U.S. Department of the Treasury

• September 1, 2022 at 11:59 pm Eastern Time: Deadline for Tribal governments to initiate and submit their complete SSBCI capital application. To participate in the SSBCI program, Tribal governments were required to submit a Notice of Intent (NOI) to Treasury by December 11, 2021. A list of Tribal governments that submitted an NOI by this deadline can be found at https://home.treasury.gov/system/files/136/Tribal-Government-NOI-Submissions.pdf. 
• September 1, 2022 at 11:59 pm Eastern Time: Deadline for all jurisdictions to submit their TA Grant Program applications. The TA Grant Program application template can be found at https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-creditinitiative-ssbci.

Yes, provided that this support is consistent with the TA Recipient’s approved application and project plan. Under 12 U.S.C. 5708(e) and Treasury’s TA Grant Program Guidelines, Recipients may use funds to provide legal, accounting, and financial advisory services to qualifying small business applying for SSBCI capital programs or other federal or other jurisdiction programs that support small businesses. SBA loan programs, including disaster assistance loans, qualify as other federal small business support programs. However, under the TA Grant Agreement Treasury enters into with each Recipient, Recipients must implement their TA grants in accordance with their approved application and project plan. If supporting SBA disaster loan applications falls within a Recipient’s existing project scope, no pre-approval from Treasury is required. If supporting SBA disaster loan applications is outside of a Recipient’s approved project scope, the Recipient may propose changing the scope to include supporting SBA disaster loan applications. Recipients interested in doing so should contact Treasury to request Treasury’s prior approval to change the scope of the program. See 2 C.F.R. § 200.308(c).

The SSBCI statute, 12 U.S.C. 5708(c), provides that Treasury’s authorities to implement and administer the SSBCI Capital Program terminate seven years after the enactment of the American Rescue Plan Act of 2021, which was enacted March 11, 2021. Therefore, under current law, all disbursement, technical support, and other program actions performed by Treasury will cease on March 11, 2028. 

The expiration of Treasury’s authorities under the SSBCI statute does not affect any authorities that may continue to exist under other applicable law, such as laws related to the collection of debts or investigation of waste, fraud, and abuse and any associated remedies available to federal or state auditors or investigatory bodies.

The SSBCI statute, at 12 U.S.C. 5702(c)(4), authorizes Treasury to terminate the availability of any SSBCI allocated funds not transferred to a participating jurisdiction if the jurisdiction has not received its second tranche by the three-year anniversary of the date that Treasury approves the jurisdiction for participation in the SSBCI Capital Program.

To avoid a termination of funding under this provision of the statute, a participating jurisdiction should, within three years after the execution of its allocation agreement, (1) expend, obligate, or transfer at least 80 percent of its first tranche disbursement of allocated funds, and (2) submit a disbursement request to Treasury in accordance with FAQ #4 in Section III.b. If either of these criteria is not met, Treasury expects to terminate the participating jurisdiction’s second and third tranche allocated funds that have not been transferred to the jurisdiction.

During Treasury’s disbursement review described in FAQ #3 in Section III.b, Treasury or the participating jurisdiction may identify certain transactions or administrative costs that are not compliant under SSBCI program rules and therefore may not count toward the 80 percent threshold. If, after excluding those transactions or costs, the participating jurisdiction would fall below the 80 percent threshold, then Treasury expects to terminate the jurisdiction’s remaining allocated funds unless the jurisdiction can identify alternative compliant transactions or costs that were expended, obligated, or transferred prior to the jurisdiction’s three-year anniversary.

For example, assume a participating jurisdiction’s three-year anniversary is January 1, 2026, and it submits a second tranche disbursement request on December 20, 2025, certifying to 81% deployment of the first tranche, but on January 5, 2026, Treasury determines that a transaction comprising 2% of the jurisdiction’s first tranche is non-compliant. In that case, the jurisdiction may meet its threshold if it identifies alternative and compliant uses of funds (equal to at least 1% of the first tranche) that occurred on or before January 1, 2026. If the jurisdiction identifies a qualifying alternative use of funds, the jurisdiction’s allocation for its second and third tranches will not be terminated based on the three-year deadline. However, Treasury reserves the right to 11 take any other appropriate action regarding any identified non-compliance, including the remedies set forth in Section 5.2 of the Allocation Agreement, and jurisdictions are advised to consider unenrollment and replenishment as set out in Section XII of the Guidelines.

