LANSING – Governor Jennifer Granholm Monday (September 27th) heralded the work of President Obama and Congress in enacting legislation that helps small businesses access credit so they can make new investments and create jobs.
“Today President Obama signed into law measures that will help our small businesses gain access to credit that will help them make new investments, create jobs and strengthen our nation’s economy,” said Granholm. “The Small Business Jobs Act is an important step as we continue building a new foundation to move America forward.”
Included in the new law is a $30 billion small business lending fund, $12 billion in tax breaks, and $1.5 billion for the State Small Business Credit Initiative (SSBCI) , a new program modeled on the successful Michigan Supplier Diversification Fund (MSDF). Granholm thanked members of the Michigan Congressional Delegation for sponsoring the State Small Business Credit Initiative.
“I am grateful to the Michigan members of Congress who supported this legislation, especially Congressmen Peters, Levin, and Dingell for introducing the State Small Business Credit Initiative in the House and to Senators Stabenow and Levin for ensuring that it was included in the Senate bill,” said the Governor. “They understand the difficult lending environment that businesses face and have worked tirelessly to make sure that this new law would provide assistance to Michigan businesses and workers.”
It is estimated that Michigan will be eligible to apply for almost $78 million under the SSBCI, which will be used to bolster existing state lending programs, including the Michigan Supplier Diversification Program and the Capital Access Program. Operated by the Michigan Economic Development Corporation, these programs help Michigan businesses access credit by leveraging private sector capital.
The MSDF, which began operating this summer, has used $19.6 million in state funds to leverage more than $112 million in private sector funds, creating and saving an estimated 2,672 jobs.
Source: News release from Governor Jennifer Granholm