Virginia To Receive Federal Funds to Spur New Lending to Small Businesses, Help Create Jobs

From: U.S. Department of the Treasury
Subject: U.S. Department of the Treasury Announces Funds to Spur $3.6 Billion in New Lending to Small Businesses, Help Create Jobs

U.S. Department of the Treasury Announces Funds to Spur $3.6 Billion in New Lending to Small Businesses, Help Create Jobs

WASHINGTON, D.C. – Today, the U.S. Department of the Treasury announced the approval of applications for State Small Business Credit Initiative (SSBCI) funding from 11 states and Washington, D.C.  This funding will help create new private sector jobs and spur more than $3.6 billion in additional small-business lending. The SSBCI, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act that President Obama signed into law last fall.

 “These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job growth,” said Deputy Secretary of the Treasury Neal S. Wolin. “Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country.”
Under the Small Business Jobs Act, these 11 states and Washington, D.C. can access a collective total of $360 million in SSBCI funds. These states and Washington, D.C. expect to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $360 million allocation is expected to support more than $3.6 billion in new private lending.
Virginia — $18.0 million
Treasury has allocated $17,953,191 to Virginia under the SSBCI.  The Virginia Small Business Financing Authority will use these funds to enhance the existing Virginia Capital Access Program; and the existing Economic Development Loan Fund, a loan participation program that provides subordinated gap financing to qualified small businesses.

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