By Brandon Moseley
Alabama Political Reporter
The U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI) released a new report which showing that Alabama has received $20.7 million in SSBCI funds to grow local small businesses through September 2013. Nationwide, more than $677 million has been used to leverage private capital through SSBCI.
The new SSBCI quarterly report shows that Alabama has deployed $20.7 million which represents 66 percent of Alabama’s total SSBCI allocation. According to the report that is one of the highest usage rates in the country. States use SSBCI funds to attract private lending and investment in small businesses, often by partnering with local community banks.
Treasury Under Secretary for Domestic Finance Mary Miller said, “These federal funds are allowing small businesses and entrepreneurs to hire new workers, expand their operations, and power the economic recovery across America. By allowing each state to design its own small business support programs to respond to local economic conditions, SSBCI is a key part of the Obama Administration’s efforts to provide needed capital to Main Street businesses.”
The report showed that the majority of states have accelerated their expenditure, obligation or transfer of SSBCI funds, doubled the amount that is reaching small businesses since the beginning of this year.
The recent SSBCI first annual report shows that the program had already supported loans and investments in over 4,600 U.S. small businesses totaling $1.9 billion nationwide through the end of 2012.
The Treasury claims that the program has helped small businesses create or save 53,000 jobs. Nearly 80 percent of SSBCI loans and investments went to businesses with 10 or fewer employees.
The SSBCI was created when President Obama signed into law the Small Business Jobs Act of 2010 on September 27, 2010. The program has awarded almost $1.5 billion to fund programs that support small businesses and small manufacturers.
The Treasury said that the program is expected to help spur up to $15 billion in new private sector lending or investment in small companies by leveraging $10 in private capital for every dollar of federal support.
There are five categories of SSBCI programs fall into five categories: Capital Access Programs, Loan Participation Programs, Collateral Support Programs, Loan Guarantee Programs and Venture Capital Programs.
To learn more about the State Small Business Credit Initiative go to:
