As of september 30 2014

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  • ETF Quicksheet (All data as of September 30, 2014)
  • AS OF September 30, 2014
  • as of September 30, 2019 Top Ten - treasurer.utah.gov

as of September 30, 2019 Top Ten - treasurer.utah.gov

AS OF September 30, 2014
1
Summary
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of
2010 (P.L. 111-240) (the Act), creating the State Small Business Credit Initiative (SSBCI).
SSBCI provides $1.5 billion to new and existing state programs that support private-
sector lending to, and investment in, small businesses and small manufacturers.
In 2011 and 2012, Treasury approved applications on a rolling basis from 47 states, the
District of Columbia, and five territories and municipalities in three states (approved
entities will be referred to as States).1 States could divide their allocation among several
types of small business support programs: Loan Participation Programs (LPPs), Venture
Capital Programs (VCPs), Loan Guarantee Programs (LGPs), Collateral Support Programs
(CSPs), and Capital Access Programs (CAPs). States receive SSBCI funding in three equal
disbursements which are paid out based on cumulative funds deployed.2
? Disbursements exceed $1.1 billion: As of September 30, 2014, $1,146,367,071
out of $1,457,591,353 or 79 percent of total allocated funds was disbursed to
States. All 57 States received their first disbursement; 48 States received their
second disbursement; and 24 States received their third disbursement.
? SSBCI funds deployed exceed $1 billion: Through September 30, 2014, States
deployed a total of $1,003,975,220. Of this total, $943,285,735 was from original
SSBCI allocations and $60,689,485 was from recycled3 SSBCI funds. These funds
support loans or investments to small businesses, including to intermediaries, and
for administrative expenses related to the program.
1 North Dakota and Wyoming did not apply for SSBCI funding, however, consortiums of municipalities in each state
are participating. Alaska withdrew its application.
2 SSBCI funds deployed are those legally "expended, obligated, or transferred." For clarification, SSBCI funds
"expended" are funds used to support loans or investments or for administrative expenses. SSBCI funds
"obligated" are funds legally committed to support loans or investments, including obligations to intermediaries,
and for administrative expenses. SSBCI funds "transferred" are funds transferred to a contracting entity as
reimbursement of expenses incurred or to fund a loan or investment. Funds "expended, obligated, or transferred"
includes obligations to venture capital funds not yet linked to specific small business investments.
As of 12/31/13, Venture Capital Programs reported that the amount of funds expended, obligated or transferred
was 37% greater ($89.5 million) than the amount expended to small businesses. The variance was due to SSBCI
dollars that were obligated for investment in a small business or to a fund but not yet expended to a specific small
business.
3 When a loan or investment supported with SSBCI funds is repaid, the State may then recycle the funds into
another round of loans or investments.
2
? Recycled SSBCI funds4 exceed $60 million: Through September 30, 2014,
thirteen States reported recycling $60,689,485 of their program dollars into new
SSBCI-supported loans or investments.
? Funds deployed increased 9 percent in the third quarter of 2014: Total
amount of funds deployed increased from $923 million to $1.04 billion.
SSBCI at Work: Featured Success Stories
Alabama: Helping Small Manufacturers Grow
When Bear & Son Cutlery Co. won a contract to manufacture
hunting and other steel-blade knives for a major outdoor
retail brand, it needed to expand its warehouse and shipping
capacity. The partners created an affiliated company, M&J
Shipping Supplies, to manage shipping and logistics, but
because the company and contract were new, they found it
difficult to obtain financing.
With a 50% guarantee from the Alabama Department of
Economic and Community Affairs (ADECA), Cheaha Bank was
able to lend $182,000 to M&J Shipping Supplies allowing the
company to buy and renovate a building, hire 10 new
employees, and start fulfilling the contract.
Indiana: Investing in Successful Start-Ups
Jada Beauty, founded by two women entrepreneurs, was
Indiana's first direct investment of SSBCI dollars through
Indiana Angel Network Fund ("Angel Fund"). The two
founders, both first-time entrepreneurs, needed seed
capital to hire technical talent and implement initial
market-entry strategies. Angel Fund's initial $125,000
investment in February 2012, helped raise more than
$300,000 private capital for the company. The investment also enabled the company to
build a website capable of supporting online sales. In August 2013, the company was
acquired by Sally Beauty Holdings, a publicly-traded company.
The founders and their 10 employees continue to grow the business under the new
parent company in Indiana. Private investors and the Angel Fund generated sizable
4 "Recycled Funds" refers to the deployed funds (expended, obligated, or transferred) that came to the State in the
form of program income, interest earned or principal repayments and deployed funds that have been previously
loaned or invested.
3
returns within 18 months of investment, making more seed and early-stage capital
available to invest in future opportunities like Jada Beauty.
Nebraska: Making Plastic Greener
Laurel BioComposite developed a green alternative to
petroleum-based plastic resins using a non-toxic
byproduct of corn ethanol production. To move from
theory to application, the company needed $5 million
for equipment and temporary working capital but was
unable to obtain adequate financing. Working with
Security Bank, a community bank located in Laurel,
Nebraska (pop. 964), the Nebraska Progress Loan
Fund used SSBCI funds to make a $1 million companion loan that filled the financing
gap. Laurel BioComposite now has the opportunity to prove their product and
manufacturing technology with new buyers and licensees and bring manufacturing jobs
to this rural community.
"We have learned that the process of taking an innovation from inception to commercial
production takes the efforts and support of many people. Financial resources such as
those provided by the Nebraska SSBCI are critically important..." Tim Bearnes, CEO,
Laurel BioComposite.
New Mexico: Helping Non-Profits Serve the Community
In the city of Albuquerque, where over 17 percent of
the population lives in poverty,5 there is a critical
need for affordable housing. The Greater
Albuquerque Habitat for Humanity (GAHH) wanted to
move to a more prominent location to increase
visibility throughout the community and expand
operations. GAHH sought financing, but did not
meet the bank's loan-to-value requirements.
Using SSBCI funds, New Mexico Finance Authority (NMFA) provided a $241,000
subordinate loan participation enabling Wells Fargo Bank to extend a $1.6 million loan
to purchase and renovate the new GAHH headquarters and Habitat Restore.
5 United States Census Bureau, "State and County Quick Facts," Available at:
. Accessed on 4 December, 2014.
4
Figure 1.
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I, 2014)
$1,200,000,000
$1,100,000,000
$1,000,000,000
$900,000,000
$800,000,000
$700,000,000
$600,000,000 3rd Disbursement
$500,000,000 2nd Disbursement
$400,000,000 1st Disbursement
$300,000,000
$200,000,000
$100,000,000
$0
Figure 2.
5
Figure 3.
SSBCI Funds Deployed
$1,000,000,000 (Cumulative through September 30, 2014)
$900,000,000
$800,000,000
$700,000,000
$600,000,000
$500,000,000 Recycled
$400,000,000 Funds
Deployed
$300,000,000
Allocation
$200,000,000 Deployed
$100,000,000
$0
6

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