N.C. leads the country in deployment of capital for businesses under State Small Business Credit Initiative


The U.S. Treasury Department recognizes North Carolina as a national leader in implementing the State Small Business Credit Initiative, according to Commissioner for Small Business Scott Daugherty. This program was authorized in the Small Business Jobs Act of 2010. It allocated $1.5 billion among the states based on population and unemployment. North Carolina’s share was $46.1 million.

North Carolina was the second state to file its application to the U.S. Treasury to participate in the program and the first to be funded, according to Daugherty. He notes that funding was to be disbursed in three installments based on achieving milestones for obligation of funds provided and that North Carolina is among the first states to fully draw down its total funding allocation.

Daugherty oversees the administration of these funds in the state through the N.C. Rural Center. Capital has been committed and deployed through three programs: (1) a Loan Loss Reserve Program undertaken with participating banks (2) a Loan Participation Program also undertaken with participating banks and (3) a Fund of Funds Program with investments in private investment funds.

According to Daugherty, just over $27.1 million in State Small Business Credit Initiative funds allocated to the state have been committed to these three programs and have leveraged an additional commitment of $191.3 million in private capital for loans and investments.

As a result of these successes, U.S. Treasury has asked Daugherty and Tony Johnson of the N.C. Rural Center to lead a best practices forum at an upcoming national conference for the states participating in the Small Business Credit Initiative Program.