NEW YORK (CNNMoney) -- Small businesses in three states may have an easier time getting loans, thanks to an infusion of funds from Uncle Sam.
Connecticut, Missouri and Vermont were approved to receive more than $50 million to support lending to small businesses, the Treasury Department said Tuesday.
The three states will receive up to $53.4 million as part of the State Small Business Credit Initiative, Treasury Secretary Timothy Geithner announced. That should translate into $534 million in loans to small businesses in the three states.
The Small Business Jobs Act has authorized $1.5 billion in grants for successful state lending programs. In earlier rounds of funding this year, California, Michigan and North Carolina were approved for a total of $293.8 million.
To get the funding, states had to show they can turn $1 of investment into $10 of new lending.
The three states plan to put the funds toward a variety of programs.
Connecticut will direct the $13.3 million it's receiving to its Capital Access Program, which provides loan insurance to encourage banks to lend to small businesses.
Vermont's $13.2 million in funding will go to a variety of programs that offer loan portfolio insurance (designed to spur banks to lend); commercial loans for equipment and land purchases, facilities renovation and more; technology loans that support the IT and bioscience sectors, and more.
Missouri plans to spend $16.9 million to establish a venture-capital fund for high-tech startups. An additional $10 million will go to the Grow Missouri Loan Participation Fund, which provides loans of up to $3 million to businesses with under 500 employees.
"Along Main Streets in every corner of Missouri, small businesses are a critical force for creating jobs and growing our economy," said Missouri Gov. Jay Nixon in a written statement. "These new resources will help Missouri entrepreneurs grow their operations and turn their dreams into bricks and mortar."
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.87%|
|15 yr fixed||3.14%||3.16%|
|30 yr refi||3.79%||3.83%|
|15 yr refi||3.13%||3.15%|
Today's featured rates:
More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More
Ivanka Trump says that the Hispanic unemployment rate is the lowest ever. She's right. More
The Chicago Board Options Exchange on Sunday began trading bitcoin futures -- a new step for the cryptocurrency. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The Senate's proposed tax plan preserves the adoption tax credit. More