A plan to assist 1,200 small businesses in Minnesota is just another example that government does indeed have a place in the economy. The program, launched by the Minnesota Department of Employment and Economic Development (DEED), will support small business lending. President Obama’s Small Business Jobs Act awarded DEED $15.5 million in federal funds for the program.
Small business owners in Minnesota are finding it increasingly difficult to obtain loans because of tightening lending restrictions by banks, which is prolonging the hardships of the recession. Direct loans from the initiative will be available in amounts up to $150,000 to support growth and job creation in our state.
U.S. Treasurer Rosie Rios said of the program:
“These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities.”
This program will allow over one thousand small businesses to get on a path to rebuilding and recovering with the capital they need. DEED also expects that the program will create 3,000 new Minnesotan jobs and draw $200 million in private investment.
Governor Mark Dayton stated that, “This award is great news for Minnesota businesses.” Indeed, folks are saying this is a common-sense way to create jobs and improve the economy. All small businesses are eligible for the program, but DEED is urging small businesses in underserved areas of the state to apply that that they can get the aid they need in these tough economic times.
This program, and President Obama’s Small Business Jobs Act, is a well-planned and well-received example of how government initiatives can provide economic relief and create jobs.
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