$3.1 bn in new financing for small businesses backed by US SSBCI

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.1 bn in new financing for small businesses backed by US SSBCI
The US State Small Business Credit Initiative (SSBCI) spent nearly $750 million in funding to support transactions that resulted in $3.1 billion in overall new financing, including $2.6 billion in private financing, according to a treasury department report.

The nearly 3,900 loan and investment transactions are expected to help create or retain over 46,200 jobs. 

The US State Small Business Credit Initiative spent nearly $750 million to support transactions that led to $3.1 billion in overall new financing, including $2.6 billion in private financing, a treasury department report said.
The nearly 3,900 transactions are likely to help create or retain over 46,200 jobs.
Seventy-eight per cent of the transactions backed businesses with fewer than 10 staff.

SSBCI provides funds to states, the District of Columbia, territories and tribal governments to promote American entrepreneurship, support small business ownership and expand access to capital across the country, including in underserved communities, allowing jurisdictions to tailor small business financing programmes to local market challenges and opportunities.

The American Rescue Plan reauthorised and expanded SSBCI, which provides nearly $10 billion to support small businesses and empower them to access the capital needed to invest in job-creating opportunities.

The median amount of new financing secured by businesses in SSBCI loan transactions was $87,700, and for investments it was $880,000, the department said in a release.

In SSBCI credit programmes, the median business had three employees and had been in business for four years, helping small business owners become credit and investment ready to grow their businesses.

Forty per cent of transactions supported minority-owned businesses, Black and Asian-owned businesses accounted for 14 per cent and 13 per cent transactions, respectively. Latino-owned businesses represented 14 per cent of transactions. Overall, 75 per cent of transactions supported underserved businesses.

Seventy-eight per cent of overall transactions supported businesses with fewer than 10 employees.

Over 31 per cent of participating lenders were community development financial institutions (CDFIs) and 51 per cent were community banks embedded in their communities.

Over 470 banks, credit unions, and CDFIs, and over 60 investors have made loans or investments supported by SSBCI programmes. Sixty-three per cent of loan transactions were supported by CDFIs.

The top five SSBCI-supported industries were transportation and warehousing; professional, scientific, and technical services; accommodation and food services; manufacturing; and retail trade.

Fibre2Fashion News Desk (DS)

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