The American Rescue Plan Act provides a $500 million set-aside for tribal governments to fund small business financing programs and provide technical assistance to small businesses through the State Small Business Credit Initiative (SSBCI). The U.S. Department of the Treasury administers the SSBCI program and is responsible for distributing SSBCI funds to eligible tribal governments.
The SSBCI program allows tribal governments to establish and manage financing programs in any eligible manner they choose, including supporting small businesses on tribal lands and businesses owned by tribal members anywhere within the United States. Financing programs may include capital access programs, loan participation, loan guarantee, collateral support, and venture equity programs.
To participate in the SSBCI program, tribal governments must submit a Notice of Intent to participate to Treasury by December 11, 2021. Tribes must also initiate their SSBCI applications by December 11, 2021 and complete them by February 11, 2022.
The application form has not yet been made publicly available, but the application and related guidance will be available through Treasury’s SSBCI website soon. The Notice of Intent is available through Treasury’s website here, and the SSBCI Fact Sheet is available here.
Tribes can apply for funds individually or jointly, and they may administer the SSBCI programs themselves or through a third-party contractor. Tribes with limited experience in small-business financing programs are encouraged by Treasury to work with third parties in developing eligible programs.
Patterson Earnhart Real Bird & Wilson LLP actively monitors Treasury guidance updates and is ready to assist you and your tribe apply for SSBCI funds. To learn more about this issue and how we can assist, contact attorney Alvina Earnhart in our Colorado office at (303) 926-5292.