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SSBCI Overview
On March 11, 2021, President Biden signed The American Rescue Plan Act (ARPA), which reauthorized and funded the State Small Business Credit Initiative (SSBCI). The new version of the SSBCI program provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic.
Since the launch of the State SSBCI program in 2023, Alaska SBDC at UAA’s Business Enterprise Institute has facilitated over $120 million in State SSBCI-backed loans to businesses across the state, making Alaska one of the top SSBCI programs in the nation.
The Alaska SBDC is the only organization in the country to host State and Tribal SSBCI programs; between the two, hundreds of millions of private-sector funding is projected to be deployed into Alaska’s small businesses over the next decade. The funds will also support promoting American entrepreneurship and democratizing access to startup capital nationwide, including in rural and underserved communities.
The SSBCI program provides states and tribal entities with funding for:
- Credit and investment programs for existing small businesses and start-ups
- Technical assistance to small businesses applying for SSBCI funding and other government small business programs
State SSBCI
The State Small Business Credit Initiative is a program funded by the U.S. Department of the Treasury and designed to boost lending and investment in Alaska’s small businesses, particularly those that have traditionally faced challenges securing financing.
Alaska is allocated to receive roughly $59,000,000 throughout the 10-year program.
The Alaska SBDC is the administrative lead on the Alaska State SSBCI program and will deploy the funding to lenders and investment funds. These financial institutions then provide loans or investments to eligible businesses.
The Alaska State SSBCI program will prioritize supporting investments in businesses owned and controlled by Socially and Economically Disadvantaged Individuals (SEDI) and Very Small Businesses (VSB).
Funding Allocation
The State SSBCI program is deploying its $59 million in funding through the following funding programs:
- Loan Guarantee Program – $49 M
- Loan Participation Program – $0.9 M
- Venture Capital/Equity Program – $10 M
The page below provides additional information about these programs, SSBCI’s statewide impact, requirements, prioritization, and objectives.
Contact the State SSBCI team to learn more.
Tribal SSBCI
Alaska SBDC has launched the largest Tribal consortium in the nation as part of the State Small Business Credit Initiative, expanding on the success of the existing $59 million State SSBCI program.
The SSBCI Tribal Consortium is expected to leverage hundreds of millions in private-sector investment, creating jobs and stimulating economic growth across the state.
Dedicated to Socially & Economically Disadvantaged Individuals (SEDI), the program leverages the support of 125 Alaska Tribes to deliver over $83 million in funding.
While the program prioritizes businesses with a strong connection to Alaska, including Tribal-owned enterprises, eligibility extends beyond Tribal membership. Notably, borrowers must be 100% SEDI. Tribal members can access funds for out-of-state businesses (within the U.S.) if the business operates outside Alaska. Lenders can request loan guarantees exceeding 50% (up to 80%) for borrowers affiliated with the 125 tribes consortium.
Funding Allocation
The SSBCI Tribal Consortium is deploying its $83.1 million in funding through the following funding programs:
- Loan Guarantee Program – $37.9 M
- Loan Participation Program – $10.3 M
- Loan Collateral Support Program – $12 M
- Venture Capital/Equity Program – $22.9 M
Contact the Tribal SSBCI team with questions.
How Businesses Can Get Involved
Interested businesses and borrowers should contact a participating lender to inquire about financing options. You can review the SSBCI Participating Lender List for contact information.
How LENDERS Can Get Involved
Lenders seeking to participate in an SSBCI program should contact the Alaska SSBCI team directly either via the State SSBCI email or Tribal SSBCI email. Alaska SSBCI staff will connect with all lenders directly to discuss next steps.
Alaska State & Tribal SSBCI Funding Programs
Participating Lenders in State of Alaska SSBCI Funding Program
We continue to build our list of participating lenders. We update this list as new lenders join the program.
View the current SSBCI Participating Lender List (PDF, updated 4/10/2024)
State SSBCI Impact in Alaska
SEDI: Socially and Economically Disadvantaged Individual-owned businesses are enterprises controlled by individuals who have faced reduced access to credit compared to others in similar economic circumstances.
VSB: Very Small Business that operates with fewer than ten people.
As of December 12, 2024
SSBCI Tribal Consortium Impact in Alaska
SEDI: Socially and Economically Disadvantaged Individual-owned businesses are enterprises controlled by individuals who have faced reduced access to credit compared to others in similar economic circumstances.
VSB: Very Small Business that operates with fewer than ten people.
Program implementation was on August 1, 2024, and the first closing was on September 4, 2024. Numbers as of December 12, 2024.
Requirements
Funding amounts for these programs may change over time based on usage and feedback from businesses and private sector lenders/investors. The basic requirements for borrowers in these programs are:
- Business must have fewer than 750 employees
- Business must be operating in the State of Alaska
- Loans/Investment Rounds must be $20 million or less
- Not registered sex offenders
Program funds can not be used for the following:
- Cannabis related businesses
- Passive real estate investments
- Gaming
- Purchasing an owners’ share in the business or reimbursement of owner contributions
- Paying off existing loans (some limited exceptions)
- SSBCI funds cannot be used in connection with other federal funding programs (SBA, USDA, EDA, BIA, etc)
Prioritization and Objectives
The Alaska SSBCI program will prioritize supporting investments in businesses owned and controlled by Socially and Economically Disadvantaged Individuals (SEDI) and Very Small Businesses (VSB).
The definitions of those businesses are:
Socially and Economically Disadvantaged Individuals (SEDI)
Defined by reference to section 8 of the Small Business Act (15 U.S.C. 637), the definition includes:
- Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
- Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.
Very Small Business (VSB)
Very Small Business is defined as a business with fewer than 10 employees; and may include independent contractors and sole proprietors.
Notice of Nondiscrimination
The University of Alaska does not discriminate on the basis of race, religion, color, national origin, citizenship, age, sex, physical or mental disability, status as a protected veteran, marital status, changes in marital status, pregnancy, childbirth or related medical conditions, parenthood, sexual orientation, gender identity, political affiliation or belief, genetic information, or other legally protected status.
To file a complaint of discrimination with the Department of the Treasury, write to:
U.S. Department of the Treasury Director
Office of Civil Rights & Equal Employment Opportunity
1500 Pennsylvania Avenue
N.W., Washington, DC 20220
or send an e-mail
Contact information, applicable laws, and complaint procedures are included on UA’s statement of nondiscrimination available in the downloadable Notice of Nondiscrimination Flyer and www.alaska.edu/nondiscrimination.
U.S. Treasury Objectives
Promote Equity
The program has a capital allocation to businesses owned and controlled by socially and economically disadvantaged individuals (SEDI-owned businesses), along with incentive funds for states and tribal entities that demonstrate robust support for SEDI-owned businesses.
Catalyze Private Investment
Over the ten year life of the program, the SSBCI is designed to leverage $10 of private sector funding for every $1 of SSBCI capital program funding deployed, magnifying the effects of the federal funds allocated through the program.
Fuel Economic Growth and Good Jobs
SSBCI will build on the Administration’s work to support small businesses while combating long standing structural inequities in access to credit and unequal opportunities for growth revealed and exacerbated by the pandemic.
Read more about the SSBCI program on the US Dept. of Treasury website.
A Special Thanks to The State of Alaska SSBCI Funding Program Advisory Board
The State of Alaska SSBCI Program would like to thank members of the advisory board for their guidence and expertise:
Christi Bell: UAA Associate Vice Chancellor and Business Enterprise Institute Executive Director.
Katherine Jernstrom: Cofounder + CEO of The Boardroom, LLC and Managing Partner of Alyeska Venture Management.
Adam Kane: Communications Manager for the Alaska Municipal League.
Nathan Rivas: Financial Advisor, Edward Jones Investments.
Carrie Callaway Cardy: Vice President, Senior SBA Relationship Manager at KeyBank.
The State of Alaska SSBCI Program can be reached at SSBCI.State@aksbdc.org.