October 8, 2010
CARSON ANNOUNCES FUNDING TO SUPPORT SMALL BUSINESSES, CREATE JOBS
State Small Business Credit Initiative Critical Component of Small Business Jobs Act
INDIANAPOLIS - Indiana is set to receive nearly $350 million to aid small business lending, Congressman André Carson said today as the U.S. Department of the Treasury announced allocations for the State Small Business Credit Initiative (SSBCI).
Indiana will receive $343 million of the $15 billion in SSBCI money that will be allocated to all 50 states, the District of Columbia and the U.S. territories. This funding will support innovative local programs that help entrepreneurs expand their businesses and create new jobs.
"This influx of capital is a critical component of the Small Business Jobs Act President Obama recently signed into law," said Congressman Carson. "Today's announcement from the Treasury is vital to unlocking the credit that our small businesses need to expand and put Hoosiers back to work."
The SSBCI allows states to build upon existing, successful state-level small business lending programs, including examples such as collateral support programs, Capital Access Programs (CAPs) and loan guarantee programs.
Under the SSBCI, states are offered the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses. States are required to demonstrate a minimum "bang for the buck" of $10 in new private lending for every $1 in federal funding. Accordingly, the $1.5 billion funding commitment that the federal government will make for this program is expected to support $15 billion in additional private lending.
In addition to the SSBCI, the Small Business Jobs Act includes a number of important provisions to support small business job creation. The Act includes eight new small business tax cuts that went into effect immediately upon becoming law last week; creates a $30 billion Small Business Lending Fund to help small and community banks provide new loans to small businesses; extends and expands existing Small Business Administration loan programs; and delivers other important benefits for small businesses.
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