Small Business Finance News

Michigan And North Carolina First To Receive Funds Under Treasury Department Program

Written by Jenna Weiner
Published: 1/17/2011

Michigan and North Carolina were announced to be the first states receiving funds from the U.S. Treasury Department's State Small Business Credit Initiative.

As part of recent efforts to increase funding for small businesses and entrepreneurs and, as a result, boost the economy, the U.S. Department of Treasury has announced the first recipients to be granted funding under its new lending program.

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Michigan and North Carolina will receive $79.1 million and $46.1 million, respectively, as part of the State Small Business Credit Initiative. This financial news for entrepreneurs is particularly important, as small businesses employ nearly half of the nation's workers.

To receive the funding, which all 50 states, the District of Columbia and U.S. territories are eligible for, governments must demonstrate a minimum "bang for the buck" of $10 in new private lending for every $1 in federal funding.

"Small businesses depend on access to credit in order to hire and expand, and this funding will better position main street entrepreneurs to create new jobs and invest in their local communities," said Treasury Secretary Timothy Geithner. "Innovative public-private lending partnerships like the State Small Business Credit Initiative have a proven track record."

Michigan Governor Rick Snyder lauded the announcement, predicting that it would open up lending to businesses by giving banks more insurance again possible defaults.

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