Senators Stabenow, Peters Announce Small Business Access to Capital ActFriday, July 31, 2015
U.S. Senators Debbie Stabenow and Gary Peters introduced the Small Business Access to Capital Act of 2015, which will reauthorize and improve the State Small Business Credit Initiative (SSBCI) to help Michigan small businesses grow and create jobs. The legislation builds on the successful SSBCI initiative that both lawmakers championed in the Small Business Jobs Act of 2010. SSBCI funds the Michigan Economic Development Corporation and other state-led lending programs that leverage private financing to help small businesses access the capital they need.
Senators Stabenow and Peters announced the Small Business Access to Capital Act of 2015 during a press conference with Tammy Tedesco, owner of the Detroit catering company Edibles Rex. Thanks to SSBCI, Tammy was able to secure a $1.8 million small business loan in 2013 to expand operations and hire new employees. She plans to open a second location in the vacant Cattleman's building in Detroit's Eastern Market district next summer.
"Small businesses create the majority of new jobs, and when small business owners like Tammy can access capital, they can expand their businesses and keep the economy growing," Senator Stabenow said. "I'm pleased to be joining Senator Peters to build on this successful program that has helped Michigan small businesses and manufacturers succeed."
"There are over 856,000 small businesses in Michigan alone, and it is vital that they have the resources needed to compete, expand, and give back to their communities, just as Edibles Rex is doing here in Detroit," said Senator Peters. "I'm glad to partner with Senator Stabenow to introduce legislation that will further expand lending and boost Michigan small businesses as the backbone of our economy."
"Thanks to customer demand and steady growth, Edibles Rex needs to open a second location to keep our business growing," Tammy Tedesco, Owner of Edibles Rex said. "This loan will help us open a new cooperative kitchen to test new recipes, help other food manufacturers, and hire additional staff. I want to thank Senators Stabenow and Peters for authoring this legislation to help Michigan small business owners."
Michigan has exhausted all SSBCI federal funding, expending over $85 million to date that has leveraged a total investment of nearly $450 million including private capital. This investment has helped businesses create or retain over 9,000 jobs across the state. MEDC will be able to continue its SSBCI lending programs using recycled federal funds from paid back loans and state funding but will exhaust all remaining funding by next year. Overall, SSBCI programs have leveraged over $7 dollars in private funds for every $1 dollar of federal funding.
The Small Business Access to Capital Act of 2015 builds on the initial program's success by providing an additional $500 million in formula funds to all states based on the 2010 law. Michigan would receive over $26 million in new formula funding-more than every state except Florida and California. The bill will also create a new, competitive $1 billion pool of funding for states that have already capitalized on funding from the 2010 program.
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