Aaron Bean: “This program provides funding for States to expand or create lending programs that use small amounts of public resources…”

“This program provides funding for States to expand or create lending programs that use small amounts of public resources to generate private bank financing and are designed to address critical reasons why banks are having trouble making increased investments now--lack of adequate capital reserves on the part of lenders and collateral shortfalls on the part of borrowers. The State Small Business Credit Initiative is required to leverage $10 of private funding for every $1 of government funding. Many of the existing capital access programs leverage 30 private dollars for every 1 government dollar. By supporting existing programs and using an easy-to-replicate model, this program will be quickly ramped up to increase small business lending which will retain and create jobs. Small businesses are the job creators of our Nation. Supporting their ability to grow and innovate is key to a robust and stable economic recovery. I commend the leadership of Chairman Frank and Chairwoman Velazquez in bringing this package to the floor, which will provide critical support to the half of all American workers who either own or work for a small business.”