Obama administration has given its nod for the final round of funding under the $30 billion fund program to disburse loans to small businesses. The program left billions of dollars untapped and banks can’t still understand the reason why they did not qualify.
Barack Obama’s signing of the Small Business Jobs Act in Sept 2010 made a fund pool of $30 billion available for community banks. The fund instilled confidence in community banks as its target remained to fulfill the financial deadlocks faced by community banks. It is undoubtedly an effort to spur lending to smaller companies.
But the Treasury Department on Wednesday made an announcement when it said that 141 community banks received over $1.6 billion in the final round of funding. The total disbursement has been $4 billion that got distributed to 332 financial institutions.
All over US, billions of dollars of SBLF funds are being used and it helps in Small Business growth and for creating new jobs. Financial institutions that received funds are definitely in a position to lend out at reasonable terms to businesses for creating jobs.
Treasury lamented over the fact that it received 933 applications asking for $11.8 billion funding but then over 40 percent did not even meet minimum requirements.
Republican Sam Graves, says, that it is disappointing to see Treasury’s poor performance in the SBLF fund. There are 7,400 businesses in the country that meet the Small Business Jobs Act’s minimum requirement of possessing less than $10 billion in assets. Banks that received funds, however, are in a position to boost lending to qualified small businesses.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com