The Division of Small Business (DSB) is administering the State Small Business Credit Initiative (SSBCI), a federal program from the U.S. Treasury Dept., aimed at providing financing to help small and diverse businesses access capital (funding).
Delaware was awarded $60.9 million for four programs; two of which support loans for small businesses: the Delaware Loan Participation Program (DELPP), and the Delaware Capital Access Program (DCAP).
The goal of these lending programs and other SSBCI-based initiatives, is to support both small and early-stage businesses who are having challenges getting a traditional bank loan, as well as those in that are owned by socially and economically disadvantaged persons.
How the lending programs work: Small business owners can meet with one of our Regional Business Managers who will review the programs with them. If they are a good fit, the Business Manager will provide the business owner with a list of our participating lenders (approved bank, credit union or Community Development Financial Institutions (CDFI)) to choose from. The business owner applies for the loan with the bank/credit union/CDFI, and the DSB provides a portion of the loan amount to the lender, so the small business owner only has to deal with one entity for their loan paperwork.
Delaware Loan Participation Program – Helps small businesses obtain financing, usually in the form of 5 – 10-year loans, to help them grow and expand. It’s especially useful when a lender is unable to loan the business as much as requested due to issues such as lack of collateral. The lender may ask DSB to provide SSBCI funds for a portion of the loan.
Delaware Capital Access Program (DCAP) – Provides supportive financing for a business that has minor collateral or credit issues. It’s designed to assist those who are, or live in, socially or economically disadvantaged areas. On the banking side, the program uses a risk-pooling concept to mitigate some of the risks that may typically cause lenders to decline a loan or line of credit. It does this by having multiple borrowers using the same lending institution contribute payments to a single reserve fund that the lender can use as loan collateral.
DSB continues to actively recruit for additional participating lenders.
Participating Lender Information Sheet
Application – Delaware Loan Participation Application Exhibit 1 – Borrower Use of Proceeds and Conflict of Interest Certification Exhibit 2 – Lender Use of Proceeds and Conflict of Interest Certification Exhibit 3 – Sex Offender Lender Borrower Certification Exhibit 4 – Borrower SEDI Certification Exhibit 5 – SSBCI Privacy Notice Statement Exhibit 6 – Demographics Related Data
Exhibit 1 – Borrower Use of Proceeds and Conflict of Interest Certification Exhibit 2 – Borrower Agreement Exhibit 3 – Notice to Borrower Exhibit 4 – Sex Offender Lender Borrower Certification Exhibit 5 – Lender Use of Proceeds and Conflict of Interest Certification Exhibit 6 – Borrower SEDI Certification Exhibit 7 – SSBCI Privacy Notice Statement Exhibit 8 – Demographics Related Data Exhibit 11 – Supporting Loan Documentation For more detailed information regarding the requirements and restrictions of SSBCI funded programs please reference the following documents from the U.S. Treasury: SSBCI-Capital-Program-Policy-Guidelines Send your request to be a participating lender along with the required materials that correspond to the Type of Lending Institution you are applying on behalf of, to business_finance@delaware.gov with the Subject: Participating Lender Request.
SSBCI-FAQs
DSB also released two Requests for Proposal (RFPs) in 2023 to manage the two equity/venture capital programs. The application period is closed. Program details will be announced in 2024.
The Accelerator and Seed Capital Program – DSB will contract with up to two fund managers to distribute funding to eligible very early or idea-stage start-ups. Those ultimately receiving funding are typically STEM-focused and considered very small (10 or less full-time employees including contractors and proprietors) businesses.
The Early-Stage Venture Capital Program – DSB will contract with a private, non-profit, or experienced fund manager, that would provide seed and early-stage venture capital to Delaware-based companies. Ultimately, small businesses applying for this money through the fund manager will most likely be STEM-based companies.
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