CREC Project News and Updates

State Small Business Credit Initiative: Lessons for Federal and State Programs to Support Business Capital Needs

October 13, 2016

Different types of programs are needed to meet the wide spectrum of business capital gaps.  The states have learned a lot of lessons over the past few years in which programs meet which gaps.  That’s a key takeaway that CREC and its partners at the U.S. Treasury Department and Cromwell Schmisseur learned from a new study of more than 140 business financing programs operated as part of the State Small Business Credit Initiative (SSBCI) during the past 5 years in the 56 states and territories.

The study, “Program Evaluation of the US Department of Treasury State Small Business Credit Initiative,” released in October 2016, represents the culmination of nearly four years of research and technical assistance involving hundreds of telephone interviews, dozens of site visits, and an analysis of nearly 17,000 SSBCI-supported loan and equity transactions.  SSBCI’s primary purpose is to get capital into the hands during and immediately after the financial crisis and to help jumpstart private sector lending by leveraging $1.45 billion in public funds made available by Congress as part of the Small Business Jobs Act of 2010.

The study found that the temporary program—expiring in 2017—had expended, by the end of 2015, well over $1 billion, or 72 percent of available funds to stimulate small business financing.  About 70 percent of the funds were used for lending and 30 percent for equity financing.  Combined, the state programs helped to leverage $8.4 billion in private capital thus far – an 8.15 leverage ratio, shy of its 10:1 goal, but well within sight given the ability of states to use recycled funding to continue making loans and investments to small businesses. Furthermore, 42 percent of the transactions were made to businesses located in low and moderate income census tracts – an unexpectedly high proportion given the need to get capital across many sectors.  Also surprisingly, the loans and investments went to primarily to very small firms – 80 percent of the transactions went to businesses with 10 or fewer employees.

For state leaders, however, the most impactful aspect of SSBCI may well have been the restored capacity that SSBCI provided to states.  SSBCI has been critical in helping states meet capital gaps when they had limited to no funding, and the program facilitated new program models designed to encourage cooperation among the states, the federal government, and private capital markets in delivering financing to firms.  In addition, SSBCI:

  • Helped states develop their local solutions to meet aspects of small business financing needs.
  • Offered technical assistance and build a network for knowledge sharing that did not previously exist.
  • Supported state efforts to determine their efforts might fill gaps in national programs offered by SBA, USDA, Treasury, and others agencies and adapt to unique challenges (e.g., falling collateral values, nonprofit financing needs, and gaps in private capital institutions or products).
  • Developed greater capacity within states to articulate and document capital needs, build stronger private sector relationships, and align program characteristics with market practices.

The report is available here or from the Treasury website.

About This Project

Evaluating TPM Career Readiness Academy
Start Date: Jul 2024 — End Date: Jun 2025

CREC is collaborating with the US Chamber of Commerce Foundation on the ongoing development of evaluation metrics for the Talent Pipeline Management (TPM) Academy. CREC will review metrics recommended in the TPM curricula, those identified by states participating in the Career Readiness Academy and will provide new metrics as appropriate. By engaging participants alongside their […]

Semiconductor/Microelectronics Education & Training Assets Map
Start Date: Mar 2024 — End Date: Jun 2024

CREC is partnering with SRI to identify and map semiconductor education and training assets for the Workforce Subgroup of the Semiconductor Task Force at the Arizona Commerce Authority. The asset map will inform the ACA and its stakeholders’ workforce development strategy to support the Semiconductor Industry. This project includes multiple phases to identify variables of […]

NYSERDA
Start Date: Mar 2024 — End Date: Sep 2024

CREC is partnering with Global Location Strategies (GLS) and MRB Group (MRB) to provide economic development and site selection expertise to support NYSERDA, Empire State Development (ESD), and other New York State policymakers in harnessing the economic development opportunities of clean energy manufacturing supply chains across various sectors, including battery storage, electric vehicles, solar photovoltaic, […]

Rapides Foundation
Start Date: Apr 2024 — End Date: Oct 2024

The CREC team will provide updated data and analysis that builds around EntreWorks Consulting’s previous benchmarking assessment, completed in 2021. CREC staff will update all data developed in that assessment and assist in reviewing the insights and implications of these data trends as they relate to the Foundation’s mission of building healthy communities in Central […]


Start Date: Feb 2024 — End Date: Jul 2024

CREC works with the Office of Entrepreneurship in the Governor’s Office of Economic Development (GOED) to develop a set of metrics in support of entrepreneurship and innovation in the state of Nevada. The work is being done in two phases. Phase one involves identifying and reviewing available data for inclusion in a data dashboard. Phase […]

Jobs and Employment Data Exchange (JEDx)
Start Date: Dec 2023 — End Date: Sep 2025

The JEDx initiative is an effort coordinated by the U.S. Chamber of Commerce Foundation that seeks to develop a public-private approach for collecting and using standards-based jobs and employment data across states. CREC is playing an advisory role by helping to inform: the ongoing development of a standardized data model for employment and wage data […]

PEW CHIPS
Start Date: Aug 2023 — End Date: Apr 2024

CREC developed a network of top state economic development executives and engaged them in a collaborative group. CREC organized a series of conference calls, interviews, and meetings with the executives. To support that work, CREC also conducted research on key issues of concern to the network, including providing insights about how to measure their success […]

GO Virginia
Start Date: Nov 2023 — End Date: Oct 2024

The Talent Pathway Initiative (TPI) is a project of Go Virginia Region 7 that will bring together perspectives of leaders in business and education to address Northern Virginia’s workforce needs in computer services, cybersecurity, and emerging technologies. The Center for Regional Economic Competitiveness (CREC) and George Mason University (GMU) Center for Regional Analysis (CRA) will […]

DDAA Research Supplement – Telling the Story of Local Development Districts
Start Date: Jun 2023 — End Date: Dec 2023

The Local Development Districts (LDDs) are a fundamental element of the three-legged Federal, state, and local stool that supports development in Appalachia and the work of the Appalachian Regional Commission (ARC). They rely on a variety of funders and stakeholders to support their efforts, which requires educating them on the successes of the LDDs. The […]

National Association of Development Organizations (NADO), EDD COP
Start Date: Jan 2023 — End Date: Apr 2027

CREC is partnering with the National Association of Development Organizations (NADO), University Economic Development Association (UEDA), National Association of Regional Councils (NARC), and First Nations Development Institute on a five-year effort to build and nurture the Economic Development District Community of Practice (EDD CoP).  Led by NADO, with support from the U.S. Economic Development Administration […]

About the Client

National Association of Development Organizations (NADO)

The National Association of Development Organizations (NADO) is a 501c4 membership association that represents the interests of regional community and economic development practitioners. Established in 1967, NADO advocates for federal policies and programs that promote equitable community development, economic competitiveness, rural development, economic mobility, and quality of place. NADO represents a national network of more […]