$1.0 billion in new lending for small businesses

Press release: Today, the U.S. Department of the Treasury and U.S. Senator Bill Nelson announced the approval of Florida’s State Small Business Credit Initiative (SSBCI) application. Florida’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $977 million in additional small-businesses lending in that state. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act 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.”

“Investing in small businesses is good for the economy and creates jobs,” said Sen. Nelson, a key supporter of the bipartisan-passed Small Business Jobs Act. “That’s why we must keep doing everything we can to help businesses thrive and stay afloat.”

Under the Small Business Jobs Act, Florida can access $97.7 million in SSBCI funds. Florida expects 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 $97.7 million allocation for Florida is expected to support more than $977 million in new private lending in that state.

Under Florida’s approved SSBCI plan, 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.

Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. 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.