California to Get $1B as U.S. Treasury Award

By: Sharjeel Sohaib


Oct 7, 2022


CA Treasury

Utilize Our Platform

California Governor Gavin Newsom, State Treasurer Fiona Ma, and the California Infrastructure and Economic Development Bank (IBank) announce that the State of California has received $1.181 billion

This funding is from the State Small Business Credit Initiative 2.0 (SSBCI 2.0) of the U.S. Department of the Treasury. 

Key Takeaway:

  • The U.S. Department of the Treasury announced funding of $1.181 billion to the State of California from SSBCI 2.0. 
  • The purpose of SSBCI 2.0 is to inform and increase the financial access of small businesses.Β 

We Covered this in our Weekly Wire Roundup

Overview of State Small Business Credit Initiative (SSBCI)

As per The American Rescue Plan Act, which President Biden signed on March 11, 2021, SSBCI 2.0 was renewed and given funding. 

The California Pollution Control Financing Authority (CPCFA) applied for SSBCI 2.0 allocation based on its successful programs. 

These programs were:

  1. CalCAP for Small Business.
  2. CalCAP Collateral Support Program and IBank’s Small Business Loan Guarantee Program.

What does SSBCI do?

Through collaborations with for-profit and nonprofit lenders, equity investors, and technical support service providers, SSBCI 2.0 aims to broaden small companies’ access to financing and educate them. 

When financial institutions and investors work with small enterprises by providing loans and equity investments, CPCFA and IBank will direct SSBCI 2.0 money to them. 

The main aim of SSBCI 2.0 investment is to increase the investment in the following:

  • Manufacturing companies.
  • Companies run by disadvantaged people (SEDI). 
  • Small businesses (VSBs) have ten or fewer employees.

SSBCI: Supporting Small Businesses in California

CPCFA and IBank will each get an equal share of the initial tranche, which amounts to about $500 million. The rule-making processes for implementing the money will then start at both entities.

Financial institutions can sign up immediately with a one-page certification if they’re interested in obtaining help from the CalCAP for Small Business loan loss reserve program and the CalCAP Collateral Support Program. 

Any company meeting the requirements for small business eligibility may apply with a participating financial institution, which will enroll the loan in the CPCFA SSBCI 2.0 program. 

Or, a small company may ask a financial institution with which it already has a business relationship to enroll.

Other Initiatives to Support Small Businesses in California

Apart from SSBCI, there are a lot of different initiatives in SoCal to help small businesses. We have previously discussed some of them.Β 

Some of them are as under:

SBA Awards $600K to California GO-Biz for Supporting Small Businesses to Boost Exports.

Startempire Wire also reported that the State Trade Expansion Program (STEP) is a federally funded grant. It aims to increase export activities among small businesses and has awarded a grant totaling $600,000 to the Governor’s Office of Business and Economic Development (GO-Biz). 

Read Here: SBA Awards $600K to California GO-Biz for Supporting Small Businesses to Boost Exports.

Funds for California-Based Small Businesses.

The grants range between $5,000-$10,000 per eligible small business. Small startup businesses must complete rigorous training and consulting programs with one of 17 technical assistance centers selected from CalOSBA’s Technical Assistance Expansion Program (TAEP) network.

Read Here: California-Based Small Businesses to Receive Grants From California Dream Fund Program

Wrap Up!

The United States Treasury Department announced a $1 billion infusion into the state’s small businesses via the Small Business Credit Initiative (SSBCI). The program will strengthen its economic recovery to build a strong foundation for future growth. 


Submit a Comment

Connecting you with the best startups, people & events in the Inland Empire.

Support Startup News & Media!

Enjoying the startup news & media? Support us!

We have big plans, and we need your help!

Startempire Wire is a community of people working together to promote innovation, entrepreneurship, and investment in the Inland Empire. We provide resources and connect people with the startup culture.

We believe that the Inland Empire has all of the ingredients for success. This region just needs a platform to show the world what it can do – And this is exactly what is doing. Our goal is to act as a megaphone to connect the dots between the best startups, events, and people in the Inland Empire.

We have big plans, and we need your help! If you are passionate about creating a thriving local startup ecosystem, then we would like to invite you to join in contributing to the community by supporting us. You can do that by supporting us financially or by being an active contributor. In return, we will give you (depending on sponsorship level) free access to our content, other level based perks &Β  the opportunity to connect with a network of passionate people working to build a better future for all of us.

We cover the good and the bad of entrepreneurship, startups & business events; we do it with passion and purpose. If you like what we do, support us & please consider becoming a patron. Your support is essential for independent local startup media to survive & thrive.

You can make a regular one time donation to become a sponsor at any level, or you can choose to become a monthly or event sponsor.Β  Every little bit counts! Thank You

Verious B. Smith III

Founder, Startempire Wire

Related Articles

Economic Growth in the Inland Empire: The IECE and Beyond

Economic Growth in the Inland Empire: The IECE and Beyond

The Inland Empire Center for Entrepreneurship (IECE) at California State University, San Bernardino (CSUSB), published its 2022 Impact Report. We look at the economic impact of IECE and what other organizations have done to drive economic growth in the Inland Empire...

Stay Up On Startempire News

Access Premium Content

Startempire Wire premium content access is free during the beta period of ourΒ  website.Β  Join during beta and get a grandfathered discount when we launch.

$5 for first month then $15 per month

Get Every Update

Would you like to receive Startempire Wire updates in your inbox? Subscribe below!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Follow Us

Follow Startempire Wire on other social media channels.

My cart
Your cart is empty.

Looks like you haven't made a choice yet.