The Kentucky Small Business Credit Initiative will provide access to new loans to help with job creation across the state. The initiative involves three new small-business programs (Kentucky Capital Access Program, Kentucky Collateral Support Program and Kentucky Loan Participation Program) that will facilitate increased private lending to small businesses. The increased access to capital stems from the state's application for $15,487,998 in federal funds from the U.S. Department of Treasury through the State Small Business Credit Initiative (SSBCI). The funds are part of the Small Business Jobs Act of 2010, under which Kentucky can access $15.5 million in SSBCI funds. For more information, visit www.ustreas.gov/offices/domestic-finance/ssbci and www.ThinkKentucky.com.
A new community development corporation has launched in the "Route 66 Mural City." Cuba Development Group Inc. (CDG)—a 501(c)(3) organization serving Crawford County, Mo.—plans to be a collaborative and innovative force for economic and community development efforts in Cuba, Mo., and the Crawford County Enhanced Enterprise Zone (EEZ). The organization's mission is job creation and retention, improved quality of life, and revitalization and redevelopment of areas of cultural and historical significance. The organization recently created "Vision 2020," a 10-year strategic road map with key objectives to actualize the four core elements of innovation: ideation, collaboration, implementation and value creation. For more information about CDG, visit www.gocubamo.com/cdg.
Financial awards from the Treasury Department's Community Development Financial Institutions Fund (CDFI Fund) have been granted to five CDFIs in the Eighth District. The awards are being made through the fiscal year 2011 round of the CDFI Fund's cornerstone program, the Community Development Financial Institutions Program (CDFI Program), and represent the largest single round of monetary awards in the CDFI Fund's history. The awards will help these specialized, community-based financial institutions spur local economic growth and recovery, as well as expand access to affordable financial products and services. Eighth District awardees include:
Additionally, nine community banks in our District were part of the 61 nationwide that received funding from the Treasury's Small Business Lending Fund (SBLF). The SBLF, established as part of the Small Business Jobs Act of 2010, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs. The Fund provides capital to community banks that hold under $10 billion in assets. Additional SBLF funding announcements will be made in the weeks ahead. Eighth District community banks that received SBLF funding include:
In related news, the Treasury Department has announced the approval of applications for State Small Business Credit Initiative (SSBCI) funding from 11 states and Washington, D.C., including two states in the Eighth District. The funding is intended to create new private-sector jobs and spur additional small-business lending. Mississippi will receive $13.2 million to establish the Mississippi Small Business Loan Guarantee Program; Tennessee will be allocated $29.7 million to establish a new venture capital program called the "INCITE Fund."
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FedCommunities.org is a portal to community development resources from all 12 Federal Reserve Banks and the Federal Reserve Board of Governors.