Treasury Transfers More than $18.1 Million to Ohio to Support State’s Small Business Lending Program

WASHINGTON – Through the State Small Business Credit Initiative (SSBCI), the U.S. Department of the Treasury announced today the transfer of $18,170,858 to Ohio to support the state’s Collateral Enhancement Program, Ohio Capital Access Program, and Targeted Investment Program. Ohio will use the funds to leverage greater levels of private lending and investing in small businesses located in Ohio, often by partnering with local community banks. According to the most recent SSBCI quarterly report, participating states accelerated their expenditure, obligation or transfer of SSBCI funds in 2013, more than doubling the amount reaching small businesses or investment funds. In addition, the total funds disbursed by Treasury reached $1 billion last year.

These types of business loans could be substantial in helping small businesses to operate and to achieve future growth. If you are a small business that is dedicated to scientific research then you could benefit from looking at SR&ED information, which provides tax credits for smaller businesses. It also allows you to take your time with the money and continue to do your research without money pressures. Better finances would likely lead to more ERP for small business which can only be considered a good thing. This type of investment and funding could become even more important in the event of a global pandemic, like the COVID-19 outbreak in 2020. Not only has this crisis seen thousands upon thousands of deaths, but it has also had an effect on the day to day runnings of businesses, and small ones in particular. The Coronavirus Stimulus Package that was created after President Trump signed a $2 trillion relief bill, will allow for small businesses to continue employing their workers during this international pandemic and could help with anything from their payroll to mortgage and rent payments. That’s why any types of loans could prove to be hugely beneficial for all businesses alike. Even those entrepreneurs who are thinking about starting their own cannabis business are much more likely to succeed now, especially if they are able to find a financial institution that can issue hemp loans to help them to get up and running within the industry. But these business loans are just the start.

To build on the momentum of the program’s success to date, and capitalize on new working relationships between states and small business lenders and investors, President Obama proposed a $1.5 billion extension of SSBCI in his most recent budget request. An extension would strengthen the federal government’s support of state economic development agencies, like the Ohio Development Services Agency, that are highly responsive to capital needs in local markets.

“Ohio continues to leverage federal State Small Business Credit Initiative funds to attract new loans and investments to the state’s small businesses,” said Cliff Kellogg, the Director of the State Small Business Credit Initiative. “These funds are intended to continue the state’s partnership with local entrepreneurs and small business owners to provide new sources of capital, help create jobs, and improve the economy.”

“I’m very pleased that small businesses in Ohio’s third congressional district, which I proudly represent, will receive this critical funding from the Treasury Department’s State Small Business Credit Initiative program,” said U.S. Congresswoman Joyce Beatty. “I am a strong supporter of the SSBCI program as it allows local businesses to leverage federal funds to spur investments and job creation – and these are the kinds of partnerships that help drive the Franklin County economy forward.”

SSBCI was created when President Obama signed into law the Small Business Jobs Act of 2010 on September 27, 2010. Through SSBCI, the U.S. Department of the Treasury awarded almost $1.5 billion to fund state programs that support small businesses and small manufacturers. The program is expected to help spur up to $15 billion in new private sector lending or investment in small companies by leveraging $10 in private capital for every dollar of federal support by the program’s end. Each state designs its own SSBCI programs to respond to local economic conditions. SSBCI currently supports over 60 existing and over 80 new small business support programs across 57 participating states, territories and municipalities.

For more information on Ohio’s SSBCI-funded program, please visit http://development.ohio.gov. For more information on SSBCI and Treasury’s other small business programs, please visit www.treasury.gov/smallbusiness.