Florida will be receiving $97.7 million of a fund that is expected to spur $1 billion in loans for small businesses. It is an attempt to help create more jobs. Florida along with 48 other states applied for the ‘State Small Business Credit Initiative’ and it falls within the ambit of Federal Small Business Jobs Act.
Money would be made accessible through the community banks as they are going to lend the same to small businesses. It is believed that for each dollar that is lent from this fund, $10 more would be loaned out from other sources. Senator, Sen. Bill Nelson who championed the state’s allocation said the fund is a result of bipartisan cooperation.
The State’s Office of ‘Tourism Trade and Economic Development’ will be responsible for disbursement of half of the fund. The office is also to launch the Florida Capital Access Program, in-order, to get private sector lenders to lend more to Florida small businesses.
‘Enterprise Florida Inc.’, a public private economic development program will handle the remaining fund via its Venture Capital Program that will make equity investments in small businesses. ‘Enterprise Florida’ will also launch the Florida Small Business Loan Support Program.
This program is going to produce $1 million in loans for small businesses in Florida. It is a significant step forward for the growth of small businesses. State Small Business Credit Initiative has offered $1.5 billion in federal funding to states that have the capacity to develop programs that can help to multiply the funds into loans by a factor of 10.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com