Capital Access – Program Overview

Funding Programs:

The Two Idaho SSBCI Funding Programs

1. Idaho Small Business Revolving Loan Fund ($26,000,000) with these statewide partners (Economic Development Districts (EDDs): Panhandle Area Council, Inc., Clearwater Economic Development Association, Inc., Region IV Development Association, Inc., Southeast Idaho Council of Governments, Inc., East Central Idaho Planning and Development Association, Inc.
2. Idaho Small Business Revolving Loan Fund ($26,000,000) with these statewide partners (Economic Development Districts (EDDs): Panhandle Area Council, Inc., Clearwater Economic Development Association, Inc., Region IV Development Association, Inc., Southeast Idaho Council of Governments, Inc., East Central Idaho Planning and Development Association, Inc.

Participating Lenders

We continue to build our list of participating lenders. We update this list as new lenders join the program.

• View the current Idaho SSBCI Participating Lender List (Collateral Support Program) csp-participating-lenders.pdf (idahohousing.com)

View the current Idaho SSBCI Participating Lender List (Idaho Small Business Revolving Loan Fund)

Idaho Small Business Revolving Loan Fund Requirements

The objective of the Idaho Small Business Revolving Loan Fund Program is to facilitate the startup and growth of VSB and SEDI businesses throughout the State of Idaho. These loans are typically made in collaboration with commercial lenders and seek to provide financial assistance to eligible businesses that would otherwise lack adequate access to capital for viable business development projects.  

• Be a U.S. Citizen or permanent resident alien; and 
• Be a business which is authorized to conduct business in Idaho; and 
• Meet the definition of a “Small Business” as defined by the US Small Business Administration. 
• The ISBRLF provides companion loans ranging from $25,000 to $750,000 representing an average of 28 percent participation of the financing package. 
• The eligible uses of the loan include working capital, equipment and real estate. Five Economic Development Districts (EDDs) – non-profit organizations designated by the US Economic Development Administration – provide the companion loans to leverage private financing offered local lending institutions, banks and credit unions. 
• The program targets very small businesses (VSBs) in underserved and socially/economically disadvantaged (SEDI) individuals/communities throughout the state and communities with high concentrations of migrant agricultural and low-income rural populations.

Program funds cannot be used for the following:

• Not registered sex offenders
• Program funds cannot be used for the following:
• Cannabis related businesses
• Passive real estate investments
• Gaming
• Purchasing an owners’ share in the business or reimbursement of owner contributions.
• Paying off existing loans (some limited exceptions)
• SSBCI funds cannot be used in connection with other federal funding programs (SBA, USDA, EDA, BIA, etc)

Priorities & Objectives

The Idaho SSBCI program will prioritize supporting investments in businesses owned and controlled by Socially and Economically Disadvantaged Individuals (SEDI) and Very Small Businesses (VSB). The definitions of those businesses are:

Socially and Economically Disadvantaged Individuals (SEDI) Defined by reference to section 8 of the Small Business Act (15 U.S.C. 637), the definition includes:

1. Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
2. Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.

Very Small Business (VSB)

Very Small Business is defined as a business with fewer than 10 employees; and may include independent contractors and sole proprietorPriorities & Objectives

Idaho SBDC Technical Assistance –

Capital Access Team

The technical assistance is backed by funding from the US Treasury state small business credit initiative (SSBCI). SSBCI is designed to spur investment to businesses under 10 employees and businesses operated by owners from underserved communities. Support for Idaho’s Capital Access Team IS provided by the State Small Business Credit Initiative Technical Assistance Grant Program (SSBCI TA Grant Program).

 

How the Technical Assistance program helps business owners:

• Guides them to navigate the loan process, prepare their loan applications, and determine what loan products, if any, will be the best fit.
• Builds legal, accounting, and financial management skills
• Increases awareness of state-backed capital and collateral support programs for small businesses applying for capital
• Designed to spur the approval of new business loans to the state’s smallest and most vulnerable business-owners

The State Small Business Credit Initiative (SSBCI) doesn’t specify a credit score requirement for loans, but other requirements for small business loans include: 

 

• Complete, professional business plan
• Complete bank statements and ratings
• Complete business balance sheets
• Complete business cash flow statements
• Collateral/Asset assessments

 

Lenders consider a business’s personal credit score when evaluating a loan application to determine if the business can manage its finances and has the income to repay the loan. 

SSBCI Technical Assistance

Partner with the Idaho Small Business Development Center and meet 1:1 with a consultant in your region to support the launch and growth of your business with this complimentary technical assistance.

 

Idaho SBDC Technical Assistance Tools

 

Within the Capital Access Team, there will be ongoing key activities which are the core of the Idaho SSBCI Technical Assistance initiative.

• Webinars
• Live Trainings
• Events
• Partner collaborations
• Educational Courses
• Networking
• Consulting