Baucus Announces Triumph for Montanas Small Businesses
Senators Small Business Jobs Legislation Creates Influx of Capital for Montana Businesses
Posted: Monday, July 18, 2011
Posted: Monday, July 18, 2011
(Washington, D.C.) - Montana's senior U.S. Senator Max Baucus announced today Montana small businesses will now have access to more than $100 million in new lending through the State Small Business Capital Initiative. The initiative is a key part of Baucus' Small Business Jobs Act of 2010 which is designed to help create the right economic conditions for small businesses to create jobs.
Today, the U.S. Treasury finalized a $13 million grant for the State Small Business Capital Initiative in Montana.
"Today's news means Montana's small businesses will have access to capital to grow, succeed and create jobs when Montana needs it most," said Baucus who championed the bill that created the State Small Business Capital Initiative, "Small businesses are the engine of our economy which is exactly why we worked so hard to pass the Small Business Jobs Act."
Today's announcement means the U.S. Department of Treasury has closed on a $13 million grant for Montana as part of the State Small Business Credit Initiative as outlined by the Small Business Jobs Act of 2010. The program is designed to attract $10 in new private lending for every $1 in federal funding which would unleash $130 million in new lending for Montana's small businesses.
"Many small businesses are still struggling to access the capital they need to invest, expand, and create new jobs," said Treasurer of the United States Rosie Rios. "These funds and other critical programs included in the Small Business Jobs Act will provide a powerful incentive for lending to small businesses, spurring additional job creation and further strengthening our nation's economic recovery."
The funds will help small businesses gain greater access to capital through local economic development revolving loan funds administered by entities such as the Montana Community Development Corporation and the Butte Local Development Corporation.
Butte Local Development Corporation Executive Director, Jim Smitham says Montana's small businesses are in dire need of this type of capital. "The Butte Local Development Corporation is very appreciative of Senator Baucus's work to include the State Small Business Credit Initiative (SSBCI) program in the Small Business Jobs Act. The SSBCI program will help provide a new source of badly needed capital for small businesses in Butte and throughout Montana. These funds should help stimulate our local economy by funding the expansion of current businesses or starting new ones. As the SSBCI loans are paid back they will be available for lending again to offer financial assistance for years to come," Smitham said.
Montana Community Development Corporation President Dave Glaser highlighted the importance of the program. "Access to capital is an important issue for businesses across the State of Montana and the State Small Business Credit Initiative will help Montana businesses by providing new capital at a critical time in our economy," Glaser said. "The Montana Community Development Corporation offers sincere thanks to Senator Baucus for his work on the Small Business Jobs Act which creates this new tool unleashing new lending opportunities to support Montana businesses.
The Small Business Jobs Act is fully paid for, closes unintended tax loopholes and reduces the tax gap.
Text and a summary of the Small Business Jobs Act are available HERE.
Additional Information about the State Small Business Credit Initiative (SSBCI):
Under the SSBCI, states are offered the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses. States are required to demonstrate a minimum "bang for the buck" of $10 in new private lending for every $1 in federal funding. Accordingly, the approximately $13 million funding commitment that the federal government will make for this program in Montana is expected to support over $130 million in additional private lending in the state of Montana.
The SSBCI allows states to build upon existing, successful state-level small business lending programs, including examples such as collateral support programs, Capital Access Programs (CAPs), and loan guarantee programs. Montana will utilize existing and successful programs designed to spur small business lending, including the Montana Community Development Corporation in Missoula, Butte Local Development Corporation, and the Great Falls Development Authority, Inc.
Contact: Kate Downen 406-224-5056/Jenny Donohue 202-224-4515/Kathy Weber 406-657-5915
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