Georgia, Federal Funds Aims to Fill Small Business Loan Gap
The Georgia State Small Business Credit Initiative program is providing $48 million in funding to credit unions and other lenders to help approve more small business loans.
The program aims to provide credit enhancements to help bridge the gaps that otherwise prevent the approval of sound small business loans, according to the Georgia Department of Banking and Finance.
The agency said the SSBCI is flexible and streamlined for lenders, with a delegated lending model that minimizes risk, lowers exposure, strengthens marginal loans, and offers opportunity for Community Reinvestment Act credit, the department said.
The Georgia Department of Community Affairs will conduct a seminar on May 23 to discuss the three new Georgia credit enhancement initiatives: the Georgia Capital Access Program, the Small Business Credit Guarantee and Georgia Funding for Community Development Financial Institutions.
The GCAP program will allocate $10 million for the loans, with $17.8 million and $20 million earmarked for the SBCG and Georgia Funding for CDFIs, respectively.
Enacted in the fall of 2010, the Small Business Jobs Act of 2010 created the SSBCI funded with $1.5 billion to strengthen state lending programs that support small businesses and manufacturers.
Of that total amount allocated, Georgia was allocated $47.8 million, according to the Georgia Department of Banking and Finance. The agency said any approved program must ultimately generate $10 in private leverage for each public dollar awarded by the state.
Lenders can find more information about the Georgia SSBCI program at www.georgia-ssbci.com.