WASHINGTON, D.C. – Small businesses in Ohio struggling to access credit will soon have new resources. U.S. Sen. Sherrod Brown (D-OH) today announced the availability of $ 55,138,373 in federal funding to expand access to credit for Ohio small businesses looking to grow operations and create jobs. The funding will be made available through the U.S. Treasury Department’s State Small Business Credit Initiative (SSBCI), a program that was passed as part of the Small Business Jobs Act, which was signed into law last year. The funds are expected to leverage up to 10 times the award amount in private investments, which could lead to up to $551,383,730 in total support for Ohio small businesses.
“Small businesses are the lifeblood of our economy, but too many are struggling to access the credit they need to create jobs,” Brown said. “With nearly two-thirds of all new jobs originating in small businesses, reliable access to lending is vital for encouraging our state’s economic recovery. This funding will provide an immediate boost to Ohio small businesses and help leverage additional private investments that will help add jobs all across our state.”
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. Brown worked alongside then-Governor Ted Strickland to pass the SSBCI provision, and Brown fought to ensure that the fund allows for states to assist small businesses with collateral support, an initiative that has been successful in bolstering the State of Michigan's manufacturing 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.
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.
###
