The Pennsylvania CDFI Network has secured a new $45 million allocation of the State Small Business Credit Initiative (SSBCI).

This is in partnership with 11 community development financial institutions (CDFIs) across the Commonwealth and the Pennsylvania Department of Community and Economic Development (PA DCED). 

“The PA-SSBCI Revolving Loan Fund (RLF) program helps the Commonwealth’s smallest and most vulnerable businesses,” Varsovia Fernandez, PA CDFI Network CEO, said in a statement.

“We are enthusiastic about the opportunities this type of financing can inspire as our state’s small businesses gain strength and grow,” she added.

The SSBCI was launched in 2021 by the U.S. Department of Treasury in response to the economic effects of the COVID-19 pandemic, under the American Rescue Plan Act.

As small businesses struggle to stay afloat amid the onset of the pandemic, making resources available to these businesses became even more paramount.

The SSBCI provides financing to small businesses with a focus on equality beneficial to the smallest and most economically disadvantaged small businesses. 

The PA CDFI Network PA-SSBCI program is a revolving loan fund, and aligns with the PA CDFI Network’s continued efforts to support small businesses’ recovery and sustainability.

The SSBCI RFL allows for recapitalization of the revolving loan funds CDFIs create, which benefits low- to moderate-income communities as CDFIs afford flexibility for non-traditional borrowers. 

The program requires a private capital match, helping leverage relationships with banks, philanthropists and social impact investors. 

Overall, the PA-SSBCI RLF will create lending and investment opportunities for small businesses that need additional support and resources to expand and create jobs. 

“The goal of the PA-SSBCI RLF is to deploy SSBCI funds as soon as possible on a first-come, first-served basis,” Fernandez said. “Our member CDFIs are ready to assist small business owners throughout the Commonwealth.” 

CDFIs participating in the PA-SSBCI RLF program include Bridgeway Capital, Neighborhood Community Development and Invest PGH of Pittsburgh, Community First Fund, Central and Southeastern Pennsylvania, JARI Growth Fund of Johnstown, MetroAction of Scranton, Enterprise Development Fund of Erie and Entrepreneur Works, Impact Loan Fund, Neighborhood Progress Fund and PIDC Community Capital of Philadelphia.