Connect with us

Hi, what are you looking for?

Featured Opinion

Alabama Receives $20.7 Million from Treasury for Small Business Credit Initiative

By Brandon Moseley
Alabama Political Reporter

The U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI) released a new report which showing that Alabama has received $20.7 million in SSBCI funds to grow local small businesses through September 2013.  Nationwide, more than $677 million has been used to leverage private capital through SSBCI.

The new SSBCI quarterly report shows that Alabama has deployed $20.7 million which represents 66 percent of Alabama’s total SSBCI allocation.  According to the report that is one  of the highest usage rates in the country. States use SSBCI funds to attract private lending and investment in small businesses, often by partnering with local community banks.

Treasury Under Secretary for Domestic Finance Mary Miller said, “These federal funds are allowing small businesses and entrepreneurs to hire new workers, expand their operations, and power the economic recovery across America.  By allowing each state to design its own small business support programs to respond to local economic conditions, SSBCI is a key part of the Obama Administration’s efforts to provide needed capital to Main Street businesses.”

The report showed that the majority of states have accelerated their expenditure, obligation or transfer of SSBCI funds, doubled the amount that is reaching small businesses since the beginning of this year.

The recent SSBCI first annual report shows that the program had already supported loans and investments in over 4,600 U.S. small businesses totaling $1.9 billion nationwide through the end of 2012.

The Treasury claims that the program has helped small businesses create or save 53,000 jobs. Nearly 80 percent of SSBCI loans and investments went to businesses with 10 or fewer employees.

Advertisement. Scroll to continue reading.

The SSBCI was created when President Obama signed into law the Small Business Jobs Act of 2010 on September 27, 2010. The program has awarded almost $1.5 billion to fund programs that support small businesses and small manufacturers.

The Treasury said that 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.

There are five categories of SSBCI programs fall into five categories: Capital Access Programs, Loan Participation Programs, Collateral Support Programs, Loan Guarantee Programs and Venture Capital Programs.

To learn more about the State Small Business Credit Initiative go to:

www.treasury.gov/ssbci.

Brandon Moseley
Written By

Brandon Moseley is a senior reporter with over nine years at Alabama Political Reporter. During that time he has written 8,297 articles for APR. You can email him at [email protected] or follow him on Facebook. Brandon is a native of Moody, Alabama, a graduate of Auburn University, and a seventh generation Alabamian.

DIG DEEPER

Economy

Thursday, rancher group R-CALF-USA announced that they were in support of President Donald J. Trump’s (R) executive order invoking the Defense Production Act to...

Congress

U.S. Senator Doug Jones, D-Alabama, on Monday thanked President Donald Trump’s administration for following Jones’ request to speed up emergency payments to Americans struggling amid...

National

U.S. Sen. Doug Jones, D-Ala., and a ranking Republican colleague led other lawmakers in a request that the Treasury Department and the Small Business...

Economy

Alabama Commissioner of Agriculture and Industries Rick Pate will kick-off a state-wide series of listening sessions this week. The first session will be held...