Tag Archives: treasury

TN Recovers $540K in Overpaid Benefits Under Fed Anti-Fraud Program

Tennessee has recovered more than half a million dollars in overpaid unemployment benefits and overdue taxes since joining a federal anti-fraud program in July, according to The Tennessean.
The $540,000 recovered so far will help lower employers’ unemployment insurance tax payments, the Tennessee Department of Labor and Workforce Development said.
Tennessee joined the federal Treasury Offset Program in July. The program allows states to intercept tax refunds, military pay and other federal payments to those who received more state unemployment benefits than they were eligible for or owed unemployment taxes.
Of the $540,000 collected in Tennessee so far, $436,000 was voluntarily repaid after the state notified those who owed money. The rest was taken from tax refunds, retirement pay, contractor/vendor payments or other federal payments.
Under the program, the state expects to recover as much as $17 million through intercepted federal tax refunds alone in the next several years.
The recovered money is put into Tennessee’s unemployment insurance trust fund, which is used to pay benefits

Feds OK $297 Million Lending Program for TN Small Businesses

News release from U.S. Department of Treasury:
WASHINGTON, D.C. – Today, the U.S. Department of the Treasury announced the approval of Tennessee’s State Small Business Credit Initiative (SSBCI) application. Tennessee’s planned use of the SSBCI funds will help create new private sector jobs and spur more than $297 million in additional small-businesses lending in that state. The SSBCI program, which supports state-level, small-business lending programs, is an important component of the Small Business Jobs Act President Obama signed into law last fall.
“These funds will provide critical support to state-level programs that help expand small-business lending and spur private sector job growth,” said Deputy Secretary of the Treasury Neal S. Wolin. “Unlocking credit for small businesses will provide a powerful boost for investment and job creation in local communities across the country.”
Under the Small Business Jobs Act, Tennessee can access $29.7 million in SSBCI funds. Tennessee expects to generate a minimum “bang for the buck” of at least $10 in new private lending for every $1 in federal funding. As such, this $29.7 million allocation for Tennessee is expected to support more than $297 million in new private lending in that state. Tennessee’s Department of Economic and Community Development will use these funds to establish a new venture capital program called the “INCITE Fund.”
Under the State Small Business Credit Initiative, all states are offered the opportunity to apply for federal funds for state-run programs that partner with private lenders to increase the amount of credit available to small businesses. States must demonstrate a reasonable expectation that a minimum of $10 in new private lending will result from every $1 in federal funding. Accordingly, the overall $1.5 billion federal funding commitment for this program is expected to result in at least $15 billion in additional private lending nationwide.