Colorado Receives $172 Million To Boost Small Business Lending
Governor Bill Ritter praised the Obama administration’s new State Small Business Credit Initiative, which will support $172 million in new small business lending in Colorado, helping local entrepreneurs expand their businesses and create new jobs.
The initiative is a critical component of the Small Business Jobs Act that President Obama signed last week to help unlock credit and provide targeted tax cuts for small businesses.
“Small businesses are the job-creating engine of our economy,” Gov. Ritter said. “This new lending program – coupled with the Colorado Credit Reserve Program – will help drive our economy forward and give small businesses the kind of support they need to survive and thrive.”
Gov. Ritter and the legislature revived the Colorado Credit Reserve Program in 2009.
In partnership with the Colorado Housing and Financing Authority, the program utilizes state funds to leverage private-sector lending for small businesses.
Over the past year, the program has awarded 167 loans valued at $5.24 million to help sustain or create more than 1,100 jobs.
The federal government’s new State Small Business Credit Initiative is modeled in part after the Colorado Credit Reserve Program. “Innovative local initiatives that support small business lending are under extraordinary pressure because of state budget difficulties,” said U.S. Treasury Secretary Tim Geithner. “These funds will provide vital support to successful state-level programs that help local entrepreneurs obtain the credit they need to put more Americans back to work. President Obama fought hard for the Small Business Jobs Act because it will help ensure that small businesses continue to strengthen our nation’s recovery and serve as critical engines for job creation.”
Under the SSBCI, states are offered the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses.
States are required to demonstrate a minimum “bang for the buck” of $10 in new private lending for every $1 in federal funding.
Accordingly, the federal government has committed $17.2 million to Colorado for this program, which is expected to support $172 million in additional private lending. Nationwide, the program is expected to support $15 billion in additional private lending.
The SSBCI allows states to build upon existing, successful state-level small business lending programs, including collateral support programs, Capital Access Programs and loan guarantee programs.
In addition to the State Small Business Credit Initiative, the Small Business Jobs Act includes a number of important provisions to support small business job creation:
- The Act includes eight new small business tax cuts that went into effect immediately upon becoming law last week
- creates a $30 billion Small Business Lending Fund to help small and community banks provide new loans to small businesses
- extends and expands existing Small Business Administration loan programs
- delivers other important benefits for small businesses
For more information on the Small Business Jobs Act, please click here.
Topics: 2010, business, Capital Access Programs, collateral support programs, Colorado, Colorado Credit Reserve Program, Colorado Housing and Financing Authority, Department of the Treasury, economic development, economic growth, economic recovery, Economy, employment, entrepreneurs, Governance, government, Governor Bill Ritter, investment, jobs, loan guarantee, loans, moniter, monitor, news, President Obama, Small Business Credit Initiative, Small Business Jobs Act, small business lending, SSBCI, tax cuts, U.S., United States, work, workforce
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