U.S. Treasury has planned out to distribute $360 million to agencies engaged in economic and business development in 11 states and Washington D.C. This is part of the $1.5 billion federal effort, in order, to increase lending to small businesses.
Federal State Small Business Credit Initiative (SSBCI) program is expected to generate $10 return for every dollar spent in federal funding on investments. This enhancement in earnings will be done by extending the support of treasury for every state-run program so as to partner with private lenders and investors to increase the amount of credit availability to small businesses.
There is still doubt on whether the money will be spent judiciously but then there is also the belief that such a government stimulus is good investment in a weak economy. Local banks might also extend support for businesses and welcome additional community investments. Neal S. Woli, Deputy Treasury Secretary opines that the fund will extend critical support to state level programs so as to help small business lending expand and also spur private sector job growth.
It is expected that the funds shall be used for new and existing small business lending, venture capital, equity investment, loan guarantee, microloan, seed capital, collateral enhancements and so on.
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