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Michigan lands small business loan bounty

Jan 17, 2011 Brian Bradley

Michigan is one of two states to receive federal funding to boost small business loans and hiring, WOOD-TV reports. The funding comes at a time when the battered Michigan economy has begun to show signs of improving. Infusing approximately $80 million in lending is expected to reinforce that momentum and help entrepreneurs repair their business credit reports. The money will come from the State Small Business Credit Initiative, the U.S. Treasury Department announced. The Treasury believes the money will eventually generate more than $790 million in attainable lending for Michigan business owners. Michigan Governor Rick Snyder welcomed the decision as a sign that the state's businesses will finally get the help they need. "Using the federal funds to insure against default will give banks more confidence and make them more likely to lend, which will spark jobs growth," Snyder said according to WOOD-TV. North Carolina is the other state to receive federal assistance. WOOD-TV reports that the Treasury supplied the Tar Heel State with an undisclosed amount of money, though it is part of the Treasury's $1.5 billion plan that folds under the Small Business Jobs Act passed in October.