Colorado State Small Business Credit Initiative

Please note that the State Small Business Credit Initiative (SSBCI) program is not available for direct applications from businesses. These federal funds will support the individual Colorado programs listed below. Once we have received the funds from the U.S. Treasury, businesses will be able to apply to the individual programs funded by the program, not through SSBCI. 

As a part of the federal American Rescue Plan Act (ARPA), the federal government passed the State Small Business Credit Initiative (SSBCI) bill to fund small business credit support and investment programs. This initiative was originally created in 2009 under the Obama Administration. Colorado’s allocated funding in 2009 helped create the Cash Collateral Support program designed to help small- to medium-sized businesses who had difficulty accessing capital due to a lack of collateral. SSBCI dollars are not allowed by federal law to be used as grant funding.

With the new SSBCI funds, we expect to be allocated $104,773,554 and to receive these dollars in late summer 2022. In addition to strengthening capital programs that support private financing to small businesses, SSBCI is also intended to ensure more equal access to startup capital across the country, including in underserved communities. As part of its participation in SSBCI, the State will ensure funds are deployed to very small businesses and those owned by socially and economically disadvantaged individuals. 

Colorado will apply this new SSBDC allocation from ARPA through the following programs: 

  • Venture Capital Authority Fund: With the SSBCI funding, the Venture Capital Authority will partner with multiple funds to provide capital access in the form of equity capital to new and expanding businesses that will ultimately support the formation of new jobs in Colorado.
  • CLIMBER Fund: With the SSBCI funding, the state will partner with participating lenders to create greater access to capital for Colorado’s businesses by catalyzing loans that might not otherwise be available. 
  • Cash Collateral Support: With the SSBCI funding, Colorado will partner with participating lenders to create greater access to capital for Colorado’s businesses by strengthening the value of collateral pledged by a business to secure a commercial loan. 

Additionally, OEDIT’s SSBCI dollars will support technical assistance to prepare businesses for these programs and other access to capital programs.

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Overview

Type: loans, equity, technical assistance

For: Small businesses

Amount: $75,866,772 available

Application period: Applications will open in early 2021

OEDIT division: Business Funding and Incentives

Program Manager

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