WASHINGTON — The U.S. Treasury Department today announced that Kentucky has received $5,265,919 in State Small Business Credit Initiative funds to help small businesses access the capital they need to grow and create jobs. To date, $15,487,998 in SSBCI funds have been disbursed to the Kentucky Cabinet for Economic Development to support small businesses and the local economy.
“This loan funding gives Kentucky small businesses the extra backing they need to expand and create jobs. We designed a streamlined and easy-to-access program for banks and credit institutions to apply for these funds on behalf of businesses seeking loans,” Kentucky Gov. Steve Beshear said. “Through our program, we are helping more than 100 small businesses access almost $87 million in loans, $77 million of which are private-sector. That success led directly to this latest round of funding.”
“Small businesses are the nation’s leading job creators, and the State Small Business Credit Initiative connects sources of capital to the small businesses that need it,” said Jeffrey Stout, Director of SSBCI. “The funds announced today will continue to support loans and investments in Kentucky’s small businesses.”
Through 2014, business owners in Kentucky reported that SSBCI will help them create or retain 673 jobs.
The Treasury Department has disbursed more than $1.2 billion in SSBCI funds to participating states, municipalities, and territories since the beginning of the program. Nationally, from 2011 to 2014, SSBCI funds spurred more than $6.4 billion in private sector lending and investments to small businesses. States have generated $7.36 in private sector lending and investments for every $1 of federal support. Business owners reported that these funds will help them retain or create more than 140,000 jobs.
Currently, SSBCI is set to end in 2017, and states have already drawn down 93 percent of the funding. To build on the momentum of the program’s successes and capitalize on new working relationships among states, small business lenders, and investors, President Obama proposed an extension of SSBCI in his Fiscal Year 2016 Budget request with an additional $1.5 billion in funding. A new authorization of the SSBCI program will keep local economic development efforts strong and allow states to continue supporting small businesses, job creation, and greater levels of private lending and investments.
For more information on SSBCI and Treasury’s other small business programs, visit www.treasury.gov/smallbusiness. For more information on the SSBCI program in Kentucky, visit https://www.thinkkentucky.com/smallbizlending/.