State small business capital programs (SSBCI)
Loans and investments that a state, territory or Tribal government helps a bank or fund make, using federal SSBCI money: it buys part of the loan, guarantees it, puts up cash collateral or insures it. You apply to the bank or fund, and what is on offer differs from state to state.
- Secured on assets
- Personal guarantee likely
How it works
Under the State Small Business Credit Initiative (SSBCI), the U.S. Treasury gives states, the District of Columbia, territories and Tribal governments federal money to run their own programs. Treasury calls it a nearly $10 billion program. The state does not usually lend to you itself: it supports a loan or investment from a bank, credit union, community lender or fund. Treasury's programs are of five kinds:
- Loan participation: the program buys part of a loan your lender makes, or lends alongside it.
- Loan guarantee: the program agrees to cover part of the lender's loss if you do not repay.
- Collateral support: the program puts up cash collateral, for a business whose own collateral falls short.
- Capital access program: you and the lender each pay a premium into a loss reserve for the lender's loans, and the state matches it. Together the premiums are 2% to 7% of the loan, and the loan can be up to $5 million for a business of 500 employees or fewer.
- Equity and venture capital: the program invests in startups, usually through venture capital funds, alongside private investors.
Limits in the law: the other credit programs may not support a business with more than 750 employees or a loan of more than $20 million, and must aim at loans averaging $5 million or less. The lender sets the interest rate and terms with you, and must keep a meaningful amount of its own money at risk.
Deadlines: Treasury's authority to run the program ends on March 11, 2028, and states must send their last requests for money by December 31, 2027, so programs may change or close as their money runs out.
How to find one: Treasury publishes a list of each state's programs, with contacts. Ask your bank or a community lender whether it takes part; you usually apply to them, not to the state.
Upsides and downsides
Upsides
- Can turn a lender's no into a yes when your collateral or credit history falls short
- Some states also invest in startups through venture capital programs
- You deal with your own bank or community lender, not a government office
Downsides
- What is available differs by state, and some programs may close as their money runs out
- The lender still decides, and sets the rate and fees
- A capital access program adds a premium to the cost
Risks
- You owe the full loan even when the state covers part of the lender's loss
- The program may end before you apply; Treasury's authority ends on March 11, 2028
What it costs
- How it is priced
- Interest and fees set by the lender; under a capital access program, part of a premium of 2% to 7% of the loan, shared with the lender
- Costs that are easy to miss
- Your share of a capital access program premium, where the program uses one
- The lender's usual fees, such as for appraisals and legal work
Loans of up to $20 million under most programs and up to $5 million under capital access programs; each state sets its own limits within these.
Have a quote? True cost of a loan: work out the APR and total cost
Does it fit?
Could fit when
- A bank has turned you down, or wants more collateral than you have
- You need a business loan of up to $20 million for growth, equipment, property or working capital
Unlikely to fit when
- You need more than $20 million
- You need the money within days or weeks
Who can use it
- Business types: Sole proprietorship, Partnership, LLC, S corporation, C corporation, Benefit corporation, Cooperative, Nonprofit
- Needs sales (revenue)
- A small business in a state, territory or Tribal area that runs an SSBCI program, with no more than 750 employees (500 for capital access programs)
- A lender or fund that takes part in that state's program
- Each state sets its own rules for who it serves; Treasury says the programs aim especially at communities and entrepreneurs who have lacked access to capital
Am I ready?
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- Financial statements
- What the money is for
- Collateral
Regulation and protections
Regulators: U.S. Department of the Treasury; State lending and financial regulators.
Who runs it: State or local program.
Treasury sets the program rules and checks each state's use of the money. Lenders in the programs are supervised by their own regulators. The Equal Credit Opportunity Act (Regulation B) covers business credit. Federal Truth in Lending rules do not cover business loans.
Types of provider: Banks, credit unions and community lenders that take part in a state's program; Venture capital funds that invest a state's SSBCI money.
Also consider
What has changed
No changes since this page was published. It was last checked against its sources on October 20, 2026.
Sources
- U.S. Treasury: State Small Business Credit Initiative (SSBCI) · checked October 20, 2026
- U.S. Treasury: SSBCI program fact sheet (the five kinds of capital program) · checked October 20, 2026
- U.S. Treasury: SSBCI frequently asked questions (end of Treasury's authority on March 11, 2028; last disbursement requests by December 31, 2027) · checked October 20, 2026
- U.S. Treasury: SSBCI capital programs and contacts, by state · checked October 20, 2026
- 12 U.S.C. 5704: approval of state capital access programs (premiums of 2% to 7%, loans up to $5 million) · checked October 20, 2026
- 12 U.S.C. 5705: approval of state other credit support programs (750 employees, $20 million) · checked October 20, 2026
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