SSBCI 2.0: An overview of state uses of funds

This article was edited on April 4th, 2023, to correct for an error in, and add to, the original data. Refer to the note at the bottom of this article for more detail.

The national picture of how 46 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands chose to allocate $7.9 billion approved so far by the U.S. Treasury to spend through the nation’s second go at the State Small Business Credit Initiative (SSBCI) is getting clearer. Equity and venture capital programs—often important financing tools for high growth and innovation-oriented companies—have garnered approximately $2.9 billion, across 79 equity/venture capital programs, based on a Treasury-generated list of all programs and allocations and SSTI analysis of press releases. The remainder of the total approved is distributed across 110 credit support programs.

Authorized and expanded under the American Rescue Plan Act of 2021, SSBCI 2.0 is intended to generate $10 in additional private investment for each federal dollar allocated to the states through a formula basis. Every state with a Treasury-approved plan received a minimum of $57 million; nearly half of the states received more than $100 million. California received 15% of the total, while the states with the next highest total allocations, New York, Florida, and Texas, each recieved approximately 6%.

In this article, SSTI details each state’s programs and allocations, and makes available a detailed downloadable data set of available data based on Treasury’s program summaries list.

State allocations by program

Every state except Connecticut, Missouri, North Dakota, and Wyoming has at least one credit support program, while four states (Idaho, Montana, South Dakota, and Texas), Washington, D.C., Puerto Rico and the U.S. Virgin Islands have no equity/venture capital programs. See Figure 1 for more detail.

Figure 1: Program types by state.

California holds nearly $1 billion, or approximately 20%, of all capital placed in credit support programs. As the nation’s perennial leader in private venture capital investment, California placed a relatively smaller amount allocated to its equity/venture capital programs at $200 million, or 7% of the national total.

Conversely, states capturing less private capital than might be expected given their economies and population sizes, for example Ohio and Virginia have a much larger proportion of their total allocation in equity/venture capital programs compared to credit support.

See Figure 2 below for more detail on each state’s allocations. Clicking on a state or its column will provide a breakdown of each state’s programs and allocations. The type of venture capital program (funds or direct) is also shown.

Figure 2: SSBCI 2.0 program allocations by geography and program.

The downloadable data file prepared by SSTI can be referenced for more information on each state’s programs, program administrators, and allocations.

Three tabs of data were compiled by SSTI using Treasury data. The first tab, “State Programs & Allocations” contains a breakdown of program names, types (broad and specific), program administrators, and allocations for each state. The second tab, “State Allocations,” tabulates the totals and subtotals by broad and specific program types for each state, while the third tab, “Allocations by Program Type,” provides an overview of the totals, subtotals for each program type without a state-breakdown.

How are SSBCI 2.0 allocations determined?

Allocations to states, Washington, D.C., and territories are determined on a formula basis, with each guaranteed a minimum allocation of 0.9%. The formula considers a jurisdiction’s job losses in proportion to the aggregate job losses of all jurisdictions.

Tribal governments have a separate allocation based on Tribal enrollment. Tribal governments are given a preliminary minimum allocation of approximately 0.09% of the total $500 million Tribal allocation.

Read more about the allocation formula and other technical details in Treasury’s Capital Program Policy Guidelines document.

NOTE: As of 4/4/2024, SSTI has updated data across four states, and added data for an additional two and Puerto Rico. Select programs in Minnesota, Nevada, North Dakota and Oregon were reclassified by SSTI, and may differ from Treasury's “Capital Program Summaries”– which the original article was based on. A total of nine venture capital programs across these states were broadly classified as credit support programs by Treasury but reclassified as equity/venture capital programs by SSTI soon after the article was posted on March 28, 2024. Missouri, Vermont, and Puerto Rico were added by SSTI with information based on their respective press release documents. The analysis has been updated to reflect these changes, and will continue to be updated as more information becomes available.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.