Still No Correlation between Funding and the Unemployed

Economic News Commentary

Oct 22 2010

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On Friday, October 8th, the Treasury Department announced the State Small Business Credit Initiative (SSBCI), a new state-by-state funding allocation to support $15 billion in small business lending aimed at helping entrepreneurs obtain credit to hire new workers and expand their businesses.  The formula to determine the amount of SSBCI funds a state is eligible for is based on each state's unemployment rate and its decline in employment relative to other states. However, it appears that the lending formula fails to account for the number of unemployed persons in each state.


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