The American Rescue Plan Act of 2021 (ARPA) included an appropriation of $10 billion for a second round of the State Small Business Credit Initiative (SSBCI). SSBCI provides recipient jurisdictions funding for: (1) credit and investment programs for existing small businesses and start-ups, and (2) technical assistance to small businesses applying for SSBCI funding and other government small business programs. The Illinois Department of Commerce and Economic Opportunity (DCEO) is the designated implementation authority for the State of Illinois’ SSBCI programs. DCEO’s application to U.S. Treasury included the IFA as a contracted entity to implement and administer the Climate Bank Finance loan participation program. These funds are not considered a federal award.

American Rescue Plan Act of 2021, PUBLIC LAW 117–2—MAR. 11, 2021; Subtitle C-Small Business (SSBCI)

Public Act 102-0017, 20 ILCS 605/605-1 et seq., 20 ILCS 605/605-30, 20 ILCS 605/605-55

Rules for SSBCI 2.0 need to be filed

SSBCI provides recipient jurisdictions funding for: (1) credit and investment programs for existing small businesses and start-ups, and (2) technical assistance to small businesses applying for SSBCI funding and other government small business programs. The goals of the program are to expand access to capital, promote economic resiliency, create new jobs, and increase economic opportunity. This focus is reflected in several important features of these programs, including: promoting equity; catalyzing private investment; and fueling economic growth and good jobs.

Yes

Information about the Program Specific Terms and requirements can be found within the Notice of Funding Opportunity

Government Organizations; Nonprofit Organizations; For-Profit Organizations; Other;

Eligible entities as prime recipients include States and Tribal governments. Eligible entities must have their applications and programs approved by U.S. Treasury. Eligible entities may contract with an organization or entity that is not a department, agency, or political subdivision of the applicant that will be responsible for administering one or more programs per U.S. Treasury’s approval. Reference the American Rescue Plan (ARPA) Act, Title III, Subtitle C – Small Business (SSBCI) and the Small Business Jobs Act of 2010 – Title III, State Small Business Credit Initiative.

SSBCI-funded credit support programs are required (1) to target an average borrower or investee size of 500 employees or less, (2) not to extend credit support to borrowers that have more than 750 employees, (3) to target support towards loans or investments with an average principal amount of $5 million or less, and (4) not to provide credit or investment support if a given transaction exceeds $20 million. Beneficiaries include small businesses and very small businesses including in low- and moderate-income, minority, and other underserved communities, including women- and minority-owned small businesses and businesses owned by socially and economically disadvantaged individuals.

Guaranteed/Insured Loans

Economic Development

Eligible entities must submit an application or amended application to U.S. Treasury and have their application approved by U.S. Treasury for participation in SSBCI. DCEO, as the implementing authority for the State of Illinois, is responsible for submitting the application or amended application to U.S. Treasury that includes any recipient that may partner with DCEO to implement or participate in the implementation of an approved SSBCI credit support program.

Eligible entities must have been designated by the Governor’s Office as the implementing authority for SSBCI and submit an application to U.S. Treasury for approval. DCEO has been designated as the implementing authority for the State of Illinois. After an applicant is chosen as a potential recipient, DCEO is responsible for submitting the SSBCI application or amended application to U.S. Treasury to receive approval for the recipient to implement or participate in the implementation of an SSBCI program. DCEO’s application to U.S. Treasury included an allocation for IFA’s Climate Bank Finance loan participation program.

Application procedures can be found in the NOFO. Prior to grant execution, DCEO must seek approval from U.S. Treasury.

The following types of programs are eligible to be implemented under SSBCI: capital access program; collateral support program; loan participation program; loan guarantee program; equity capital program (funds); and equity capital program (direct). The criteria for each program under this CSFA will be defined in the NOFO.

This program complies with all GATA rules.

Deadlines will be stated in the NOFO.

Applications will be reviewed in approximately 30 business days. The award time is dependent on the review and approval of U.S. Treasury.

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Yes. Renewals may be considered based on program performance and compliance with State and Federal program and reporting requirements.

Implementing entities are not required to provide matching funds. Treasury requires a 1:1 private financing match and an expectation/target of 10:1 leverage for all SSBCI funds.

