State Small Business Credit Initiative

Boosting Small Business

Alabama’s small businesses make the state better. Alabama’s State Small Business Credit Initiative aims to stimulate private sector lending through LendAL, which partners with private lenders to extend credit to small businesses and entrepreneurs, fostering growth, innovation and job creation across the state. InvestAL offers high-match investments in high-growth startups, investors and early-stage capital funds in order to infuse capital in the economy.

2024 Sloss Tech: SSBCI Lounge Livestream

For small business owners, investors and lenders interested in learning more about SSBCI, they will be able to tune into the SSBCI Lounge livestream below for the following engagements on June 27 and 28. The livestream will be updated the day of the conference.

THURSDAY, JUNE 27:

1:00 – 2:00 PM: Opening Session & Fireside Chat with Dr. Rodney Sampson (InvestAL), moderated by Kellie Clark (gener8tor)
2:45 – 3:25 PM: Fireside Chat with InvestAL, LendAL, and Eric Cromwell, a representative from U.S. Treasury
3:30 – 4:00 PM: Introduction of TA partners and the Resources Available for Business Owners/Founders

FRIDAY, JUNE 28:

10:30 – 11:10 AM: Presentation from an Economist and Q&A with Roisin McCord at Federal Reserve Bank

VIEW Sloss Tech LIVESTREAM

Programs

The State Small Business Credit Initiative will administer $97 million in funding to Alabama small businesses, creating opportunities and growth for businesses across the state. Alabama’s SSBCI program aims to allocate at least 56.5% of its credit to small business owners and startup founders who may face unique challenges in accessing traditional financing, called SEDIs (Socially or Economically Disadvantaged Individuals). Up to 53.5% will be distributed to non-SEDIs.

The initiative includes InvestAL, providing funds for startups seeking to raise capital and making investments in venture capital funds, and LendAL, providing fair access to funds for small businesses of all kinds.

SSBCI

InvestAL

InvestAL operates an early-stage venture capital fund and fund of funds platform to support high growth, venture backable startups that have headquarters in Alabama. All equity and limited partner investments require a minimum of a 1:1 private investment, must complete extensive due diligence and agree to Treasury quarterly and annual reporting. Direct investment checks sizes range from $5,000 to $1,000,000 in exchange for equity (some ownership) of the company. Fund of fund investments are for established venture capital funds and range from $500,000 to $1,000,000.

Are you an investor looking for high-growth startups?

GET THE FUND OF FUNDS RFp

Are you a founder looking for capital?

APPLY TO PITCH

SSBCI

LendAL

LendAL works with lenders expanding access to capital to small businesses operating in Alabama. Through LendAL, small businesses are eligible for these credit enhancements when loan proceeds will be spent in Alabama. These enhancements reduce the risk to lenders, making the small business more attractive when seeking debt from lenders increasing the likelihood of loan approval.

APPROVED LENDERS

Are you a lender looking to convert your cash holdings into dynamic credit risk-reduced loans supporting small businesses?

ENROLL AS A LENDER

Are you a small business owner looking for a loan to jumpstart growth?

Get a loan

Technical Assistance

To support Alabama businesses and lenders applying for the State Small Business Credit Initiative, there is technical assistance available consisting of legal, accounting and financial advisory services. Alabama thrives when Alabama businesses thrive, so we connect founders with the resources they need.

General

In Alabama, technical assistance is readily available for those applying for the State Small Business Credit Initiative. Experts from the Small Business Development Center and the Mobile Chamber of Commerce are on hand to guide you through the application process, ensuring you can access the support your business needs.

SBDC

Expanding Opportunity: Alabama’s SSBCI Support

Alabama provides additional, targeted technical assistance for underrepresented entrepreneurs applying for the State Small Business Credit Initiative. This specialized support aims to empower minority-owned businesses, helping them navigate the application process and access vital resources.

SBDC

MOBILE CHAMBER OF COMMERCE

What is a SEDI-owned and controlled business?

About half of Alabama’s SSBCI capital will be invested into businesses at least 51% owned by SEDIs (Socially or Economically Disadvantaged Individuals). More than half the state geographically qualifies as SEDI-owned because of Alabama’s vast footprint of CDFI Investment Areas. For a complete list of SEDI qualifications, view the dropdown lists:

CDFI Investment Areas

Individuals whose residence and/or business address is located in Community Development Financial Institution-designated (CDFI) investment areas, or the business will operate a future location in a CDFI investment area.

Additional SEDI Definitions

Individuals who have had their access to credit on reasonable terms diminished as compared to others in comparable economic circumstances, due to their:

Membership of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society, such as Black, Latino, and Indigenous and Native American persons; Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons
Gender
Veteran status
Limited English proficiency
Disability
Long-term residence in an environment isolated from the mainstream of American society
Membership of a federally or state-recognized Indian Tribe
Long-term residence in a rural community
Residence in a U.S. territory
Residence in a community undergoing economic transitions (including communities impacted by the shift towards a net-zero economy or deindustrialization)
Membership of another underserved community, such as persons otherwise adversely affected by persistent poverty or inequality.

Frequently Asked Questions

How is Alabama-located defined?

The business must be headquartered or the business’s founders must live in the state of Alabama.

Who is SEDI?

More than half of Alabama geographically qualifies as SEDI. SEDI-owned and controlled businesses are at least 51% controlled and owned by SEDI individuals who meet one or more definitions from the criteria. See the list above for the full requirements.

Are non-SEDIs eligible for funding?

Yes, up to 53.5% of Alabama’s SSBCI award will be open to non-SEDI-owned businesses.