U.S. Department of the Treasury approves additional funds for small businesses
FAIRBANKS, Alaska (KTVF) - The U.S. Department of the Treasury announced on Tuesday that eleven states have been approved for additional funding under the State Small Business Credit Initiative (SSBCI) program.
Alaska is approved to receive up to $59.9 million to help provide funding opportunities for commercial fishing, manufacturing, mariculture, tourism and other sectors. The funds will be divided into four programs to include a loan guarantee program, a loan participation program, a venture capital program, and a collateral fund program. The programs are expected to have the greatest impact in rural and remote communities.
The loan guarantee program (LGP) has been allocated $32 million. The LGP helps ensure capital goes to those small businesses experiencing lower than usual revenues.
The loan participation program (LPP) has been allocated $15.9 million. The LPP is focused on lowering interest rates and extending loan terms in an effort to keep monthly payments low and help businesses join in the economic recovery.
Alaska allocated $10 million to its equity/venture capital program (VC) which targets maritime business and industries. The reaming $2 million are allocated to the collateral fund program, enabling lenders to lend to higher-risk industries and businesses. For the collateral fund program, the funds from the state small business credit initiative will be used as collateral to offset lender exposures.
Ten other states have also been approved for additional funds of up to $1 billion. This makes a total of 31 approved state plans with approximately $4.8 billion in funding for small businesses.
According to a White House report, more Americans are starting new businesses than ever before. They say the investments being made through SSBCI help keep the small business boom going by expanding access to capital and providing entrepreneurs resources needed to succeed.
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