Small Business Access to Capital (Part I)

This is the first in a series of blog posts about communities deploying capital into small businesses. The following is an overview of a statewide program funded by the US Treasury; subsequent posts will focus on regional, county and municipal programs. The State Small Business Credit Initiative (SSBCI) was authorized in the Small Business Jobs Act of 2010. It included an appropriation of $1.5 billion and directed the US Treasury Department to allocate these funds on a formula basis to the states. It also directs Treasury to develop program guidelines with respect to proposals from the states along with program performance and reporting requirements. The key purposes of the Initiative were: (1) to allow the states to build upon or create successful financing programs tailored to individual state needs; (2) to use the funds allocated to stimulate and leverage expanded private sector lending and investments to small businesses; and (3) to support business growth and job creation. North Carolina’s allocated share of federal funding was $46.1 million. The North Carolina Department of Commerce was designated to take lead responsibility for implementing the SSBCI. It was among the first states to submit its application to US Treasury to participate in the program and it was the first state to have its proposal approved for implementation. In North Carolina, the SSBCI funds are being used to support three financing programs all aimed at businesses with fewer than 500 employees: the North Carolina Capital Access Program (NC-CAP), the North Carolina Loan Participation Program (NC-LPP) and a North Carolina Fund of Funds [...]