The American Rescue Plan provides $10 billion to state and Tribal governments to fund small business credit expansion initiatives.
On March 11, 2021, President Biden signed The American Rescue Plan Act, which provided $10 billion to fund the State Small Business Credit Initiative (SSBCI). SSBCI will fund state, territory, and Tribal government small business credit support and investment programs.
This program will build off the inaugural model developed in 2011 during the Obama-Biden Administration, in which nearly $1.5 billion in capital supported over $8 billion in new lending and investing activity across 142 different programs in its first 5 years. The new iteration will expand in scale and include:
- $500 million to support very small businesses with fewer than 10 employees
- $1.5 billion for states to support businesses owned by socially and economically disadvantaged people
- $1 billion for an incentive program to boost funding tranches for states that show robust support for businesses owned by socially and economically disadvantaged individuals
- $500 million for technical assistance