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Michaud Praises Major New Small Business Lending Initiative
Michaud amendment helped ensure Maine received funding
LEWISTON, ME – Today, Congressman Mike Michaud praised the U.S. Treasury Department for working with the State of Maine and the Finance Authority of Maine (FAME) to provide $13.2 million through the State Small Business Credit Initiative (SSBCI) to support small business development in Maine. This federal investment is expected to spur more than $132 million in small business lending.
The funding announced today is made possible through the Small Business Jobs Act, which authorized the SSBCI and was signed into law in September of last year. Michaud passed an amendment to the bill that ensured FAME and state-run venture capital programs could participate.
“Access to capital is an ongoing challenge for businesses throughout our state,” said Michaud. “It was one of the top issues I heard about during my recent tours of Maine manufacturers. This funding is going to leverage significant investments in Maine’s small businesses and help spur development and job creation at a time we need it most.”
In Maine, the $13.2 million will be allocated to the Small Enterprise Growth Fund (Maine’s state-run venture capital fund), regional economic development agencies, and FAME’s Economic Recovery Loan Program. According to the Treasury Department, under SSBCI, states can apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding.
Additional information on SSBCI can be found here.