The U.S. Department of the Treasury issued a report on the achievements during the first two years of the State Small Business Credit Initiative (SSBCI).
The program, reauthorized and expanded by the American Rescue Plan, provides nearly $10 billion to states, Tribal governments, territories and districts to support small businesses with capital needed to invest in job-creating opportunities.
The recently released SSBCI Annual Report includes data reported to Treasury for 2022 and 2023, covering almost 3,900 transactions for more than 3,600 small businesses.
In total, jurisdictions reported expending nearly $750 million in SSBCI funding to support transactions that resulted in $3.1 billion in overall new financing. This includes $2.6 billion in private financing. The nearly 3,900 loan and investment transactions are expected to help create or retain over 46,200 jobs.
“Small businesses and hard-working entrepreneurs are at the core of the American economy and supporting them has been a central priority of the Biden-Harris Administration,” U.S. Deputy Secretary of the Treasury Wally Adeyemo said. “This report highlights the success of the Biden-Harris Administration’s commitment to ensuring federal resources reach entrepreneurs and underinvested communities.”
Among the key findings, the SSBCI report said:
• The median amount of new financing secured by businesses in SSBCI loan transactions was $87,700, and for investments it was $880,000.
• The median business had three employees and had been in business for four years, helping small business owners become credit and investment ready to grow their businesses
• Forty percent of transactions supported minority-owned businesses, Black and Asian-owned businesses accounted for 14 percent and 13 percent transactions, respectively. Latino-owned businesses represented 14 percent of transactions. Overall, 75 percent of transactions supported underserved businesses.
• Seventy-eight percent of overall transactions supported businesses with fewer than 10 employees.
• More than 31 percent of participating lenders were Community Development Financial Institutions (CDFIs) and 51 percent were community banks.
• Jurisdictions invested $211 million in SSBCI funds to support startups and other small businesses through venture capital programs. This funding was matched by private investments resulting in $1.2 billion in new financing to over 600 companies.
• The top five SSBCI-supported industries were: (1) transportation and warehousing; (2) professional, scientific, and technical services; (3) accommodation and food services; (4) manufacturing; and (5) retail trade.
Through the SSBCI Capital Program, Treasury has approved plans for small business financing programs totaling over $8.9 billion and representing every state and territory, the District of Columbia, and 236 Tribal governments.
Further, Treasury has approved SSBCI Technical Assistance Grant Program funding totaling nearly $151 million and representing 65 jurisdictions, including 18 Tribal governments.
In addition, Treasury recently announced 14 awardees of the competitive $75 million Investing in America Small Business Opportunity Program (SBOP).