Senators are prodding Treasury Secretary Timothy Geithner to get two recently approved programs meant for increasing lending and credit to small businesses. Senators, Mary L. Landrieu, D-La and George LeMieux, R-Fla have sent a letter to Geithner requesting him to get the Small Business Lending Fund and State Small Business Credit Initiative implemented.
Landrieu and LeMieux have played a key role in getting the SBLF included in the Small Business Jobs Act of 2010. This provision has brought community banks under one umbrella with a $30 billion strategic partnership created in-order to boost lending to small firms.
Compared to large banks, community banks function in a different way. It is keeping this in view that it becomes important that everything possible be done to enhance small business lending. The programs that are designed in the act are crucial for community banks. It is for this reason that provisions of the act be implemented for retaining small business access to capital.
Small Business Lending Fund and the State Small Business Credit Initiative have been extended to banks under the provision of the underlying bill. After the signing of the law on Sept. 27, 2010, the program has been extended to additional banks. Participating banks will find economic incentives so as to enhance their capability to lend to small businesses. So, in this difficult economic time small business shall find immense support.
Around $30 billion is set to be invested under the Small Business Lending Fund scheme to health community banks in the small business economy. This fund has been endorsed by several organizations. State Small Business Credit Initiative doles out $1.5 billion in grants to extend its support to $15 billion in new small business lending. Due to budget shortfalls, many state run programs are facing cutbacks. But this initiative will definitely make it possible for the states to build a successful model for small business programs.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to