Florida gets $97.7 million in federal funds to spur small-business loans

An additional $97.7 million in federal funds for small-business lending will be available statewide through the recent approval of Florida's application to tap the State Small Business Credit Initiative.

Organizers of the program anticipate the federal seed money will be leveraged tenfold by private lending, generating more than $977 million in private lending.

The program is an outgrowth of the Small Business Jobs Act that President Obama signed into law last fall.

"These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job growth," Deputy Secretary of the Treasury Neal S. Wolin said in a statement. "Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country."

To qualify for funding under the new program, states must demonstrate that they expect a minimum of $10 in new private lending from every $1 in federal lending.

Florida's Office of Tourism Trade and Economic Development will partner with Enterprise Florida to will lend money to small businesses and launch a venture capital program, which will make equity investments in small businesses. The OTTED will also create a new Florida Capital Access Program to encourage small-business lending by private sector lenders.