This FAQ does not extend the otherwise applicable December 31, 2027, final deadline for disbursement requests under FAQ #4 in Section III.b. This FAQ also does not limit Treasury’s other authorities to withhold or terminate the availability of funding in accordance with the SSBCI statute, Allocation Agreement, and program rules, including Treasury’s authority to determine that a general event of default has occurred under Section 5.1 of the Allocation Agreement and to exercise associated remedies.

While the appropriation of funds for the SSBCI program does not expire until September 30, 2030, Treasury’s authorities to implement and administer the SSBCI Capital Program terminate by statute on March 11, 2028. Therefore, Treasury will be unable to transfer funds to participating jurisdictions under the SSBCI Capital Program after March 11, 2028. To enable appropriate processing by Treasury in accordance with program requirements, including FAQ #3 in Section III.b, participating jurisdictions must submit all final disbursement requests to Treasury by December 31, 2027. While Treasury will make reasonable efforts to process all pending disbursement requests prior to the expiration of its authority, disbursement requests submitted after December 31, 2027, are not expected to be processed.

In addition, participating jurisdictions are encouraged to work with Treasury well in advance of qualifying for their next tranche (e.g., once they have deployed 50 percent of their current tranche), which will help expedite Treasury’s review of any disbursement request. Participating jurisdictions also are encouraged to respond to any compliance testing conducted by Treasury as described in FAQ #3 in Section III.b quickly, as delays in responses by the participating jurisdiction may foreclose Treasury’s ability to process a disbursement request even if it is submitted by December 31, 2027. If any compliance issues are not fully resolved by March 2028, Treasury may, in its sole discretion, withhold an offsetting amount from a disbursement that is made by March 11, 2028, to provide the participating jurisdiction with partial funds before Treasury’s authority terminates.

Eligible jurisdictions are not required to establish separate programs for SEDI-owned businesses. However, eligible jurisdictions must maintain records of the total amount of their SSBCI funds expended for SEDI-owned businesses.

To determine the amounts in the table with preliminary allocation amounts and initial eligible amounts that Treasury published on its website,¹ Treasury generally used the CDFI Fund’s list of Investment Areas that was available in November 2021.² With respect to American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands, Treasury has determined that these territories in their entirety constitute CDFI Investment Areas.

¹ The table can be found at https://home.treasury.gov/system/files/256/Updated-Preliminary-Allocations-Table-Nov-2021.pdf.
² The CDFI Fund’s list of investment areas can be found at https://www.cdfifund.gov/documents/geographic-reports.

For purposes of the “expended for” requirement for the $1.5 billion SEDI allocation and for purposes of qualifying for the initial eligible amounts under the $1.0 billion SEDI incentive allocation, Treasury will use the list of CDFI Investment Areas identified by the CDFI Fund. For each transaction, whether the relevant location is in a CDFI Investment Area must be determined immediately before the consummation of the relevant loan, investment, or other credit or equity support-related transaction, at the same time that ownership and control is assessed. A map of CDFI Investment Areas for purposes of SSBCI is available at https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci/2021-ssbci/cdfi-fund-investment-areas.

To provide advance notice and appropriate flexibility to jurisdictions, if the CDFI Fund’s list is updated during a given calendar year, then during that calendar year jurisdictions may assess transactions using either the prior list or the updated list of CDFI Investment Areas. For example, the CDFI Fund published an updated list of Investment Areas (labeled “2020” in the CDFI Public Viewer) on January 6, 2023. From January 6, 2023 through December 31, 2023, jurisdictions can document a transaction as supporting a SEDI-owned business using either this updated list or the previously issued list (labeled the “2015” list in the CDFI Public Viewer). For transactions consummated on or after January 1, 2024, only the updated list may be used to document SEDI-owned business transactions.

Further, Treasury has determined that American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands in their entirety constitute CDFI Investment Areas for purposes of the SSBCI, because each of these territories has a poverty rate of at least 20 percent.

For each business that receives a loan, investment, or other credit or equity support under the SSBCI, the determination of whether a business is a SEDI-owned business must be based on the ownership and control of the business immediately before the consummation of such transaction.

SSBCI funds count toward fulfilling the “expended for” requirement for the $1.5 billion SEDI allocation and qualifying for funding under the $1.0 billion SEDI incentive allocation if the SSBCI funds have been expended for loans, investments, or other credit or equity support to any of the four groups of businesses set forth in Section IV.a of the Capital Program Policy Guidelines.

