Key Bank announced last week that it would be setting aside $5 billion over the next three years to be lent to qualified small-business owners, with the bank hoping to boost small-business activity as owners struggle to secure capital.
The announcement came following a meeting between Vice President Joseph Biden and executives of 13 top U.S. banks, including Key Bank, where the discussion centered on the state of small-business lending, according to a release.
“Small businesses are the engine of the economy and are critical to job creation,” said Beth Mooney, CEO and chairman of Cleveland-based KeyCorp, of which Key Bank is a subsidiary. “We are committed to their success.”
Along with making capital available, Key Bank said it will be conducting forums, workshops and financial reviews as a part of the company”™s efforts to get small businesses back on track.
The bank”™s lending initiative comes less than a week after U.S. Sen. Kristen Gillibrand announced the availability of some $55.4 million in funding for New York small businesses under the Small Business Jobs Act, which was passed by Congress last year.
The approval of New York”™s State Small Business Credit Initiative (SSBCI) application was announced by Gillibrand on Sept. 15, freeing up the $55.4 million in capital, according to a release.
The state”™s Department of Economic Development, in cooperation with the Empire State Development Corp., will divide the funds between three projects:
- $19 million for the New York Capital Access Program;
- $26 million for the Innovate New York Fund; and
- $10 million for the New York Bonding Guarantee Assistance Program.
“When we increase capital for small businesses, we can help get more new businesses off the ground, help existing businesses grow and thrive, and create more good-paying jobs,” Gillibrand said in the release.
While small businesses have been responsible for 70 percent of the job growth of the past decade, the release stated that nearly 60 percent of those small businesses have reported trouble securing credit needed to expand and hire.
With the $55.4 million funding, the state expects to generate at least $10 in new private lending for every $1 in federal funding.
