Notice and Request for Information-State Small Business Credit Initiative (SSBCI), 27680-27682 [2021-10697]
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27680
Federal Register / Vol. 86, No. 97 / Friday, May 21, 2021 / Notices
the securitization transaction after
including qualifying commercial loans,
qualifying CRE loans, or qualifying
automobile loans with 0 percent risk
retention (§ 43.15(a)(4)). In addition, the
sponsor is required to disclose
descriptions of the qualifying
commercial loans, qualifying CRE loans,
and qualifying automobile loans
(‘‘qualifying assets’’), and descriptions
of the assets that are not qualifying
assets, and the material differences
between the group of qualifying assets
and the group of assets that are not
qualifying assets with respect to the
composition of each group’s loan
balances, loan terms, interest rates,
borrower credit information, and
characteristics of any loan collateral
(§ 43.15(b)(3)). Additionally, a sponsor
must retain the disclosures required in
§§ 43.15(a) and (b) in its records and
must provide the disclosure upon
request to the Commission and the
sponsor’s appropriate Federal banking
agency, if any, until three years after all
ABS interests are no longer outstanding
(§ 43.15(d)).
Sections 43.16, 43.17 and 43.18 each
require that: The depositor of the assetbacked security certify that it has
evaluated the effectiveness of its
internal supervisory controls and
concluded that its internal supervisory
controls are effective (§§ 43.16(a)(8)(i),
43.17(a)(10)(i), and 43.18(a)(8)(i)); the
sponsor is required to provide a copy of
the certification to potential investors
prior to the sale of asset-backed
securities in the issuing entity
(§§ 43.16(a)(8)(iii), 43.17(a)(10)(iii), and
43.18(a)(8)(iii)); and the sponsor must
promptly notify the holders of the assetbacked securities of any loan included
in the transaction that is required to be
cured or repurchased by the sponsor,
including the principal amount of such
loan and the cause for such cure or
repurchase (§§ 43.16(b)(3), 43.17(b)(3),
and 43.18(b)(3)). Additionally, a sponsor
must retain the disclosures required in
§§ 43.16(a)(8), 43.17(a)(10) and
43.18(a)(8) in its records and must
provide the disclosure upon request to
the Commission and the sponsor’s
appropriate Federal banking agency, if
any, until three years after all ABS
interests are no longer outstanding
(§ 43.15(d)).
Estimated Number of Respondents: 35
sponsors; 182 annual offerings per year.
Total Estimated Annual Burden:
2,835 hours.4
On March 17, 2021, the OCC
published a 60-day notice for this
4 This estimate appeared as 2,799 hours in the 60day notice and has been corrected to 2,835 hours
(86 FR 14674 (March 17, 2021)).
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17:15 May 20, 2021
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information collection, 86 FR 14674. No
comments were received. Comments
continue to be invited on:
(a) Whether the collection of
information is necessary for the proper
performance of the functions of the
OCC, including whether the information
has practical utility;
(b) The accuracy of the OCC’s
estimate of the information collection
burden;
(c) Ways to enhance the quality,
utility, and clarity of the information to
be collected;
(d) Ways to minimize the burden of
the collection on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and
(e) Estimates of capital or start-up
costs and costs of operation,
maintenance, and purchase of services
to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the
Comptroller of the Currency.
[FR Doc. 2021–10799 Filed 5–20–21; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURY
Notice and Request for Information—
State Small Business Credit Initiative
(SSBCI)
Departmental Offices, Treasury.
Request for information.
AGENCY:
ACTION:
The State Small Business
Credit Initiative (SSBCI) provides funds
to States, Territories, and Tribal
governments to enable these
jurisdictions to support programs for
small businesses. Specifically,
beginning in FY 2021, the Department
of the Treasury (Treasury) is authorized
to provide up to $10 billion in support
for small business capital and technical
assistance programs as a response to the
economic effects of the COVID–19
pandemic. Treasury invites the public to
comment on the SSBCI program design
and implementation in order to support
new and existing small businesses.
Responses may be used by Treasury to
assist in developing program design and
guidance. Responses may also be used
to inform Treasury’s allocation of
technical assistance funding to states,
territories, and Tribal governments, the
Minority Business Development Agency
(MBDA), and programs implemented
directly by Treasury.
