WASHINGTON — Banks who received funding through the Small Business Lending Fund have increased small business lending by $6.7 billion, or 27.4%, over baseline levels, the Treasury Department said Tuesday.
In its latest report on the program's use of funds, Treasury said SBLF participants also increased small business lending by $1.5 billion in the second quarter, compared with the previous quarter.
Treasury invested more than $4 billion in 332 small financial institutions through the program, which Congress created in September 2010 through the Small Business Jobs Act. The law set aside $30 billion to help generate lending for small businesses at banks with less than $10 billion of assets.
"Today's report is further indication that the administration's Small Business Lending Fund is continuing to help create an environment in which entrepreneurial small businesses can succeed and excel," said Deputy Treasury Secretary Neal Wolin said in a press release. "Banks in the SBLF program continue to show large increases in the lending available for small businesses to grow, create jobs, and support families in communities across the country."
Treasury said 89% of participants have increased their small business lending over baseline levels, which take into account the average loan balances for the four quarters that ended June 30, 2010. More than 76% of participants have increased lending by 10% or more, the report said.
