WASHINGTON, D.C. – Today, U.S. Sen. Sherrod Brown (D-OH), chair of the Senate Banking Subcommittee on Financial Institutions and Consumer Protection, announced the availability of more than $18 million in new federal funding to help Ohio small business and manufacturers grow operations and create jobs by increasing access to available credit. The funding will be made available through the U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI), a program Brown worked to include as part of the Small Business Jobs Act of 2010.
“Small businesses and manufacturers are the backbone of Ohio’s economy,” Brown said. “But in order for these companies to grow operations and create new jobs, they must have access to capital. These new federal resources will provide an immediate boost to Ohio small businesses and help leverage additional private investments – many from local community banks –to help add jobs throughout Ohio.”
While serving as chairman of the Economic Policy subcommittee of the U.S. Senate Banking Committee, Brown held a series of hearings on increasing credit for small businesses and manufacturers. Brown was also a strong supporter of the Small Business Jobs Act, aimed at helping small business owners access more private capital to finance an expansion and hire new workers. Because many Ohio small businesses are in the manufacturing industry, they require higher loan limits due to higher capital costs in the industry.
Endorsed by the Chamber of Commerce and National Federal of Independent Businesses (NFIB), the Small Business Jobs Act created a $30 billion loan fund—at no cost to taxpayers—to enable community banks to make loans to small businesses seeking to expand operations or hire new workers. Click here for a summary of the bill's provisions.
In August 2011, Brown announced more than $55 million in federal funding through the SSBCI program. The SSBCI provides funds for the next 10 years in grants for states to support small business lending programs. Under the SSBCI, participating states will use the federal funds for programs that leverage private lending to help finance small businesses and manufacturers that are creditworthy, but are not getting the loans they need to expand and create jobs. The SSBCI will allow states to build on successful models for state small business programs, including collateral support programs, Capital Access Programs (CAPs) and loan guarantee programs.