DATES: Responses must be received by
June 4, 2021 to be assured of
consideration.
ADDRESSES: Submit comments via
www.regulations.gov. In general,
SUMMARY:
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comments received will be posted on
https://www.regulations.gov without
change, including any business or
personal information provided.
Comments received, including
attachments and other supporting
materials, will be part of the public
record and subject to public disclosure.
Do not enclose any information in your
comment or supporting materials that
you consider confidential or
inappropriate for public disclosure.
FOR FURTHER INFORMATION CONTACT: Jeff
Stout at (202) 622–2059 or ssbci_
information@treasury.gov.
SUPPLEMENTARY INFORMATION:
Purpose: This request for information
offers States, Territories, Tribal
governments, localities, communitybased and other non-profit
organizations, small businesses,
researchers, financial institutions, and
other interested individuals and entities
the opportunity to provide information
on effective approaches for the delivery
of capital and technical assistance
through SSBCI.
Background: SSBCI provides funding
for two program categories: Capital
access programs (‘‘CAPs’’) and other
credit support programs (‘‘OCSPs’’).
CAPs provide portfolio insurance for
business loans by setting up loan loss
reserve funds for participating financial
institutions. OCSPs include, but are not
limited to, collateral support programs,
loan participation and guarantee
programs, and venture capital and other
venture financing programs.
SSBCI was originally created in the
Small Business Jobs Act of 2010 to
increase availability of credit for small
business. It was funded at $1.5 billion
and implemented by Treasury and states
and territories from 2011 through 2017.
Funds were allocated in all 50 states,
the District of Columbia, the
Commonwealth of Puerto Rico, the
Commonwealth of Northern Mariana
Islands, Guam, American Samoa, and
the United States Virgin Islands. SSBCI
provided allocatees significant
flexibility to design programs that met
local market conditions. By the end of
the program, participating jurisdictions
had directed SSBCI funds to 152 small
business programs with a wide range of
models and strategies. State programs
addressed the spectrum of small
business financing needs, from loans for
microbusinesses and equipment
purchases for small manufacturers to
equity capital for early stage technology.
Approximately 69 percent of the
funding supported lending or credit
support programs and 31 percent
supported venture capital programs.
According to the program evaluation
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report, state SSBCI programs supported
nearly $8.4 billion in new capital in
small business loans and investments by
the end of 2015. Eighty percent of SSBCI
transactions supported businesses with
10 or fewer full-time employees and
nearly half the supported businesses
were less than five years old. Through
2015, 42 percent of the 16,919 SSBCI
transactions were with small businesses
located in low-to-moderate income
(LMI) census tracts. In several states, a
successful relationship with community
development financial institutions
(CDFIs) resulted in higher percentages
of loans in LMI areas.
As described in the SSBCI Program
Evaluation (October 2016), available at
https://home.treasury.gov/policy-issues/
small-business-programs/state-smallbusiness-credit-initiative-ssbci/ssbciprogram-reports:
• CAPs supported a high volume of
very small loans: The median CAP loan
size was approximately $14,800 and
almost 47 percent of CAP loans
supported businesses in LMI areas.
CDFIs accounted for 65 percent of the
10,561 CAP transactions.
• Loan guarantee, loan participation,
and collateral support programs
supported larger transactions, with a
median size of $300,000. On average,
states used SSBCI funds to support 17.4
percent of each transaction, implying a
leverage ratio of 5.75:1. Manufacturers
were the most common business type,
representing 17 percent of all non-CAP
credit support transactions.
• Thirty-eight states directed
approximately $450 million, or 31
percent of total SSBCI funds, to venture
capital programs. Between 2011 and
2015, venture capital programs
supported over 1,300 equity
investments with $278 million in SSBCI
funding, generating $3.1 billion in new
investment. In most cases, states
partnered with private investment funds
or specialized non-profits (statesupported entities) with expertise to
source, structure, close, and manage
equity investments in small businesses.
Venture capital programs targeted highgrowth potential businesses in various
stages of development: Pre-seed and
proof-of-concept; seed-stage and earlystage; growth stage and later stage; and
mezzanine and debt investments. About
two-thirds of the transactions supported
pre-seed and seed capital investments.
