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The State Small Business Credit Initiative reached over 3,600 small businesses in the first two years of the program. The nearly 3,900 loan and investment transactions are expected to help create or retain over 46,200 jobs.  

WASHINGTON – The U.S. Department of the Treasury (Treasury) released a new report summarizing data from the State Small Business Credit Initiative (SSBCI) for the first two years of the program, from the first transaction on August 5, 2022 through December 31, 2023. The American Rescue Plan reauthorized and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities. SSBCI provides funds to states, the District of Columbia, territories, and Tribal governments to promote American entrepreneurship, support small business ownership, and expand access to capital across the country, including in underserved communities. 

The SSBCI Annual Report provides a comprehensive summary of data reported to Treasury by participating jurisdictions for the years 2022 and 2023, covering almost 3,900 transactions supporting over 3,600 small businesses. The report builds upon a preliminary fact sheet released in July 2024 previewing this data. In total, jurisdictions reported expending nearly $750 million in SSBCI funding to support transactions that resulted in $3.1 billion in overall new financing, which 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,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “This report highlights the success of the Biden-Harris Administration’s commitment to ensuring federal resources reach entrepreneurs and underinvested communities.” 

Since the Biden-Harris Administration took office, there has been a historic 20 million new small business applications in part thanks to the Biden-Harris Administration’s historic investments in the success and growth of small businesses. Treasury’s SSBCI program helps fill in gaps to support small business growth by providing funding to states, the District of Columbia, territories, and Tribal governments, allowing jurisdictions to tailor small business financing programs to local market challenges and opportunities. The small business financing and technical assistance programs described in this report are designed to improve the flow of capital to small businesses across the nation and in Indian Country. With nearly $10 billion to be invested in small business success over the course of the program, SSBCI will continue to unlock access to private capital and critical technical assistance to bolster small business support networks across the country. 

The SSBCI Annual Report shows: 

• A commitment to small transactions: The median amount of new financing secured by businesses in SSBCI loan transactions was $87,700, and for investments it was $880,000.
• Support for new businesses: In SSBCI credit programs, 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
• Support for underserved businesses: 40% of transactions supported minority-owned businesses, Black and Asian-owned businesses accounted for 14% and 13% transactions, respectively. Latino-owned businesses represented 14% of transactions. Overall, 75% of transactions supported underserved businesses.
• Support for very small businesses: 78% of overall transactions supported businesses with fewer than 10 employees.
• Partnerships with community banks: Over 31% of participating lenders were Community Development Financial Institutions (CDFIs) and 51% were community banks embedded in their communities. Over 470 banks, credit unions, and CDFIs, and over 60 investors have made loans or investments supported by SSBCI programs. 63% of loan transactions were supported by CDFIs.
• A strong start for venture capital programs: 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.
• Support for businesses across industries: 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.

The impact of SSBCI is most clearly seen through stories of individual businesses that have received loans or investments. Examples of businesses that have benefitted from SSBCI support include: 

• Global Retool Group America, located in Brighton, Michigan, is a manufacturer of automation equipment and assembly lines for use by a variety of industries. The company received its first working capital line of credit, enabled by the Michigan Strategic Fund’s collateral support program supported by SSBCI.
• Salmon River Outpost, located near California’s Hoopa Valley Reservation, is a grocery store located in a food desert. The company received a loan through a credit support program established by Affiliated Tribes of Northwest Indians Economic Development Corporation (ATNI-EDC), a Tribal consortium.
• Cap Creations, located in Olathe, Kansas, is a producer of graduation caps that accommodate a variety of hair textures and types. The company received a venture angel investment through Grow Kansas (GROWKS), part of NetWork Kansas, the state’s venture-focused SSBCI program.

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. Treasury has approved SSBCI Technical Assistance Grant Program funding totaling nearly $151 million and representing 65 jurisdictions, including 18 Tribal governments. Treasury also recently announced 14 awardees of the competitive $75 million Investing in America Small Business Opportunity Program (SBOP).  

Read the full SSBCI Annual Report .

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