State Small Business Credit Initiative (SSBCI)
The State Small Business Credit Initiative (SSBCI) is a $96 million investment in growing Iowa's small businesses, including startups, manufacturers and businesses owned by veterans and individuals from diverse backgrounds. The funding is available through the U.S. Treasury Department's SSBCI, a small business aid program that was expanded through the federal American Rescue Plan Act. The Treasury Department approved Iowa's amount based on a plan submitted by IEDA. Iowa's SSBCI dollars will focus on encouraging venture capital and investment in scalable innovation companies through the programs below.
Small Business Programs
- Loan Participation Program for Manufacturing 4.0 Investments: $28 million to help Iowa manufacturers invest in the new technologies that are transforming the industry. The state will purchase part of the loan to help offset risk for lenders. Learn more about the program here.
- Manufacturing 4.0 Loan Participation Program Fact Sheet
- Manufacturing 4.0 Qualified Lenders
- Small Business Collateral Support Program: $15 million to help small businesses offset collateral shortfalls as they secure loans through commercial lenders. Eligible borrower's owners include small businesses that are 51% owned by women, individuals from diverse backgrounds, veterans, individuals with disabilities, and long-term rural residents; and small businesses that enhance arts and culture in Iowa.
- Small Business Collateral Support Program Fact Sheet
- Small Business Qualified Lenders
- Venture Capital Innovation Fund Program: $22 million to increase funding opportunities across the state's assistance programs for entrepreneurs. This fund also will provide more funding to address gaps in startup development phases as businesses work through concept, launch and expansion.
- Venture Capital Innovation Fund Program Fact Sheet
- Venture Capital Co-Investment Fund Program: $31 million to process and hold equity investments in private companies and ensure investments are qualified. Learn more about InnoVenture Iowa here.
IEDA is partnering with lenders across the state to directly connect with small businesses for two of the SSBCI programs. Lenders will be required to apply on behalf of the small businesses on the programs below.
- Small Business Collateral Support Program: Socially and economically disadvantaged businesses can receive support of up to 40% of a collateral gap needed to secure loans ranging in size from $75,000 to $250,000. The state will only participate in the amount needed to secure the loan based on the lender's analysis of collateral shortfalls.
- Small Business Collateral Support Program Information for Lenders
- Loan Participation Program for Manufacturing 4.0 Investments: Manufacturers seeking to make Industry 4.0 investments can request up to 20% participation in a loan.
- Manufacturing 4.0 Loan Participation Program Information for Lenders
A lending institution must have an approved provider participation agreement on file for each program they wish to utilize. Once it has been submitted, it will be reviewed to ensure the provider meets all eligibility requirements. The provider will be notified via email once approved, and applications for funding will then be available to the approved providers.