WASHINGTON (TheStreet) -- Connecticut, Missouri and Vermont are the latest states getting federal funds for small-business lending initiatives.Under the U.S. Department of Treasury's State Small Business Credit Initiative, the states are expected to add $534 million in lending to small businesses and job creation. Connecticut is getting $133 million; Missouri is due $269 million; and Vermont will see $132 million.
|With Connecticut, Missouri and Vermont, six states are getting funds so far under the Treasury Department's State Small Business Credit Initiative.|
States must demonstrate that "a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding," the Treasury said. Approximately $1.5 billion has been allotted for the program and is "expected to result in at least $15 billion in additional private lending nationwide." Connecticut's approved funding will support its 19-year-old Capital Access Program, which provides loan portfolio insurance to encourage private financial institutions to lend to creditworthy small businesses, according to the release. The program has provided portfolio insurance for about 630 enrolled loans, totaling more than $53.4 million and resulting in the creation of or saving of 6,120 jobs.
- $5.9 million to its Commercial Loan Participation Program, which provides financing for buying land; construction and renovation of facilities; and purchase and installation of equipment for eligible projects.
- $3 million to its Technology Loan Participation Program, supporting loans to early stage firms primarily in the information technology and bioscience sectors.
- $3.3 million to its Small Business Loan Program, which finances smaller commercial businesses' fixed asset and working capital needs.