- The programme provides cash to minority-owned businesses, businesses in low-income areas, and firms who are having difficulty obtaining finance.
- The federal government is putting up $10 billion, and all small enterprises in the country are eligible.
- The programme is known as the state small business credit initiative, or SSBCI, and it operates in the following manner.
A not-so-new US federal government programme to assist small businesses began disbursing funding this week. How much is it? How does $10 billion sound?
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That isn’t a joke. The federal government is putting up $10 billion, and all small enterprises in the country are eligible. This is neither the wage protection or economic injury disaster loan programme. Both of those Covid-relief projects are no longer active. This is also not a Small Business Administration loan programme. It was sent by the Treasury Department. The programme is known as the state small business credit initiative, or SSBCI, and it operates in the following manner.
The 2021 American Rescue Plan Act authorises the Treasury Department to distribute $10 billion to each state, the District of Columbia, and tribal territories based on a formula based on local unemployment and the need for job development. As previously stated, the funds began to flow to five states just last week and will continue to do so for the rest of the year. As previously stated, the programme is not new. SSBCI was founded in 2010 and distributed $1.5 billion at the time. So we’ll refer to this as version 2.0.
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So, how does your company gain access to these funds? Start by Googling “SSBCI” and your state, or visit the Council of Development Finance Agencies’ state resources map. The monies will be disbursed to existing and authorised organisations that finance and promote local small enterprises once received by the states. These include CDFIs, minority deposit institutions (MDIs), community banks, economic development groups, and other non-profits that work with small companies in their communities.
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