State Small Business Credit Initiative (SSBCI): $10 Billion is Up for Grabs
A federal program called the state small business credit initiative (SSBCI) has finally started distributing committed funds totaling $10 billion to small businesses across the country.
This is a direct result of the 2021 American Rescue Plan Act and should not be confused with the paycheck protection program, economic injury disaster loan program, or another loan from the Small Business Administration (SBA).
This is a larger version of the state small business credit initiative that was introduced in 2010 to provide small businesses with much-needed capital. That credit extended just $1.4 billion but was extremely successful.
Now, at a time when small businesses and communities are struggling financially, the state small business credit initiative is back, larger than before with the same goal of providing capital and increasing employment opportunities.
Let’s take a closer look at the credit and how your business can claim it.
How is the Money Being Dispersed?
As mentioned, the plan is to distribute $10 billion to all 50 states, the District of Columbia, and tribal territories based on local unemployment and the need for job creation. The money is set to be disbursed over the next year.
Once the money is in the state’s hands, it will then be transferred to organizations that support and finance small businesses. “These are community development investment funds (CDFIs), minority deposit institutions (MDIs), community banks, economic development groups, and other non-profits that work with small businesses in their areas.” explains the Guardian.
What is the Money Used for?
The money will take the form of grants, loans, and equity investments but “can also be used to collateralize new debt with existing banks or insure their repayments.”
Businesses that struggle with receiving financing are the target of the state small business credit initiative. The idea is, that with this extra boost, small businesses will have expanded access to capital as they emerge from the pandemic, build ecosystems of opportunity and entrepreneurship, and create high-quality jobs within local communities.
There are also dedicated funds for “minority-owned businesses” and “businesses located in low- to moderate-income areas.”
This program is dishing out funds at the right time as inflation continues to rise and small business owners are feeling the effects of struggling to raise capital.
How Can You Apply?
As a small business owner, if you are interested in claiming this credit, you’ll need to do a bit of footwork. Seek out the organizations receiving the money from the state small business credit initiative and get into contact with them. The organizations won’t seek out you and your business, so be sure you get your name into the ring.
When it’s time to apply, be ready.
You’ll need:
- Bank statements
- Tax returns
- Financial records
You want to do everything you can to get one of these organizations to spend the money on your business.
Remember, while this program is funded at the federal level, applying and claiming the credit is on the state level. This means application requirements and deadlines may vary. Click here to access a map with state-by-state guidelines for applying and specific program information.
Contact U-nique Accounting for Assistance
This credit could potentially save your business from the pending financial struggles expected over the next year. Take advantage of it now before the funds dry up and you’ve missed the opportunity.
If you are unsure if you qualify, need assistance applying, or simply want to learn more about the state small business credit initiative, contact Unique Accounting!
We are experienced in helping small business owners claim credits like this one and are happy to work with you and answer your questions.
