'Small Business Fund' Lending Reaches $6.7B: Treasury

Community banks taking part in the government’s Small Business Lending Fund increased loans in the second quarter of 2012 by $1.5 billion over the prior quarter — for a total of $6.7 billion more than the average lending by institutions that are not part of the program.
The just-released update from the U.S. Treasury comes shortly after the first anniversary of the Small Business Lending Fund (SBLF), created to help small businesses by providing capital to community banks that hold under $10 billion in assets.
The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – which the Obama Administration hopes will provide an impetus for small-business hiring.
“Banks in the SBLF program continue to show large increases in the lending available for small businesses to grow, create jobs, and support families in communities across the country,” said Deputy Secretary of the Treasury Neal Wolin.
As of June 30, 2012, the 277 banks taking part in the SBLF have increased their business lending more than a comparison group of non-SBLF banks.
SBLF banks have increased business loans outstanding by a median of 27.4 percent, compared to 0.4 percent for the non-SBLF banks.

Leave a Reply

Your email address will not be published. Required fields are marked *