Jan 15, 2014 12:39 PM
The U.S. Department of the Treasury announced today they will make a transfer of over $55 million to California to expand the state’s small business lending programs.
The funds, totaling $55,645,861 which will be transferred directly to the Governor’s Office of Business and Economic Development and the California State Treasurer’s Office, will be used to leverage private loans and investment in small businesses in California by partnering with community banks.
“California continues to leverage federal State Small Business Credit Initiative funds to attract new loans and investments to the state’s small businesses,” said Cyrus Amir-Mokri, Treasury Assistant Secretary for Financial Institutions. “These funds are intended to continue the state’s partnership with local entrepreneurs and small business owners to provide new sources of capital, help create jobs, and improve the economy.”
According to the State Small Business Credit Initiative’s (SSBCI) most recent quarterly report, states who participated reportedly accelerated their expenditure obligation or transfer of SSBCI funds in 2013 which is said to have doubled the amount reaching small businesses throughout the majority of 2013.
“The State Small Business Credit Initiative is helping small businesses in California access much needed capital and do what they do best: drive innovation and create jobs,” said U.S. Congresswoman Judy Chu (D-CA) and member of the House Small Business Committee. “The $55 million this program is bringing to California is only the tip of the iceberg—as it is leveraged with private funds, we will see new investments and expanded payrolls throughout the state.”
SSBCI was created by the Small Business Jobs Act of 2010, which President Obama signed into law on September 27, 2010.
For more information on California’s SSBCI-funded programs, visit ibank.ca.gov (Loan Guarantee Program) or www.treasurer.ca.gov/cpcfa/calcap (Capital Access Program). For more information on SSBCI and Treasury’s other small business programs, please www.treasury.gov/smallbusiness.