Additional information about the
original 2010 round of SSBCI, including
program evaluation reports is available
at: https://home.treasury.gov/policyissues/small-business-programs/statesmall-business-credit-initiative-ssbci/
archives.
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17:15 May 20, 2021
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Section 3301 of the American Rescue
Plan Act of 2021, Public Law 117–2
(ARPA), reauthorized SSBCI and
provided $10 billon to implement the
program. ARPA modified SSBCI in a
number of ways, including the
following:
(i) Separate Allocation for Tribal
Governments. SSBCI provides for $500
million in allocations to Tribal
governments in the proportion
determined appropriate by the Secretary
of the Treasury.1
(ii) Additional Allocations to Support
Business Enterprises Owned and
Controlled by Socially and
Economically Disadvantaged
Individuals (SEDI business). SSBCI
provides $1.5 billion in allocation to
States, Territories, and Tribal
governments for business enterprises
owned and controlled by socially and
economically-disadvantaged
individuals.2
Æ SEDI business means a business
that:
D If privately owned, 51 percent is
owned by one or more socially and
economically-disadvantaged
individuals;
D if publicly owned, 51 percent of the
stock is owned by one or more socially
and economically-disadvantaged
individuals; and
D in the case of a mutual institution,
a majority of the Board of Directors,
account holders, and the community
which the institution services is
predominantly comprised of socially
and economically disadvantaged
individuals.
Æ Socially and economically
disadvantaged individuals is defined by
reference to section 8 of the Small
Business Act (15 U.S.C. 637) and the
regulations thereunder. This definition
includes the following:
D 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.
• 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.
(iii) Incentive Allocations to Support
Business Enterprises Owned and
Controlled by Socially and
Economically Disadvantaged
Individuals. SSBCI provides $1 billion
to be allocated as an incentive for States,
Territories, and Tribal governments that
demonstrate robust support for SEDI
businesses.3
(iv) Additional Allocations to Support
Very Small Businesses. SSBCI provides
for $500 million to be allocated to Very
Small Businesses.
Æ Very Small Business is defined as
a business with fewer than 10
employees; and may include
independent contractors and sole
proprietors.4
(v) Technical Assistance (TA). SSBCI
provides that $500 million may be used
to provide TA to certain businesses
applying for SSBCI or other state or
federal programs that support small
businesses.
Æ Treasury may provide funds to
states to carry out a TA plan to provide
Very Small Businesses and SEDI
businesses with financial advisory,
legal, accounting services, either
directly or by contract with priority
given to SEDI businesses;
Æ Treasury may transfer funds to the
Department of Commerce’s MBDA to
provide TA to SEDI businesses; and/or
Æ Treasury may contract with legal,
accounting, and financial advisory firms
with priority given to SEDI businesses
to provide TA to SEDI businesses.5
How to Comment: This RFI is for
information and planning purposes only
and should not be construed as a
solicitation or as an obligation on the
part of Treasury. We ask respondents to
address the Key Questions listed below.
You do not need to address every
question and should focus on those
where you have views or relevant
expertise. Please clearly indicate which
questions you are addressing in your
response. You may also provide detailed
proposals outlining how States,
Territories, and Tribal governments
could use SSBCI, as well as examples.
All comments received, including
attachments and other supporting
materials, are part of the public record
and subject to public disclosure. You
should only submit information that
you wish to make publicly available.
Guidance for Submitting Documents:
We ask that each respondent include the
name and address of his or her
institution or affiliation, and the name,
title, mailing and email addresses, and
telephone number of a contact person
for the institution or affiliation, if any.
Key Questions:
1. What changes should Treasury
make to the policy guidelines last
updated in 2014 (available here: https://
3 Id.
1 Section
3301(a)(1) of ARPA.
2 Section 3301(b) of ARPA.
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4 Section
5 Section
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3301(c) of ARPA.
3301(d) of ARPA.
21MYN1
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home.treasury.gov/policy-issues/smallbusiness-programs/state-small-businesscredit-initiative-ssbci/archives/archivedprogram-rules) to enable the use of
SSBCI to expand access to capital for
small businesses in the current
economic environment? Responses
should take into consideration the
statutory requirements for CAPs and
OCSPs in the Small Business Jobs Act
and ARPA, and provide feedback
consistent with those constraints.
a. Is guidance specific to Tribal
governments needed? If so, what
specific issues should this guidance
address?
