Minnesota leads in stimulus-backed loans for small businessesby Mark Zdechlik, Minnesota Public Radio
Crystal, Minn. — The Obama administration says more small businesses in Minnesota than in any other state have received special economic stimulus-backed loans to help them survive the economic downturn.
The loans, called "American Recovery Capitol" loans, provide up to $35,000 in deferred payment, no-interest loans to help struggling small businesses that have problems now but can demonstrate long-term viability.
The head of the Small Business Administration, Karen Mills chose a kitchen remodeling store in Crystal to highlight the program. Mills said 300 loans totaling $10 million have been made through the program in Minnesota, more than any other state.
"The best place, the best performing place, the place where we've gotten the most arc loans into the hands of small businesses is right here in Minnesota," Mills said.
Officials say the reason Minnesota leads the nation in businesses getting the stimulus loans is because the state has a large number of community banks authorized to make SBA loans.