Small Business Loan Programs

Program Overview

 Funding for the Program is provided by the U.S. Department of Treasury under the State Small Business Credit Initiative (SSBCI), authorized under the Small Business Jobs Act of 2010. Idaho Housing was approved as administrator for Idaho’s $13.2 million allocation on August 15, 2011. 

The Program is a collaborative partnership between the U.S. Department of Treasury, Idaho Department of Commerce, Idaho Housing, and the Idaho Bankers Association. The program will be launched in November 2011. Small businesses statewide who are interested in this Program will need to work through their local banking and lending institutions to qualify.

In summary, the Program places pledged cash deposits with lending institutions to enhance the collateral of qualified small business borrowers who would not otherwise be able to obtain financing. The deposits are available to cover loan losses, in the event of a default, or are returned to be recycled for the benefit of another qualified borrower..

Eligible Borrowers

  • Loan proceeds are used for a business purpose.
  • The small business is located in Idaho.
  • The borrower is a for-profit corporation, partnership, limited liability corporation, limited liability partnership, joint venture, sole proprietorship, cooperative, or other entity which is authorized to conduct business in the State of Idaho and has 100 or fewer employees.
  • The borrower is not an executive officer, a director, or a principal shareholder of the participating lender nor has a related interest in or is an immediate family member of an executive officer, director, or principal shareholder of the participating lender.
  • The principal(s) of the entity have not been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C. 16911)).
  • The small business must meet a bank’s lending requirements with the exception of the deficient collateral, which is enhanced through the Program. 

Eligible Loan Uses

The loan use must be for a business purposes, including but not limited to:

  • Start up costs
  • Working Capital
  • Business Acquisitions and Expansions
  • Franchise Financing
  • Equipment Loans
  • Inventory Financing
  • Commercial Real Estate Acquisitions
  • Construction 

Eligible Lenders

Any insured depository institution, insured credit union, or community development financial institution (CDFI) is eligible for participation in the program. All participating lenders must execute a Program participation agreement.

Note: The above Program outline is a draft. A full Program Guide is being prepared and terms and conditions of the Program are subject to change before implementation. If you have questions regarding the program, please contact Cory Phelps by phone at 208-331-4725 or by email at You may also visit our website at and click on the Small Business Loan Programs button located on the left side of the site.