2. What changes should Treasury
make to the policy guidelines last
updated in 2014 (available here: https://
home.treasury.gov/policy-issues/smallbusiness-programs/state-small-businesscredit-initiative-ssbci/archives/archivedprogram-rules) to enable use of SSBCI to
promote access to capital for diverse
businesses, including SEDI businesses
and Very Small Businesses? Please
provide specific examples.
a. What data should Treasury use in
its allocation calculation based on the
needs of SEDI businesses in States,
Territories, and Tribal governments?
Please provide specific examples.
b. What guidance should Treasury
provide regarding identifying and
serving SEDI businesses? Please provide
specific examples.
c. How can Treasury ensure effective
use of allocations to States, Territories,
and Tribal governments to support Very
Small Businesses, including nonemployer businesses? Please provide
specific examples.
3. How should Treasury ensure
effective use of the TA allocation to
support SEDI businesses’ and Very
Small Businesses’ access SSBCI capital
or other capital? Please provide specific
examples.
a. How should Treasury encourage
States, Territories, and Tribal
governments to prioritize contracts to
SEDI businesses to provide TA?
b. How and to what extent should
Treasury work with MBDA to provide
TA to SEDI businesses? Please provide
specific examples.
c. For what purposes should Treasury
directly contract with legal, accounting,
and financial advisory firms to provide
TA to SEDI businesses? Please provide
specific examples.
4. What data should Treasury require
from States, Territories, and Tribal
governments in regular reporting on
their performance and activities that
would ensure compliance and provide
meaningful information on results to
inform the public, policymakers, and
others?
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5. Do you have any other comments
on the implementation of SSBCI to
improve outcomes in general, and
particularly to serve underserved
communities and groups and SEDI
businesses?
Dated: May 14, 2021.
Jeffrey Stout,
Director, Office of Federal Program Finance.
[FR Doc. 2021–10697 Filed 5–20–21; 8:45 am]
BILLING CODE 4810–AK–P
DEPARTMENT OF VETERANS
AFFAIRS
Solicitation of Nominations for
Appointment to the Geriatrics and
Gerontology Advisory Committee
Department of Veterans Affairs.
Notice of Geriatrics and
Gerontology Advisory Committee
appointment.
AGENCY:
ACTION:
The Department of Veterans
Affairs (VA), Office of Geriatrics and
Extended Care, is seeking nominations
of qualified candidates to be considered
for appointment as a member of the
Geriatrics and Gerontology Advisory
Committee (herein-after in this section
referred to as ‘‘the Committee’’). The
Committee advises the VA Secretary
and the Under Secretary for Health on
all matters pertaining to geriatrics and
gerontology.
SUMMARY:
Nominations of qualified
candidates are being sought to fill
vacancies on the Committee.
Nominations for membership on the
Committee must be received no later
than 5:00 p.m. EST on June 30, 2021.
ADDRESSES: All nominations should be
emailed to Marianne Shaughnessy,
Ph.D., CRNP, to
Marianne.Shaughnessy@va.gov.
FOR FURTHER INFORMATION CONTACT:
Marianne Shaughnessy, Ph.D., CRNP,
GGAC, by phone at (202) 407–6798 or
by email at Marianne.Shaughnessy@
va.gov. A copy of the Committee charter
and list of the current membership can
also be obtained by contacting Dr.
Shaughnessy.
DATES:
The
Committee’s areas of interest include
but are not limited to: (1) Assessing the
capability of VA health care facilities to
respond with the most effective and
appropriate services possible to the
medical, psychological and social needs
of Veterans facing the consequences of
aging, serious illness or disability ; and
(2) advancing scientific knowledge to
meet those needs by enhancing geriatric
care for older Veterans through geriatric
SUPPLEMENTARY INFORMATION:
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Frm 00131
Fmt 4703
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and gerontology research, the training of
health personnel in the provision of
health care to older individuals, and the
development of improved models of
clinical services for older Veterans.
