Alaska Small Business Development Center


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.

The funds will also support promoting American entrepreneurship and democratizing access to startup capital across the country, including in rural and underserved communities.

SSBCI provides states and tribal entities with funding for:

  1. Credit and investment programs for existing small businesses and start-ups
  2. Technical assistance to small businesses applying for SSBCI funding and other government small business programs

SSBCI in Alaska

Alaska is allocated to receive roughly $59,000,000 over the course of the 10-year program. The Alaska SBDC is the administrative lead on the program for the state and will deploy the funding to lenders and investment funds.

The Alaska SSBCI program is deploying it’s $59 million in funding through the following funding programs:

  1. Venture Capital/Equity Funds – $10 million
  2. Loan Participation Program – $15.9 million
  3. Loan Guarantee Program – $32 million
  4. Alaska Collateral Fund Program – $2 million

The Alaska SSBCI program is currently onboarding lenders and will start processing loans by the end of the first quarter of 2023.

Participating Lenders

We continue to build our list of participating lenders. We update this list as new lenders join the program.

View the current Alaska SSBCI Participating Lender List

(PDF, updated 4/10/2024)


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:

  1. 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.
  2. 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.

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.


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SSBCI April 2024 Update

SSBCI March 2024 Update

Empowering Alaskan Entrepreneurs: The Alaska State Small Business Credit Initiative

SSBCI February 2024 Update