Treasury to host conference on small-business capital

Geithner’s Tuesday post — which came the same day he traveled to Cleveland with President Obama to meet with small-business owners — also plugged two initiatives that Treasury is implementing, both of which were included in legislation passed last year to help small businesses.

The State Small Business Credit Initiative, Geithner wrote, would give a boost to state outfits that help small businesses procure private-sector loans. California, Michigan and North Carolina have already been awarded funding through the new initiative, which the Treasury expects to spark more than $15 billion in small-business lending.

The Small Business Lending Fund, the other program mentioned by the secretary, will provide low-cost capital to local banks with under $10 billion in assets. Treasury says the program, which has been authorized for up to $30 billion, will encourage lending to small businesses and that the fund’s first award winners will be announced soon. 

In his post, which came as lawmakers continue to discuss the country’s budget problems, Geithner stressed that the two programs would not add to the deficit.

“The law that created them made sure they were fully paid for,” the secretary wrote.