Membership Criteria and
Qualifications: The Committee is
comprised of 12 members in addition to
ex officio members, each of whom have
established interest and considerable
vocation-related experiences bearing on
health care for aging Veterans, including
experience in areas such as: VA- and
non-VA health systems, academic
geriatric and gerontology programs,
palliative medicine, home and
community-based care, nursing home
care, relevant policy issues, and grantfunded academic research.
The expertise required of GGAC
members includes, but is not limited to,
the following:
a. Familiarity or experience with
clinical and health policies concerning
the elderly; and/or
b. familiarity or experience with the
partnerships between VA and health
sciences academic programs; and/or
c. familiarity with the history of
geriatrics in the VA and in the U.S., and
the unique role that has been played in
that evolution by the VA’s Geriatric
Research, Education, and Clinical
Centers (GRECCs).
Membership Requirements: The
Committee holds at least one face to face
meeting in Washington, DC and
conducts 4–5 site visits a year. The ideal
candidate will be willing to travel 3–5
times per year to help the Committee
fulfill its Chartered objectives.
The Committee’s diverse membership
is characterized by a range of
backgrounds and knowledge sufficiently
broad to provide adequate advice and
guidance to the Secretary. VA strives to
develop a Committee membership that
includes diversity in military services,
ranks, and deployments, military
service, military deployments, working
with Veterans, committee subject matter
expertise, as well as diversity in race/
ethnicity, gender, religion, disability,
geographical background, and
profession. We ask that nominations
include information of this type so that
VA can ensure diverse Committee
membership.
Requirements for Nomination
Submission: Nominations should be
typed (one nomination per nominator).
Self-nominations are acceptable.
Nomination package should include:
(1) A letter of nomination that clearly
states the name and affiliation of the
nominee, the basis for the nomination
(i.e., specific attributes which qualify
the nominee for service in this
capacity), and a statement from the
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Agencies
[Federal Register Volume 86, Number 97 (Friday, May 21, 2021)]
[Notices]
[Pages 27680-27682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10697]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Notice and Request for Information--State Small Business Credit
Initiative (SSBCI)
AGENCY: Departmental Offices, Treasury.
ACTION: Request for information.
-----------------------------------------------------------------------
SUMMARY: The State Small Business Credit Initiative (SSBCI) provides
funds to States, Territories, and Tribal governments to enable these
jurisdictions to support programs for small businesses. Specifically,
beginning in FY 2021, the Department of the Treasury (Treasury) is
authorized to provide up to $10 billion in support for small business
capital and technical assistance programs as a response to the economic
effects of the COVID-19 pandemic. Treasury invites the public to
comment on the SSBCI program design and implementation in order to
support new and existing small businesses. Responses may be used by
Treasury to assist in developing program design and guidance. Responses
may also be used to inform Treasury's allocation of technical
assistance funding to states, territories, and Tribal governments, the
Minority Business Development Agency (MBDA), and programs implemented
directly by Treasury.
DATES: Responses must be received by June 4, 2021 to be assured of
consideration.
ADDRESSES: Submit comments via www.regulations.gov. In general,
comments received will be posted on https://www.regulations.gov without
change, including any business or personal information provided.
Comments received, including attachments and other supporting
materials, will be part of the public record and subject to public
disclosure. Do not enclose any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
FOR FURTHER INFORMATION CONTACT: Jeff Stout at (202) 622-2059 or
[email protected].
SUPPLEMENTARY INFORMATION:
Purpose: This request for information offers States, Territories,
Tribal governments, localities, community-based and other non-profit
organizations, small businesses, researchers, financial institutions,
and other interested individuals and entities the opportunity to
provide information on effective approaches for the delivery of capital
and technical assistance through SSBCI.
Background: SSBCI provides funding for two program categories:
Capital access programs (``CAPs'') and other credit support programs
(``OCSPs''). CAPs provide portfolio insurance for business loans by
setting up loan loss reserve funds for participating financial
institutions. OCSPs include, but are not limited to, collateral support
programs, loan participation and guarantee programs, and venture
capital and other venture financing programs.
