Four New States Approved for SSBCI Funding

ssbci • Aug 22, 2022

The Treasury Department announced that an additional four states have received SSBCI funding. To learn all about SSBCI funding, read our breakdown of the $10 billion SSBCI program here including all states currently approved for funding.

To get an alert when your state gets funding, stay updated here.

The new states just approved for SSBCI funding are:

Colorado
Montana
New York
Oregon

Ryder does a breakdown of the latest SSBCI approvals in this video. More details below.

Here are more details on the SSBCI approvals, including how much funding and what types of funding have been approved

Colorado Approved for $104.7 Million in SSBCI Funding

Colorado has been approved for $104.7 million. Here are the programs it will operate:

Venture Capital Authority Fund: With the SSBCI funding, the Venture Capital Authority will partner with multiple funds to provide capital access in the form of equity capital to new and expanding businesses that will ultimately support the formation of new jobs in Colorado.
CLIMBER Fund: With the SSBCI funding, the state will partner with participating lenders to create greater access to capital for Colorado’s businesses by catalyzing loans that might not otherwise be available.
Cash Collateral Support: With the SSBCI funding, Colorado will partner with participating lenders to create greater access to capital for Colorado’s businesses by strengthening the value of collateral pledged by a business to secure a commercial loan.

Montana Approved for $61.3 Million in SSBCI Funding

Montana has been approved for $61.3 million, and will operate a loan participation program.

According to the Treasury site, "This new program is designed to significantly increase the number of eligible CDFI and non-profit local economic development agencies with revolving loan funds (RLFs) that can participate in the program, to obtain a much broader outreach for targeting underserved markets.

In addition, this program gives rural and Native American entrepreneurs greater opportunity to create new businesses and expand existing small businesses — creating jobs and economic opportunities in Montana’s rural counties and Indian Country."

New York Approved for $501.5 Million in SSBCI Funding

New York has received the most funding so far: $501.5 million. It is being directed toward a main allocation of $377.1 million, as well as $124.4 million for socially and economically advantaged (SEDI) businesses.

Empire State Development will establish SSBCI-related programs — including new programs and expansion of existing programs — to include:

Access to capital
Loan guarantees
Loan participation
Collateral support
Seed venture funding
Funding for emerging and regional venture funds
Accelerator support
Technical assistance

Oregon Approved for $83.5 Million in SSBCI Funding

Oregon has been awarded $83.5 million. It will operate five programs, including two venture capital programs to which the state has allocated $30 million. The venture capital programs are designed to invest in funds in need of additional capital to launch and scale and to make co-investments in companies alongside private investors by matching the lead investor’s structure and terms.

Funding uses:

Venture Capital Programs
Loan Participation Programs
Loan Guarantee Programs
Collateral Support Programs
Capital Access Programs
Small Business Technical Assistance

Program requirements:

The funding guidelines and requirements are still in the process of being finalized by the U.S. Treasury. Some of the fundamental programs requirements include:

Minimum private match of 1:1 for each transaction, but Oregon must deliver a 10:1 private funding leverage in total for the entire allocation.
Individual business project expense and funding rounds must be less than $20 million and the business must have fewer than 500 employees.
Grants and forgivable loans are prohibited
Socially and Economically Disadvantaged Individuals are an intentional focus for all equity and debt funding concepts
Primary purpose of the programs and transactions are to support business start-up or expansion
Restrictions on eligible use of funds (e.g., refinances, renewals, advance rates, etc.)

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