Michigan and North Carolina are the first two states to receive funds from a new $1.5 billion federal small business lending initiative, the Treasury Department said.
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Michigan received $79.1 million in allocations from the State Small Business Credit Initiative, which is expected to generate more than $790 million in small business lending in the state, Treasury said.
North Carolina received $46.1 million, expected to generate more than $460 million in small business lending there under the program, which was part of small business jobs legislation enacted in October.
Under the lending initiative, all 50 states, the District of Columbia and U.S. territories can apply for federal funds to partner with private lenders to extend greater credit to small business. The states are required to demonstrate that for every $1 in federal funding, they can generate $10 in new private lending.
The $1.5 billion federal funding commitment that the government is making is expected to support $15 billion in private lending, the Treasury said.