Certification is required with regard to groups (1) to (3). In the Capital Program Policy Guidelines, Treasury stated that group (3) is intended to cover a business taking out a loan or investment to build a location in a CDFI Investment Area in the future and that a jurisdiction may reasonably identify businesses located in CDFI Investment Areas in group (4) based on businesses’ addresses from the relevant loan, investment, and credit or equity support applications without additional certification. For group (3), Treasury now expands that group to include businesses that take out a loan or make an investment to open or operate a location in a CDFI Investment Area in the future.

For groups (1) to (3), eligible jurisdictions must provide businesses with a form of certification intended to determine the SEDI-owned business status. The certification should be signed by an authorized representative of the business. Businesses must be permitted to identify all the categories in groups (1) to (3) that apply, including all of the subcategories in group (1) that apply. For groups (2) and (3), the certification form must include the address(es) of the residence(s) or location(s) located in CDFI Investment Areas. Treasury will provide a sample certification form that jurisdictions may use for this purpose. For group (1), Treasury will not require verification or documentation other than the self-certification.

As described in Section IV.b of the Capital Program Policy Guidelines, the total of all initial eligible amounts is $800 million. Of this amount, $59 million is available to Tribal governments, in proportion to Tribal governments’ main capital allocation as a percentage of the main capital allocation for states, the District of Columbia, territories, and Tribal governments. Each Tribal government’s initial eligible amount was calculated as described in the Allocation to Tribal Governments, available at https://home.treasury.gov/system/files/256/Updated-Tribal-Methodology-document-Nov-2021.pdf.

For other eligible jurisdictions, each jurisdiction’s initial eligible amount was calculated as the remaining $741 million multiplied by the sum of the jurisdiction’s population residing in CDFI Investment Areas³ divided by the total population residing in CDFI Investment Areas in all eligible jurisdictions, excluding Tribal governments. These initial eligible amounts are available at https://home.treasury.gov/system/files/256/Updated-Preliminary-Allocations-Table-Nov-2021.pdf.

³ For an explanation of how Treasury identifies CDFI Investment Areas, see FAQ 2 above in this section.

For states, the District of Columbia, and territories, the SEDI Objective equals the percentage of the population of the eligible jurisdiction that are residents in CDFI Investment Areas, as defined in 12 C.F.R. § 1805.201(b)(3)(ii), divided by the total population of the jurisdiction. These jurisdictions’ SEDI Objectives are posted on Treasury’s website at https://home.treasury.gov/system/files/256/SEDI-Objectives.pdf. For territories, including Puerto Rico, the SEDI Objective is 90 percent. For Tribal governments, the SEDI Objective is 80 percent.

The SEDI Objective establishes a target percentage of the capital allocations under 12 U.S.C. § 5702 that an eligible jurisdiction should strive to deploy to meet the needs of SEDI-owned businesses in the jurisdiction. It provides a benchmark for achieving robust support for deploying capital to meet the needs of SEDI-owned businesses.

SSBCI funds expended for loans, investments, or other credit or equity support to an eligible non-profit organization (see Sections VII.f and VIII.f of the Capital Program Policy Guidelines) may qualify as expended for SEDI-owned businesses if the non-profit organization is one of the four groups of businesses listed in Section IV.a of the Capital Program Policy Guidelines. Similar to mutual institutions, a non-profit organization is considered to be “owned and controlled” by the individuals described in groups (1) or (2) of Section IV.a if (1) a majority of the board of directors (or such other governing body that serves the same function as a board of directors) is comprised of such individuals, and (2) the community which the non-profit organization services is predominantly comprised of such individuals.

FAQ #5 above in this section specifies the documentation required to demonstrate that SSBCI funds have been expended for SEDI-owned businesses,⁴ and Treasury has published a sample certification that may be used to obtain applicable SEDI-owned business certifications.⁵ Non-profit organizations may qualify under the same standards and use the existing sample certification so long as they meet the criteria set out in this FAQ and FAQ #10 above. Specifically, with respect to the four groups of businesses in Section IV.a of the Capital Program Policy Guidelines:

1. A non-profit organization may qualify under group (1) if a majority of its board of directors (or such other governing body that serves the same function as a board of directors) is comprised of the individuals described in group (1) and the community the non-profit organization services is predominantly comprised of such individuals.
2. A non-profit organization may qualify under group (2) if a majority of its board of directors (or such other governing body that serves the same function as a board of directors) reside in CDFI Investment Areas, and the community which the non-profit organization services is predominantly comprised of CDFI Investment Area residents.
3. A non-profit organization may qualify under group (3) if it will build, open, or operate a location in a CDFI Investment Area.
4. A non-profit organization may qualify under group (4) if it is located in a CDFI Investment Area.

