Obama Administration's Funds for Connecticut, Missouri, and Vermont to Spur at Least $534 Million in New Small-Business Lending, Help Create Jobs

Today, the U.S. Department of the Treasury announced approval of State Small Business Credit Initiative [SSBCI] applications from Connecticut, Missouri, and Vermont. The planned use of SSBCI funds by these states will help create new jobs, and is expected to spur more than $534 million in additional small-business lending. The SSBCI program, which supports state-level small business lending programs, is an important component of the Small Business Jobs Act that President Obama signed into law last fall.

"These critical funds will help small businesses access the capital they need to expand their operations, create new jobs, and continue supporting our nation’s economic recovery," said Treasury Secretary Tim Geithner [pictured]. "Public-private lending partnerships, such as the State Small Business Credit Initiative, have a proven track record of success, and I’m pleased that this funding is on its way to support economic growth in these states."

Under the SSBCI, 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 $1.5 billion federal funding commitment for this program overall is expected to result in at least $15 billion in additional private lending nationwide.

Details on the applications approved today -- which the states expect will generate a cumulative total of at least $534 million in new small-business lending in Connecticut [$133 million], Missouri [$269 million], and Vermont [$132 million] -- are included below.

Geithner announced the approval of this latest wave of SSBCI applications during a conference today at the Treasury Department entitled, "Access to Capital: Fostering Growth and Innovation for Small Companies." The conference brings together policymakers, entrepreneurs, investors, academics, and other market participants to explore how both the public and private sectors can help promote access to capital at each stage of growth for a small business -- from seed capital, to growth equity, to accessing the public markets.

Treasury has previously approved funding for SSBCI programs in California, Michigan, and North Carolina. Additional applications are expected to be approved in the coming weeks. For more information about the SSBCI, please visit http://1.usa.gov/SSBCI.

Connecticut: At Least $133 Million in New Small-Business Lending
With SSBCI approval of Connecticut’s application, can access up to $13.3 million in SSBCI funding -- which Connecticut expects to generate more than $133 million in new small-business lending in the state.

"Connecticut's economic recovery is driven by small businesses and their strong plans for growth," said Connecticut Governor Dannel P. Malloy. "We need to ensure they have the capital necessary for hiring, purchasing of machinery and equipment, and expansion of facilities in our state. In partnership with the banks and the Connecticut Development Authority, Connecticut's small-business owners will now have more resources for that growth."

Connecticut’s approved plan dedicates its $13.3 million in SSBCI funding to support its Capital Access Program [CAP], which provides loan portfolio insurance to encourage private financial institutions to lend to creditworthy small businesses. Connecticut has administered its CAP for more than 19 years. During this period, it has provided portfolio insurance for about 630 enrolled loans, totaling over $53.4 million -- resulting in the creation of, or saving of, 6,120 jobs.

Missouri: $269 Million-Plus in New Small-Business Lending
With SSBCI approval of Missouri’s application, Missouri can access up to $26.9 million in SSBCI funding, which it expects to generate more than $269 million in new small-business lending in the state.

"Along Main Streets in every corner of Missouri, small businesses are a critical force for creating jobs and growing our economy," Missouri Gov. Jay Nixon said. "These new resources will help Missouri entrepreneurs grow their operations, and turn their dreams into bricks and mortar.

"We appreciate the leadership shown by President Obama and Secretary Geithner in providing these resources for our state, and we will invest these tools wisely and strategically in businesses that will transform Missouri’s economy for the 21st Century."

Missouri’s approved plan dedicates $16.9 million of the state’s SSBCI funding to establish the high-tech Missouri IDEA Seed and Venture Capital Funds [IDEA Funds]. IDEA stands for Innovation, Development and Entrepreneurial Advancement.

The Missouri IDEA Funds promote the formation and growth of businesses that engage in the transfer of science and technology into job creation. The funds provide financing to eligible businesses through four components that correspond to the four stages of venture growth: 1] pre-seed capital stage financing; 2] seed-capital stage financing; 3] venture-capital stage financing; and 4] expansion-stage debt.

Collectively, these four components will provide financing opportunities throughout the process that entrepreneurs call the "continuum of capital." In this way, the funds will support new venture formation and growth all the way from research and development to commercialization.

Missouri’s approved plan also dedicates $10 million of SSBCI funding to the Grow Missouri Loan Participation Fund. That program supports the formation and growth of businesses in the industrial, commercial, agricultural, and recreational sectors. It provides loans of up to $3 million to businesses with under 500 employees to help attract new enterprises and expand existing companies.

