Funding for more than $55 million in loans to small businesses across the state will come through a small business jobs act that Senator Kirsten Gillibrand fought to pass last year.
The U.S. Senator announced approval of the Small Business Credit Initiative yesterday. The allocations are expected to help create new private sector jobs, according to a press release from Gillibrand’s office.
Gillibrand said in a statement that, “small businesses are the most powerful economic engine we have.” She said increasing capital for small businesses would “help get more new businesses off the ground, help existing businesses grow and thrive, and create more good-paying jobs.”
Gillibrand said she expects the lending to generate a minimum of at least $10 in new private lending for every $1 in federal funding, or more than $550 million in new private lending.
Small businesses are responsible for half of all private sector jobs and 70 percent of all new jobs created in the last decade. But nearly 60 percent of all small business report having trouble getting the credit they need.