FOR IMMEDIATE RELEASE
Contact: Gregory Bortolin, Director of Communications
grbortolin@goed.nv.gov (775) 687-9917
October 31, 2023
CARSON CITY, Nev. – In 2012, when the Nevada Governor’s Office of Economic Development (GOED) introduced the State Small Business Credit Initiative (SSBCI), James York, CEO of Valley Bank of Nevada, embraced the program and recognized how Nevada community banks could leverage SSBCI on behalf of various financial institution clients. Additionally, York made a concerted effort to introduce the program to other community banks by holding informational meetings and was the first to propose creating a community bank consortium to leverage the funds.
“Valley Bank was our SSBCI 1.0 champion, and I was delighted to award them the Governor’s Award as our SSBCI 1.0 Legacy Lender,” said Governor Joe Lombardo. “Valley Bank laid a foundation that has carried over into the expansion and growth of Nevada’s SSBCI 2.0 program.”
Valley Bank truly recognized the value of SSBCI early on and between January 2012 and December 2022, was able to leverage the program by extending 22 new loans totaling $38,925,500 by leveraging $9,037,468 in SSBCI Nevada funds.
“Because of these loans, Valley Bank helped their clients retain and create 784 jobs – which does not include the construction jobs that were created under the SBA 504 program and the construction companies that were kept alive – all during a time when Nevada had the highest unemployment in the country,” said Mendy Elliott, who oversaw the SSBCI Collateral Support Program at the time and who is now the Chief Program Officer. “Building on this success we are optimistic that under the new and much expanded program, lenders will take inspiration from Valley Bank and join us in providing capital to our state’s small businesses.”
The federal SSBCI program will help small businesses unlock additional private financing, for eligible business purposes ranging from equipment or qualifying real estate transactions, to working capital that supports payroll or inventory purchases. Specifically, Nevada SSBCI credit programs provide either cash collateral in case of a shortfall at loan application or offer to purchase portions of loans from partnering banks thereby reducing their lending risks.
“At Nevada SSBCI we are participating together with lenders in small business loan transactions and through our programs trying to get them to say yes,” said Karsten Heise, Senior Director of Strategic Programs & Innovation and SSBCI administrator at GOED. “The key to the success of enabling Nevada’s small businesses to access up to $112 million over the duration of the program lies with the engagement of local and regional lenders following the example of Valley Bank. Please reach out to us.”
###
About the Governor’s Office of Economic Development
Created during the 2011 session of the Nevada Legislature, the Governor’s Office of Economic Development is the result of a collaborative effort between the Nevada Legislature and the Governor’s Office to restructure economic development in the state. GOED’s role is to promote a robust, diversified and prosperous economy in Nevada, to stimulate business expansion and retention, encourage entrepreneurial enterprise, attract new businesses and facilitate community development.
About the State Small Business Credit Initiative
On March 11, 2021, President Biden signed The American Rescue Plan Act, which reauthorized and funded the State Small Business Credit Initiative (SSBCI). The new version of the SSBCI program provides a combined $10 billion to states, the District of Columbia, territories, and Tribal governments to empower small businesses to access capital needed to invest in job-creating opportunities as the country emerges from the pandemic. The funds will also support recipient jurisdictions in promoting American entrepreneurship and democratizing access to startup capital across the country, including in underserved communities. The Governor’s Office of Economic Development (GOED) oversees the Nevada SSBCI Program. It is operated by Nevada Battle Born Growth Escalator, Inc. a corporation for public benefit and 501(c)(3) non-profit created by GOED in 2016.