As a part of the federal American Rescue Plan Act, 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.
We have been allocated $75,866,772 for its SSBCI programs through the American Rescue Plan Act. We will submit our application to receive these funds in December 2021 to increase capacity of existing programs that provide access to capital for new and growing businesses. Once we have received the funds, you will apply to the individual programs funded by the program, not through SSBCI.
SSBCI dollars are restricted from providing direct subsidies or grants. Portions of SSBCI funding will be made available through Treasury’s CDFI Rapid Response Program and will provide necessary capital for community development financial institutions (CDFIs) to respond to economic challenges created by the COVID-19 pandemic, particularly in underserved communities.
Programs under consideration for funding by new SSBCI allocations from the ARPA:
- Venture Capital Authority Fund
- CLIMBER Fund
- Energize Colorado Gap Fund
- Colorado Startup Loan Fund
- Cash Collateral Support
- Colorado Credit Reserve
Additionally, OEDIT’s SSBCI dollars will support technical assistance for these programs as well as potential new programs generated to provide access to capital for businesses seeking to survive the pandemic. Any feedback, thoughts, or recommendations for how these SSBCI dollars will be distributed are welcome.
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Type: Grants, loans, and technical assistance
For: Small businesses
Amount: $75,866,772 available
Application period: Applications will open in early 2021
OEDIT division: Business Funding and Incentives