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The Wyoming Business Council (WBC) recently submitted the initial application to the federal Treasury for the State Small Business Credit Initiative (SSBCI) on behalf of the state of Wyoming.
This federal program was originally developed in 2010 and ran from 2011 through 2017. It was renewed with the American Rescue Plan Act (ARPA) of 2021. Wyoming’s current allocation is just over $58 million which can be distributed to Wyoming businesses throughout the nine-year program.
The intent of the program is to disperse allocated funds through various financial partners to Wyoming businesses that have had challenges getting funding through current debt and equity options. Some of these financial partners may include banks, credit unions, Community Development Financial Institutions (CDFIs), Venture Capital (VC) funds, or similar partners.
This funding will not be dispersed in the form of grants, rather it will be in the form of debt and equity assistance.
WBC will submit the final SSBCI application in February and provide more program details once Wyoming has an approved application.
About the State Small Business Credit Initiative
On March 11, 2021, President Biden signed The American Rescue Plan Act (ARPA), which provided $10 billion to fund the State Small Business Credit Initiative (SSBCI). SSBCI will fund state, territory, and Tribal government small business credit support and investment programs.
SSBCI was originally introduced in 2010 to deliver urgently needed capital to small businesses in the United States. The first version of the program was active through 2017, allowing states the flexibility to design their own small business support programs to accommodate the variation in regional economic conditions. States deployed over $1.4 billion to support small businesses which leveraaged well over $8 billion in private small business loans and investments.
In the original SSBCI program, 80 percent of all SSBCI loans and investments went to businesses with 10 or fewer employees, and 42 percent went to businesses in low- and moderate-income communities. More than 16,900 small businesses in the U.S. received financial support from SSBCI, resulting in the creation or retention of 190,000 American jobs.
To learn more, check out this fact sheet from the Council of Development Finance Agencies. The US Treasury website also has program details, key dates, and relevant archives for your reference.