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SEDI & Capital Disadvantaged Business Eligibility

The 2021 American Rescue Plan Act’s State Small Business Credit Initiative (SSBCI) program is intended to support inclusive economic growth by providing additional funding to participating jurisdictions that demonstrate success in supporting entrepreneurs who have been denied equitable access to capital. The SSBCI INVENT program will achieve this goal by ensuring that it is accessible to  businesses owned and controlled by Socially and Economically Disadvantaged Individuals (SEDI) and Capital Disadvantaged Businesses (CDB) representing Disproportionately Impacted Areas (DIAs) or Historically Underrepresented Groups (HUGs).

INVENT is sector agnostic for companies that certify as SEDI-eligible or CDB-eligible. However, we cannot invest in gambling, alcohol, cannabis or firearm sectors and we will not invest in businesses engaged in speculative investments, real estate investment firms, pyramid or multi-level marketing businesses, investment firms or lenders.

Refer to the U.S. Department of the Treasury (USDT) SSBCI Capital Program Policy Guidelines for additional information.

A SEDI business as defined by the U.S. Department of the Treasury:

  • A business enterprise owned and controlled by individuals whose residences are in a Community Development Financial Institution (CDFI) investment area;
  • A business enterprise that is located in a CDFI investment area
  • A business enterprise that will build, open, or operate a location in a CDFI Investment Area; OR
  • A business that certifies it is owned and controlled by individuals who have had their access to credit on reasonable terms diminished 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;
    • 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); or
    • membership of an underserved community.

A CDB, per DCEO, represents:

1. Disproportionately Impacted Areas (DIA)
A business certifies that its access to capital has been diminished due to operating in, or its owner or a majority of its owners’ reside in, an area such as:

  • Communities surrounding predominantly- or minority-serving institutions (MSIs);
  • Communities undergoing economic transitions;
  • Low- and moderate-income areas;
  • Predominantly minority communities; or
  • Rural communities

2. Historically Underrepresented Groups (HUG)
A business certifies that its access to capital has been diminished due to its owner or a majority of its owners’ status such as:

  • First-generation college student;
  • Immigrant;
  • Limited English proficiency or English as a second language;
  • Long-term rural community resident;
  • Member of a Federally or state-recognized Indian Tribe;
  • No college degree;
  • Parent or caregiver;
  • Person over the age of 40;
  • Person with a disability;
  • Racial, ethnic, sexual, or gender minorities;
  • Woman; or
  • Veteran