Today, the U.S. Department of the Treasury and Oregon Governor John Kitzhaber announced the approval of Oregon State Small Business Credit Initiative (SSBCI) application. The SSBCI funds will help create new private sector jobs and spur more than $165 million in additional small-businesses lending in Oregon. The SSBCI program, which supports state-level small-business lending programs, is an important component of the Small Business Jobs Act President Obama signed into law last fall.
"These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job creation," said Deputy Secretary of the Treasury Neal S. Wolin. "Continuing to help unlock credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country."
"Over 16,000 jobs have been created in Oregon this year, and we continue to use every tool available to get Oregonians back to work across the state," said Oregon Governor John Kitzhaber. "Access to capital is a critical issue for businesses ready to expand in Oregon, and the Small Business Jobs Act funds will help spur investment and job creation in both urban and rural communities."
Under the Small Business Jobs Act, Oregon can access $16.5 million in SSBCI funds. Oregon 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 $16.5 million allocation for Oregon is expected to support more than $165 million in new private lending in that state.
The Oregon Business Development Department will use these SSBCI funds to support the Oregon Capital Access Program, its Credit Enhancement Fund, a loan guarantee program, and the existing Oregon Business Development Fund, a loan participation program.
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.