Peters' Small Business Plan Will Bring $790 Million in Private Sector Investment to Michigan
Press Release
Representative Gary Peters urged the U.S. Treasury Department to act on state applications quickly after the department announced it was moving forward with the State Small Business Credit Initiative (SSBCI), a provision authored by Peters in the recently enacted Small Business Jobs Act. Michigan small businesses will be able to take advantage of the SSBCI to access loans to grow their businesses and hire new workers.
"Small business are the engines of new job creation and getting capital into their hands is the same as putting gasoline in their tank," said Rep. Peters. "The new funding to leverage private capital for Michigan small businesses needs to get out the door quickly. Our small business owners have been held back for far too long by the unwillingness of Wall Street banks to lend."
The State Small Business Credit Initiative expands successful state-based lending programs and will support at least $790 million in new private sector lending through Michigan's Capital Access Program. The program leverages state funds to overcome collateral shortfalls that prevent deserving companies from accessing the loans they need to grow and hire new workers. Projections show that Michigan's efforts are already responsible for 14,500 more jobs and freeing up approximately $140 million in private sector capital.
The U.S. Treasury Department announced funding allocations for the SSBCI today. Because Michigan already has a successful, but underfunded, state-based lending program, the state should be able to access its funds quickly.
Peters authored the provision after hearing from small business owners across Oakland County about the difficulties they were having obtaining loans. He became the driving force behind legislation to free up credit and fought to include the SSBCI in the final bill after hearing about the Michigan program's effectiveness from local businesses, particularly manufacturers, whose declining property and equipment values caused collateral shortfalls that prevent them from accessing credit.
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