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.
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).