U.S. Treasury gives Ohio $55 million to create small business credit initiative program
As part of the Small Business Jobs Act of 2010, the U.S. Department of Treasury gave the Ohio Department of Development more than $55 million this past week to establish the Ohio State Small Business Credit Initiative (SSBCI), which will be used to increase the "amount of credit available to Ohio's small businesses," according to a press release from the department. According to the release, the Ohio Department of Development's Business Services Division will "administer three financing programs utilizing SSBCI funds":
- Collateral Enhancement Program (CEP) – a $33.1 million program that provides banks with cash collateral deposits to use as additional collateral for eligible small businesses loans.
- Ohio Capital Access Program (OCAP) – establishes a "loan guarantee" reserve pool at lending institutions that participate in the program, which has been increased to $5 million and can provide financing to for-profit and nonprofit businesses that may be experiencing difficulty obtaining business loans using conventional underwriting standards.
- Targeted Investment Program (TIP) – a $15 million venture that supports the growth and expansion of targeted small businesses in Ohio's manufacturing, production, and logistics value chains by offering debt instruments tailored to the company's specific needs at or below market interest rates.
For more, read the full press release here.
