Washington, DC—Today, Congressman John Olver announced that the Treasury Department is allocating $22,032,072 for lending to small businesses in Massachusetts—a key step in the implementation of the just-passed Small Business Jobs Act.  States can now apply for their allocation.  This effort will spread new small business lending through innovative local programs that help entrepreneurs expand their businesses and create new jobs.

The Small Business Jobs Act, passed by Congress on September 23, 2010, will spur economic growth and could create as many as 500,000 new jobs by providing much-needed lending to millions of small businesses and offering 8 new tax incentives to companies to expand, hire, and fuel the economy.

“Small businesses are the engine of our economy and are key to creating American jobs and rebuilding the economy for the future,” said Congressman Olver. “Unleashing $22,032,072 in lending in Massachusetts is critical to help small businesses grow and flourish and state officials must quickly jump on this opportunity.  Increased access to capital and new tax cuts will keep and create jobs here in America.”

Through the Small Business Jobs Act, states have the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses. States are required to demonstrate a minimum “bang for the buck” of $10 in new private lending for every $1 of federal funding.  Accordingly, the $1.5 billion investment from the federal government is expected to support an additional $15 billion in private lending.

In addition to the State Small Business Credit Initiative, the Small Business Jobs Act will help America’s 27 million small businesses with eight tax cuts totaling $12 billion that went into effect last week.  It will make “Main Street” businesses more competitive with big corporations by spurring up to $300 billion in private sector lending for small businesses through community banks and expanding existing low-cost loans from the Small Business Administration. Finally, this bill is fully paid for and will not add to the deficit.

“After months of Republican opposition, obstructionism, and delay, Congress finally passed this small business bill at the end of the legislative session to move America forward,” said Congressman John Olver.

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