SSBCI administrative costs are defined and governed by the Uniform Cost Principles in 2 C.F.R. Part 200 Subpart E. The Uniform Cost Principles contain criteria that must be used to establish chargeable administrative costs and specific information on allowable costs in various cost categories. Administrative costs are capped by statute (see 12 U.S.C. § 5702(c)(3)(C)-(D)). Specifically, for the first tranche, the administrative costs are not to exceed 5 percent of SSBCI funds, and for the second or third tranche, the administrative costs are not to exceed 3 percent for the respective tranche. Financial institution lenders must obtain an assurance from eligible borrowers or eligible investees that loan or investment proceeds from an approved program will only be used for business purposes including start-up costs, working capital, business procurement, franchise fees, equipment, inventory, and the purchase, construction, renovation or improvements of an eligible place of business. Purchases of real estate (commercial or otherwise), securities or the acquisition or holding of any other real property for passive investment purposes, and lobbying activities are not considered eligible business purposes under an SSBCI-approved program. Furthermore, loan or investment proceeds may not be used to pay delinquent federal or state tax debts unless a repayment plan is in place and in no circumstances may be used to repay taxes held in trust or escrow (e.g., payroll or sales taxes). Loan or investment proceeds may not be used to reimburse funds owed to or purchase any portion of the ownership interest of any owner of the business.

Quarterly Use-of-Funds report not later than 30 days after the beginning of each calendar quarter. Annual report – not later than March 31 of each year.

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506-42045-4900-0000

New program NA for PY; CY22 estimate $24,500,702; BY22 estimate $9,056,511

Range for recipients is expected to be $50,000 to $2,000,000 and an average of $250,000.

Loan programs may include total amount of loans/investments, total lender/investor amounts, additional financing, jobs created; jobs retained; leverage; overall percentage obligated to SEDI businesses; and overall % obligated to very small businesses. VCP metrics may include: number of employees; percentage of employees in Illinois; total aggregate investments to date; estimated number of jobs to be created; amount of funds startup anticipates raising and if the business has pitched to investors before; leverage; subsequent capital raised; jobs created and average salary; jobs retained and average salary; number of customers/users; churn rate; net revenue retention (NRR); monthly recurring revenue (MRR); annual recurring revenue (ARR); annual contract value (ACV); total contract value (TCV); customer acquisition cost (CAC); life time value (LTV); and LTV to CAC ratio, where applicable. Per U.S. Treasury’s interim final rule, demographic information must also be tracked pertaining to SEDI-owned businesses and very small businesses. Each jurisdiction that participates in SSBCI must submit an annual report to Treasury that includes the following data: Self-certified SEDI demographics related business status; minority-owned or controlled business status; women owned or controlled business status; veteran-owned or controlled business status; and the race, ethnicity, gender, sexual orientation, Middle Eastern or North African ancestry, and veteran status with which principal owners identify. For each business that receives a loan, investment, or other credit or equity support under the SSBCI, the reported data must be based on the ownership and control of the business immediately before the consummation of such loan, investment, or other credit or equity support-related transaction. For each business that receives technical assistance under the SSBCI, the reported data must be based on the ownership and control of the business at the time it receives such technical assistance.

ARPA BILLS-117hr1319enr.pdf (congress.gov) SSSBCI from Small Business Jobs Act of 2010 Small-Business-Jobs-Act-of-2010-the-Act.pdf (treasury.gov) SSBCI Capital Program Guidelines SSBCI-Capital-Program-Policy-Guidelines-November-2021.pdf (treasury.gov) SSBCI Interim Final Rule Microsoft Word - SSBCI Demographics-Related Reporting RequirementsIFR jdl (treasury.gov) Public Act 102-0017 $017 102ND GENERAL ASSEMBLY (ilga.gov) 20 ILCS 605 20 ILCS 605/ Civil Administrative Code of Illinois. (Department of Commerce and Economic Opportunity Law) (ilga.gov)

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East Monroe Springfield, IL 62701 and 555 W Monroe St, 12th Floor Chicago, IL 60661

SSBCI at U.S. Department of the Treasury State Small Business Credit Initiative (SSBCI) | U.S. Department of the Treasury500

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3/18/2022

FY 2023 : $4,500,000
FY 2024 : $4,500,000
FY 2025 : $4,500,000
FY 2026 : $4,500,000