Small Business Startup News
California State Lending Programs Receive Influx Of Federal Dollars
Written by Jenna Weiner
Two small business lending programs in California are receiving a total of $56 million from the federal government.
California may be facing a multi-billion dollar budget crisis, but its small business loan program is rolling in the dough thanks to funds from the federal government.
Small business financial news proved positive for local owners, as the state received its first payment from the Small Business Jobs Act, totaling $56 million, the Los Angeles Times reported. However, the state loan programs, California Capital Access Program and Small Business Loan Guarantee Program, could receive up to $168 million.
The funds will allow the two programs to guarantee more small business loans for companies that have been turned down by banks.
"We started out calling our local bank," Bob Mitchell, chief executive of Wide Scanners & Systems, told the system. "But they had just more or less given up on their small business lending."
As a result, Mitchell and his wife, Ruth, sought a loan from SBLGP that awarded them with $135,000 and allowed them to expand their business, which provides wide-format scanners to produce large documents.
Traditional loaning in the region is improving as well. J.P. Morgan Chase reported that in 2010 it lent more than $2 billion to 44,000 small businesses in California, San Francisco Business Times notes.
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