US Treasury Approves JEDA's Second Round of Funding for State Small Business Lending Initiative (SSBCI)
October 23, 2012 — The U.S. Department of the Treasury and the South Carolina Jobs-Economic Development Authority (JEDA) today announced that South Carolina is scheduled to receive its second round of funding from the State Small Business Credit Initiative (SSBCI).
South Carolina's planned use of the SSBCI funds will help create new jobs and spur millions of dollars in additional lending to small businesses. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act that President Obama signed into law in 2010.
Harry A. Huntley, CPA, Executive Director of JEDA, said the success of this program has tremendously helped the state's businesses and business lenders participate in a statewide economic recovery. "Access to capital has empowered small businesses across our state to open, expand and to put more people to work," Huntley said. "These critical funds have provided a powerful reason for banks to lend to stimulate job creation in South Carolina."
Under the Small Business Jobs Act, South Carolina can access $18.0 million in SSBCI funds. South Carolina expects to generate at least $10 in new private lending for every $1 in federal funding. As such, this tranche of $5.9 million will generate more than $59 million of additional private lending. SSBCI funds are made available to the state in three, equal rounds of funding.
"This program has greatly benefitted enterprising businesses across South Carolina during this ﬁrst round of funding, as BDC has participated with nine diﬀerent banks with transactions of approximately $30 million in the program to date," said Edwin O. Lesley, President/CEO of Business Development Corporation (BDC), which serves as administrator for this program. "Receiving our second disbursement of funding is exciting for South Carolina, as this program has helped jump start numerous businesses and has made a substantial contribution to our state's economic recovery over the past year. The success of the program in SC is due in large part to SSBCI's ﬂexibility that allows states to develop individual programs that will work in their respective states. This is not a 'one size ﬁts all' program and Washington deserves much credit for supporting this approach."
Under the SSBCI, all states were oﬀered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States needed to demonstrate a reasonable expectation that a minimum of $10 in new private lending would result from every $1 in federal funding. Accordingly, the $1.5 billion federal funding commitment is expected to result in at least $15 billion in additional private lending nationwide.