WASHINGTON, D.C. – Today, the U.S. Department of the Treasury and the Iowa Department of Economic Development announced the approval of Iowa’s State Small Business Credit Initiative (SSBCI) application. Iowa’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $132 million in additional small-businesses lending in that state. |WASHINGTON, D.C. – Today, the U.S. Department of the Treasury and the Iowa Department of Economic Development announced the approval of Iowa’s State Small Business Credit Initiative (SSBCI) application. Iowa’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $132 million in additional small-businesses lending in that state. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act President Obama signed into law last fall.
Under the Small Business Jobs Act, Iowa can access $13.2 million in SSBCI funds. Iowa expects 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 $13.2 million allocation for Iowa is expected to support more than $132 million in new private lending in that state.
The Iowa Department of Economic Development will use these SSBCI funds to support the launch of the Iowa Capital Access Program, and to enhance two existing programs: the Iowa Demonstration Fund Program, a venture capital program; and the Iowa Small Business Loan Program, a microloan program. The Iowa Business Growth Corporation will administer the Capital Access Program and will target its outreach specifically to rural communities throughout the state. The Iowa Foundation for Microenterprise and Community Vitality (IFMCV) will administer the Iowa Small Business Loan program and will use the funding to provide participation loans in conjunction with private financing to support small businesses. The Demonstration Fund, managed by IDED, encourages commercialization activities by small and medium-sized Iowa companies in the areas of product refinement, market planning and market entry activities to foster competitive companies that create jobs in Iowa.
“Many small businesses are still struggling to access the capital they need to invest, expand and create new jobs,” said Treasurer of the United States, Rosie Rios. “These critical funds will provide a powerful incentive for lending to small businesses, spurring additional job creation and further strengthening our nation’s economic recovery.”
“This award will strengthen and expand Iowa’s already aggressive efforts to assist small businesses across our state,” said Debi Durham, director of the Iowa Department of Economic Development. “With the three components of our funding, we will be able to leverage this investment to have the most impact on the most small businesses across Iowa, with the ultimate goal of creating an environment where they can grow and continue to create new jobs for our citizens.”
Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.
For more information about the SSBCI, please visit link. For more information on the award to Iowa, the Iowa Capital Access Program, the Iowa Demonstration Fund or the Iowa Small Business Loan Program, please contact Derek Lord at 515.725.3081 or visit http://www.iowalifechanging.com.|