On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 (the “Act”). The Act created the State Small Business Credit Initiative, which was funded with $1.5 billion to strengthen state programs that support lending to small businesses and small manufacturers. The State Small Business Credit Initiative is expected to help spur up to $15 billion in lending to small businesses. Under the State Small Business Credit Initiative, participating states will use the federal funds for programs that leverage private lending to help finance small businesses and manufacturers that are creditworthy, but are not getting the loans they need to expand and create jobs. The State Small Business Credit Initiative will allow states to build on successful models for state small business programs, including collateral support programs, Capital Access Programs (CAPs) and loan guarantee programs. Existing and new state programs are eligible for support under the State Small Business Credit Initiative.
Who May Apply?
The State Small Business Credit Initiative is open to any state of the United States (and the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of Northern Mariana Islands, Guam, American Samoa, and the United States Virgin Islands) that establishes a new, or has an existing, capital access or state credit support program that meets the eligibility requirements in the Act. In certain circumstances, municipalities may have an opportunity to apply to the Treasury Department for State Small Business Credit Initiative funding.
- Notice of Intent to Apply. The first step in the application process is for applicants to file a “Notice of Intent to Apply” with the Treasury Department no later than 5:00 pm EST on November 26, 2010. The Notice of Intent form is available on this page under “Resources.”
- Application package. The second step is to file a completed application package no later than 5:00 pm EST on June 27, 2011. The application form will soon be made available on this page under “Resources.”
For any questions on the State Small Business Credit Initiative, please contact SmallbizQuestions@do.treas.gov.
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