The U.S. Treasury Department via the Small Business Jobs Act has approved three states – Connecticut, Missouri and Vermont – to receive more than $50 million to support lending to small businesses.
These three states will receive more than $50 million with the purpose of supporting lending to small businesses. This money can end up in loans of $534 million to businesses.
Earlier this year California, Michigan and North Carolina were approved for a total of $293.8 million. For states to qualify for this money the state needs to show they can turn $1 of investment into $10 of new lending.
Connecticut will direct funds to its Capital Access Program, which provides loan insurance to encourage banks to lend to small businesses. Vermont will direct funding to many different programs that offer loan portfolio insurance, commercial loans, technology loans, and more.
Missouri, on the other hand, will establish a venture-capital fund for high-tech startups and to contribute to the Grow Missouri Loan Participation Fund, which provides loans to businesses with less than 500 employees.
For more details about the funding, visit www.sba.gov/content/small-business-jobs-act-2010