Certification is required for groups (1) to (3). An authorized representative of the non-profit organization (for example, the organization’s president, chief operating officer, general counsel, or other appropriate corporate officer) should complete the SEDI-owned business certification on its behalf. Individual certifications from each member of a board of directors are not required.
For group (4), jurisdictions reasonably may identify that a non-profit organization is located in a CDFI Investment Area based on the non-profit organization’s address from the relevant loan, investment, and credit or equity support application without additional certification.

⁴ See FAQ # 5 “What type of documentation is required to demonstrate that the SSBCI funds have been expended for SEDI-owned businesses.”
⁵ Sample Certification 5, https://home.treasury.gov/system/files/256/SSBCI_Sample_Certifications.pdf.

For purposes of the SSBCI, a “Tribal enterprise” is an entity: (1) that is wholly owned by one or more Tribal governments, or by a corporation that is wholly owned by one or more Tribal governments; or (2) that is owned in part by one or more Tribal governments, or by a corporation that is wholly owned by one or more Tribal governments, if all other owners are either United States citizens or small business concerns.

Tribal enterprises may use SSBCI Capital Program funds to provide investments, loans, or other credit or equity support to other Tribal enterprises if these transactions comply with the SSBCI statute, the Capital Program Policy Guidelines, all other SSBCI regulations and guidance, and the Tribe’s own conflict of interest policy.

Under these models described in Section VIII.i of the Capital Program Policy Guidelines, jurisdictions may choose to offer private investors a call option. The call option allows private investors to buy the SSBCI shares or other securities, such as convertible notes, at cost or at a predetermined higher-than-cost multiple. This is possible because under the capital-at-risk standard for these models, the private capital must be pari passu with, or junior to, the SSBCI investment in cash flow rights only up to the repayment of the SSBCI investment. A call option that offers an at-cost buyout does so by offering a 1.0X call option for the private investor to acquire the SSBCI shares or other securities at a price per share equal to the amount of the investment. A jurisdiction may also benefit from investment gains by offering a higher-than-cost option (such as 1.5X or 2X).

Jurisdictions can use a call option to incentivize private investors that have experience and a track record in early-stage investing to provide capital alongside jurisdictions to reach underserved entrepreneurs or undertake high-risk opportunities. Furthermore, employing these models can help increase the provision of incubator-like services to early-stage businesses in that jurisdiction to accelerate their growth and decrease their likelihood of failure, fostering job creation and economic development in the jurisdiction.

These models are described in Section VIII.i of the Capital Program Policy Guidelines.

The Incubation Funding Model involves an investment program in which the jurisdiction contributes SSBCI capital to a fund. Any fund that provides investment capital to portfolio companies and meets all applicable SSBCI requirements (including the investment size limit, requirement to directly or indirectly provide incubator-like services to all companies in the fund’s portfolio, and the necessary experience and track record in early-stage investing) can qualify under the Incubation Funding Model. Examples of funds that may qualify include seed funds, venture capital funds, accelerators acting as funds, university technology investor office funds, impact investors, or angel structures raising fund-like structures such as angel groups, syndicates, or super-angel funds.

In contrast, the Early-Stage Investment Model involves a direct equity investment program where a jurisdiction’s SSBCI funds are co-invested alongside private capital in each qualifying investment.

Under either model, the jurisdiction may offer a call option to the fund (in the Incubation Funding Model) or the private investors (in the Early-Stage Investment Model) to buy the SSBCI shares or other securities, such as convertible notes, at a predetermined price or multiple (greater than or equal to 1).

