U.S. EDA Supports Small Business Sector in Cleveland
June 23, 2011
Contact: John Atwood, (202) 482-4085
WASHINGTON - The U.S. Commerce Department's Economic Development Administration (EDA) today announced an $841,307 grant to the city of Cleveland, Ohio to recapitalize a revolving loan fund that is helping to create new jobs by providing gap financing to small local businesses. According to grantee estimates, the project is expected to create 34 jobs and generate over $2.4 million in private investment in the first round of lending.
"Access to capital is critical to new and expanding businesses," said U.S. Assistant Secretary of Commerce for Economic Development John Fernandez. "This EDA grant will provide additional funding to Cleveland's revolving loan fund to foster new and existing small businesses and accelerate entrepreneurship in the region."
"Small businesses are the backbone of our economy yet they often face barriers to success," said Mayor Frank G. Johnson. "This EDA revolving loan fund grant will provide much needed support that small businesses would not otherwise receive. With this support, the city can continue to knock down those barriers by providing loans to small businesses which will create jobs in Cleveland and help grow our local economy."
Particular outreach efforts will be made to locate eligible borrowers who are minority and female owned construction contractors, grocery stores located in underserved areas, and other small businesses capable of creating jobs but unable to obtain working capital for operations.
Small businesses create 2 of every 3 new jobs. More than half of Americans who work, own or work for a small business. On Sept. 27, 2010, President Obama signed into law the Small Business Jobs Act, the most significant piece of small business legislation in over a decade. The new law is providing critical resources to help small businesses continue to drive economic recovery and create jobs.
About the U.S. Economic Development Administration:
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation and accelerate long-term sustainable economic growth.