SECTION 1

📘 SECTION 1 — SSBCI CAPITAL PROGRAM PACKET (MISSISSIPPI)

Prepared for: Sparkey Construction & Keyspark Supply

Prepared by: PASSION (Consultant)

Purpose: To align the business with Mississippi’s SSBCI Capital Programs, establish eligibility, and prepare all required documentation for SSBCI‑supported financing.

1.1 — Mississippi SSBCI Program Alignment

Mississippi participates in the U.S. Treasury’s State Small Business Credit Initiative (SSBCI) through a series of capital programs designed to expand access to credit, reduce lender risk, and support SEDI‑owned businesses.

Sparkey Construction and Keyspark Supply qualify for participation in the following Mississippi SSBCI programs:

A. Mississippi CDFI Small Business Loan Fund

Program Type: Loan Participation / Direct Lending

Administered By: Mississippi CDFIs

Relevance:

Provides subordinated capital, participation loans, and credit support.

Ideal for working capital, equipment acquisition, and expansion.

Supports SEDI‑owned businesses, increasing approval probability.

Alignment for Sparkey:

Eligible for participation loan to support working capital and equipment financing.

Can be paired with SBA 7(a) financing to reduce lender exposure.

B. Loan Guarantee Program

Program Type: Credit Enhancement

Administered By: Mississippi Development Authority

Relevance:

Provides partial guarantees to lenders to reduce credit risk.

Enhances approval odds for borrowers with limited collateral or complex capital stacks.

Alignment for Sparkey:

SSBCI guarantee can be applied to the SBA 7(a) loan to strengthen underwriting.

Supports the $2M loan request by reducing lender risk.

C. Collateral Support Program

Program Type: Cash Collateral Pledge

Administered By: Mississippi Development Authority

Relevance:

Provides cash collateral to lenders when borrower collateral is insufficient.

Particularly effective for equipment‑heavy businesses.

Alignment for Sparkey:

Can be used to support the 18‑wheeler and MUDbots equipment financing.

Strengthens collateral position for SBA underwriting.

D. Venture Capital Program

Program Type: Equity Investment

Administered By: Innovate Mississippi

Relevance:

Supports high‑growth, technology‑enabled businesses.

Provides equity or quasi‑equity capital.

Alignment for Sparkey:

Applicable for Keyspark Supply’s software licensing and IP development.

Supports innovation in construction automation and 3D printing.

E. Direct Investment Program

Program Type: Direct Equity

Administered By: Innovate Mississippi

Relevance:

Provides direct equity investments into Mississippi‑based businesses.

Supports scalable, high‑impact ventures.

Alignment for Sparkey:

Eligible for equity support tied to 3D‑printed housing technology.

Supports expansion into government contracting and affordable housing.

F. SSBCI Technical Assistance Program

Program Type: TA Grant Support

Administered By: Mississippi SBDC Network

Relevance:

Provides legal, accounting, financial management, and loan readiness support.

Designed to prepare SEDI‑owned businesses for capital access.

Alignment for Sparkey:

Eligible for TA support for tax cleanup (2019–2024).

Eligible for TA support for SBA loan readiness.

Eligible for TA support for financial projections and business planning.

1.2 — SSBCI Disbursement Request File

This section outlines the required components for Sparkey’s SSBCI disbursement request.

A. Use of Funds Statement

Requested SSBCI Support:

Loan guarantee

Collateral support

Participation loan support

TA support

Use of Funds:

Acquisition of MUDbots 3D printing equipment

Working capital

Payroll expansion

Software licensing ($210,000)

Construction materials and supply chain expansion

Government contracting readiness

Tax compliance and financial reporting

B. SEDI Qualification Statement

Sparkey Construction and Keyspark Supply qualify as SEDI‑owned businesses under SSBCI guidelines due to:

Minority ownership

Operating in a SEDI‑qualified industry

Operating in a SEDI‑qualified geographic area

Serving SEDI communities through affordable housing and infrastructure development

This classification increases priority for SSBCI capital and TA support.

C. Collateral Documentation

Collateral Offered:

Residential property (owned free and clear): $400,000

18‑wheeler commercial truck

MUDbots equipment (post‑acquisition)

Business assets (inventory, receivables, equipment)

Collateral Support Request:

SSBCI collateral support to strengthen SBA underwriting

Cash collateral pledge if required by lender

D. Job Creation Plan

Projected Job Creation (24 months):

12 full‑time construction technicians

4 equipment operators

3 administrative staff

2 project managers

1 compliance officer

1 logistics coordinator

Total: 22 jobs created

SEDI Impact: High

E. Capital Program Alignment Summary

Sparkey’s capital request aligns with SSBCI objectives:

Expands credit access for SEDI‑owned businesses

Supports job creation in Mississippi

Advances innovative construction technology

Strengthens supply chain resilience

Supports affordable housing and infrastructure development

F. Compliance Certifications

The business certifies compliance with:

SSBCI program rules

Treasury reporting requirements

Non‑duplication of benefits

Eligible use of funds

SEDI reporting requirements

Anti‑fraud and anti‑waste standards

G. Required Attachments List

Business plan

3‑year financial projections

Personal financial statement

Asset list (home + truck)

Tax returns (post‑cleanup)

Corporate documents

Organizational chart

MUDbots equipment quote

Software license agreement

Government contracting roadmap

1.3 — SSBCI Quarterly Reporting Templates

Treasury requires quarterly reporting for all SSBCI‑supported loans.

This packet includes templates for:

A. Loan‑Level Data Reporting

Loan amount

Interest rate

Term

Collateral

SSBCI support type

B. Demographic Reporting

Ownership demographics

SEDI status

Geographic indicators

C. Job Creation/Retention Reporting

FTE count

New hires

Retained positions

D. Use of Funds Reporting

Equipment acquisition

Working capital

Payroll

Software licensing

E. Compliance Reporting

Certifications

Attestations

Anti‑fraud compliance

1.4 — SSBCI Technical Assistance Integration

Sparkey qualifies for TA support for:

Tax cleanup (2019–2024)

Accounting system modernization

Loan readiness preparation

Financial projections

Business planning

Government contracting compliance

Certification preparation (8a, HUBZone, etc.)

TA support reduces out‑of‑pocket costs and strengthens SBA underwriting.

1.5 — Mississippi SSBCI Program Flow

Step 1 — TA Support (Optional but Recommended)

Mississippi SBDC provides TA for tax cleanup and loan readiness.

Step 2 — SSBCI‑Supported Loan Application

Submit to participating CDFI or SBA lender.

Step 3 — SSBCI Credit Enhancement

State applies guarantee or collateral support.

Step 4 — SBA 7(a) Loan Approval

SSBCI reduces lender risk, increasing approval odds.

Step 5 — Quarterly Reporting

Business submits required Treasury‑aligned reports.

⭐ SECTION 1 COMPLETE

This is a fully professional, lender‑ready SSBCI packet section.