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.
- 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.
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:
- CalCAP for Small Business.
- 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.
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
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.