Federal funding for small businesses: Understanding the state small business credit initiative

Editorial Team

3 min read
Cafe owner writing in notebook on counter

Many COVID-spawn economic relief programs for small businesses have come and gone. However, there are still programs out there that offer small businesses a helping hand in this time of high inflation and economic unrest.

Enter the “State Small Business Credit Initiative” or SSBCI. 

About the state small business credit initiative

The SSBCI is a program from the treasury department that provides federal funding to states, territories and eligible municipalities looking to create or grow small business investment programs, capital asset programs, loan guarantee programs, and other economic initiatives focused on improving small businesses in their community. Additionally, the program places an emphasis on supporting minority-owned businesses and those who may not have access to the capital needed to grow their business.

How to get a piece of this economic pie

The treasury has allocated $10 billion for this program to be divided amongst qualifying areas. That money is then given to relevant agencies and organizations in those areas to distribute to the businesses of their constituents as they see fit.

Where to find information for your area

If you’re interested in finding out what agencies are involved in your area, check out this helpful resource by the Council of Development Finance Agencies. This resource outlines many important aspects of the program, including its history, educational resources, relevant upcoming events, and, most importantly, the organizations on-point to distribute funds. Simply click on your respective area and see what organizations still have funding, fact-sheets of their programs, and needed guidelines.

It’s important to note that these agencies will not reach out to you. Instead, you must be proactive to increase your chances to receive funds.

How to get started 

Begin networking within the relevant organizations and fulfilling necessary paperwork and applications. Some of these applications can take time, so we recommend lining up all your financial information prior to applying. (Luckily, that’s made easier when you do reporting via Clover!) Important documents can include your tax returns, income statements, existing loan documentation, and more. This can vary from organization to organization. 

Ultimately, these loans and grants are designed to help small business owners, like you. So definitely check it out and apply. Each region has a large amount of money to distribute, and your business could be a perfect candidate for this program.

As you take advantage of these government-provided resources, remember, too, that Clover is also here to help your business thrive and keep the cash flowing.

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This information is provided for informational purposes only and should not be construed as legal, financial, or tax advice. Readers should contact their attorneys, financial advisors, or tax professionals to obtain advice with respect to any particular matter.

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