 

Explanation of Budget Activities 

 

Each state that is approved for participation in 

the SSBCI will receive its allocation of funds 

in three disbursements as follows: 33 percent, 

33 percent and 34 percent. As a precondition 

to receipt of the second and third 

disbursements, the state must, among other 

things, certify to Treasury that it has 

expended, transferred or obligated 80 percent 

or more of the last-disbursed one-third 

disbursement of allocated funds to or for the 

account of one or more approved state 

programs. Furthermore, funds allocated to the 

states should be transferred within two years 

beginning on the date the application is 

approved. 

Less than 3 percent of the appropriation has 

been allocated for administrative expenses. 

The administrative costs are expected to be 

spent over a period of seven years beginning 

on the date of the enactment of the Act on 

September 27, 2010. 
Legislative Proposals 

 

The State Small Business Credit Initiative 

has no legislative proposals.

Description of Performance 

 

Performance metrics are currently in 

development for the State Small Business 

Credit Initiative and will be finalized in 2011.