SBLF sends more funding to community banks

9/1/2011

The Small Business Lending Fund has sent another large influx of capital into community banks in order to spur business loans and help economic recovery.

President Barack Obama's administration created the fund as part of the Small Business Jobs Act of 2010. The SBLF is a $30 billion program geared toward smaller local banks that engage in commercial lending.

"These funds will provide a powerful incentive for community banks to expand their lending to small businesses, spurring new investment and job creation," noted Neal S. Wolin, Deputy Secretary of the Treasury.

Small businesses are a vital component of employment and economic recovery. More than half of private sector workers are employed by smaller firms, and an increase in credit availability is seen as a way to help these businesses get started, expand and avoid resorting to less-than-desirable loan terms.

"Breaking down barriers to credit will provide critical support to Main Street entrepreneurs looking to invest in their local communities, grow their businesses, and put more Americans back to work," Wolin continued.

The latest influx of funds from the SBLF totalled $767 million and was distributed among 50 banks across the nation.