Incubator-like services are services that are provided to entrepreneurs in the very early stages of business development and are not typical services provided to portfolio companies by most venture capital funds. For example, incubator-like services might include a package of activities such as providing workspaces, networks, and feedback forums, potentially in shared spaces with other entrepreneurs; offering business training programs on accounting, financial statements, use of option pools, and financial projections; giving pre-product feedback on pitch construction, platform choice, engineering, and revenue model types; and providing training to early-stage companies on business formation and employment laws. Incubator-like services may include program-based services typically offered by accelerator programs that are fixed-term or cohort-based to capitalize on economies of scale and build entrepreneurial ecosystems. Incubator-like services may be provided by any entity qualified to perform such services and must be provided consistent with all applicable SSBCI requirements to satisfy the requirement under the Incubation Funding Model or Early-Stage Investment Model.

A venture capital fund (in the Incubation Fund Model) or a co-investor (in the Early-Stage Investor Model) must provide incubator-like services to investee companies. However, these services may be provided either directly, by the venture capital fund or co-investor, or indirectly, through an incubator or another organization. Under the Incubation Funding Model, the available incubator-like services must be equally accessible to all portfolio companies.

“At the time of obligation” means at the time the loan is made. For example, if the SSBCI-supported loan has a variable interest rate, the interest rate at any point during the life of the loan cannot exceed the NCUA’s interest rate ceiling in effect at the time the loan was made. Any change in the NCUA’s interest rate ceiling after a SSBCI-supported loan is made does not impact the loan. That is, the interest rate on any loan made before a change in the NCUA’s interest rate ceiling would continue to be capped by the rate ceiling at the time the loan was made, as opposed to being capped by the new rate ceiling. The interest rate on any loan made after the change, however, would be capped by the new rate ceiling rather than the prior rate ceiling.

Section 3009(e) of the SSBCI statute (12 U.S.C. § 5708(e)(1)) specifies that a jurisdiction may provide technical assistance either directly or contracted with legal, accounting, and financial advisory firms. While these terms are not defined in the SSBCI statute, the statutory objective is to provide legal, accounting, and financial advisory services to qualifying small businesses. Thus, the determination of whether an entity is a legal, accounting, or financial advisory firm depends on the extent to which the entity provides legal, accounting, or financial advisory services as described in Section IV of the TA Grant Program Guidelines. In particular, entities must meet at least one of the following criteria:

1. A primary purpose of the entity or a central part of the entity’s mission is to provide legal, accounting, and/or financial advisory services,
2. The entity regularly markets or publicizes itself as providing legal, accounting, and/or financial advisory services, or
3. At least 25% of the entity’s revenues or staff are dedicated to providing legal, accounting, and/or financial advisory services.

These entities may be either nonprofit or for-profit entities, as specified in Section III.c of the TA Grant Program Guidelines.

Recipients should maintain documentation evidencing their determination that each entity with which the recipient contracts to provide services under the TA Grant Program is a legal, accounting, or financial advisory firm. Treasury anticipates that forthcoming TA Grant Program Reporting Guidance will require each recipient to report on each TA provider with which it contracts to provide services under the TA Grant Program and report the recipient’s categorization of the entity as a legal, accounting, or financial advisory firm. In making these determinations, recipients may, but are not required to, require entities to self-certify that they meet the definition set out in this FAQ.

The SSBCI Investing in America SBOP is a federal assistance program under which Treasury intends to award $75 million in federal grants to eligible applicants to support programs that propose innovative and high-impact models for delivering technical assistance (TA) in the areas of legal, accounting, and financial advisory services to very small businesses (VSBs) and businesses owned and controlled by socially and economically disadvantaged individuals (SEDI-owned businesses), as those terms are defined in the NOFO, applying for SSBCI capital programs or other federal or other jurisdiction small business programs.

Any state, territory, the District of Columbia, or Tribal government (each a “jurisdiction”) that has been approved as a participating jurisdiction in the SSBCI Capital Program is eligible to apply. Jurisdictions that are not yet approved as participating jurisdictions in the SSBCI Capital Program, but that have submitted complete and timely SSBCI Capital Program applications (or are part of a joint Tribal government application) are also eligible to apply; however, to receive a SSBCI Investing in America SBOP award, a jurisdiction must be approved as a participating jurisdiction in the SSBCI Capital Program.

The SSBCI Investing in America SBOP is related to and supports the SSBCI Capital Program and the allocation formula-based SSBCI TA Grant Program. The SSBCI Capital Program supports credit and investment programs for eligible small businesses, and the formula SSBCI TA Grant Program funds the provision of TA services in the areas of legal, accounting, and financial advisory services to eligible small business beneficiaries applying for SSBCI funding and other government small business programs.

