CHARLOTTE AMALIE, St. Thomas, U.S. Virgin Islands –January 28, 2026 – The Virgin Islands Economic Development Authority (VIEDA) announced today that the Territory has advanced to the second tranche of federal funding under the U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI), after successfully deploying more than 80 percent of its first tranche in just two years, one year ahead of the federal program timeline.

Administered locally by VIEDA’s Economic Development Bank (EDB), SSBCI is a federal loan guarantee initiative designed to increase small business access to capital by reducing lending risk for participating financial institutions. The U.S. Virgin Islands was awarded $57.8 million under the current SSBCI program to support expanded lending, business growth, and job creation throughout the Territory, with funds released in three tranches over a ten-year period.

Under the first tranche, the Territory received $18.9 million in 2023, with three years allotted to obligate or deploy the funds. VIEDA obligated more than 80 percent of the tranche in just two years, enabling 22 small business loans that unlocked over $28.2 million in private lender financing and more than $15.7 million in SSBCI guarantee support. As a result of this strong performance, the Territory has received approximately $19.2 million in its second tranche allocation.

To date, all SSBCI-supported loan transactions have been completed in partnership with Merchants Commercial Bank, FirstBank, and Banco Popular. VIEDA also acknowledges the strong support and engagement of Alba Capital Corporation, Oriental Bank, and Bank of St. Croix as program participation continues to expand.

SSBCI Program Support for Small Business Lending

Under the current federal authorization, VIEDA administers four SSBCI guarantee programs to better align financial tools with business needs and lender requirements:

• Collateral Support Program (CSP): May provide up to 80% collateral support for eligible loans originated by participating lenders.
• Loan Participation Program (LPP): May participate up to 30% in an eligible loan originated by a participating lender.
• Loan Guarantee Program (LGP): May provide up to 80% guarantee support for eligible loans.
• Payment, Surety, and Performance Bond Program: May provide up to 80% of the 10% bonding requirement from eligible bonding companies or participating lenders.

“These tools strengthen the lending environment in the Virgin Islands by lowering barriers for entrepreneurs and small businesses seeking working capital, construction financing, equipment purchases, business expansion, and other growth-related investments,” said Wayne L. Biggs, Jr., chief executive officer of the Virgin Islands Economic Development Authority.

Background on SSBCI

The State Small Business Credit Initiative was originally created in 2010 under the federal Small Business Jobs Act to stimulate small business lending, job creation, and economic activity following the 2007–2009 recession. Under the initial program, the U.S. Virgin Islands was awarded and successfully expended $13.1 million, which was administered by VIEDA/EDB.

In 2022, the American Rescue Plan Act (ARPA) reauthorized and expanded SSBCI in response to the economic impacts of the COVID-19 pandemic. In 2023, the U.S. Virgin Islands was awarded $57.8 million under the expanded initiative, with VIEDA/EDB again designated to administer the Territory’s SSBCI programs.

To learn more about SSBCI or other small business support programs administered by the VIEDA, visit www.usvieda.org or contact info@usvieda.org.