Treasury Announces $347.8 Million Increase In Small Business Lending By State Participants In The Small Business Lending Fund

Wednesday, April 3, 2013

The U.S. Department of the Treasury on Wednesday released a new report showing that Tennessee institutions receiving capital through the Small Business Lending Fund (SBLF) continue to increase their small business lending, in total by more than $347.8 million over their baselines.

This Use of Funds report shows that participants receiving capital through the SBLF boosted lending for the seventh straight quarter.  In total, SBLF participants have increased small business lending by about $8.9 billion since the depths of the recession in 2009.  This increased lending represents an estimated 38,000 additional small business loans over baseline levels. To view this information graphically, as well as detail on the increased lending across all regions, click here.

“In every region of the country, the Obama Administration’s Small Business Lending Fund is supporting small and family-owned businesses with the funds they need to create jobs and grow,” said Deputy Secretary of the Treasury Neal Wolin. “This quarter’s report shows that SBLF participants are continuing to help thousands of small businesses invest, hire, and expand in their local communities.”

The report also shows that SBLF participants increased their lending by $1.5 billion more than the prior quarter, representing the second highest increase since the start of the program.  Community banks participating in SBLF have increased business lending by 38 percent, a substantially greater amount than a peer group of similar banks across median measures of size, geography, and loan type.

Small businesses play a critical role in the U.S. economy and are central to growth and job creation. In the aftermath of the recession and credit crisis, small business owners faced disproportionate challenges, including difficulty accessing capital.

The SBLF, established as part of the Small Business Jobs Act that President Obama signed into law in 2010, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.  Treasury invested more than $4 billion in 332 institutions through the SBLF.  Collectively, these institutions operate in more than 3,000 locations across 48 states.  This report includes information on the 320 institutions that continue to participate in the program as of March 15, 2013, including 270 community banks and 50 community development loan funds.

SBLF encourages lending to small businesses by providing capital to community banks and CDLFs with less than $10 billion in assets.  The dividend or interest rate a community bank pays on SBLF funding is reduced as the bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so that these firms can expand and create jobs.  As of December 31, 2012, the average rate paid by community banks on SBLF capital was 1.8 percent.  Individual community banks can reduce the rate they pay to one percent if they increase qualified small business lending by 10 percent over their baseline.

To view the report, including a list of the change in lending at banks receiving SBLF capital, please click here.

The SBLF is one part of the Obama Administration’s comprehensive agenda to help small businesses access the capital they need to invest and hire.  Treasury also administers the State Small Business Credit Initiative (SSBCI), which allocates $1.5 billion to state programs designed to leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers. 

For more information on the Obama Administration’s small business initiatives, visit www.sba.gov.  For more information on SBLF, visit www.treasury.gov/sblf.


Chattanooga Chamber Presents Business Calendar For March 28-31

TUES/28 Reality Check at Ivy Academy 9:45-11 a.m. Mile Straight Baptist Church: 8448 Springfield Rd. Reality Check teaches 9th graders budgeting and emphasizes the connection between education and income by having roleplay as heads of household with a set budget. To volunteer for this Chattanooga Chamber career readiness program, contact Cathy Humble at  423.763.4321 ... (click for more)

TN Supreme Court Holds That Indigent Prisoner's Case Was Properly Dismissed

The Tennessee Supreme Court has held that an indigent prisoner’s case was properly dismissed pursuant to Tennessee Code Annotated section 41-21-812 when the prisoner had outstanding unpaid court costs from prior litigation.  Tennessee Code Annotated section 41-21-812 authorizes the rejection of certain new claims in court from an indigent inmate who has unpaid fees, taxes, ... (click for more)

Storm Costs EPB $2.5 Million; Smart Grid Helped Ease The Pain

Tuesday night's fierce storm cost EPB an estimated $2.5 million, President David Wade said Friday. He said the city utility will have to bear all the cost - unlike when it got federal aid after spending $18 million following tornadoes that raked the Chattanooga area in 2012. Mr. Wade said EPB's Smart Grid helped ease the pain, bringing back online about 27,000 affected customers ... (click for more)

1 Killed, 1 Injured In Brainerd Shooting

One person was killed and a second person injured in a shooting in Brainerd on Thursday night. The call was to 3301 Pinewood Ave. at 7:05 p.m. It was reported that a silver vehicle was seen leaving the scene. One of the persons shot, 23-year-old Antonio Baldwin, died during surgery. The injury to William Daniel, 21, is not life-threatening. Police said both of the ... (click for more)

Slaxxon Regret

Back in the seventies my three oldest brothers had a buddy named Steve Slack. “Slack” was a star soccer player at Baylor and he grew up on Lookout Mountain, which is where I grew up. He and Jimmy, Henry and Bill went to the University of Virginia where they were roommates in an old, beat up house that was painted pink. Naturally, the place became known as the “Pink Palace” but lest ... (click for more)

Roy Exum: The Scottsboro Boys

There is a good-sized train tunnel that runs under the northern tip of Lookout Mountain, right next to Cummings Highway. It was inside that tunnel on this very weekend 86 years ago, that the worst tragedy in the fabled history of the South was born. This was during the tight grip of the Depression and about two dozen hobos had jumped the train from the time it left Southern Railway's ... (click for more)