GOVERNOR’S OFFICE NEWS RELEASE
CARSON CITY – The U.S. Department of the Treasury and Gov. Brian Sandoval announced the approval of Nevada’s State Small Business Credit Initiative application yesterday. Nevada’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $138 million in additional small-businesses lending in Nevada.
The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act signed into law last fall.
“Access to funding is a significant issue for many entrepreneurs seeking to grow,” Sandoval said. “This funding will go a long ways towards helping new small businesses get off the ground and creating jobs for Nevadans.”
Under the Small Business Jobs Act, Nevada can now access $13.8 million in SSBCI funds. Nevada expects to generate a minimum of at least $10 in new private lending for every $1 in federal funding. As such, this $13.8 million allocation for Nevada is expected to support more than $138 million in new private lending in Nevada.
The Nevada Commission on Economic Development will use these funds to support the Nevada Microenterprise Initiative and a new Nevada Collateral Support Program. The potential job growth impact of the program is 1,035 positions throughout Nevada, with an emphasis on manufacturing, utilities, construction and health services.
“These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities,” said Treasurer of the United States Rosie Rios. “This program will help ensure that more Main Street entrepreneurs have access to the credit they need to expand their businesses and create new jobs.”
“These programs will allow the state to participate with financial institutions throughout the state to support additional lending activities for our Nevada small businesses,” Nevada Commission on Economic Development Director Mike Skaggs said. “We will be providing funding for micro lending which will be managed by Nevada Microenterprise Initiative and direct dollars to financial institutions that will support collateral needs for our Nevada businesses.”
“Anything that helps to support business expansion and ultimately increase employment in our state will be a great benefit,” Heritage Bank of Nevada President Stan Wilmoth said. “The collateral support piece of the funding will allow banks to refinance debt secured by assets with little or no equity at current market rates.”
In conjunction with the Nevada Banker’s Association, the Office of Economic Development will put funds on deposit at Nevada banks on a transaction by transaction basis to enhance the collateral position of borrowers. These will be business loans with a focus on companies which create jobs or retain jobs in our base economic clusters such as technology, mining, manufacturing, logistics or film and digital media production. Generally, these loans will have a targeted amount of $250,000.
Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.
For more information on Nevada’s small business incentive and lending programs, please visit the Nevada Commission on Economic Development at www.diversifynevada.com/.