Cheyenne City Council joined a consortium of 17 Wyoming municipalities to lend out $13.2 million in federal funding to small business owners. Business organizations that are located in the boundaries of the municipalities can secure loans for their business organizations from the Federal fund.
There is also the ‘State Small Business Credit Initiative’ where entrepreneurs can find venture capital to start a business of their own. The council voted in favor of the State Small Business Credit Initiative program so as to approve the ‘State Small Business Credit Initiative Allocation Agreement’. This is going to enhance the capability of small businesses to secure funds for their organization.
The Federal Funding is a result of the ‘Small Business Jobs Act’ signed in 2010. As Wyoming itself did not sign in for the program before, so the different Wyoming municipalities could join hands to participate in the program. With the participation of municipalities, an increase can be seen in the amount of capital disbursed to lenders for lending out to small businesses.
As far as the program goes, for every $1 in federal funding, $10 in new private lending can be secured. This is in accordance with the information released by the U.S. Treasury Department. The program will be implemented on behalf of the consortium. Municipalities will use $3 million as new seed capital program and this would eventually result in $33 million in investment and create 382 jobs. The remaining $10.2 million will be brought to use for a credit guarantee program. This program will help fill in gaps and pledge up-to half the loan value granted.
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 firstname.lastname@example.org