New report shows more than $835 million in State Small Business Credit Initiative funds are helping small businesses nationwide.
The U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI) recently released a new quarterly report showing that Missouri has deployed $23,935,350 to grow small businesses. Missouri is a leading state in deploying these funds to local lenders and small businesses. The report also notes that states have expended, obligated or transferred $835 million through the Treasury Department’s SSBCI program to support small business lending and investments across the country.
“The U.S. Treasury Department, states, and private sector lenders are investing in local communities to help drive economic growth, and these efforts are supporting small businesses in Missouri,” said the U.S. Treasury Department’s Deputy Secretary Sarah Bloom Raskin. “Small businesses are at the forefront of the nation’s economic recovery, and the State Small Business Credit Initiative provides entrepreneurs and small business owners with access to the resources they need to grow and create jobs.”
Missouri has deployed 89 percent of its total $26,930,294 in SSBCI funds through the Missouri Department of Economic Development, in partnership with the Missouri Technology Corporation (MTC). The state has participated in the SSBCI program since 2011, and the MTC is using these resources to leverage greater levels of private investing to small businesses. MTC has made 46 SSBCI investments as of December 2013 to a variety of businesses.
“We’re working every day to help more entrepreneurs, start-ups and small businesses find success in Missouri and create jobs in their communities,” Governor Jay Nixon said. “Today, Missouri is the number one state in the nation for high-tech job growth, and we will continue to maintain fiscal discipline and make the targeted investments necessary to create jobs and keep our economy moving forward.”
Through SSBCI, the U.S. Treasury Department will award up to $1.5 billion to fund programs that support small businesses including small manufacturers. To date, more than $1 billion has been deployed to states and municipalities. SSBCI funds are not repaid to the federal government; they remain with the state to be redeployed to support even more small business development locally. To date, states have reported recycling more than $14.7 million, and this number is expected to grow as the program continues. Additionally, the program is expected to help spur up to $15 billion in new private sector lending or investment in small companies by leveraging $10 in private capital for every dollar of federal support by the program’s end.
SSBCI was created when President Obama signed into law the Small Business Jobs Act of 2010 on Sept. 27, 2010. To build on the momentum of the program’s success, and capitalize on new working relationships among states and small business lenders and investors, President Obama proposed an extension of SSBCI in his 2015 Budget with an additional $1.5 billion in funding.
For more information on SSBCI and Treasury’s other small business programs, visit www.treasury.gov/smallbusiness. For more information on the Missouri Department of Economic Development, visit http://www.ded.mo.gov/home.aspx