Small Business Lending Fund Participants Increase Loans by $7.4 Billion
American Bankers Association article republished:
In related news, financial institutions participating in the Treasury Department’s Small Business Lending Fund (SBLF) have increased lending to small businesses by $7.4 billion over baseline levels, the agency said in a report to Congress released yesterday.
This Use of Funds report represents the sixth consecutive quarter in which SBLF participants have increased lending to small businesses and provides strong evidence that the SBLF program is working as intended. Community banks participating in SBLF have increased business lending by substantially greater amounts than a peer group of similar banks across median measures of size, geography, and loan type.
The SBLF, established as part of the Small Business Jobs Act that President Obama signed into law in 2010, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs. Treasury invested more than $4.0 billion in 332 institutions through the SBLF. Collectively, these institutions operate in over 3,000 locations across 48 states. For more information on SBLF, please visit treasury.gov/sblf.
Small businesses play a critical role in the U.S. economy and are central to growth and job creation. In the aftermath of the recession and credit crisis, small business owners faced disproportionate challenges, including difficulty accessing capital. With the help of lending supported by SBLF, small businesses can continue to grow.
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