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]