The U.S. Treasury Department via the Small Business Jobs Act has approved three states - Connecticut, Missouri and Vermont - to receive more than $50 million to support lending to small businesses.
According to CNNMoney.com, the states will receive more than $50 million to support lending to small businesses, which translates into $534 million in loans.
In earlier rounds of funding this year, California, Michigan and North Carolina were approved for a total of $293.8 million. To qualify, states have to show they can turn $1 of investment into $10 of new lending.
Allocating the money to a variety of programs, Connecticut will direct funds to its Capital Access Program, which provides loan insurance to encourage banks to lend to small businesses. Vermont will direct funding to many different programs that offer loan portfolio insurance, commercial loans, technology loans, and more. Missouri, on the other hand, will establish a venture-capital fund for high-tech startups and to contribute to the Grow Missouri Loan Participation Fund, which provides loans to businesses with less than 500 employees.
For more details about the funding, visit www.sba.gov/content/small-business-jobs-act-2010
