Policy Issues • Small Business Programs

State Small Business Credit Initiative (SSBCI)

SSBCI is commonly described as a state-based initiative that expands access to capital for small businesses by supporting credit programs such as loan guarantees, collateral support, and venture capital or equity-like programs (depending on the state design).

How State Programs Typically Expand Credit

• Credit enhancement: guarantees or reserves that reduce lender risk.
• Participation: support for lenders to extend credit to more borrowers.
• Targeting: focus on underserved communities or specific needs.

What People Look For in Results

• Leverage: how much private lending or investment is mobilized.
• Distribution: geography, industry, and borrower characteristics.
• Performance: repayment, defaults, and sustainability indicators.