State Small Business Credit Initiative (SSBCI)

 The State Small Business Credit Initiative (SSBCI) is part of the American Rescue Plan Act (ARPA). The program reauthorized the Department of Treasury to fund and administer the SSBCI across the U.S., Tribes, and Territories to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic. These funds will support recipient jurisdictions in promoting American entrepreneurship and democratizing access to start-up capital across the country including underserved communities (

NEF, a Community Development Finance Institution (CDFI) with nearly 30 years of experience, manages an allocation of SSBCI funding provided via the Nebraska Department of Economic Development.

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Eligible Businesses:

For-Profit and Non-Profit new and existing businesses with 500 or fewer employees meeting prudent underwriting standards.

Eligible Business Purposes (include, but not limited to):
Start-up costs, working capital, franchise fees, equipment, inventory, services to produce/manufacture/deliver the business’ goods or services, purchase/construction/renovation/tenant improvements of eligible places of active business, purchase of tangible and eligible intangible assets.

Focus Areas – Socially Economically Disadvantaged Individuals (SEDI) Owners:

While not limited to SEDI owned businesses, priority will be given to businesses owned and controlled by at least 51% SEDI owner.  These include:

Group subjected to racial or ethnic prejudice, gender, veteran, limited English proficiency, disability, member of Indian Tribe, Long-term resident of rural community, member of underserved community, businesses in CDFI Investment Area.

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Required Private Investment

Target rate is 75% private investment to 25% SSBCI funding that can be evaluated based on the project and meeting program targets.             

The project should have “reasonable expectation” of generating 10:1 times private contribution over 10 years.  Matching of SBA and USDA programs must not be for the same purpose.

Loan may be in a subordinate position to a bank or approved financial institution.  Private investment can include loans or investments from a qualified source.


Rates match private investment rates not to exceed those of NCUA interest rate ceiling.  Fees not to exceed 2% or $500 on loans under $25,000.

Maximum loan size: $5M on a $20M project.

Maximum 10-year term based on use of funds.

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Ineligible Projects

A. Ineligible Entity Activity
  1. Entity whose main activity is speculative, deriving profits from fluctuations in price
  2. Entity that earns more than 50% of its annual net revenues from lending activities
  3. Entity engaged in pyramid sales
  4. Entity engaged in illegal activities according to federal or other applicable law
  5. Gambling enterprise or an entity that earns revenue from lottery sales
B. Ineligible Uses of Funds
  1. Refinancing existing debt, unless all of the following conditions are met:
    1. The debt to be refinanced originated from an unaffiliated lender.
    2. Refinanced loan or other debt is at least 150% of the previous outstanding balance.
    3. 30% reduction in the fee-adjusted APR contracted for the term of the new debt.
    4. Proceeds are not used to finance an extraordinary dividend or other distribution.
    5. The new credit supported is based on a new underwriting of the small business’s ability to repay the loan and a new approval by the lender.
    6. The prior loan or other debt has been paid as agreed and the borrower was not in default of any financial covenants under the loan or debt for at least 36 months
  2. Acquisition of or holding passive investments i.e., commercial real estate or securities
  3. Lobbying activities
  4. Repayment of delinquent federal or state taxes
  5. Repayment of taxes held in trust or escrow, e.g., payroll or sales taxes
  6. Reimbursement of funds owed to any owner
  7. Purchase of any portion of ownership interest in any owner of the business, except for the purchase of an interest in an employee stock ownership plan
  8. Business occupies and uses less than 50% of total rentable square footage
  9. Increasing a pool of funds that generates tax credits
  10. Directly enrolling any portion of SBA-guaranteed loans
  11. Financing non-business purposes
  12. Eligible business occupying and using less than 51% of the total rentable square footage (less than 60% for new construction)
  13. Eligible business whose operating company has written lease with a term less than the term of loan-supported financing
  14. Enrolling a project in more than one Approved State Program for the same purpose
  15. Or any other use deemed ineligible based on interpretation of Federal guidelines
C. Ineligible Business Types
  1. Passive Real Estate Investment or Real Estate Investment firms, when the real property will be held for investment purposes as opposed to loans to otherwise eligible small business concerns for the purpose of occupying the real estate being acquired.
  2. Involved in speculative activities that develop profits from fluctuations in price, such as wildcatting for oil and dealing in commodities futures, when not part of the regular activities of the business or through the normal course of trade.
  3. Earn more than half of its annual net revenue from lending activities.
  4. Pyramid sales plans,

Activities that are prohibited by federal and/or applicable jurisdiction law

D. Ineligible Business Entity Relationships
  1. Business owner is an executive officer, director, or principal shareholder of any financial institution involved in funding the project, the Applying Partner, or the Administrative Support Organization (ASO).
  2. Business owner is a member of the immediate family of an executive officer, director, or principal shareholder of any financial institution involved in funding the project, the Applying Partner, or the ASO.
  3. Business owner is a related interest of any executive officer, director, principal shareholder or member of the immediate family of financial institution involved in funding the project, the Applying Partner, or the ASO.

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330 North Oakland Avenue
Oakland, NE 68045
Phone: 402-685-5500

Fax: 402-260-8355

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