California’s plan to make use of existing state agencies to push $1.7 billion in small business loans is being approved by U.S Department of Treasury. This program is referred as State Small Business Credit Initiative and it is a component of Small Business Jobs Act that is being signed into law.
The federal government wants to provide loans to communities across the country as soon as possible. It is done through existing state programs. This is a component of small business act that was signed into law in September. The federal government wants to give loan to communities across the country as soon as possible. They want to engage existing State programs to give loan grants.
Obama administration has allocated $168.6 million to California as reserve funds for small business lending. It is expected to support up-to $1.7 billion in loans. Bill Lockyer, California State Treasurer, says, “By leveraging these funds, we will vastly expand the state’s current lending ability, help small business owners flourish, and add needed jobs to the economy.”
Two existing state agencies will be brought under the purview of federal state for circulating the money. California Capital Access Program and California Small Business Loan Guarantee Program will be used for bridging access to loans.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to