Minnesota governor doubles lending budget

10/27/2011

The Minnesota State Board of Investment recently agreed to deposit $100 million into community banks across the state to be designated to small businesses, the Star Tribune reports.

Governor Mark Dayton orchestrated the new plan, which will use part of the SBI's $1 billion cash on hand to spur new hiring and provide jobs for some of the state's 218,000 unemployed residents. The infusion will double the amount of money currently being deposited into community banks.

"It's all one person at a time, one family at a time," Dayton said at a Capitol news conference, as quoted by CNBC. "There isn't a single answer. It's a complex problem. It didn't develop overnight. It's not going to be resolved overnight."

He added that while there's no guarantee banks will actually lend the money - the federal Small Business Lending Fund only dispersed $4 billion of its designated $30 billion, for example - he hopes a personal letter to the institutions stressing the importance of business loans will hasten the process, the Star Tribune notes. 

CNBC adds that in addition to adding jobs, Dayton has also outlined plans to upgrade state highways, boost exports and expand high-speed internet and cellphone coverage.