Bill Would Reauthorize Successful Lending Program to Help Support Small Businesses Hit Hard by the Pandemic
WASHINGTON, DC – U.S. Senators Gary Peters (MI) and Debbie Stabenow (MI) reintroduced legislation to support lending to small businesses in Michigan and across the country that have been hardest hit by the Coronavirus pandemic. The Small Business Access to Capital Act would reauthorize and provide $10 billion in federal funding to the State Small Business Credit Initiative (SSBCI), which helps small businesses grow and create jobs. 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.
“Since the onset of this pandemic, small businesses in Michigan and across the country have gone above and beyond to support their local communities during this critical time. We must ensure small businesses have the resources they need to get through this pandemic,” said Senator Peters, a member of the Commerce, Science and Transportation Committee. “I have been proud to champion the State Small Business Credit Initiative because it is a proven success in our state, and proper investment in the program today could provide crucial support to small business owners across the nation. I’m pleased to help reintroduce this bill, and I look forward to working in a bipartisan manner to ensure that our small business owners receive the help they have earned.”
“The COVID-19 crisis has taken an incredible toll on small businesses in our state and across the country, and made us appreciate even more their importance to our communities and our economy. Given the stress of this pandemic on so many small businesses, access to capital is more important than ever. I look forward to working with Senator Peters to pass this legislation,” said Senator Stabenow.
“Michigan has been a leader in utilizing the State Small Business Credit Initiative (SSBCI) to boost investment and create jobs in hard times like these. With $100 million in SSBCI funding, we’ve been able to leverage nearly $600 million in investments and helped businesses create or retain over 12,000 jobs across the state,” said Governor Whitmer. “We stand ready and eager to deploy new funds and thank Sen. Peters for his leadership to renew, improve, and expand this critical program through his important legislation. This will go a long way to help us grow Michigan’s economy and support countless jobs as we come out of the pandemic.”
“Michigan businesses are doing everything they can to survive and thrive during COVID-19, building on successful partnerships between state and federal governments to provide access to capital is a critical win for businesses who are the backbone of our economy and their communities,” said Brad Williams, Vice President of Government Relations, Detroit Regional Chamber.
“The MBA appreciates Senator Peters willingness to put forth legislation to help small businesses in Michigan,” said T. Rann Paynter, President & CEO, Michigan Bankers Association.
“Michigan’s well-established track record speaks to our success in leveraging innovative programs and funds like SSBCI to support our state’s workforce during times of crisis,” said Mark A. Burton, CEO, Michigan Economic Development Corporation. “Businesses of all industries and sizes benefit from the impact of the SSBCI funding helping to create economic opportunities for Michigan workers. Senator Peters’ leadership in establishing and supporting this program has been critical for Michigan’s economy, and this legislation will help advance our state’s path to economic recovery.”
“The Michigan Credit Union League supports programs that help leverage public funds for providing capital to small businesses. Senator Peters has consistently sought to help small businesses with their capital needs, especially those hardest hit in tough economic times like these,” said Dave Adams, President and CEO, Michigan Credit Union League. “The Small Business Access to Capital Act of 2021 would help state economic development entities gain access to additional SSBCI funds that have recently been exhausted due to extraordinary pressures on these small businesses.”
"CDFA is grateful to Senator Peters for his continued leadership on the State Small Business Credit Initiative," said Toby Rittner, President and CEO, Council of Development Finance Agencies (CDFA). "Small business support programs are urgently needed, and state development finance agencies are ready to immediately deploy capital to businesses through this innovative and proven program."
Michigan is home to over 870,000 small businesses that employ nearly 50% of the workforce in the state. Michigan previously exhausted all SSBCI federal funding, expending over $100 million that leveraged a total investment of nearly $600 million, including private capital. This investment has helped businesses create or retain over 12,000 jobs across the state.
The Small Business Access to Capital Act – which Peters and Stabenow previously introduced in 2020 – builds on the initial program's success by providing an additional $5 billion in formula funds to all states based on the Small Business Jobs Act of 2010 Peters championed as a member of the House of Representatives. Michigan would receive over $260 million in new formula funding: more than every state except Florida and California. The bill will also create a new, competitive $5 billion pool of funding for states that have already capitalized on funding from the 2010 program, equaling $10 billion in funding for the program in total.