SSBCI was originally created in the Small Business Jobs Act of 2010
to increase availability of credit for small business. It was funded at
$1.5 billion and implemented by Treasury and states and territories
from 2011 through 2017. Funds were allocated in all 50 states, the
District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth
of Northern Mariana Islands, Guam, American Samoa, and the United
States Virgin Islands. SSBCI provided allocatees significant
flexibility to design programs that met local market conditions. By the
end of the program, participating jurisdictions had directed SSBCI
funds to 152 small business programs with a wide range of models and
strategies. State programs addressed the spectrum of small business
financing needs, from loans for microbusinesses and equipment purchases
for small manufacturers to equity capital for early stage technology.
Approximately 69 percent of the funding supported lending or credit
support programs and 31 percent supported venture capital programs.
According to the program evaluation
[[Page 27681]]
report, state SSBCI programs supported nearly $8.4 billion in new
capital in small business loans and investments by the end of 2015.
Eighty percent of SSBCI transactions supported businesses with 10 or
fewer full-time employees and nearly half the supported businesses were
less than five years old. Through 2015, 42 percent of the 16,919 SSBCI
transactions were with small businesses located in low-to-moderate
income (LMI) census tracts. In several states, a successful
relationship with community development financial institutions (CDFIs)
resulted in higher percentages of loans in LMI areas.
As described in the SSBCI Program Evaluation (October 2016),
available at https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci/ssbci-program-reports:
CAPs supported a high volume of very small loans: The
median CAP loan size was approximately $14,800 and almost 47 percent of
CAP loans supported businesses in LMI areas. CDFIs accounted for 65
percent of the 10,561 CAP transactions.
Loan guarantee, loan participation, and collateral support
programs supported larger transactions, with a median size of $300,000.
On average, states used SSBCI funds to support 17.4 percent of each
transaction, implying a leverage ratio of 5.75:1. Manufacturers were
the most common business type, representing 17 percent of all non-CAP
credit support transactions.
Thirty-eight states directed approximately $450 million,
or 31 percent of total SSBCI funds, to venture capital programs.
Between 2011 and 2015, venture capital programs supported over 1,300
equity investments with $278 million in SSBCI funding, generating $3.1
billion in new investment. In most cases, states partnered with private
investment funds or specialized non-profits (state-supported entities)
with expertise to source, structure, close, and manage equity
investments in small businesses. Venture capital programs targeted
high-growth potential businesses in various stages of development: Pre-
seed and proof-of-concept; seed-stage and early-stage; growth stage and
later stage; and mezzanine and debt investments. About two-thirds of
the transactions supported pre-seed and seed capital investments.
Additional information about the original 2010 round of SSBCI,
including program evaluation reports is available at: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci/archives.
Section 3301 of the American Rescue Plan Act of 2021, Public Law
117-2 (ARPA), reauthorized SSBCI and provided $10 billon to implement
the program. ARPA modified SSBCI in a number of ways, including the
following:
(i) Separate Allocation for Tribal Governments. SSBCI provides for
$500 million in allocations to Tribal governments in the proportion
determined appropriate by the Secretary of the Treasury.\1\
---------------------------------------------------------------------------
\1\ Section 3301(a)(1) of ARPA.
---------------------------------------------------------------------------
(ii) Additional Allocations to Support Business Enterprises Owned
and Controlled by Socially and Economically Disadvantaged Individuals
(SEDI business). SSBCI provides $1.5 billion in allocation to States,
Territories, and Tribal governments for business enterprises owned and
controlled by socially and economically-disadvantaged individuals.\2\
---------------------------------------------------------------------------
\2\ Section 3301(b) of ARPA.
---------------------------------------------------------------------------
[cir] SEDI business means a business that:
[ssquf] If privately owned, 51 percent is owned by one or more
socially and economically-disadvantaged individuals;
[ssquf] if publicly owned, 51 percent of the stock is owned by one
or more socially and economically-disadvantaged individuals; and
[ssquf] in the case of a mutual institution, a majority of the
Board of Directors, account holders, and the community which the
institution services is predominantly comprised of socially and
economically disadvantaged individuals.
[cir] Socially and economically disadvantaged individuals is
defined by reference to section 8 of the Small Business Act (15 U.S.C.
637) and the regulations thereunder. This definition includes the
following:
[ssquf] 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.
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.
(iii) Incentive Allocations to Support Business Enterprises Owned
and Controlled by Socially and Economically Disadvantaged Individuals.
