Treasury Notes

 The Small Business Lending Fund is Making News Across the Country

By: Matt Bevens

Since its release last week​, Treasury’s Use of Funds report for the Small Business Lending Fund (SBLF) has been generating headlines across the country on the increased small business lending generated by the program. The report showed that participating community banks and community development loan funds have continued to increase their small business lending through the program, in total by more than $8.9 billion over the baseline and $1.5 billion over the prior quarter. Here are a few excerpts:


American Banker: Small Business Loans Tied to Treasury Fund Make Another Jump

The $1.5 billion in small-business loan growth by SBLF institutions between the third quarter and fourth quarter of last year equaled a previous high set between the first and second quarters of 2012. The nearly 38% increase in outstanding small-business loan balances above the baseline mark compares with an average increase of 8% at similar institutions not participating.

 "Comparing the SBLF banks versus their peer institutions, it's fairly clear to us that the program is working exactly as we had hoped," Don Graves, deputy assistant Treasury secretary for small business, community development and housing policy, said in an interview.

Jason Tepperman, the director of the SBLF, said officials have focused on making the peer-group comparison accurate.

"The peer banks are matched so they are in the same geographies, same size ranges, same financial condition, as the SBLF banks," he said. "As much as we can, we've sought to … provide an apples-to-apples comparison."

In its report, the Treasury provided additional data that includes the number of loans made and in what geographical region they were originated. Treasury officials estimate that more than 38,000 small-business loans have resulted from the program.


Charlotte Observer: N.C. small-business lending up $290M through federal program

North Carolina's small businesses have received a boost of $290.8 million in loans thanks to a federal program designed to increase lending to such businesses, the U.S. Treasury Department reported Wednesday.

The Small Business Lending Fund, created by the Small Business Jobs Act of 2010, provides capital to community banks and community development loan funds with less than $10 billion in assets apiece.

The $290.8 million increase in lending by North Carolina institutions is through Dec. 31. So far, the Treasury Department said, it has provided $115.1 million to seven North Carolina banks and $197,000 to one North Carolina CDLF.


Denver Post: Small business lending in federal program grows in Colorado

Colorado banks participating in a special federal lending program for small businesses have increased their lending by more than $214.8 million since 2010, a U.S. Treasury report shows. 

Banks in the Southwest region have increased SBLF lending since 2010 by 68 percent — the most nationally.

The Tennessean: Small business lending growing in Tennessee, Treasury says

Tennessee lenders that receive capital through the federal Small Business Lending Fund have increased average quarterly lending to small businesses by $347.8 million since 2010, according to a report released today by the U.S. Department of the Treasury.


The Hill: Report: Small-business lending picks up pace

"In every region of the country, the Obama Administration’s Small Business Lending Fund is supporting small and family-owned businesses with the funds they need to create jobs and grow,” said Neal Wolin, deputy secretary of the Treasury.

"This quarter’s report shows that SBLF participants are continuing to help thousands of small businesses invest, hire and expand in their local communities." 

Lending has increased over seven straight quarters through the final three months of last year with the service and agriculture sectors receiving the largest number of loans. 

The lending represents about 38,000 additional small-business loans.


St. Louis Business Journal: Mo. banks increase small-business lending by $209 million 

Eight Missouri community banks that received capital through the Small Business Lending Fund (SBLF) have increased lending to small businesses by $208.6 million during the recession, the U.S. Department of the Treasury reported this week.

The period measured is from June 30, 2010, through the end of 2012. The idea was to make loans to small businesses so they grow and add jobs. 

Triad Bank in Frontenac, for example, took $5 million through the program and has increased its small-business lending by more than 50 percent, to $46.2 million, and its interest rate is only 1 percent. Jim Regna, president and chief executive, has said he has found it to be a useful and inexpensive source of capital. 

Birmingham Business Journal: Alabama banks continue to increase small business lending 

Alabama banks participating in the federal government’s Small Business Lending Fund have continued to increase their small business lending, in total by more than $689 million over their baselines, the U.S. Department of the Treasury announced today.

Five Alabama banks received funding through the program: Birmingham-based Se​rvisFirst Bancshares Inc., which got $40 million; Vestavia-based First Partners Bank, which received $5.2 million; Sheffield-based Banc Independent Inc, which received $30 million; Anniston-based Southern States Bancshares Inc. received $7.5 million; and Andalusia-based Southern National Corp., which received $6 million in funding.


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

Posted in:  Small Business Lending Fund
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