Preserving Access to Capital: The role of SSBCI in building a resilient small business economy
The State Small Business Credit Initiative (SSBCI) represents a critical federal investment in U.S. small businesses. Originally established under the Small Business Jobs Act of 2010 and reauthorized under the American Rescue Plan in 2021, SSBCI provides states, territories and tribal governments with federal funding to incentivize small business lending. Through a range of programs—including loan participation, loan guarantee, capital access and technical assistance—SSBCI helps ensure that entrepreneurs have access to the capital they need to launch and sustain their businesses. The goal of the program is to facilitate access to capital for small businesses that face challenges obtaining traditional financing. By leveraging these funds, states can create innovative programs tailored to local market conditions, with the potential to catalyze up to 10 dollars of private investment for every dollar of federal SSBCI funding.
Over the past two years, Small Business Majority has worked alongside state program administrators, Community Development Financial Institutions (CDFIs) and other stakeholders to understand how SSBCI is performing on the ground and to ensure funds reach their intended targets: socially and economically disadvantaged (SEDI) businesses, microbusinesses and businesses in under-resourced communities. Through outreach, education and the development of high-quality resources, we have connected more than 114,000 entrepreneurs nationwide with tools and opportunities to access capital in markets bolstered by SSBCI investments.
Our research and interviews with small business owners highlight both the successes and the challenges of the program. Many SSBCI-funded initiatives are effectively reaching underserved small business owners. However, some states continue to face barriers to small-dollar lending, lengthy approval times and limited CDFI participation. Based on these findings, we developed recommendations to help states maximize SSBCI’s impact and ensure that dollars flow to the smallest and most under-resourced entrepreneurs who need them most.
We have also partnered with the Community Reinvestment Fund (CRF) to help entrepreneurs connect directly with capital. Together, we have supported over 1,100 applications totaling more than $122 million in matched loans, representing an average loan of $112,000. In addition, our Rapid Response Coalition—launched in early 2025 and now comprising more than 170 business and advocacy groups—has been mobilized to actively defend federal small business programs and funding.
As Congress and state policymakers consider the future of small business support, preserving SSBCI is essential. Where other state ecosystem supports may be reduced or unavailable, these federal dollars serve as a critical backstop, filling gaps and ensuring that businesses—especially those in states not structured for small-dollar lending—have access to the capital they need. Yet some of the federal government’s recent actions may threaten the program’s stability. Specifically, staffing cuts at the Treasury Department jeopardize the $5 billion in SSBCI funds still undistributed, along with $147 million in administrative resources, creating uncertainty for lenders and small business owners alike. The CDFI Fund, which supports many of the SSBCI-participating lenders, is also in jeopardy as $324 million in congressionally approved funds for the program have yet to be allocated by the Office of Management and Budget. While these policy debates continue in Washington, Small Business Majority has been steadfast in ensuring that the SSBCI dollars already released reach historically excluded entrepreneurs, including microbusinesses, minority- and women-owned businesses and rural enterprises. Protecting and strengthening SSBCI is not only about supporting individual businesses; it is a strategic investment in the broader economic vitality, innovation and resilience of the nation.
