WASHINGTON, D.C. – Today, the U.S. Department of the Treasury announced the approval of applications for State Small Business Credit Initiative (SSBCI) funding from 11 states and Washington, D.C. This funding will help create new private sector jobs and spur more than $3.6 billion in additional small-business lending. The SSBCI, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act that President Obama signed into law last fall.
“These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job growth,” said Deputy Secretary of the Treasury Neal S. Wolin. “Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country.”
Under the Small Business Jobs Act, these 11 states and Washington, D.C. can access a collective total of $360 million in SSBCI funds. These states and Washington, D.C. expect to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $360 million allocation is expected to support more than $3.6 billion in new private lending.
The applications for SSBCI funding that were approved as part of today’s announcement include those submitted by Alabama ($31.3 million), Florida ($97.7 million), Idaho ($13.2 million), Iowa ($13.2 million), Louisiana ($13.2 million), Mississippi ($13.2 million), Ohio ($55.1 million), Oregon ($16.5 million), Tennessee ($29.7 million), Texas ($46.6 million), Virginia ($18.0 million), and Washington, D.C. ($13.2 million).
Under the SSBCI, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders and investors to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that every $1 in federal funding will generate a minimum of $10 in new private lending. Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.
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. More information on the applications that were approved as part of today’s announcement is included below:
Alabama -- $31.3 million
Treasury will allocate a total of $31,301,498 to Alabama under the SSBCI. The Alabama Department of Economic and Community Affairs will use these funds to launch three new small business lending programs: the Alabama Capital Access Program, the Alabama Loan Guarantee Program, and the Alabama Loan Participation Program.
Florida -- $97.7 million
Treasury will allocate a total of $97,662,349 to Florida under the SSBCI. Florida’s Office of Tourism Trade and Economic Development will partner with Enterprise Florida, Inc., a public-private economic development partnership, to launch the Venture Capital Program, which will make equity investments in small businesses, and the Florida Small Business Loan Support Program. Additionally, the Office of Tourism Trade and Economic Development will launch the new Florida Capital Access Program to spur small business lending by private sector lenders.
Idaho -- $13.2 million
Treasury will allocate a total of $13,168,350 to Idaho under the SSBCI. Idaho’s Department of Commerce will partner with the Idaho Housing and Finance Authority to support the Idaho Collateral Support Program.
Iowa -- $13.2 million
Treasury will allocate a total of $13,168,350 to Iowa under the SSBCI. The Iowa Department of Economic Development (IDED) will use these SSBCI funds to support the launch of the Iowa Capital Access Program, and to provide additional funding for two existing programs: the Iowa Demonstration Fund Program, a venture capital program; and the Iowa Small Business Loan Program, a microloan program. The Iowa Business Growth Corporation will administer the Capital Access Program and will target its outreach specifically to rural communities throughout the state. The Iowa Foundation for Microenterprise and Community Vitality (IFMCV) will administer the Iowa Small Business Loan program and will use the funding to provide participation loans in conjunction with private financing to support small businesses. The Demonstration Fund, managed by IDED, encourages commercialization activities by small and medium-sized Iowa companies in the areas of product refinement, market planning and market entry activities to foster competitive companies that create jobs in Iowa.
Louisiana – $13.2 million
Treasury will allocate a total of $13,168,350 to Louisiana under the SSBCI. Louisiana’s Department of Economic Development will use these funds to support two existing programs: the Louisiana Small Business Loan Guarantee Program and the Louisiana Seed Capital Program, a venture capital program.
Mississippi -- $13.2 million
Treasury will allocate a total of $13,168,350 to Mississippi under the SSBCI. The Mississippi Development Authority will use these SSBCI funds to establish the Mississippi Small Business Loan Guarantee Program, a new loan guarantee program for the state.
Ohio -- $55.1 million
Treasury will allocate a total of $55,138,373 to Ohio under the SSBCI. Ohio’s Department of Development will use these funds to support an existing Capital Access Program; to launch the Small Business Collateral Enhancement Program, a new cash collateral program; and to launch the Targeted Investment Program, a new venture capital program.
Oregon -- $16.5 million
Treasury will allocate a total of $16,516,197 to Oregon under the SSBCI program. The Oregon Business Development Department will use these SSBCI funds to support the Oregon Capital Access Program, a Credit Enhancement Fund, a loan guarantee program, and the existing Oregon Business Development Fund, a loan participation program.
Tennessee -- $29.7 million
Treasury will allocate a total of $29,672,070 to Tennessee under the SSBCI. Tennessee’s Department of Economic and Community Development will use these funds to establish a new venture capital program called the “INCITE Fund.”
Texas -- $46.6 million
Treasury has allocated a total of $46,553,879 to Texas under the SSBCI. The Texas Department of Agriculture will use these funds to launch two new programs: the Texas Small Business Venture Capital program and the Texas Loan Guarantee program.
Virginia -- $18.0 million
Treasury has allocated $17,953,191 to Virginia under the SSBCI. The Virginia Small Business Financing Authority will use these funds to enhance the existing Virginia Capital Access Program; and the existing Economic Development Loan Fund, a loan participation program that provides subordinated gap financing to qualified small businesses.
Washington, D.C. -- $13.2 million
Treasury will allocate a total of $13,168,350 to Washington, D.C. under the SSBCI. Washington, D.C. intends to use this allocation to support a new Capital Access Program.