Small Business lending increased to $427.5 million after Alabama banks received funds from U.S. Department of Treasury. Several banks in Alabama now have outstanding funds. Small Business Lending Fund (SBLF) has been made available to five banks in Alabama.
The SBLF came into being as part of Small Business Jobs Act when it received approval and got signed by President Obama in 2010. It is because of SBLF that banks with less than $10 billion in assets found an incentive to lend money. They are strengthened with funds so as to help them increase small business lending, create vacancy for new jobs, and diversify operations.
Five Alabama banks that have received Treasury Department’s Small Business Lending Funds (SBLF) so far are:
First Partners Bank located in Vestavia Hills received $5.2 million
Southern National Corp. located in Andalusia received $6 million
Bank Independent located in Sheffield received $30 million
Southern States Bancshares Inc. located in Anniston received $7. 5 million
ServisFirst Bank located in Birmingham received $40 million.
Apart from the above five banks, 332 other institutions received $ 4 billion in funds from the treasury. The invested money has helped lending institutions to forward loans by $5.2 billion to small business owners. The funds from treasury also helped the community banks to make SBLF capital available to entrepreneurs so that they can expand their organization and grow the number of jobs.
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