PA State Small Business Credit Initiative (PA-SSBCI): Diverse Leaders Venture Program

If you are a small business applying for the PA-SSBCI program, visit the SSBCI Program Administrator landing page to find your local economic development organization to apply.

Overview

The Diverse Leaders Venture Program component of the Pennsylvania – SSBCI Program (PA- SSBCI) provides loans to venture capital general partners of diverse status having the wherewithal to invest in Pennsylvania small businesses. The loan will be matched by private funding that will create investments in small businesses led by individuals of diverse status that are in need of support and resources to expand and create jobs. For purposes of this program, diverse status is not limited to race or ethnicity but rather is broadly inclusive of membership in a variety of additional types of underserved populations, such as, for example, those based on geographic location or socioeconomic status.

The Diverse Leaders Venture Program is administered by DCED under the direction of the Ben Franklin Technology Development Authority (“BFTDA”). The BFTDA Board meets four time per annum, in January, April, July, and October (these dates are subject to change on occasion). All proposals to the Board must be vetted and finalized a month in advance of the meetings.

Eligibility

Venture Capital Firms possessing the following are eligible:

• Demonstrated ability to raise a minimum of $10M
• Program dollars may not represent greater than 20% of venture fund committed capital
• Resources, expertise and intent to invest in companies that are located in PA
• Target investment sectors that are technology related or high growth oriented (i.e., life sciences, advanced manufacturing, information technology)
• Prepared to pay a 1% origination fee on Program commitment awarded

Funding

Funding is available in the form of loans. Applicants should note that, as such, the Program sponsor will not participate as a traditional limited partner. A sample loan term sheet which outlines requirements for the Commonwealth’s manner of participation is included in Section II of the Guidelines attached.

How to Apply

Applications may be filed at any time during the fiscal year with approval subject to availability of funding and BFTDA Board approval.

Initial applications must include:

• Private Placement Memorandum (PPM) pursuant to Reg. D or Reg. S of the Securities Act of 1933 (if available)
• Written responses to Appendix A of the Fund Questionnaire A

Submissions may be sent via emai to: dcedventureinvest@pa.gov.

If email is unavailable, hard copies may be delivered to:

Additional Information

• Appendix A: Fund Questionnaire A
• Appendix B: Fund Questionnaire B
• Appendix C: Litigation Questionnaire
• Appendix D1: Venture Capital Investment Quarterly Metrics Report
• Appendix D2: Quarterly PA Activity Report
• Appendix E: Specific SSBCI Requirements
• Certification Forms Library