State Small Business Credit Initiative (SSBCI)
State Small Business Credit Initiative
In partnership with the NM Economic Development Department, NMFA will implement two new federally funded programs to assist small businesses throughout New Mexico, particularly those in underserved and rural communities.
The SSBCI programs administered by NMFA will consist of a Loan Participation Program and a Capital Access Program. Policies for both programs are currently being developed, and interested entities were given an opportunity to read and comment on the following draft policies through March 13, 2024.
Both programs are designed to increase access to capital for small businesses in New Mexico. The Capital Access Program will provide portfolio insurance in the form of a loan loss reserve fund, into which the lender and borrower contribute. The Loan Participation Program will provide credit support through the purchase of a portion of a loan made by a lender or through a direct loan alongside a private lender.
What is SSBCI?
The American Rescue Plan Act (ARPA) reauthorized and funded the State Small Business Credit Initiative (SSBCI). The new version of the program provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic.
Read more about the SSBCI program on the U.S. Department of the Treasury website.
More information about these programs will be coming soon. Please check back.