WASHINGTON — The Treasury Department released details Thursday about the first wave of capital released under the much-anticipated Small Business Lending Fund.
Six community banks have received a total of $123 million from the fund, according to a press release.
The recipients include Community Trust Financial Corp. in Ruston, La. ($48.3 million); Level One Bancorp Inc. in Farmington Hills, Mich. ($11.3 million); Pioneer Bank, SSB in Drippings Springs, Texas ($3 million); ServisFirst Bancshares Inc. in Birmingham, Ala. ($40 million); U&I Financial Corp. in Lynnwood, Wash. ($5.5 million); and Virginia Heritage Bank in Fairfax, Va. ($15.3 million).
"This lending fund program will enable us to continue to grow our small business loan portfolio and assist in the economic recovery in our markets," Tom Broughton, the president and chief executive of ServisFirst, said in a press release.
Lawmakers have pressured Treasury officials in recent months to speed up the distribution of capital under the program, which was created last year as part of the Small Business Jobs Act. But Treasury officials, including Secretary Timothy Geithner, pushed back, saying regulators were carefully screening applicants to ensure taxpayer dollars are protected.
Treasury said additional funding announcements will be made on a rolling basis in the weeks ahead. As of June 22, Treasury had received 869 applications for approximately $11.6 billion in funds. Under the law, the deadline to distribute funds is Sept. 27.
