A $53.4 million boost to small businesses

Three states have qualified to get big money from the Treasury Department. Connecticut, Vermont, and Missouri are slated to receive an infusion of cash. The Treasury Department has authorized $53.4 million worth of lending money for those states. The cash that is available is meant to create more investment. Specifically, states had to show that their programs would create $10 worth of lending for every $1 of investment. Resource for this article – Treasury kicks off small business lending with $53.4 million by MoneyBlogNewz.

The Small Business Jobs Act

Smaller businesses accounted for about 65 percent of new jobs in the last 15 years. At the exact same time, about 50 percent of jobs in the U.S. in the private sector come from small businesses total. In order to encourage small business growth and hiring in the U.S., Congress passed the Small Business Jobs Act in 2010. States with plans to use investment in loan guarantees and programs like it to help small businesses were given $1.5 billion in loan guarantees by the Treasury through the Act.

Plans to invest in Connecticut $13.3 million

Companies are able to get insurance loans in Connecticut because of the Treasury department funds. One essential part of this is to get investment portfolios from a financial group. The group picked, the Connecticut Development Authority, can be getting $13.3 million for this. The CDA funds can be given to nineteen financial institutions so the small business loans could be handed out.

Small businesses get $13.2 million in Vermont

The Treasury only needs to give Vermont $13.2 million for its plan. It plans on getting $132 million in small business lending from that. Four programs will each get a share of the business loans, which are similar to bad credit unsecured loans not payday loans. And $3.3 million will go to the Small Business Loan Program, which provides loans that support purchase of fixed assets (such as equipment) for businesses. About $3 million will go to the Technology Loan Participation program. The IT And Bioscience businesses could be increased in theory. About $1 million will go to portfolio insurance to lend. Another $5.9 million will go to building in Vermont with the Commercial Loan Participation Program.

Investment in Missouri closer to $26.9 million

Missouri qualified for the largest loan guarantee of the three states, at close to $27 million. There could be two funds for the money to go into. Companies with less than 500 employees get help from the Grow Missouri Loan Participation Fund. About $10 million will go to that fund. About $3 million could be given to the Loan Participation Fund. This will help grow many of the state businesses. About $16.9 million is left to be used by new businesses. This is so high-tech businesses can get help with start up costs.

Articles cited

CNN

money.cnn.com/2011/03/22/smallbusiness/state_small_business_credit_initiative/index.htm

Small Business Administration

sba.gov/advocacy/7495/8420