State Small Business Credit Initiative funds ready for distribution

8/17/2011

The U.S. Treasury Department announced Tuesday that 11 states and the District of Columbia will be receiving approximately $360 million under the State Small Business Credit Initiative.

Through the Small Business Jobs Act, the initiative is providing funds for business loan backing and venture capital funding. The influx of resources is meant to spur lending by private financial institutions, and according to the Treasury, 10 times the private lending is expected for every $1 of federal funds - meaning an estimated $3.6 trillion in commercial funding.

"Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country," said Deputy Treasury Secretary Neal Wolin.

Florida will see a large percent of the federal funds, at nearly $100 million. The Office of Tourism, Trade and Economic Development, in conjunction with Enterprise Florida, will receive a portion for direct investment, with the remaining capital being held by the Office of Tourism for loan backing.

Florida's unemployment rose sharply at the onset of the recession, and remains high with a June rate of 10.6 percent. Thanks to the state's large tourism industry and high number of exports - 4.3 percent of U.S. exports come from Florida - the distribution of the funds by the Tourism, Trade and Economic Development Office should benefit a good deal of the state's industries.