Treasury seeks to advance the following objectives through the SSBCI Investing in America SBOP: 

• Connect VSBs and SEDI-owned businesses with loans or investments supported by the SSBCI Capital Program or other federal or other jurisdiction small business programs. 
• Assist VSBs and SEDI-owned businesses to secure financing so they can access, leverage, and scale into business opportunities arising from legislation such as ARPA, the Bipartisan Infrastructure Law (BIL), the Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS and Science Act), or the Inflation Reduction Act (IRA).
• Incentivize innovation in the delivery of TA services through collaborations with other jurisdictions, SEDI-owned- legal, accounting, and financial advisory (LAF) firms, non-traditional TA providers, educational institutions, and community-serving organizations. For example: 
  • An applicant may propose a partnership, which may occur through a subaward or contract, with Community Navigators or other intermediaries that work with networks of TA providers, to quickly identify for the applicant SEDI-owned businesses and VSBs in need of TA services. 
  • An applicant may show how an existing economic development cluster might leverage the reach of their proposed TA project. 
• Scale the impact of SSBCI Investing in America SBOP awards through matching funds, including from the private sector.

As noted above, one objective of the SSBCI Investing in America SBOP is to support eligible businesses as they connect and scale into opportunities resulting from or aligned with investments under federal legislation. Examples of such opportunities are: 

• Business opportunities related to BIL include high-speed internet expansion, road construction, airport modernization, power grid updates, and public transit expansion, all of which may include construction, engineering, installation, and manufacturing 
  work.
• Business opportunities related to CHIPS include fabrication of semi-conductors, including the related supply chain logistics and needed service providers. 
• Business opportunities related to the IRA include the development or installation of renewable energy technologies; building weatherization and energy efficiency services; and manufacturing of batteries, solar, and wind parts and the development of technologies like carbon capture systems and electrolyzers to make hydrogen, all of which may include construction, engineering, manufacturing, supply chain, and logistics work.

The existing SSBCI TA Grant Program is an allocation formula-based grant program, which means that funds were allocated to all eligible jurisdictions. Under the formula TA Grant Program, all eligible jurisdictions that submitted complete and approvable applications are generally recommended for funding. Treasury works closely with jurisdictions throughout the award approval process.

Unlike the formula TA Grant Program, the SSBCI Investing in America SBOP is a competitive grant program, which means that complete and timely applications from eligible applicants are evaluated based on the criteria specified in the NOFO, and only certain applicants will be selected for funding. Out of fairness to all applicants, Treasury staff cannot provide strategic assistance to prospective applicants and anticipates answering common applicant questions via publication of updates to this set of FAQs.

Treasury anticipates awarding grants under this NOFO that will have a performance period of up to three years. The length of the period of performance should be based on the assessed needs of the jurisdiction’s eligible small businesses and must be clearly articulated in all budget documents.

Any state, territory, the District of Columbia, or Tribal government (each a “jurisdiction”) that has been approved as a participating jurisdiction in the SSBCI Capital Program is eligible to apply. Jurisdictions that are not yet approved as participating jurisdictions in the SSBCI Capital Program, but that have submitted complete and timely SSBCI Capital Program applications (or are part of a joint Tribal government application) are also eligible to apply; however, to receive a SSBCI Investing in America SBOP award, a jurisdiction must be approved as a participating jurisdiction in the SSBCI Capital Program.

Eligible beneficiaries of TA services under the program are VSBs and SEDI-owned businesses that are applying for funding under a jurisdiction’s SSBCI capital program or other federal or other jurisdiction small business program. See the “Key Terms” section of the NOFO for the definitions of “VSB” and “SEDI-owned business.”

Some businesses may qualify as both VSBs and SEDI-owned businesses. A recipient can consider these businesses as VSBs, SEDI-owned businesses, or both for all purposes for grants made under this NOFO.

A recipient may (1) provide TA services itself under the SSBCI Investing in America SBOP award, (2) make a subaward for certain subrecipients to provide TA services under the SSBCI Investing in America SBOP award, (3) contract with third-party LAF firms to provide the TA services, or (4) make a subaward to a non-federal entity (as defined at 2 CFR § 200.1²) that is not an entity of the recipient (e.g., a state entity or other jurisdiction entity) or LAF firm, provided that:³

• A subrecipient must be either an entity of the recipient (e.g., a state agency or government corporation) or an LAF firm.
• A third-party contractor must be an LAF firm.
• In a subaward to a non-federal entity that is not an entity of the recipient or LAF firm, the subrecipient must act in an administrative role as a pass-through entity and must contract with or make subawards to jurisdiction entities or LAF firms that serve as TA providers that will provide the TA services.⁴ This includes subawards to other jurisdictions.⁵

² The regulation at 2 CFR § 200.1 defines “non-federal entity” as a state, local government, Indian tribe, institution of higher education, or nonprofit organization that carries out a federal award as a recipient or subrecipient.