SSBCI provides $1 billion to be allocated as an incentive for States,
Territories, and Tribal governments that demonstrate robust support for
SEDI businesses.\3\
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\3\ Id.
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(iv) Additional Allocations to Support Very Small Businesses. SSBCI
provides for $500 million to be allocated to Very Small Businesses.
[cir] Very Small Business is defined as a business with fewer than
10 employees; and may include independent contractors and sole
proprietors.\4\
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\4\ Section 3301(c) of ARPA.
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(v) Technical Assistance (TA). SSBCI provides that $500 million may
be used to provide TA to certain businesses applying for SSBCI or other
state or federal programs that support small businesses.
[cir] Treasury may provide funds to states to carry out a TA plan
to provide Very Small Businesses and SEDI businesses with financial
advisory, legal, accounting services, either directly or by contract
with priority given to SEDI businesses;
[cir] Treasury may transfer funds to the Department of Commerce's
MBDA to provide TA to SEDI businesses; and/or
[cir] Treasury may contract with legal, accounting, and financial
advisory firms with priority given to SEDI businesses to provide TA to
SEDI businesses.\5\
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\5\ Section 3301(d) of ARPA.
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How to Comment: This RFI is for information and planning purposes
only and should not be construed as a solicitation or as an obligation
on the part of Treasury. We ask respondents to address the Key
Questions listed below. You do not need to address every question and
should focus on those where you have views or relevant expertise.
Please clearly indicate which questions you are addressing in your
response. You may also provide detailed proposals outlining how States,
Territories, and Tribal governments could use SSBCI, as well as
examples. All comments received, including attachments and other
supporting materials, are part of the public record and subject to
public disclosure. You should only submit information that you wish to
make publicly available.
Guidance for Submitting Documents: We ask that each respondent
include the name and address of his or her institution or affiliation,
and the name, title, mailing and email addresses, and telephone number
of a contact person for the institution or affiliation, if any.
Key Questions:
1. What changes should Treasury make to the policy guidelines last
updated in 2014 (available here: https://
[[Page 27682]]
home.treasury.gov/policy-issues/small-business-programs/state-small-
business-credit-initiative-ssbci/archives/archived-program-rules) to
enable the use of SSBCI to expand access to capital for small
businesses in the current economic environment? Responses should take
into consideration the statutory requirements for CAPs and OCSPs in the
Small Business Jobs Act and ARPA, and provide feedback consistent with
those constraints.
a. Is guidance specific to Tribal governments needed? If so, what
specific issues should this guidance address?
2. What changes should Treasury make to the policy guidelines last
updated in 2014 (available here: https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci/archives/archived-program-rules) to enable use of SSBCI to
promote access to capital for diverse businesses, including SEDI
businesses and Very Small Businesses? Please provide specific examples.
a. What data should Treasury use in its allocation calculation
based on the needs of SEDI businesses in States, Territories, and
Tribal governments? Please provide specific examples.
b. What guidance should Treasury provide regarding identifying and
serving SEDI businesses? Please provide specific examples.
c. How can Treasury ensure effective use of allocations to States,
Territories, and Tribal governments to support Very Small Businesses,
including non-employer businesses? Please provide specific examples.
3. How should Treasury ensure effective use of the TA allocation to
support SEDI businesses' and Very Small Businesses' access SSBCI
capital or other capital? Please provide specific examples.
a. How should Treasury encourage States, Territories, and Tribal
governments to prioritize contracts to SEDI businesses to provide TA?
b. How and to what extent should Treasury work with MBDA to provide
TA to SEDI businesses? Please provide specific examples.
c. For what purposes should Treasury directly contract with legal,
accounting, and financial advisory firms to provide TA to SEDI
businesses? Please provide specific examples.
4. What data should Treasury require from States, Territories, and
Tribal governments in regular reporting on their performance and
activities that would ensure compliance and provide meaningful
information on results to inform the public, policymakers, and others?
5. Do you have any other comments on the implementation of SSBCI to
improve outcomes in general, and particularly to serve underserved
communities and groups and SEDI businesses?
Dated: May 14, 2021.
Jeffrey Stout,
Director, Office of Federal Program Finance.
[FR Doc. 2021-10697 Filed 5-20-21; 8:45 am]
BILLING CODE 4810-AK-P