SSBCI Application

State Small Business Credit Initiative Allocation Agreement

Section 8.1B_OCSP Program Information

SSBCI Application

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State Small Business Credit Initiative Application

8.1B – OCSP Program Information

Applicant Name


Program Name



Please use pages 2 through 12 to provide the following OCSP Program Information:

  1. SECTION 1: A description of the background of the program. Please provide your narrative on page 2.

  2. SECTION 2: A description summarizing the program guidelines. Please provide your narrative on pages 4-6.

  3. SECTION 3: A description of the anticipated benefits of the state, territory, or Tribal government’s in-state and out-of-state loans and investments to the state, territory, or Tribal government, its businesses, and its residents including the extent to which the resulting small business lending and investing will expand economic opportunities. Please provide your narrative on pages 8-9.

  4. SECTION 4: A description of how the OCSP will, at a minimum, “cause and result in” $1 of new private credit for every $1 of SSBCI funds used by the OCSP. Please provide your narrative on page 10.

  5. SECTION 5: A description of how the OSCP will ensure a meaningful amount of lender/investor capital is at risk. Please provide your narrative on page 11.

  6. SECTION 6: A description of how the OCSP will provide credit support that meets the requirements based on borrower or investee size, average principal loan/investment amount, and maximum loan/investment amount. Please provide your narrative on page 12.





Shape1 SECTION 1: A description of the background of the program, including historic performance of the program (for programs that have operated before) and expected performance.

SECTION 2: A description summarizing the program guidelines. Include information on the credit/investment characteristics and the operating mechanics of the OCSP such as:

    1. qualifications or eligibility requirements for small business borrowers/investees and lenders/investors

    2. minimum and maximum loan/investment amounts

    3. standard loan types (e.g., term loans, lines of credit, etc.) and investments (e.g., equity, preferred equity, subordinated debt, etc.) and processes for reviewing non-standard transactions

    4. limitations on use of loan/investment proceeds

    5. other standard terms required in loan, collateral support or guarantee provided, or investment agreement terms

    6. sources for loan originations or investment opportunities in the program

    7. processes for negotiating and approving loan/credit support or investment terms

    8. processes for determining and documenting the “cause and result” of private capital leverage related to the loan or investment

    9. kinds of and rates for fees (e.g., application and origination fees, guarantee fees, management fees, etc.) that may be charged

    10. processes for monitoring compliance and performance of outstanding loans/investments

    11. processes for addressing loan defaults or investment write-offs


Also, provide the following information relevant to the type of OCSP as follows:

Loan Participation Program (LPP) – Describe how the program is structured, that is, explain whether the program purchases participation (the state, territory, the District of Columbia, or Tribal government purchases a portion of a loan originated by a lender), or originates companion loans (or co-lending participation or parallel loans in which a lender originates a senior loan and the state, territory, the District of Columbia, or Tribal government originates a second loan to the same borrower). Also, include the maximum percentage of the loan that the state, territory, the District of Columbia, or Tribal government can participate.

Collateral Support Program (CSP) – Include information on the maximum percentage of the loan amount that may be covered by the collateral, the form of collateral to be provided, and where the collateral will be held.

Loan Guarantee Program (LGP) – Include information on the maximum percentage of the loan that the guarantee will cover and describe how the reserve fund would work.

Equity Capital Program (Funds) and Equity Capital Program (Direct) – Describe the structure of the Equity Capital Program and the capital deployment model.

Shape2 SECTION 2 (continued):

Shape3 SECTION 2 (continued):

Shape4 SECTION 2 (continued):

SECTION 3: A description of the anticipated benefits of the state, territory, the District of Columbia, or Tribal government’s in-state and out-of-state loans and investments to the state, territory, the District of Columbia, or Tribal government, its businesses, and its residents including the extent to which the resulting small business lending and investing will expand economic opportunities. For example, climate transition investments may result in efficient energy use, sustainable jobs, or economic growth in sustainable manufacturing and industrial decarbonization, sustainable agriculture, bio-materials, and electric vehicles and changing infrastructure. Another example is that investments in areas such as small and mid-size enterprise (SME) manufacturing and supply chain resiliency may result in stronger economic growth, high-quality jobs, and innovation. Also, investments focused on innovation in supply chains of critical products such as semiconductors, critical minerals and materials, and advanced pharmaceuticals may provide long-term national and economic security benefits. Refer to the SSBCI Capital Program Policy Guidelines, Section VIII. Approving State OCSPs, subsection g. Additional Considerations for Approving OCSPs – Anticipated Benefits to the State – 12 U.S.C. § 5705(d)(1).



Shape5 SECTION 3 (continued):

Shape6 SECTION 3 (continued):

Shape7 SECTION 4: A description of how the OCSP will, at a minimum, “cause and result in” $1 of new private credit for every $1 of SSBCI funds used by the OCSP. For example, for OCSPs involving equity capital, applicants may specify such safeguards as limiting investments to anchor investments, prohibiting SSBCI participation after a fund’s initial close, or restricting investments to be in funds for which private capital is likely to be catalyzed by SSBCI participation based on the funds' age, size, or experience. In addition, please complete the leverage ratio tables for this OCSP program in Section 8.1C of the application. Refer to the SSBCI Capital Program Policy Guidelines, Section VIII. Approving State OCSPs, subsection c. 1:1 Financing – 12 U.S.C. § 5705(c)(1).

Shape8 SECTION 5: A description of how the OSCP will ensure a meaningful amount of lender/investor capital is at risk. If the OCSP provides credit/equity support through a financial institution or non-financial institution lender or investor, such lender or investor must have a meaningful amount of capital resources at risk. The term “meaningful amount” may vary for lenders and investors in different programs, as some will bear risk at the transaction level while others bear pooled risk. Capital at risk guidelines for OCSPs are contained in the SSBCI Capital Program Policy Guidelines. Refer to the SSBCI Capital Program Policy Guidelines, Section VIII. Approving State OCSPs, subsection d. Lender or Investor Capital at Risk – 12 U.S.C. § 5705(c)(3).

SECTION 6: A description of how the OCSP will provide credit support that meets all of the following requirements:

  1. targets an average borrower or investee size of 500 employees* or less;

  2. does not extend support to borrowers or investees that have more than 750 employees;

  3. targets support towards loans or investments with an average principal amount of $5,000,000 or less; and

  4. does not extend credit support to loans or investments that exceed a principal amount of $20,000,000.

*The definition at 12 CFR §121.106 should be used to calculate the number of employees.

Shape9 Refer to the SSBCI Capital Program Policy Guidelines, Section VIII. Approving State OCSPs, subsection e. Borrower/Investee and Loan/Investment Size Requirements – 12 U.S.C. § 5705(c)(4).

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