The Treasury Department, has prepared a report of New York Banks that received capital through the Small Business Lending Fund. It is found that these banks have started to increase small business lending amounting to $283.2 million after receiving SBLF fund.
In total, Small Business Lending has been $283.2 million through the SBLF fund. It started in 2010, after President Obama signed the Small Business Jobs Act into law. This led to funds being released to community banks. It spurred increase in lending to small businesses and opened up opportunities for companies to expand operations and create new jobs.
The launch of SBLF has made it possible for treasury to invest $4 billion to 332 lending institutions spread throughout US. The financers operate in 3,000 locations spread across 48 States. It is being found that institutions that could participate in the SBLF program have been able to increase small business loans by $5.2 billion over the baseline.
The Small Business Lending Fund is successful in accomplishing what the Fed wanted it to do. The community banks have been able to leverage SBLF capital and support lending to local entrepreneurs. It definitely helped to create jobs in communities. In the US economy, small business plays a very crucial role and is central to job enhancement. The SBLF program has helped small businesses to get funded. SMEs are responsible for employing 50% of Americans and create 60% of net jobs.
The SBLF fund has helped several community banks having assets below $10 billion to be funded and meet challenges ahead. Banks are found to increase lending to small businesses after receiving SBLF funds. So, their dividend rate also decreased due to increased lending. Apart from the SBLF, Treasury also has the State Small Business Credit Initiative (SSBCI) that made $1.5 billion available to state programs for further leveraging small business lending.
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 firstname.lastname@example.org