The Treasury Department has offered small businesses a large helping hand. The Treasury Department has infused $53.4 million into lending programs in Connecticut, Vermont and Missouri. The cash that is available is meant to create more investment. Specifically, states had to show that their programs would create $10 worth of lending for every $1 of investment. Source for this article – Treasury kicks off small business lending with $53.4 million by MoneyBlogNewz.
The Small Business Job Act information for you
Small businesses in the U.S. represent about 50 percent of all private-sector jobs in the United States, and 64 percent of new jobs created in the last 15 years have been created by smaller businesses. Small business growth has been encouraged by Congress in the U.S.. The Small Business Jobs Act of 2010 was created to do this. The Act authorized the Treasury to hand out $1.5 billion in loan guarantees to states with solid plans to increase small business investment through loan guarantees and other lending programs.
Plans to invest in Connecticut $13.3 million
Businesses are able to get insurance loans in Connecticut due to the Treasury department funds. One significant part of this is to get investment portfolios from a financial group. The group picked, the Connecticut Development Authority, will be getting $13.3 million for this. There can be financial institutions give the CDA funds to fund small business loans. Nineteen businesses will be a part of this financing.
Spending $13.2 million on small businesses in Vermont's plan
The Treasury only needs to give Vermont $13.2 million for its plan. It plans on getting $132 million in small business lending from that. There will be business loans given to four programs. They will act like bad credit unsecured loans, not payday loans, for the businesses. The Small Business Loan Program will help businesses buy fixed assets for instance equipment with $3.3 million. IT and Bioscience businesses should be able to get help with the Technology Loan Participation Program which will get $3 million. About $1 million will go to portfolio insurance to lend. Another $5.9 million will go to building in Vermont with the Commercial Loan Participation Program.
Using $26.9 million in Missouri
Missouri qualified for the largest loan guarantee of the three states, at close to $27 million. There could be two funds for the money to go into. The Grow Missouri Loan Participation Fund will get $10 million to help companies that have less than 500 employees. The Loan Participation Fund provides loans of up to $3 million to help state companies grow. The final $16.9 million will create a new venture capital fund that will focus on high-tech startup companies.
Articles cited
CNN
money.cnn.com/2011/03/22/smallbusiness/state_small_business_credit_initiative/index.htm
Small Business Administration
sba.gov/advocacy/7495/8420
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