Contacts: Laura Smith, Office of the Governor, 608-261-2162
Kate Venne, WHEDA, 608-266-8655
MADISON – Governor Jim Doyle today announced that local community banks in Wisconsin will be able to participate in a funding program that will generate $30 billion in loans nationwide for small businesses to help small businesses grow and hire more workers. The funding is part of President Obama’s small business jobs bill that was passed by Congress today and is on the way to the President’s desk.
“Wisconsin’s local community banks have a strong history of good community lending and are often the first source of financing for small businesses,” Governor Doyle said. “Small businesses are a major driving force behind the success of our state’s economy. This legislation is providing small community banks with capital and incentives to lend to small businesses so that these businesses can renew a credit line, purchase new equipment or open a new location.”
President Obama’s jobs bill includes the State Small Business Credit Lending Initiative that will allocate up to $21 million to the State of Wisconsin to increase lending to small businesses. The bill allows for the creation of innovative loan guarantee programs or Capital Access Programs that offer loan loss reserves to give small businesses access to more capital in order to generate economic growth and jobs. Wisconsin’s $21 million allocation could generate hundreds of millions of dollars of lending to small businesses in the state.
Governor Doyle has been a national leader in advocating for investments in our nation’s small businesses in order to help grow the nation’s economy. In January, Governor Doyle joined Governors Jennifer Granholm (MI), Ted Strickland (OH), Ed Rendell (PA), Pat Quinn (IL) and Bev Perdue (NC) in sending a letter to U.S. Treasury Secretary Timothy Geithner urging quick federal action to help manufacturers and small businesses get access to much needed credit, stabilizing their businesses and protecting jobs. The Governors proposed making federal funds available to leverage private loans for businesses from financial institutions.
In May, Governor Doyle joined President Obama at the White House to call on Congress to pass a small business jobs package in order to provide small businesses with the tools to access capital so they can grow and hire.
