Treasury Dept. To Give States $1.5 Billion To Help Small Businesses

Less than two weeks after the passing of the $30 billion small business lending bill, the Treasury Department has announced an additional $1.5 billion it will distribute to the states with the intent of seeing ten times that dollar amount ultimately injected into the economy.

Writes Reuters:

To receive funding, states have to demonstrate that for every dollar the federal government provides, they will generate $10 in new private lending, which will create an impact of $15 billion on the economy….

The states can use the funds in programs that provide collateral supports for small manufacturers, give a matching contribution to bank loans, or guarantee small business loans.

With an upper limit of almost $169 million, California’s slice of the Treasury pie is the largest. Next up is Florida ($97.66M), Michigan ($79.16M), Illinois ($78.37M), New York and Ohio ($55M each).

States to receive $1.5 billion for small businesses [Reuters]

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  1. fsnuffer says:

    Glad to see the Feds have an extra $30 billion lying around.

    • kingofmars says:

      I’m not sure where you are getting that number. Over 90% of the funds have to be by private investment. The net impact will be about 30 billion, but a small percentage is coming from the fed.

      • Southern says:

        First line of the article: “Less than two weeks after the passing of the $30 billion small business lending bill,”

        This lending portion is only a small part of the whole overall bill.

    • Gulliver says:

      They do, especially for LENDING. Lending is considered revenue neutral or POSITIVE for the government.

    • TasteyCat says:

      It’s simple. Just keep printing money.

  2. electrasteph says:

    That would be great, if our Indiana Republican Governor doesn’t redirect it to the big corporations that fund his campaign, like he did all the other stimulus money that was supposed to help “small” businesses.

  3. Coupon says:

    Why the heck not? America is rich!

  4. coffee412 says:

    Ill byte.

    How does a small business apply for such a loan?

  5. SacraBos says:

    What a waste. They are providing loans? You mean more $$ in the liability column of that ol’ spreadsheet? Let’s see… Wasn’t adding questionable debt the problem the first time? And now, instead of home owners, you’re going to encourage small businesses to take on extra debt (and let the taxpayer guarantee it if they fail) in a shaky business climate? Isn’t just encouraging a meltdown of small business, just like the encouragement of meltdown of the housing market?

  6. galm666 says:

    And Republicans think the government doesn’t do enough for private business with just tax-cuts alone.

    Ohhh wait, they mean LARGE private business, not small ones. Sorry.