Today, the U.S. Department of the Treasury and U.S. Senator Tim Johnson (D-SD) announced the approval of South Dakota’s State Small Business Credit Initiative (SSBCI) application. South Dakota’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $132 million in additional small-businesses lending in that state. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act signed into law last fall.
Under the Small Business Jobs Act, South Dakota can access $13.2 million in SSBCI funds. South Dakota expects to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $13.2 million allocation for South Dakota is expected to support more than $132 million in new private lending in that state. South Dakota’s Governor’s Office of Economic Development will use the state’s SSBCI funds to support the new South Dakota WORKS program that will support loans for working capital, loans to construction companies, and loans for research and development.
“These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities,” said Treasurer of the United States Rosie Rios. “This program will help ensure that more Main Street entrepreneurs have access to the credit they need to expand their businesses and create new jobs.”
“Small businesses are the engines of our economy and this funding will help provide them the fuel they need to expand and grow,” said Senator Tim Johnson, Chairman of the Senate Banking Committee. “This is a common sense investment in South Dakota that will help create jobs and strengthen our state’s economy.”
Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.
For more information about the SSBCI, please visit link. For more information on South Dakota’s program, please visit link.