Washington Michigan leads the nation in loans made to small businesses
under a 2010 Treasury Department program, the government said in a report released Friday.
Michigan businesses have received $69.5 million in loans under the $1.5 billion State Small Business Credit Initiative.
The state is tied for fifth in the percentage of funds awarded that have been loaned or about 88 percent of the $80 million set aside under the program.
About $1 billion has been distributed across the country.
The loans leverage private lending to help finance small businesses and manufacturers that are credit-worthy but unable to get traditional financing.
Illinois, in second place, has been awarded $55 million.
The U.S. Treasury Department estimates that every dollar of federal money supports $10 in private sector lending or investments in small businesses.
The effort was spearheaded by Michigan Democrats, including Rep. Gary Peters, D-Bloomfield Township, and Sen. Debbie Stabenow, D-Lansing.
-The SSBCI program has helped thousands of small businesses get the private investment they need to thrive. It has helped these business grow across Michigan, creating jobs and growing our middle class,- Peters said. –
According to Stabenow, -This report will bolster our efforts in Congress to extend this initiative, which is still vitally needed to ensure even more small businesses can obtain a loan to expand and create jobs.-
The 2015 budget includes $1.5 billion for a second round of the State Small Business Credit Initiative to increase lending, investment and technical assistance to small businesses and manufacturers.
In September 2009, Peters called for creation of a lending fund for smaller businesses.
