Gov. Sam Brownback and the U.S. Department of the Treasury announced today $13.2 million in State Small Business Credit Initiative (SSBCI) funding to help create new, private sector jobs. The SSBCI program, which supports state-level, small business lending programs, is part of the Small Business Jobs Act signed into law last fall.
The planned use of the SSBCI funds by Kansas also will help spur more than $132 million in new private lending in the state. Kansas expects to generate a minimum of $10 in new private lending for every $1 in federal funding.
“This program gives Kansas another tool to help us grow the state’s economy and create jobs,” Brownback said. “I’m especially pleased to have another way to give small businesses in Kansas a boost as they work to make themselves successful.”
“Small businesses often struggle with the capital they need to gain a solid footing and become successful ventures,” said Kansas Commerce Secretary Pat George. “This program will help strengthen those businesses, so they can eventually expand and contribute to job growth.”
The plan approved by Kansas dedicates $10.5 million to the Kansas Capital Multiplier Loan Fund, which provides matching funds through approved network partners to eligible businesses in communities across Kansas. The Kansas Department of Commerce will work in collaboration with the Kansas Center for Entrepreneurship, more commonly known as NetWork Kansas, and its partner network. Entrepreneurs and existing small businesses access this fund by working closely with local or regional financial institutions, NetWork Kansas partners and angel investment networks.
Kansas also intends to allocate approximately $2.6 million to the Kansas Capital Multiplier Venture Fund, which helps spur new capital investments for second stage businesses. Entrepreneurs and existing small businesses access this fund by working closely with local or regional financial institutions, NetWork Kansas partners and angel investment networks.
Under the State Small Business Credit Initiative, all states are offered the opportunity to 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. Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.
For more information about the SSBCI, please visit Treasury's website, http://www.treasury.gov/resource-center/sb-programs/Pages/ssbci.aspx. For more information on the Kansas Capital Multiplier Loan Fund and Kansas Capital Multiplier Venture Fund, please visit the NetWork Kansas website, www.NetworkKansas.com.