SCHUMER ANNOUNCES NEW YORK ELIGIBLE FOR $55 MILLION TO SUPPORT SMALL BUSINESS LENDING THROUGH RECENTLY PASSED SMALL BUSINESS LENDING BILL
Small Business Jobs Act, Passed By Senate Last Week, Provides New York With Access To $55 Million In Funding To Support State And Local Programs To Unfreeze Credit And Create Jobs
Funds Will Help Spur Lending From Local Banks To Small Businesses Throughout New York
Schumer: This Is A Direct And Immediate Benefit For Our Small Businesses Which Are The Life Blood Of NY's Economy
United States Senator Charles E. Schumer announced today that New York State has been made eligible for $55 million in funding to support lending programs for small businesses throughout the state. Part of the recently passed Small Business Lending Bill, the funding is designed to unfreeze credit, spur lending to small businesses, and help entrepreneurs get access to capital to create jobs. In order to access the dollars, New York State must demonstrate that for every one dollar of investment an additional $10 in private lending can be achieved through new or existing lending programs.
"This program is a prime example of how the federal and state government can partner with the private sector, with minimal investment of taxpayer money, to create jobs," said Schumer. "The return from this program is literally tenfold and will allow our small businesses to grow and expand hiring. This is exactly the kind of program we need to spur growth and put people back to work."
The State Small Business Credit Initiative (SSBCI) provides a total of $1.5 billion nationally and is estimated to spur a total of at least $15 billion in new private lending. The funding will allow New York State to expand its support for existing programs that encourage small business lending, or even set up new programs.
Throughout the credit crunch caused by the recent financial crisis, Schumer has made it a top priority to push for expanded access to lending for small businesses that were disproportionately affected by the crisis. Working with Ulster County Executive Mike Hein, Schumer helped establish a statewide program called Credit for Success, designed to share lending risks amongst small community banks so that local companies looking to expand have greater access to capital and no one bank had to assume all of the risk. SSBCI is similarly designed to promote private sector lending and comes on the heels of Schumer's efforts to see the White House and Small Business Administration implement a national Credit for Success program.
Schumer was instrumental in getting the Senate to pass the Small Business Jobs Act, which, in addition to the SSBCI, includes tax cuts for small businesses, incentives for small businesses to make capital investments, and an extension of successful SBA programs that had recently expired.