Vermont: More Than $132 Million in New Small-Business Lending
With SSBCI approval of Vermont’s application, Vermont can access up to $13.2 million in SSBCI funding, which it expects to generate more than $132 million in new small-business lending in the state.

"This $13.2 million in federal small-business funding is terrific news for Vermont," declared Vermont Governor Peter Shumlin, "and it would not have been possible without the strong advocacy efforts of our Congressional delegation.

"We thank Sen. Patrick Leahy, Sen. Bernie Sanders, and Congressman Peter Welch for their efforts, and also thank the U.S. Department of the Treasury for this well-timed award. With the help of Vermont’s private-sector leverage, these federal funds will go far, giving our small businesses the critical boost they need to create jobs for Vermonters."

Vermont’s approved plan dedicates $1 million of the state’s SSBCI funding to support its Financial Access Program [FAP], which provides loan portfolio insurance to encourage private financial institutions to lend to creditworthy small businesses.

The remaining $12.2 million is allocated to three additional programs:

* Vermont has allocated a total of $5.9 million to its Commercial Loan Participation Program, which provides financing for the purchase of land; construction and renovation of facilities; and purchase and installation of equipment for eligible projects.

* Vermont has allocated $3.0 million to its Technology Loan Participation Program. This initiative supports loans to early-stage firms, primarily in the information technology and bioscience sectors.

* Vermont has also allocated $3.3 million to its Small Business Loan Program, which finances smaller commercial businesses’ fixed asset and working capital needs.

GoodBiz113's Take
Once again, the Obama Administration has taken bold and positive steps to fuel small-business growth and create jobs. Current and would-be small-business owners in Connecticut, Missouri and Vermont -- and their myriad stakeholders -- are fortunate that Secretary Geithner and his advisers have exercised their fiduciary pragmatism and wide-angle vision to promote far-reaching entrepreneurship and economic development in their states.

SOURCES: Connecticut Development Authority, Missouri Department of Economic Development, U.S. Department of the Treasury, Vermont Economic Development Authority

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Registration Opens for 2011 DOE Small-Business Conference

This just in from the U.S. Department of Energy...

The time has come to register for the the 12th Annual U.S. Department of Energy Small Business Conference & Expo, taking place at the Kansas City Convention Center in Kansas City, Mo., from May 10-12, 2011.

Register as an Attendee
Register as an attendee for DOE's 12th Annual Small Business Conference & Expo, where you will build connections with like-minded business professionals; acquire invaluable information from general sessions and educational workshops; and solidify contract opportunities with prime contractors, government agencies, and large companies during the expo and matchmaking sessions.

DOE's last event brought in record attendance, and they want you to get in on the action. Register NOW and take advantage of early-bird registration before the discounts expire.

Attend as an Exhibitor
Attend as an exhibitor to showcase your products or services. Increase your visibility by sponsoring the event.

As an exhibitor or sponsor, your company will appear on the 2011 DOE Small Business Conference website, where more than 30,000 potential clients, customers and business partners will recognize you before, during, and after the event! Additionally, your business’ identity will be present throughout the venue and in the conference guide -- further establishing your place in the minds of folks representing those potential networks.

For more information, and to stay up-to-date on the conference and related news, visit the 2011 DOE Small Business Conference website, and be sure to follow the annual event on Facebook.

SOURCE: U.S. Department of Energy's Office of Economic Impact and Diversity
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May 10-12: U.S. Department of Energy to Host 12th Annual Small-Business Conference

This just in: The U.S. Department of Energy's Office of Small and Disadvantaged Business Utilization will present its 12th Annual DOE Small Business Conference & Expo at the Kansas City Convention Center, in Kansas City, Mo., on May 10-12, 2011.

The event will feature plenaries, educational workshops, an exhibit hall with 200-plus exhibitors and sponsors, as well as matchmaking sessions. Over 1,600 attendees will represent all levels of federal, state and local government agencies, large/prime contractors, small businesses and more.

The largest civilian contracting agency within the federal government, DOE spent over $25 billion in contracts in FY 2010. The 12th Annual DOE Small Business Conference & Expo is a great opportunity for small-business owners and large companies alike to network and partner. Registration for the event will open later this month.

For more information, check the event website http://smallbusinessconference.energy.gov/, or e-mail DOE at: InfoDOE@aetherquest.com.

