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SMBs Getting Greater Access to Credit

Turned away by big banks, startup companies are getting help from state govern

Small and mid-sized businesses are experiencing increased access to consumer credit, judging by reports from across the United States.

Washington state is working with the University of Washington to create a new venture capital fund that will help startups in their early stages. The

Small and mid-sized businesses are experiencing increased access to consumer credit, judging by reports from across the United States.

Washington state is working with the University of Washington to create a new venture capital fund that will help startups in their early stages. The money comes from a U.S. Department of Treasury grant of $19.7 million, and could potentially facilitate the creation of between 3,000 and 6,000 direct and indirect jobs.

"About 95 percent of Washington businesses are small businesses and they need help right now to grow and provide the jobs that will accelerate economic recovery in every community around the state," stated Governor Chris Gregoire.

Arkansas also won $13.1 million from the federal State Small Business Credit Initiative to distribute to small and minority-owned businesses "through direct lending and guaranteeing loans," Gaebler.com reports.

The funding could be welcome news for SMBs, many of whom have struggled to secure the necessary capital to expand their organizations. CBS News says that one business in Wisconsin, Imagination Trends, was able to grow from a three-person company to one that employs 36 people and takes on larger jobs. Unfortunately, it has been unable to secure the necessary credit because big banks are unwilling to take on the risk

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