WASHINGTON – U.S. Senator Mary L. Landrieu, D-La., Chair of the Senate Committee on Small Business and Entrepreneurship, made the following remarks after the U.S. Treasury approved more than $13 million for Louisiana Economic Development. The State Small Business Credit Initiative (SSBCI) was signed into law as part of the Small Business Jobs Act of 2010 [Public Law 111-240]. SSBCI provides federal funding for state small business programs, including Capital Access Programs, collateral support programs, and loan guarantee programs, including those targeted at rural and agricultural small businesses.
“With these funds, Louisiana Economic Development will continue to support the Louisiana Small Business Loan Guarantee Program and the Louisiana Seed Capital Programs,” Senator Landrieu said. “I am pleased the U.S. Treasury Department approved Louisiana’s application to participate in the State Small Business Credit Initiative. We are giving two vital programs the avenue to continue their mission to spur jobs and increase small business lending.”
Under the SSBCI, states are required to use federal funds for programs that help private lenders extend more credit to small businesses, and that support at least $10 in new lending for every $1 in Federal funding.
According to the U.S. Department of Treasury, the applications for SSBCI funding that were approved as part of today’s announcement include those submitted by Alabama ($31.3 million), Florida ($97.7 million), Idaho ($13.2 million), Iowa ($13.2 million), Louisiana ($13.2 million), Mississippi ($13.2 million), Ohio ($55.1 million), Oregon ($16.5 million), Tennessee ($29.7 million), Texas ($46.6 million), Virginia ($18.0 million), and Washington, D.C. ($13.2 million), totaling over $360 million. Since the first SSBCI application was approved, the U.S. Department of the Treasury has approved over of $832 million for SSBCI programs.