SOURCE: U.S. Department of Energy's Office of Small and Disadvantaged Business Utililization
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President Obama on Clean Energy: ‘We Could Have as Much as 40 Percent of the World’s Market by 2015’

Today, President Barack Obama spoke with workers at Smith Electric Vehicles' new factory in Kansas City, Mo. With a $32 million grant under the American Recovery and Reinvestment Act [ARRA], coupled with $36 million in private capital, the electric-vehicle company is building up to 500 all-electric trucks.

While he was there, the President [pictured above with Smith Electric executives] also had the pleasure of announcing the company was hiring its 50th worker at the plant. By September, that number is expected to grow to 70 and, at the project’s peak, Smith says the project will create more than 220 direct and indirect jobs.

"Just a few years ago, America had the capacity to build only about two percent of the world’s advanced batteries for electric and hybrid vehicles like Smith’s -- two percent, that was it," President Obama told a crowd of Smith Electric employees and guests. "We account for 25 percent of the world’s economy, and we were only making two percent of the world’s advanced batteries.

"But, thanks to our new focus on clean energy and the work that’s taking place in plants like this one, we could have as much as 40 percent of the world’s market by 2015 -- five years. That means jobs. But that also means we’re going to have an expertise in a sector that’s just going to keep on growing all around the world for years to come. So, all these efforts taken together are making a difference."

The story of Smith’s factory shows the direct and measurable impact of the Recovery Act. Smith’s factory is repurposing an 80,000-square-foot jet-engine overhaul facility at the Kansas City International Airport -- a space that was not being utilized or creating jobs is now a fully operational plant.

Along with creating new jobs and breathing life back into this facility, this project is helping demonstrate that electric-drive cars and trucks are real. Fleet customers like Coca-Cola and AT&T will test the vehicles, realizing they can save money over diesel-powered trucks with lower fuel costs.

Without government-supported demonstrations, these companies would likely have waited years before testing a new technology -- especially during an economic downturn. Like any technology, these first demonstrations will help lower the cost, as companies perfect the manufacturing assembly processes and begin operating on a larger, more cost-efficient scale.

Proposed "Green Impact Zone" Would Fuel Sustainability in Kansas City Community
Smith Electric’s story is only one piece of a much broader Recovery Act puzzle unfolding in the Kansas City area. Early this year, Rep. Emanuel Cleaver [D-Mo.] developed a plan for a Green Impact Zone to be established in a 150-block area in the city. The goal is to create a sustainable community -- i.e., one that is environmentally, economically and socially stronger tomorrow than it is today.

Here are a few of the highlights:

* Weatherization: In Kansas City, stimulus funds have been used to finish weatherization work at almost 200 residences in the last few months.

* Energy Efficiency: Kansas City will use its community block grant funds to undertake a number of projects to enhance energy efficiency across the city -- including energy-efficiency upgrades of several major buildings. The city anticipates these activities to create or retain more than 200 jobs.

* Modernizing the Electric Grid: Kansas City Power and Light won a $24 million grant to support a $48 million smart grid demonstration project.

* Science and Innovation: Kansas City-based EaglePicher Corporation, in partnership with the Pacific Northwest National Laboratory, won a $7.2 million ARPA-E award to develop a new generation of high-energy, low-cost planar liquid sodium beta batteries for grid-scale electrical power storage applications.

* Advanced Vehicle Technology: The Metropolitan Energy Center’s Midwest Region Alternative Fuels Project was awarded nearly $15 million as part of the Clean Cities program to develop 27 alternative-fuel stations, and deploy 373 alternative-fuel and advanced-technology vehicles.

Through collaboration with industry leaders, nonprofits, universities, and federal/state/local-government leadership, Smith Electric and Kansas City are demonstrating the opportunities for communities across the country to develop a clean and renewable-energy economy.

"My answer to those who don’t have confidence in our future -- who want to stop -- my answer is, come right here to Kansas City," President Obama noted towards the end of today's remarks. "Come see what’s going on at Smith Electric. I think they’re going to be hard-pressed to tell you that you’re not better off than you would be if we hadn’t made the investments in this plant."

To read the full text of remarks that President Obama made today regarding the economy and the success of Smith Electric Vehicles and other young green-energy small businesses and initiatives, go to: http://bit.ly/ObamaSmithElectric.

For more information on the Recovery Act’s work in Missouri, please visit the Department of Energy's website: http://bit.ly/MissouriRecoveryAct.

To learn more about how clean-energy small businesses are helping to drive our nation's economy forward, go to: http://bit.ly/SmallBizCleanEnergy.

SOURCES: U.S. Department of Energy, The White House [photo by Pete Souza]
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