CARSON CITY — The U.S. Department of Treasury and Gov. Brian Sandoval recently announced the approval of Nevada’s State Small Business Credit Initiative (SSBCI) application. Nevada’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $138 million in additional small-business lending in Nevada. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act signed into law last fall.
“Access to funding is a significant issue for many entrepreneurs seeking to grow,” Sandoval said. “This funding will go a long ways toward helping new small businesses get off the ground and creating jobs for Nevadans.”
Under the Small Business Jobs Act, Nevada can now access $13.8 million in SSBCI funds. Nevada expects to generate a minimum of at least $10 in new private lending for every $1 in federal funding. As such, this $13.8 million allocation for Nevada is expected to support more than $138 million in new private lending. The Nevada Commission on Economic Development will use these funds to support the Nevada Microenterprise Initiative and a new Nevada Collateral Support Program. The potential job growth impact of the program is 1,035 positions throughout Nevada, with an emphasis on manufacturing, utilities, construction and health services.
“These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities,” said U.S. Treasurer Rosie Rios. “This program will help ensure that more Main Street entrepreneurs have access to the credit they need to expand their businesses and create new jobs.”
In conjunction with the Nevada Banker’s Association, the Office of Economic Development will put funds on deposit at Nevada banks on a transaction by transaction basis to enhance the collateral position of borrowers. These will be business loans with a focus on companies that create jobs or retain jobs in the state’s base economic clusters, such as technology, mining, manufacturing, logistics, or film and digital media production. Generally, these loans will have a targeted amount of $250,000.
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 on Nevada’s small business incentive and lending programs, visit the Nevada Commission on Economic Development at www.diversifynevada.com.