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 which support loans for small businesses: the Delaware Loan Participation Program (DELPP), and the Delaware Capital Access Program (DCAP), and two others aimed at supporting start ups: the Delaware Accelerator & Seep Capital Program (DASCP) and the Delaware Early Stage Venture Capital Program (DESVC).
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 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. New! Sometimes the business owner needs additional assistance to meet the lender’s requirements and put them in a better position to obtain the loan. DSB has partnered with the DE Small Business Development Center (SBDC) to provide that support for free! View the webinar from SBDC and DSB to explain how the SSBCI program and our partnership works, and hear from our participating lenders.
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. View fact sheet here. 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. View fact sheet here. Participating Lenders DSB continues to actively recruit additional participating lenders. Interested? Contact our Business Finance Team at Business_Finance@delaware.gov Participating Lender Information Sheet DELPP Forms for Participating Lenders 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 DCAP Forms for Participating Lenders 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
Exhibit 1 – DASCP – Investee Use of Proceeds and Conflict of Interest Certification Exhibit 2 – DASCP – Investor Use of Proceeds and Conflict of Interest Certification Exhibit 3 – DASCP – Sex Offender Investor Investee Certification Exhibit 4 – DASCP – Investee SEDI Certification Exhibit 5 – DASCP – SSBCI Privacy Notice Statement Exhibit 6 – DASCP – Demographics Related Data