The Urban Manufacturing Alliance (UMA) and The Century Foundation (TCF) created a report to describe the SSBCI program and offers recommendations from the perspective of mission-based lenders and those seeking to support the revitalization of manufacturing as a strategy for wealth-building and racial equity.

The report frames the SSBI program as an opportunity to address a several issues including economic inequity, the decline of manufacturing and greater access to capital for small businesses. The report says, “The COVID-19 pandemic has unleashed unprecedented challenges for small businesses, and Congress has responded with a wide array of measures to help entrepreneurs ride out the pandemic, including well known programs such as the Paycheck Protection Program. Flying somewhat below the radar, the American Rescue Plan Act (ARPA) allocated $10 billion to the State Small Business Credit Initiative (SSBCI), a program that fosters small business development by supporting existing or creating new state pipelines of accessible credit and capital investments. These new funds will reactivate and significantly expand a program funded during the Obama administration, but dormant since then. SSBCI dollars can be used to create capital access programs, other capital support programs, and venture capital investments. The main goals of these vehicles are to reduce collateral requirements, lower lending costs, and provide new equity investments in private companies, using public dollars to leverage substantial private investment. Importantly, this version of SSBCI includes new funding provisions that take aim at long-standing systemic gaps in access to capital as part of the nation’s response to the economic challenges of the pandemic.”

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