DEO Announces State Small Business Credit Initiative Receives an Additional $33 million U.S. Treasury to Assist Small Businesses

TALLAHASSEE – The Florida Department of Economic Opportunity (DEO) announced today that the U.S. Treasury Department has disbursed an additional $33 million to the State Small Business Credit Initiative (SSBCI) to help finance Florida’s small business ventures. This is the third disbursement of $97.6 million total in funding to Florida’s SSBCI program. Administered by the DEO’s Division of Community Development, in partnership with Enterprise Florida Inc. and Florida Export Finance Corporation, Inc., the SSBCI program provides much-needed access to capital for small businesses. To develop the SSBCI program, Florida allocated funds to create the following small business lending programs: the venture capital program, the loan participation program, the loan guarantee program, the export guarantee program, and the capital access program. The SSBCI program is the first state lending program that is dedicated specifically to Florida small businesses.

Florida’s SSBCI programs support state-level, small-business investment through loan participations, loan guarantees and export guarantees, as well as venture capital investments. The SSBCI program enhances private financing for creditworthy small businesses, making it easier to obtain the loans they need to expand and create jobs. Financial institutions are able to offset their risk by participating in these credit enhancements. For instance, a typical export guarantee will guarantee ninety percent of the line of credit. And, a typical loan guarantee or loan participation will range from five percent to 50 percent of the total loan.

The funding for the program has been dispersed in three increments. The first disbursement was provided August 24, 2011, and the second was provided on June 19, 2013. Each disbursement is contingent upon Florida obligating at least 80 percent of the funds provided from the previous year. The program has successfully obligated these funds, and is looking forward to the success the 2014 allotment will bring to Florida small businesses.

Loan and investment programs are available to small businesses and non-profits seeking capital for business purposes, which may include startup costs, working capital, business procurement, franchise fees, equipment, inventory, construction, exporting, or improvements to name a few.  An eligible small business may have up to 500 employees and must be located in Florida. Businesses interested in participating in SSBCI are encouraged to contact their small business lender. Exporters are encouraged to contact Florida Export Finance Corporation, Inc., at (786) 845-0400. Financial institutions interested in participating in SSBCI can visit: www.eflorida.com/ssbci.

About SSBCI

Florida was allocated more than $97.6 million by the U.S. Department of Treasury to implement the State Small Business Credit Initiative, a federal initiative of the U.S. Small Business Jobs Act of 2010 that encourages states to establish or strengthen state programs that support lending to small businesses. SSBCI funds leverage private lending to help finance small businesses that are creditworthy, but are not getting the loans they need to expand and create jobs. SSBCI funds are expected to leverage close to $1 billion in private lending to Florida small businesses. For more information, visit http://www.floridajobs.org/business-growth-and-partnerships/for-businesses-and-entrepreneurs/business-resources/state-small-business-credit-initiative.

About DEO

The Florida Department of Economic Opportunity combines the state’s economic, workforce, and community development efforts.  This new approach helps expedite economic development projects to fuel job creation in competitive communities.  For more information, including valuable resources for employers and job seekers, please visit www.floridajobs.org.

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