Treasury Notes

 SBLF: Helping Small Businesses Hire, Grow and Invest

By: Matt Bevens

The U.S. Department of the Treasury today released a new report showing that participants receiving capital through the Small Business Lending Fund (SBLF) boosted lending for the seventh straight quarter.  In total, SBLF participants have increased small business lending by about $8.9 billion since the depths of the recession in 2009. That represents approximately 38,000 additional loans to small businesses looking to hire, invest, and expand in their local communities.

Small businesses in a wide array of industries have benefited from the increased lending by program participants, with companies in the service and agriculture sectors receiving the largest percentage of loans. Every region of the country has also benefitted, with participants in the Midwest, Southeast, and Southwest reporting the biggest increase in small business loans.

The SBLF was created when President Obama signed the Small Business Jobs Act into law in 2010. The fund encourages community banks and community development loan funds (CDLFs) to increase their lending to small businesses, which faced disproportionate challenges, including difficulty accessing capital, in the aftermath of the financial crisis.  The SBLF program has invested capital in community banks and CDLFs at an initial interest or dividend rate of up to 5 percent or less. To create a strong incentive for banks to help keep credit flowing, the cost of the SBLF funding is reduced – all the way down to 1 percent for banks that increase their lending to small businesses by 10 percent or more.

View the infographic in PDF format here.

Matt Bevens is the Media Affairs Specialist at the U.S. Department of the Treasury.

Posted in:  Small Business Lending Fund
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