A $13.2 million federal grant has supported $113.8 million in lending to Idaho small businesses since 2011.
The U.S. Treasury Department's State Small Business Credit Initiative distributed $835 million in grants to states to fund programs providing financing to small businesses. The Idaho Housing and Finance Association devoted its grant to fund the Idaho Collateral Support Program. Small Idaho businesses can take low-cost loans from the association to get chunks of cash that functions as collateral take out conventional loans to fund expansions or equipment purchases. The IHFA says the collateral program has created or saved 1,800 jobs.
Money is recycled into the collateral program as businesses repay their loans. The program supported 142 loans as of Dec. 31, 2013. A total of $2 million has been repaid and recycled into the program. None of the borrowers have defaulted.
IFHA is a self-funded businesses that provides home financing, housing counseling and other service, often as an administrator of state and federal programs. The association is self-funded. The IFHA committed $5 million of its funds to expand the collateral program in October.
"Idaho's focus on small business lending addresses a critical statewide need," IFHA President and Executive Director Gerald Hunter said in a statement. "Our small business lending program has exceeded all expectations and has had a significant impact on employment as well as encouraged economic growth in the state."