SSBCI Resources

Resources for economic development agencies, state representatives, and VC professionals related to the State Small Business Credit Initiative (SSBCI). Please contact Jonas Murphy for additional questions or to submit a resource.


About the program

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

Each state will receive a minimum of $56 million allocated by formula across three tranches and distributed to states, territories, and eligible municipalities to expand existing or create new state small business investment programs, including state capital access programs, collateral support programs, loan participation programs, loan guarantee programs, and venture capital programs.


The U.S. Department of Treasury has released policy guidelines for states to follow as they create their programs to allocate capital, and make decisions about debt and equity programs and Socially and  Economically Disadvantaged Individual (SEDI) funding. States will then present their plans to the Treasury Department for approval by December 11, 2021.

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.

SSBCI Working Group:

We have convened NVCA members that are interested in SSBCI to facilitate communication between the industry and policymakers and provide education for our members. The working group has convened several times to organize our issues that can be addressed in the next several steps of the implementation process, and has already submitted comments and met with Treasury Department officials regarding implementation of the program including ways to improve it from the original version.

Following the federal regulatory process, the working group will work to create a best practices document for members to use in conversations with state economic development officials as they work to stand up their respective programs.

We have also partnered with the Treasury Department and Venture Forward on a joint outreach session with state economic development agencies to provide a 101-level overview of venture capital as they get ready to implement their SSBCI programs. The purpose is to equip states with a basic understanding of this form of small business financing as they are evaluating potential programs to implement SSBCI 2.0, a key priority identified by the working group.

How to Apply

VC funds will be able to submit applications through their state’s economic development agency once that state’s program is approved by the Treasury Department and implemented. Please contact the applicable office in your state for additional information and guidance.

Additional resources on SSBCI & VC

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

Venture Capital creates and supports America’s High Growth Companies

Models for Equity Investing in Startups through VC Structures

  • Fund Investing

    Limited partners invest through a closed-ended, pooled investment vehicle managed by a general partner. The general partner retains liability for the actions of the partnership and makes investment decisions.

  • Direct Investing

    An investor invests directly in a company. The investment is not structured through a venture fund.

  • 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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