Banks provide lending boost for three more years

9/20/2011

Vice President Joe Biden, joined by Small Business Association administration head Karen Mills, announced today the infusion of $20 billion into small business lending over the next three years, Portfolio.com reports.

Many of the nation's larger banks were among the institutions that agreed to increase lending. Others included KeyBank Regions Bank, Huntington Bank, M&T Bank, Citizens Financial Group, TD Bank, U.S. Bank, PNC Bank and SunTrust Bank.

"We know that many small businesses, particularly in traditionally underserved communities, still face challenges in accessing the capital they need to buy inventory, take on that next new order and hire new workers," said Mills, as quoted by the news source. "These commitments by our lending partners leverage both commercial and government programs that work, and will provide billions of capital to help small businesses all across the country grow and create jobs."

Furthermore, Chase recently agreed to raise its small business lending from $10 billion in 2010 to $12 billion in 2011, after it made the most SBA loans to U.S. companies during the first half of the current fiscal year.

Portfolio.com adds that the SBA has approved $18.4 billion in 7(a) loans to more than 50,000 small businesses during the current fiscal year, which is slated to end in three weeks.