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SSBCI updates from SSTI and the Department of Treasury

August 01, 2024
By: Conor Gowder

The U.S. Department of the Treasury has made multiple announcements about the State Small Business Credit Initiative (SSBCI) in recent weeks, including new program approvals, providing an update on uses of funds through the first two years of the program, and highlighting venture capital success stories, and releasing a database of participating lenders. In addition to covering these updates below, SSTI is collecting Treasury’s resources in revised SSBCI tracking pages.

 

SSTI updates to SSBCI tracking

SSTI has been tracking SSBCI program data and information in “Useful Stats” articles; earlier this month, SSTI updated “Useful Stats: SSBCI 2.0: An overview of state uses of funds” with new Capital Program data, including program-specific data for South Carolina and Guam.

In the future, SSTI will provide all SSBCI updates on a new resource page dedicated to the SSBCI program. This SSBCI resource page will be continuously updated as new information becomes available.

In addition to the Capital Program data, Technical Assistance Program data has been added to the SSBCI resource page in the form of a detailed map of allocations by state and territory, as well as a downloadable data file. Data on Tribal governments is also available on the webpage.

 

Roundup of new Treasury SSBCI info

Summary of Annual Reports

The SSBCI Summary of Participating Jurisdictions 2022 and 2023 Annual Reports , released ahead of the full 2023 annual report, presents a variety of high-level metrics generated by the SSBCI program since its 2021 reauthorization. Treasury has approved applications for $8.7 billion in SSBCI funding for capital programs, including nearly $415 million for 221 Tribal governments.

The summary includes data for over 3,900 transactions supporting over 3,600 small businesses and, while preliminary and still subject to change, provides a relatively large sample to measure the initial impacts of the program. Nearly 600 businesses have received SSBCI equity/venture capital investments. Ninety percent of these businesses were early stage, seed, or pre-seed stage.

To date, jurisdictions have expended over $750 million in SSBCI funding, resulting in over $3.2 billion in overall new financing, including $2.8 billion in private financing.

The professional, scientific, and technical services sector has the largest cumulative transaction amounts as of the summary’s publication, with just over half a billion dollars spread over 438 transactions. Within this sector, computer systems design and related services had the most transactions (119), while scientific research and development services had the highest total transaction amount ($266 million).

Manufacturing sector industries have the next largest cumulative transaction amounts at nearly $415 million spread across 372 transactions, followed by the accommodation and food services sector ($297 million over 430 transactions), retail trade sector ($116 million over 273 transactions), and transportation and warehousing sector ($54 million over 519 transactions).

 

SSBCI spotlights on diverse investors and investees

By the end of 2023, over $1 billion in SSBCI funds had been either deployed to support loans or investments or obligated to venture capital funds to support small businesses. However, the funds have only recently begun rolling out, with up to $3 billion anticipated to be allocated in the coming years alongside the program’s goal of leveraging ten times that amount in private financing.

SSBCI aims to enhance access to venture capital for diverse entrepreneurs, with jurisdictions potentially supporting up to 200 funds throughout the program.

While data is preliminary, it is estimated that as of July 2024, 54 venture capital funds had received SSBCI capital commitments, 36 of which are owned/managed by or include a focus on supporting diverse or underserved populations.

See Treasury’s full document for spotlights on venture capital programs from Pennsylvania, North Carolina, and California and for investee spotlights on diverse founders from NasaClip, Kinetic Technologies, Cap Creations, and Tuyan LLC.

 

U.S. Treasury Lender Map

Treasury has released a new interactive map showing the lenders, investors, and technical service providers with Treasury funding or Community Development Financial Institutions Fund (CDFI Fund) certifications by state.

Data can be filtered by provider name, federal program, and/or provider type. The federal programs included are CDFI Fund, Emergency Capital Investment Program (ECIP), Minority Business Development Agency (MBDA) Capital Readiness Program, SSBCI Capital Program, and SSBCI Technical Assistance.

The data included in the map is shown as reported to Treasury by applicants or program participants—the accuracy of these data have not been independently confirmed by Treasury.

The Lender Map can be accessed here.

 

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.

useful stats, ssbci