In October 2012, the Federal Reserve Bank of Chicago hosted a U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI) conference, which brought together over 150 representatives from states, territories and the District of Columbia, to discuss best practices in the rollout of the SSBCI state programs. This article describes the SSBCI and how financial institutions and small businesses can benefit by expanding access to capital.
To support and improve access to credit for small businesses, Congress passed and the president signed the Small Business Jobs Act of 2010, creating the SSBCI and appropriating $1.5 billion for the program. The United States Treasury Department administers the SSBCI, which provides direct funding to states for programs that expand access to credit for small businesses. The program aims to leverage $10 in private lending and investing in small business for every $1 in public funds. This article highlights the approved SSBCI programs in the five states in the Seventh Federal Reserve District to inform lenders and investors about how to obtain credit support from their respective state programs for eligible small business transactions.