SSBCI program will provide capital to small businesses to create jobs and grow their businesses
U.S. Senator Jon Tester today continued his efforts to help Montana small businesses across the state grow and create well-paying jobs by securing $61,327,969 for Montana’s Small Business Credit Initiative. the State of Montana through the US Bailout Act. These resources are for credit and investment programs for small businesses and startups to help them grow and succeed, thereby strengthening the economy.
Tester was the only member of the Montana delegation to vote for the US Bailout Act.
“Small businesses are the backbone of Montana’s economy, creating well-paying jobs and strengthening our communities, from our most rural areas to our cities,” said Tester. “I am proud to have secured these critical investments through the US Bailout that will allow our small businesses to thrive and which has proven to be exponential growth for our state’s economy. I urge the state to make these resources available as quickly as possible, and I will continue to fight to create jobs and new opportunities for Montana’s small businesses and reduce costs for our state’s working families. .
Tester’s work has been praised by community development organizations in Montana:
“This is fabulous news – the SSBCI program has been so beneficial to Montana’s economy in 2008,” said Brett Doney, chairman of the Great Falls Development Authority. “It couldn’t come at a better time to help small businesses in Montana recover and come back stronger than ever. We appreciate Senator Tester’s hard work securing these resources and supporting small businesses in Montana.
“Montana’s economic development community is grateful for Senator Tester’s leadership in helping secure these SSBCI funds for our state from the Treasury Department,” said Paul Tuss, executive director of Bear Paw Development Corporation, a five-county, two-reserve economic development district based in Le Havre. “Through a partnership with the Montana Department of Commerce, these funds will be used to help Main Street businesses start or grow, resulting in more jobs, a broader tax base and a stronger economy for the Montana. our entire state. In Northern Montana, our organization looks forward to partnering with area banks and the private sector to deploy these funds so that small businesses in our rural area have the capital they need to succeed.
Tester helped secure $10 billion for the State Small Business Credit Initiative (SSBCI) as part of the U.S. bailout to support financing for small businesses through state, territorial and tribal government programs. Following the previous financial crisis, Congress recognized the need to increase the availability of small business credit and otherwise support small businesses and authorized the Secretary of the Treasury to establish and administer a $1 SSBCI fund. .5 billion dollars. Through SSBCI, the Treasury provided funds to participating states to create or expand small business investment programs, including access to capital programs, collateral support programs, guarantee programs loans, loan participation programs or venture capital programs.
An October 2016 evaluation of SSBCI found that by the end of 2015, state SSBCI programs were supporting nearly $8.4 billion in new capital in the form of small business loans and investments with 1.04 billion dollars of program funding. The program has been hugely successful in Montana, with the state receiving $13 million in funding and distributing it through regional economic development organizations.
In 2020, Tester held hundreds of meetings with Montana workers, small business owners, frontline healthcare workers, educators, tribes and local officials to solicit feedback on what Montanans have needed to get through the pandemic. The tester used this input to help design the US rescue planwhich provided $20 billion in funding for vaccines, $382 million for Montana K-12 schools, legislation to restore long-distance service on the Empire Builder Amtrak route, and billions for small businesses, rural hospitals and the Department of Veterans Affairs.
More information on the SSBCI program can be found HERE.