Peters Announces Small Business Access to Capital Act to Secure SSBCI's Future and Success

Press Release

Today, U.S. Representative Gary Peters announced a new measure, the Small Business Access to Capital Act, legislation aimed at securing the future of his successful State Small Business Credit Initiative. At an event at New Center Stamping, a local small business that has utilized SSBCI funds to increase their output and staff, Peters was joined by Treasury Secretary Jacob Lew to highlight the success of the State Small Business Credit Initiative in Michigan and encourage the new phase of the program.

Peters authored the Small Business Credit Initiative (SSBCI) that was included in the 2010 Small Business Jobs Act. SSBCI leverages significant private capital with targeted federal investments to fund programs that support small businesses and small manufacturers. Peters' measure provides additional allocations for states to be able to continue this critical and proven initiative that has spurred investment in small businesses across Michigan, creating jobs and strengthening the middle class. Peters worked closely with small businesses for input on the SSBCI program and how to best implement the next phase of the program.

Peters said, "Small business success is vital to middle class success, and Michigan's future depends on us making the right investments in our state's small businesses now. The State Small Business Credit Initiative has been a proven success, helping small businesses get the investment they need to get off the ground and grow. I am proud to introduce the next phase of the program, which will continue to create thousands of jobs for middle class families both in Michigan and across the country. This small business measure is the kind of targeted investment we should be making in our small business job creators."

Peters' new bill provides an additional round of formula funds based on the 2010 model and also provides $1 billion for a new, competitive pool of funding for which states and consortiums of states may apply. The bill also incentivizes timely job creation by creating an incentive for states to put existing resources under the 2010 law to work by recapturing any funding from the Small Business Jobs Act that is not used by June 30, 2015. Recaptured funds would be competitively awarded to states.

SSBCI has resulted in $79 million in lending in the state of Michigan alone to fund innovative small businesses that are creating good paying, U.S. jobs. Michigan also leads the nation in SSBCI funds deployed and is in the top five in the percentage of SSBCI allocations that are expended in the state. New Center Stamping, a metal stamping business in Detroit, has received $3.7 million in funding from the Treasury Department's State Small Business Credit Initiative. These SSBCI funds were used to backstop a $7.5 million loan which the company said has saved existing jobs and will allow it to expand its workforce.

New Center Stamping COO Gregory Smith said, "By utilizing SSBCI funds offered by MEDC, New Center Stamping has just completed a $10 million expansion of its stamping capacity, creating 60 new jobs in the city of Detroit. This type of investment has made our expansion possible, and business leaders like myself are seeing how pro-growth, small business policies are positively impacting our city and state."

Peters is an outspoken champion for Michigan small businesses in Washington. He is co-chair of the Congressional Caucus on Innovation and Entrepreneurship, and before entering public service, Peters worked as a successful businessman. In Washington, he has focused on hearing the concerns and ideas of Michigan small business owners and entrepreneurs. Peters helped write the Small Business Jobs Act to expand credit to Michigan small businesses and help them grow and create jobs.

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