Levin-Led Small Business Tax Credit Initiative Leads to $79.3 Million Federal Investment to Aid Michigan Small Businesses
Press Release
The U.S. Treasury Department released data today showing that a small business lending program authored by Sen. Carl Levin, D-Mich., has led to a $79.3 million federal investment that helps Michigan small businesses get the capital they need. The funding for Michigan exceeds that of any other state.
The State Small Business Credit Initiative (SSBCI), authorized in the Small Business Jobs Act of 2010, provides federal support to state programs that help small businesses acquire capital to grow and create new jobs. Levin led efforts in the Senate to enact the SSBCI, basing it on a successful Michigan program that helped small businesses struggling to meet collateral requirements to get loans.
"We modeled SSBCI after Michigan's strong small-business support programs. It leverages a small amount of federal funding to support substantial new private investments by small businesses," Levin said. "Small businesses are engines of innovation and job creation, and today's announcement is yet another sign that the SSBCI is continuing to help Michigan's small businesses expand and create jobs."
A quarterly report issued by the Department of Treasury today shows that the program has provided $79.3 million to help support small-business lending in Michigan, $19 million more than in any other state. Michigan also led the nation in reinvesting program proceeds to further leverage federal funding, with over $7 million reinvested to further support small businesses. On average, every $1 in SSBCI support results in $6.40 in loans and investment to small businesses.
The program is designed to use a relatively small amount of federal support to generate significantly higher amounts of small-business lending, and according to the program's annual report released last year, program funding had resulted in $1.9 billion in loans to 4,600 small businesses across the country.
More information on SSBCI is available on its website, and in the annual and quarterly reports the Treasury Department released today.
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