Treasury Notes

 Treasury Issues New Small Business Program Evaluations

By: Jessica Milano

Treasury today issued program evaluation reports for the State Small Business Credit Initiative (SSBCI) and the Small Business Lending Fund (SBLF) detailing how the programs have provided critical resources to small businesses and communities across the country and helped strengthen the economy at the local level. 

It's remarkable how far we’ve come since September 2010, when the Small Business Jobs Act first authorized SSBCI and SBLF at Treasury.  During the financial crisis, small businesses were severely constrained in terms of access to capital and credit.  Through the course of recovery, SSBCI and SBLF have collectively resulted in over $27 billion of additional capital for America’s small businesses, including an increase of $18.7 billion in small business lending reported by SBLF participants and $8.4 billion in SSBCI- supported small business lending and investing.  By enhancing small business access to credit and capital, these two programs have boosted the economic recovery and supported more than 90,000 small businesses in communities across America.

Today’s reports highlight this achievement and summarize how the programs key design features worked to provide innovative and flexible solutions for small businesses, financial institutions, and state and local economies.

Through SSBCI, the Treasury Department disbursed more than $1.3 billion in funds to 57 participating states, municipalities, and territories.  States have broad flexibility in how they choose to implement SSBCI programs to address the spectrum of small business financing needs from loans for microbusinesses and equipment purchases for small manufacturers to equity capital for early stage technology businesses. 

Through the end of 2015, SSBCI funds spurred more than $8.4 billion in private sector lending and investments to small businesses.  States have generated $8 in new lending and investments for every $1 of federal support and business owners reported that these funds will help them retain or create more than 190,400 jobs.

Importantly, many states chose to target businesses in diverse communities that often have trouble accessing capital.   More than 40 percent of lending and investment transactions are located in low to moderate income areas across the country, totaling $2.9 billion in new capital lent or invested in those communities.   

With SBLF, Treasury invested more than $4 billion in 332 community banks and Community Development Loan Funds operating in more than 3,000 locations across 47 states and the District of Columbia.  The program encouraged community banks to increase their lending to small businesses through a powerful incentive structure – the more they lent to small businesses the lower the rate they paid Treasury – that worked.  Since the program’s inception, the total increase in small business lending reported by SBLF participants is $18.7 billion, and more than 90 percent of SBLF participants increased their small business lending over the course of their participation in the program.  SBLF helped give more Main Street entrepreneurs the opportunity to expand their businesses, invest in their local communities, and create new jobs. 


America’s 28 million small businesses employ half of our country’s private sector workforce and have created nearly 2 out of every 3 new jobs over the last two decades.  Yet for many of the smallest businesses, youngest businesses, and businesses in underserved communities, accessing capital to start and grow is a daily challenge that continues despite the economic recovery.  Our hope is that these reports demonstrate the pivotal role SSBCI and SBLF played in supporting small businesses and local communities across the country and provide evidence to support the need for ongoing Federal funding for unique and innovative small business financing programs. 

Please click on the links below to view the reports. 

SSBCI Program Evaluation

SBLF Final Impact Report

Jessica Milano is Deputy Assistant Secretary for Small Business, Community Development, and Housing at the U.S Treasury Department​.​​

Posted in:  State Small Business Credit Initiative
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