The Treasury Department will lend more than $360 million to support small businesses in 11 states and Washington, D.C., it was announced Tuesday.
The Treasury said it approved applications for funds from the State Small Business Credit Initiative, supporting small-business lending programs at the state level.
The SSBCI was created out of the Small Business Jobs Act, signed into law by President Obama in Sept. 2010.
The 11 states and Washington, D.C. can access the funds and potentially generate at least $10 in new private lending for every $1 in federal lending. The Treasury expects the allocation to generate more than $3.6 billion in private lending.
“These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job growth,” said Deputy Treasury Secretary Neal Wolin. “Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country.”