In the month of August alone, Treasury moved more than $1.5 billion to states across the country to help small businesses expand and hire. Through the Small Business Lending Fund (SBLF), 87 community banks received nearly $1.2 billion in small business lending funding – the equivalent of $38 million per day – to boost local economies and spur job creation. And under the State Small Business Credit Initiative (SSBCI), 11 states received approval for $320 million to give a boost to programs that help small businesses grow and create jobs in their communities.
Small business owners have faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital. Because banks leverage their capital, the funding provided to communities by the SBLF and SSBCI will help increase lending to small businesses in an amount that is multiples of the total amount provided through these programs.
The SBLF, which is part of the Small Business Jobs Act passed by Congress and signed by President Obama, helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. To date, Treasury has announced funding for 130 community banks and $1.8 billion in SBLF funding. The SSBCI, another key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers. Forty-eight states applied to the program, and Treasury has already approved 32 of them for approximately $1 billion in funding. Treasury continues to fulfill the intent of the Small Business Jobs Act by helping to increase small business lending while serving as a responsible steward of taxpayer dollars.
The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that have helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire.
Employing roughly one-half of all Americans and accounting for about 60 percent of gross job creation, small businesses play a critical role in our country’s economic growth.
Read more about Treasury’s August wave of small business funding here, here and here.
Don Graves is Treasury’s Deputy Assistant Secretary for Small Business and the Executive Director of the President’s Council on Jobs and Competitiveness.