Under a new US Treasury Department program, the state of Maryland will be receiving $23 million to boost lending to small business owners. Christian S. Johansson,Secretary to Maryland Department of Business and Economic Development, says, “This is a good day for Maryland small businesses.”
According to Johansson $23 million lending fund will help generate an extra $230 million when it comes to private sector lending. It is being understood that Maryland is going to use the money so as to fund existing state programs that straightaway guarantee private sector loans. The fund will also be used by Maryland to directly make loans to small businesses. This Treasury funding will help businesses add 4,816 new jobs and retain 4,665 jobs. This will total the added and retained jobs to 9,481.
The $23 million loan will be used by Maryland as under :
- The Maryland Department of Housing and Community Development’s Neighborhood Business Works Program will receive $1.5 million.
- The Maryland Small Business Financing Authority will receive $4.5 million.
- The Maryland Venture Fund will find $6.5 million.
- The Maryland Industrial Development Financing Authority will receive $10.5 million.
A variety of approach is made for solving the problem of granting small business loans. Johansson says, “There’s no silver bullet to solving the issue of providing access to capital for small businesses.”
The small-business loan guarantee program has been of help to companies to gain access to $8.5 million in capital. The program also helped to retain 500 jobs since its creation in December 2008.
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