The State Small Business Credit Initiative (SSBCI) was originally created through federal legislation – the Small Business Jobs Act of 2010. The initial SSBCI program (SSBCI 1.0) was funded with $1.5 billion to strengthen state programs that support financing of small businesses. California received $168 million of the $1.5 billion, which was shared between two state agencies focused on small business support – the California Infrastructure and Economic Development Bank’s (IBank) Small Business Finance Center and the California Pollution Control Financing Authority, housed within the State Treasurer’s Office.
Eligible states can use SSBCI funds to support the following types of small business financing programs:
- Capital Access — Offered in California through California Pollution Control Financing Authority
- Collateral Support — Offered in California through California Pollution Control Financial Authority
- Loan Guarantee — Offered in California through IBank
- Loan Participation
- Venture Capital — Offered in California through IBank
In 2022, American Lending Center received authorization to participate in the following California SSBCI programs:
- The California State Loan Guarantee Program (LGP), offered through IBank.
- The CalCAP CARB program offered through the California Pollution Control Financing Authority.
The business must have between 1-750 employees and be established as an entity including:
- Sole Proprietor – Individual using legal name as business name that files a Schedule C, Schedule F, or has a fictitious business name or DBA statement
- If the loan appears to be in the name of an individual, evidence of Sole Proprietorship will be required and may include a Schedule C, Schedule F, Seller’s Permit, and/or fictitious business name or DBA statement
- Limited Liability Company
We will not accept an individual as the borrower. It is permissible for an individual to be a guarantor or co-borrower on the loan, but the primary borrower must be a small business. We do not consider citizenship or immigration status for eligibility requirements, as long as the entity/individual meets the above criteria. Trucking owner/operators are eligible as long as they are registered as a legal business entity.
The business activity must be eligible under the program and in one of the industries listed in the North American Industry Classification System (NAICS) codes list.
What are some eligible uses of the Small Business Loan Guarantee program financing proceeds?
Eligible uses of the Small Business Loan Guarantee program financing proceeds include start-up costs, construction, inventory, working capital, business expansion, agriculture, lines of credit and more.