“The U.S. Treasury Department, states, and private sector lenders are investing in local communities to help drive economic growth, and these efforts are supporting small businesses in Alabama,” said the U.S. Treasury Department’s Deputy Secretary Sarah Bloom Raskin. “Small businesses are at the forefront of the nation’s economic recovery, and the State Small Business Credit Initiative provides entrepreneurs and small business owners with access to the resources they need to grow and create jobs.”
Alabama has deployed 92 percent of its total $31,301,498 in SSBCI funds through the Alabama Department of Economic and Community Affairs (ADECA). The state has participated in the SSBCI program since 2011, and the ADECA is using these resources to leverage greater levels of private lending to small businesses. ADECA has supported 112 loans as of December 31, 2013 to a variety of businesses.
“Small businesses are a vital part of Alabama’s economy,” ADECA Director Jim Byard Jr. said. “Through a public-private partnership, our credit initiative is providing business owners with the capital they need to grow and prosper. Loans, averaging about $594,000, are helping small businesses with start-up costs, equipment, working capital and other investments that generate jobs and economic security for Alabama families.”
Through SSBCI, the U.S. Treasury Department will award up to $1.5 billion to fund programs that support small businesses including small manufacturers. To date, more than $1 billion has been deployed to states and municipalities. SSBCI funds are not repaid to the federal government; they remain with the state to be redeployed to support even more small business development locally. To date, states have reported recycling more than $14.7 million, and this number is expected to grow as the program continues. Additionally, the program is expected to help spur up to $15 billion in new private sector lending or investment in small companies by leveraging $10 in private capital for every dollar of federal support by the program’s end.
SSBCI was created when President Obama signed into law the Small Business Jobs Act of 2010 on September 27, 2010. To build on the momentum of the program’s success, and capitalize on new working relationships among states and small business lenders and investors, President Obama proposed an extension of SSBCI in his 2015 Budget with an additional $1.5 billion in funding.
For more information on SSBCI and Treasury’s other small business programs, please visit www.treasury.gov/smallbusiness. For more information on the Alabama Department of Economic and Community Affairs, please visit www.adeca.alabama.gov/divisions/ced/cdp/pages/ssbci.aspx