Senator Coons and colleagues introduce $ 10 billion small business loan bill

February 12, 2021

The legislation would re-authorize the successful state-run program that previously helped 110 Delaware businesses

WASHINGTON – U.S. Senators Chris Coons (D-Del.), Debbie Stabenow (D-Mich.) And Gary Peters (D-Mich.) Introduced legislation last week to support lending to small businesses that will help them grow recover from the coronavirus pandemic. The Small Business Access to Capital Act 2021 [coons.senate.gov]would re-authorize and provide $ 10 billion in federal funding to the State Small Business Credit Initiative, or SSBCI, helping small businesses grow and create jobs. Coons already co-sponsored this legislation at the last Congress.

“Economic development leaders in the states of Delaware and across the country know their state economies, as do local investors,” Senator Coons, a member of the Small Business and Entrepreneurship Committee, said. “I am proud to co-sponsor the Small Business Access to Capital Act because state and local leaders in the public and private sectors are well positioned to leverage federal dollars with private capital that can be loaned and invested in local businesses. As main streets across the country battle the COVID-19 pandemic, the restart of the state’s successful small business credit initiative will provide an important tool for the difficult recovery ahead. “

“Since the start of this pandemic, small businesses in Michigan and across the country have gone beyond to support their local communities during this critical time. We need to make sure that small businesses have the resources they need to get through this pandemic ”, Senator Peters said. “I was proud to champion the State Small Business Credit Initiative, as it is a proven success in our state, and an appropriate investment in the program today could provide crucial support to homeowners. small businesses across the country. I am happy to help reintroduce this bill and look forward to working in a bipartisan fashion to ensure that our small business owners get the help they deserve.

“The COVID-19 crisis has wreaked incredible havoc on small businesses in our state and across the country, and made us appreciate even more their importance to our communities and our economy,” Senator Stabenow said. “Given the stress this pandemic has on so many small businesses, access to capital is more important than ever. I look forward to working with Senator Peters to pass this bill.

The Small Business Access to Capital Act 2021 would revive a 2010 program used by the Obama administration to help the small business sector recover from the 2009 financial crisis. Under this program, Delaware used $ 13.2 million in federal funding to support 110 small business loans, which generated $ 59 million in total funding. [treasury.gov]. The median company supported was three years old and had three full-time employees. A total of 1,463 jobs were supported or retained.

The Current legislation builds on the success of the 2010 program by providing an additional $ 5 billion in formula funds to all states. The current bill would also create a new competitive funding pool of $ 5 billion for states that have already capitalized on 2010 program funding, which equates to $ 10 billion in total program funding.

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