Treasury Notes

Yesterday, Treasury sent a report to Congress that contains strong evidence that the Small Business Lending Fund (SBLF) is working. The report shows that institutions participating in the Small Business Lending Fund have significantly increased lending to small businesses, to the tune of $3.5 billion over their baseline (the average lending reported in the four quarters before the Small Business Jobs Act, which created the SBLF, was enacted). These loans are helping small businesses to grow, create jobs and support families in communities all across the nation.

Lending through the program is widespread. To date, 218 of the 281 participating community banks, or 78 percent, and 41 of the 51 participating community development loan funds (CDLFs), or 80 percent, have increased their small business lending. And a substantial majority of SBLF participants — more than 60 percent— have now increased their small business lending by 10 percent or more. In dollars, community bank participants increased their small business lending by $3.4 billion and CDLFs increased their small business lending by $86.8 million.

The report also shows that lending through the program is widely distributed across the country – banks and CDLFs in 44 states (including Washington, DC) reported increased lending. These increases have a huge impact in their communities where small businesses have more access to lending.

This Administration knows that small businesses play a critical role in the U.S. economy and are central to creating jobs and restoring our economic prosperity. This report on SBLF is encouraging, and we look forward to even stronger reports in the future.  

Banks and CDLFs that increased their small business lending as of 9/30/11 

For more information on the SBLF, click here.  To read the full “Use of Funds” report, click here.

Don Graves is Deputy Assistant Secretary for Small Business, Community Development and Housing Policy