$100 Billion Available in Small Business Aid: The State Small Business Credit Initiative
This year we saw the end to several federal programs designed to help small businesses to survive the financial uncertainty of the continuing pandemic. In spite of programs like the U.S. Small Business Administration’s Paycheck Protection Program ending, many small businesses continue to seek out growth amidst this uncertainty. The number of aspiring entrepreneurs continues to rise as well. There is some good news for those striking out on their own and small businesses hoping for a boost to help them expand. The U.S. Department of the Treasury State Small Business Credit Initiative (SSBCI) plans to get $10 billion in funding to small business owners as soon as the start of next year.
The SSBCI was started in 2010 with the goal of providing capital to business owners in underserved communities. These communities have taken a massive financial hit during the pandemic, with many small business owners having to close or downsize. The $1.9 trillion Federal Coronavirus Relief Package released in March allocated funds to be used by the SSBCI, and many small businesses are hopeful that these funds will soon become available in their state.
Unlike the Paycheck Protection Program, the Small Business Credit Initiative is distributed to states and territories rather than individual businesses. According to the U.S. Department of the Treasury State Small Business Credit Initiative Capital Program Policy Guidelines, the state must use 90% of the funds for loans and investments that benefit small businesses in their state. Once the state has secured that funding, it is passed to lenders. When small business owners apply for these loans through the state-designated lenders, they should expect reasonable interest fees, as protections were put in place by the federal government to avoid excessive interest rates being passed to lenders. The treasury estimates that over $100 million in overall lending funds will be released over the next seven years.
The Florida Department of Economic Opportunity provides the latest information to Florida business owners on the status of these funds for our state. They have shared that the specific Florida allocation is $324 Million. As funding becomes available to your small business, it is wise to invest a portion in your marketing strategies. If you are considering improving your website or reaching more clients through social media and content marketing, Ocoos Web Consulting is here for you. We provide web development and web design services to Ocala and the surrounding areas. Contact us today to schedule a free consultation.
