Fund helping small businesses
Posted: Tuesday, April 24, 2012 7:00 pm
The U.S. Department of the Treasury has released a report showing Tennessee banks have increased their small business lending by $172.2 million since receiving capital through Small Business Lending Fund.
The SBLF was established as part of the Small Business Jobs Act that President Obama signed into law and encourages community banks to increase their lending to small businesses to help them grow and create new jobs.
The Treasury invested more than $4 billion in 332 institutions, located in over 3,000 communities in 48 states, through the SBLF, according to a news release. Nationwide, institutions participating in the SBLF significantly increased small business lending in the last quarter of 2011 by $1.3 billion over the prior quarter — for a total of $4.8 billion over their baseline.
“This report shows that the Small Business Lending Fund is having a powerful impact,” said Deputy Secretary of the Treasury Neal Wolin. “The program is helping spark new lending to local entrepreneurs looking to invest in their businesses and create new jobs.”
The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets.