• SSTI Annual Conference thank you

    Thank you to our host, the Arkansas Research Alliance, all our national and local sponsors, speakers and attendees for wonderfully successful Annual Conference!

  • Become an SSTI Member

    As the most comprehensive resource available for those involved in technology-based economic development, SSTI offers the services that are needed to help build tech-based economies.  Learn more about membership...

  • Subscribe to the SSTI Weekly Digest

    Each week, the SSTI Weekly Digest delivers the latest breaking news and expert analysis of critical issues affecting the tech-based economic development community. Subscribe today!

Treasury updates SSBCI guidance

March 10, 2022

As the U.S. Department of the Treasury continues to review states’ applications for funding from the State Small Business Credit Initiative (SSBCI), the agency has published new guidance in the form of FAQs, an interim final rule, and an updated timeline for technical assistance awards.

The primary focus of the new FAQs is how states will manage funds for “businesses owned and controlled by socially- and economically-disadvantaged individuals” (or SEDI funds). Items discuss which individuals qualify for the funding, clarify that states do not need to establish separate programs, and define the targets states must reach to unlock set-aside incentive payments for doing a good job directing funds to eligible companies.

Other new and revised FAQs attempt to clarify how venture capital firms may charge SSBCI funds a 1.71 percent services fee, and more explanation of the “incubation” and “early-stage” program models.

Under SSBCI 1.0, FAQs were considered an important component of the overall program guidance. States and their program partners are strongly encouraged to review the FAQs thoroughly and regularly.

The interim final rule defines demographic reporting requirements for financial institutions. This rule is considered necessary so that banks are clearly permitted, with regard to anti-discrimination rules, to collect demographic information needed to monitor SEDI funds. The rule is available currently on the SSBCI website and will be published soon in the Federal Register, which is where any comments on the rule can be submitted for consideration.

States will now be required to submit applications for technical assistance by June 30, 2022. Program rules and application materials are not yet available.

ssbci