Virginia bank adds staff, amplifies marketing plan with SBLF funds

7/11/2011

A $15.3 million small business loan from the U.S, Treasury Department's Small Business Lending Fund recently opened up some options for Virginia Heritage Bank of Chantilly.

With the additional funds, the financial institution was able to was able to hire two more lending officers and expand marketing efforts to target Hispanic small businesses, according to the Washington Post.

Banks are eligible for the fund if they hold under $10 billion in assets. Despite the fact that VHBC's commercial loan balances grew by 10 percent over the last few quarters, it held just $481.5 million and needed a way to raise additional capital.

"It looked like a good alternative for us," chief executive David Summers told the news source. "Had we not had access to this program we would have had to curb our growth."

The Treasury had taken nine months to disburse the funds before its $123 million initial appropriation to six banks including VHBC last week. Much of the delay, according to Treasury Secretary Timothy Geithner, can be attributed to the time it takes regulators to review each bank's application.