PROVIDENCE, RI -- U.S. Senator Jack Reed (D-RI) today announced that Rhode Island is eligible for $13.1 million from the State Small Business Credit Initiative (SSBCI) to help restore the flow of credit to small businesses and manufacturers so they can grow and create jobs. This federal funding may be leveraged to pump more than $130 million into Rhode Island's economy.

The SSBCI is part of the new Small Business Jobs Act, which Senator Reed helped pass and President Obama signed into law last week.

Under the SSBCI, Rhode Island has the opportunity to apply for federal funds for programs that partner with private lenders to extend greater credit to small businesses. In order to use the funds, recipients must demonstrate a "bang for the buck" of at least $10 in private lending for every $1 in federal funding.

"This federal funding will help unlock credit, connect more entrepreneurs with lenders, and help more small businesses grow and create jobs," said Reed.

Nationwide, this federal funding commitment of $1.5 billion is expected to support $15 billion in additional private lending.

The SSBCI is just one component of the Small Business Jobs Act. The law also:

• Creates a targeted $30 billion Small Business Lending Fund to provide small community banks with capital to increase small business lending;

• Provides small businesses with $12 billion in tax cuts;

• Gives investors 100% exclusion from capital gains taxes on small business investments;

• Reduces the tax burden for small businesses by allowing them to carry back general business tax credits to offset their tax burdens from the previous five years. Small businesses will also be able to count the general business credits against the Alternative Minimum Tax (AMT), freeing up capital for expansion and job growth;

• Increases Small Business Administration (SBA) loan limits and lowers costs for small business to access SBA loans