³ Note that examples of potential TA providers or subrecipients used throughout these FAQs and the SSBCI Investing in America SBOP NOFO, such as Community Navigators, are only eligible to the extent that the specific proposed entity meets the criteria described in the NOFO.

⁴ For example, a jurisdiction may make a subaward to a nonprofit entity that is not an LAF firm, which then makes a subaward to or contracts with LAF firms to provide TA services. The nonprofit entity will be responsible for the oversight of TA providers and reporting to the recipient.

⁵ A subaward from a recipient jurisdiction to another jurisdiction or an entity of another jurisdiction is permissible if the subrecipient will act in an administrative role and will contract with or make subawards to LAF firms that serve as TA providers that will provide TA services (rather than providing TA services itself). Any subaward agreement must incorporate all the terms and conditions of the SSBCI Investing in America SBOP grant agreement and must include the information listed in 2 CFR § 200.332(a). A pass-through entity must require a subrecipient, including a lower-tier subrecipient, to comply with the terms and conditions of the SSBCI Investing in America SBOP grant agreement, including the applicable requirements of the Uniform Guidance (2 CFR Part 200). In accordance with 2 CFR § 200.332, pass-through entities must monitor subrecipients’ use of SSBCI Investing in America SBOP funds to ensure the subrecipients’ compliance with all SSBCI Investing in America SBOP award terms and conditions.

A legal, accounting, or financial advisory firm (LAF firm) is a for-profit or nonprofit entity that meets at least one of the following criteria:

• A primary purpose of the entity or a central part of the entity’s mission is to provide legal, accounting, and/or financial advisory services,
• The entity regularly markets or publicizes itself as providing legal, accounting, and/or financial advisory services, or
• At least 25% of the entity’s revenues or staff are dedicated to providing legal, accounting, and/or financial advisory services.

See also FAQ # 2 “How does Treasury define a ‘legal, accounting, of financial advisory firm’ for purposes of the TA Grant Program?” under Section III. Eligible Recipients, Beneficiaries, and TA providers at https://home.treasury.gov/system/files/136/SSBCI-FAQs.pdf, which will apply to applications and grants under the SSBCI Investing in America SBOP.

In general, no. As stated in question #1 of this section, eligible applicants under this program are any state, territory, the District of Columbia, or Tribal government (each a “jurisdiction”) that has been approved as a participating jurisdiction under the SSBCI Capital Program. The governing official of the applying jurisdiction may designate a specific department, agency, or political subdivision of the jurisdiction to apply for and implement the grant, if awarded.

Small businesses are not eligible to apply to Treasury for an award under the SSBCI Investing in America SBOP. In addition, TA providers that are not jurisdiction entities (for example, non-jurisdiction non-profit and for-profit TA providers) are not eligible to apply to Treasury for an award under the SSBCI Investing in America SBOP but may partner with jurisdictions to provide TA services. Small businesses may, however, be eligible beneficiaries to receive TA services under a participating jurisdiction’s TA program that is funded under the SSBCI Investing in America SBOP.

Treasury encourages small businesses and TA providers to visit the SSBCI website to learn more about the other programs offered through SSBCI and how they may partner with or benefit from these programs. For example, a small business may be eligible to be a beneficiary under the formula TA Grant Program, so Treasury recommends engaging with the relevant jurisdiction to determine eligibility for services.

Treasury intends to update the SSBCI website when awards are made under the SSBCI Investing in America SBOP, so that small businesses and TA providers can find out whether their jurisdiction is participating in the program.

Treasury anticipates that it will make between 8 and 15 awards under this NOFO, with individual awards ranging from $5 million to $10 million. Treasury anticipates that larger awards will have a regional focus that involves collaboration between jurisdictions. The ranges in this paragraph are provided only for your information and may prove useful for planning purposes. Actual amounts awarded may be higher or lower, including based on the availability of funds.