The State Small Business Credit Initiative (SSBCI) was created by the Small Business Jobs Act of 2010 with the aim of enhancing local capital infrastructures; the initiative is managed by the US Treasury which requires that each State undergo thorough due diligence of the form and management of each component of the program before the funds allocated to each state are released. By February 2013, the US Treasury had approved 47 state-run venture capital programs in 30 states, and Battle Born was fortunate to be able to draw from the experience of these teams and the advice of the venture capital advisors to the US Treasury, Cromwell Schmisseur LLC in formulating its program.
The Nevada SSBCI program began in 2011, and consisted of two components before the creation of Battle Born:
A Collateral Support Program, which pledges cash collateral to lending institutions to enhance the collateral coverage of individual loans taken by qualified Nevadan companies. The program is managed by GOED with public outreach by Capitolpartners.
A microlending program, which lends up to $35,000 at market rates to Nevadan companies, and is managed by the Nevada Microenterprise Initiative.
The addition of Battle Born to the Nevada SSBCI program represents an updating of the program, learning from the success of venture programs in other states. Research from Cromwell Schmisseur LLC shows that more than two thirds of SSBCI funds have been used for early stage venture capital investments. After a detailed due diligence process, the US Treasury allocated $5 million to Battle Born, and approved GOED as the program manager and Nicola Kerslake of Newbean Capital as the investment manager as a sub-contractor to the Nevada Small Business Development Center (Nevada SBDC).