Approval of a new State Small Business Credit Initiative, or SSBCI, was announced Tuesday by the U.S Treasury Department and the Alabama Department of Economic And Community Affairs (ADECA).
The state says it plans to use the money to create new private jobs, "and spur more than $313 million in additional small-businesses lending..."
Under the Small Business Jobs Act, Alabama can access $31.3 million in SSBCI funds. Alabama 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 $31.3 million allocation for Alabama is expected to support more than $313 million in new private lending in that state.
ADECA will use the funds to launch three new small business lending programs: the Alabama Capital Access Program, the Alabama Loan Guarantee Program, and the Alabama Loan Participation Program.
"These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job growth," said Deputy Secretary of the Treasury Neal S. Wolin. "Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country."
"Alabamians are determined to make a full recovery-not only from the national economic downturn, but also from the unprecedented destruction of the tornado system that struck our state this spring," said ADECA Director Jim Byard, Jr. "Small business owners and entrepreneurs are vital to both recoveries; this credit initiative will help them become an even more powerful economic engine, creating new jobs and greater opportunities for Alabama residents."