The U.S. Treasury’s State Small Business Credit Initiative released its annual report last week, which showed that the program has provided $1.9 billion in loans and investments to more than 4,600 small businesses across the country.
The report summarizes annual reports from 47 states, five territories, the District of Columbia and municipalities in three states that receive SSBCI funds. It showed the program has helped small businesses in the U.S. to create or sustain 53,000 jobs, and that nearly 80 percent of SSCBI funds went to companies with 10 or fewer employees.
Most SSBCI financing went to support companies in retail, while the remainder supported industries such as hospitality and manufacturing. Approximately two-thirds of all loans and investments were for less than $100,000, and the average loan or investment totaled $327,000.
“These federal funds are allowing small businesses and entrepreneurs to expand their operations, hire new workers, and power the economic recovery across America,” Treasury Assistant Secretary Cyrus Amir-Mokri said. “This program is an important component of the Obama Administration’s efforts to provide capital for small businesses.”
The SSBCI, which was created in 2010 and signed into law by President Obama, also released its quarterly report, which showed that states increased their drawn down of allocated funds to $811 million and that the total funds used to support small businesses exceeds $565 million.
“SSBCI’s innovative funding structure allows each state to design its own small business support programs in response to local economic conditions and capital needs,” SSBCI Director Cliff Kellogg said. “These federal funds have helped states create over 70 new small business programs, building a new network of credit support across the country.”
Through the program, the Treasury has provided nearly $1.5 billion to fund programs and investments that support small businesses and manufacturers. The program is expected to help create up to $15 billion in private sector lending and investment in small firms.