3 states to get $53.4M for small business loan programs

By Catherine Clifford, staff reporter


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." To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Questions & Answers



QHow does a florist sell more in this economy? We changed our business to designing weddings and events only, as the everyday flowers are not selling. We had to throw out too much product at the end of the week -- flowers are perishable! More
Get Answer
- The Flower Lady, Suwanee, Ga.
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.36%4.24%
15 yr fixed3.39%3.26%
5/1 ARM3.36%3.27%
30 yr refi4.34%4.22%
15 yr refi3.38%3.24%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Sponsors

Sections

Spencer has been a supporting member of the "Good Morning America" cast for the past three years. More

Obamacare sign ups hit 8 million, though final enrollment remains to be seen. More

Office for iPad move is a symbolic victory for Nadella's Microsoft, but the company is still weighed down by many of the same old issues. More

Schwinn, Trek and Cannondale are all iconic American bicycle brands. But none of them are made in the United States. More

As Detroit moves closer to reaching a bankruptcy deal, retired civilian workers are poised to be left worse off than firemen and police officers. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.