Community Banks Finally Receive SBLF FundsJuly 27, 2011
The U.S. Department of the Treasury (Treasury) recently announced that, thus far, 23 community banks have received a total of $337 million in funding from the Small Business Lending Fund (SBLF). Treasury also reported that additional announcements regarding further funding developments would be forthcoming on a rolling basis.
The SBLF fund was created in September 2010 when Congress passed and President Barack Obama signed into law the Small Business Jobs Act. In December 2010, NSBA joined Sens. Mary L. Landrieu (D-La..), chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and George LeMieux (R-Fla.), in calling for the swift implementation of the SBLF and the State Small Business Credit Initiative, which also was created by theSmall Business Jobs Act.
According to an internal poll conducted earlier this year by the Independent Community Bankers of America, nearly a quarter (24 percent) of their 5,000 community-bank members planned to utilize the SBLF.
Less than 900 community banks have applied for SBLF funding, however. In total, those banks are seeking $11.6 billion in capital, far less than was authorized by Congress.
Treasury must approve banks’ applications for the SBLF and invest in them by Sept. 27, 2011, the one-year anniversary of the enactment of the Small Business Jobs Act. The agency has indicated that it will meet its deadline.