State Small Business Credit Initiative
The state of Florida was allocated more than $97.6 million by the U.S. Department of Treasury to implement the State Small Business Credit Initiative (SSBCI), a federal initiative that encourages states to establish or strengthen state programs that support lending to small businesses. States can use SSBCI funds for programs that leverage private lending to help finance small businesses that are creditworthy, but are not getting the loans they need to expand and create jobs. Florida was required to demonstrate a minimum return of 10 dollars in new private lending for every dollar in federal SSBCI funding. Accordingly, the SSBCI funds are expected to leverage close to $1 billion in private lending to Florida small businesses.
Florida's SSBCI Programs
Advantages to Florida's Small Businesses
- Access to capital that may not otherwise be available.
- Availability of loans that can be used for any business purpose such as, business equipment, salary or building space.
Advantages to Florida's Lending Institutions
Recently the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency shared their mutual interest in enhancing access to capital and investments to spur small business lending through letters of support. Both agencies support lenders who participate in the State Small Business Credit Initiative, which can assist them in meeting the credit needs of small business owners in a prudent and safe manner and also issued a joint Interagency Statement on Meeting the Credit Needs of Creditworthy Small Business Borrowers. View the FDIC Letter or OCC Letter.
- Limits exposure to losses on approved loans.
- No state involvement in lender decisions.
- Certain refinances are eligible.
In addition, state-designated charitable, religious or other non-profit or eleemosynary institutions, government-owned corporations, consumer and marketing cooperatives and faith-based organizations may be eligible.