Michigan spends more federal funds to spur small business lending than any other state in the country, according to data recently released by the U.S. Treasury's State Small Business Credit Initiative.

The state spent $57 million in federal funds, which have leveraged more than $343  million in nearly 500 private small business loans through June 2013.

The federal report shows that Michigan used about $57.1 million, or 72 percent, of the $79.2  million allocated from July 2011 through June 2013.

That's more than $22 million above New York, the next highest state. Mlive.com reports states are supposed to use each dollar of federal funds to generate $10 in new small business lending or investing.