SSBCI Resources

Jointly produced by NVCA and Venture Forward, this page is intended to provide resources for economic development agencies, state representatives, and VC professionals related to the State Small Business Credit Initiative (SSBCI). Now that the U.S. Treasury Department has begun approving states (on a rolling basis) to begin implementing their SSBCI programs, VC fund managers—particularly emerging and underrepresented managers whom this program is intended to serve—can reference which states have been approved, who to contact at the state-level, and how to apply for their state’s program as a source of capital, using the guidance provided below.

Please contact Jonas Murphy for additional questions or to submit a resource. To be notified of upcoming SSBCI-related programming, please sign up for NVCA communications here.

SSBCI Overview

The State Small Business Credit Initiative (SSBCI) was recently reinstated with $10 billion in funding as part of the American Rescue Plan that can be used either for debt or equity investment programs. The program will provide capital to small businesses and startups in underrepresented regions and communities. This is a substantial increase from the original iteration of the program, which was first created in 2010 and funded with $1.5 billion.

SSBCI has the potential to unlock significant capital for VC investment across direct, co-investment, and fund investing strategies, particularly in emerging ecosystems and underrepresented communities. This capital is intended to help solve for inefficiencies and financing gaps inherent in many emerging ecosystems, and ultimately lead to greater investment opportunities in these communities.

How to Apply

States are opening their application processes on a rolling basis as Treasury approves state programs in batches. So far, five states (HI, KS, MD, MI, WV) have already been approved by Treasury to begin implementing their SSBCI programs (more information below), and we expect additional tranches of states to be approved soon. We will continue to update this page as we receive word of additional approvals.

VC funds will be able to submit applications through the implementing agency in their state once that state’s program is approved by the Treasury Department. See here for a contact list of all of the applicable offices by state.

StateApproved FundingTypes of ProgramsProgram OverviewContact
Hawaii$62,021,957 Loan Participation Program

Collateral Support Program

VC Program: HI-CAP Investment

Will launch new loan participation and credit enhancement programs, including HI-CAP Loans and HI-CAP Collateral, with two-thirds of its allocation. Hawaii will also operate a venture capital program, the HI-CAP Invest program, which will include investments in impact funds that target early-stage businesses focused on social or environmental change in
Kansas$69,596,847 Loan Participation Program

Equity Capital Program

VC Program: GROWKS Angel Capital Support

Will operate a loan participation program, the GROWKS Loan Fund, and an equity program, the GROWKS Angel Capital Support Program, with over 80 percent of its
Maryland$198,404,958 Loan Participation Program

Equity Capital Program

VC Programs:

Neighborhood Business Works

Venture Debt Program

Will operate eight loan and equity investment programs through Maryland Department of Housing and Community Development (DHCD), Maryland Department of Commerce and Maryland Technology Economic Development Corporation. Maryland will also use $17 million to fund the Neighborhood Business Works Venture Debt Program, which will expand access to capital for underserved communities by lending alongside venture capital equity in high-growth businesses located in qualified low-income communities, anchoring the businesses in these communities through federal tax incentives that require them to remain in low-income communities for several

Michigan$236,990,950 Loan Participation Program

Capital Access Program

VC Program: Equity Capital Program (Funds)

Will operate the Michigan Business Growth Fund Collateral Support Program with nearly one-third of its allocation. Historically the program has targeted industries with high wages and high job growth potential, such as manufacturing, medical device technology, engineering, and agribusiness. Michigan will expand the program to reach smaller service and retail businesses disproportionately hurt by COVID-19.

West Virginia$72,104,798 Collateral Support Fund

Subordinated Debt Fund

VC Program: Seed Capital Co-Investment Fund

Will operate a seed capital co-investment fund with more than half of its allocation. The fund will focus on expanding access to capital for underserved communities by providing equity investments matched with private equity from angel investors or venture capital

Additional resources on SSBCI & VC

The State Small Business Credit Initiative (SSBCI) Capital Program Policy Guidelines (as they may be amended from time to time, the Guidelines) require certifications in various circumstances from lenders, investors, and small business borrowers and investees participating in SSBCI capital programs of participating jurisdictions. Click here to view sample certifications.

We convened NVCA members that are interested in SSBCI to facilitate communication between the industry and policymakers and provide education for our members. The NVCA worked to develop recommendations and best practices for program implementation, submitted comments and met with Treasury Department officials regarding implementation of the program, and hosted several thought leadership events to discuss the VC model in the context of the SSBCI program. This includes a joint NVCA/Venture Forward outreach session with state economic development agencies to provide a 101-level overview of venture capital and equity investment.

Venture 101

  • This presentation (from a September 2021 webinar) provides an overview of venture capital for programs with SSBCI funding.

VC University ONLINE

  • The definitive online certificate course in venture finance, produced jointly by NVCA, Venture Forward, and UC Berkeley.

Venture Deals

  • Techstars co-founder Brad Feld and Techstars mentor Jason Mendelson offer a free course on venture capital. Brad and Jason are renowned venture capitalists, founding partners at the Foundry Group, and authors of Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist.

NVCA Yearbook

  • Annual report on U.S. VC trends and activity. Includes detailed geographic analysis of VC assets, fundraising, and investment by state. View an in-depth glossary of VC terms and definitions in the NVCA 2021 Yearbook, starting on page 54.

PitchBook-NVCA Venture Monitor

  • Quarterly publication with VC industry data and insights. Each quarter, PitchBook and NVCA also produce a free webinar to unpack the latest trends.

About VC

What State Economic Development Officials Should Know About Venture Capital

VC Impact

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Models for Equity Investing in Startups through VC Structures

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  • Co-Investing

    An investor invests alongside a general partner directly in a portfolio company. Co-investing is a subset of direct investing.

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