June 17, 2010
Governor says lending program will help Michigan, other states create jobs
LANSING - Governor Jennifer M. Granholm today praised the U.S. House of Representatives for passing legislation that will increase small business lending and called for quick Senate passage of the bill.
"I applaud the House for approving legislation that will help businesses in Michigan access credit and create jobs," Granholm said. "Limited access to capital is a major barrier for businesses that need it to grow. This legislation will contribute to economic recovery in Michigan and across the country, and I urge the Senate to approve it as soon as possible."
The Small Business Lending Fund Act of 2010 would allow the U.S. Treasury to make $30 billion in capital investments to eligible community banks to encourage them to increase lending to businesses.
The act includes a $2 billion program that would provide grants to support innovative state lending programs. This program, called the State Small Business Credit Initiative (SSBCI), is modeled after the successful Michigan Supplier Diversification Fund, which has leveraged more than $72 million in loans to auto suppliers looking to diversify into new sectors, creating or retaining almost 4,500 jobs since it began last summer.
Granholm saluted the work of Michigan's House members for authoring the state program.
"The work done by Congressmen Gary Peters, Sander Levin, John Dingell and other members of the Michigan delegation to support innovative state programs like the Supplier Diversification Fund and the Capital Access Program has been crucial," Granholm said. "I also want to thank them for generating support for this legislation from their colleagues."
Other Michigan co-sponsors of the SSBCI include Congressmen Dale Kildee, Mark Schauer and Bart Stupak.
The federal legislation complements initiatives announced by the governor in her 2010 State of the State address to spur investment and small business growth in Michigan. They include the small business investment credit passed by the Michigan House of Representatives and awaiting action by the Michigan Senate; expanded funding for FastTrac New Venture, a program for entrepreneurs to learn how to successfully launch and grow a small business; and the Michigan Small Business Financing Alliance, a new partnership launched this year with the Michigan Credit Union League and the Michigan Small Business and Technology Development Centers to provide an initial $43 million for eligible small business loans.
# # #
