SSBCI sends more than $29 million to Pennsylvania

12/22/2011

The United States Treasury's State Small Business Credit Initiative recently awarded Pennsylvania with $29.2 million in federal funding to support small businesses.

At least 12 lenders will receive funds as a result. Pennsylvania's Department of Community and Economic Development reached out to development partners in the state to find "funding gaps" that currently exist for its small businesses. It was determined that providing private organizations that connect with small businesses on a daily basis with funding would a better use of the allocation than  putting it all toward existing state programs.

"Small businesses are an integral part of Pennsylvania's economy, accounting for over 98 percent of the state's employers and nearly 50 percent of its private-sector employment," said Senator John Gordner. "I applaud DCED for taking a business-minded approach and reaching out to address and enhance small business' capital needs."

One lender, the Lancaster-based Community First Fund, will receive $2 million to provide small business loans to be used over the next three years, the Central Penn Business Journal reports. It's expected to disperse approximately 250 loans and create nearly 2,000 jobs.