Governor Kitzhaber and Business Oregon announced today that Oregon has secured an additional $5.6 million in funding for the state's small businesses through a third disbursement from the U.S. Treasury Department's State Small Business Credit Initiative (SSBCI).
"We're pleased that our previous success has been rewarded with an additional $5.6 million to fund the growth of Oregon's small business community," said Governor Kitzhaber. "In partnership with banks around the state, we hope to leverage these funds with private capital to help deliver as much as $56 million in lending for our state's economy."
Oregon's third disbursement of SSBCI funds from the U.S. Treasury comes after Business Oregon successfully lent $10.6 million, or 97 percent, of funding in its first two disbursements. The state was awarded a total allocation of $16.5 million in August 2011. To date, the federal funds have generated over $90 million in private sector financing to more than 160 Oregon small businesses.
"Our team has used SSBCI funds to provide nearly $100 million in low-interest loans and loan guarantees to Oregon small business owners in every corner of our state," said Business Oregon Director Tim McCabe.
For example, Business Oregon used SSBCI funds to make a $200,000, low-interest loan to Drink Tanks Corp., a Bend-based company that manufactures stainless-steel beer growlers.
"The Oregon Business Development Fund loan allowed Drink Tanks to scale up, open West Coast distribution channels, and hire both production and office staff," said Nicholas Hill, Drink Tanks' CEO.
SSBCI was created by the Small Business Jobs Act of 2010, signed into law by President Obama on September 27, 2010. The $1.5 billion program is expected to spur up to $15 billion in new lending to small businesses and manufacturers as states use federal funds to leverage private investment dollars.
Oregon's SSBCI funding is distributed through Business Oregon's business finance programs including the Oregon Business Development Fund (OBDF), the Credit Enhancement Fund (CEF) and the Capital Access Program (CAP). Businesses and lenders may obtain more information about Business Oregon's small business lending programs by visiting http://www.oregon4biz.com/Business-financing-resources/.