It’s been almost a year since President Obama signed legislation to create the State Small Business Credit Initiative (SSBCI), an innovative program that enhances state efforts to get billions of dollars of additional capital into the hands of small businesses owners across the country.
Today, the Treasury Department announced $360 million in new SSBCI funding to 11 states and the District of Columbia. But the good news does not stop there.
As part of the application for funding, recipients had to demonstrate a reasonable expectation that these federal funds will enable them to leverage additional capital from private lenders and investors - at least $10 in private lending for every $1 in federal funding. So today’s announcement will generate more than $3.6 billion in new lending, and help create new private sector jobs in communities across the country.
An example of programs include the Iowa Business Growth Corporation’s Capital Access Program, which will target its outreach to rural communities throughout Iowa, and the “INCITE” Fund in Tennessee, a new venture capital program that is able to launch solely because of today’s funding announcement.
The states receiving the SSBCI funding from the Treasury announced today are:
Alabama -- $31.3 million
The Alabama Department of Economic and Community Affairs will use the allocated $31,301,498 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
With Florida’s $97,662,349 in Treasury funds, the 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
Idaho’s Department of Commerce will partner with the Idaho Housing and Finance Authority to support the Idaho Collateral Support Program with $13,168,350 in Treasury funds.
Iowa -- $13.2 million
The Iowa Department of Economic Development (IDED) will use $13,168,350 in 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
Louisiana’s Department of Economic Development will use the $13,168,350 they have been granted 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
The Mississippi Development Authority will use $13,168,350 in SSBCI funds to establish the new Mississippi Small Business Loan Guarantee Program.
Ohio -- $55.1 million
Ohio’s Department of Development will use the $55,138,373 in Treasury 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
The Oregon Business Development Department will use their $16,516,197 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
Tennessee’s Department of Economic and Community Development will use the $29,672,070 to establish a new venture capital program called the “INCITE Fund.”
Texas -- $46.6 million
The Texas Department of Agriculture will use the $46,553,879 to launch two new programs: the Texas Small Business Venture Capital program and the Texas Loan Guarantee program.
Virginia -- $18.0 million
The Virginia Small Business Financing Authority will use their $17,953,191 allocation 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
Washington, D.C. intends to use the $13,168,350 to support a new Capital Access Program.