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.


Supreme Court Upholds Rape Of A Child Conviction

The Tennessee Supreme Court has upheld the conviction of a Memphis man for rape of a child, ruling that a prosecution error in the trial did not deprive the defendant of his constitutional right to a unanimous jury verdict.  Courtney Knowles was found guilty of raping the daughter of his half-sister/girlfriend. The victim was less than 13 years old and Knowles lived in the ... (click for more)

Applications Now Being Accepted For 2015-2016 Adult Leadership Walker County Class

The Walker County Chamber of Commerce is accepting applications for the 2015-2016 Adult Leadership Walker County Class. This program is a collaborative effort between Chamber staff, community leaders and chamber members. It provides participants the opportunity to both learn and develop the skills necessary to be a leader in the community. Participants are given an overview of city ... (click for more)

Ruling States That City Of Cleveland Is Entitled To Liquor By The Drink Funds

The city of Cleveland is entitled to keep all funds collected since city voters approved “liquor by the drink” in the Nov. 5, 2002 election. Bradley County Schools sued the city for taxes owed based on the school board’s interpretation of state law. Cleveland City Schools will be allowed to keep its money. The city of Cleveland distributed the liquor by the drink tax to Cleveland ... (click for more)

Crash On Chattanooga Avenue Causes Power Outage

A single-car accident in Dalton damaged a power pole on Chattanooga Avenue in front of the Crown Mill Village apartments and has caused a power outage in the area.   Chattanooga Avenue was closed between Matilda Street and Judson Street while the Dalton Police Department investigated the crash and Dalton Utilities worked to replace the pole. The road was reopened later.  ... (click for more)

Chattanooga's Memorial Day - And Response

It is recorded in the Fourth Chapter of the Book of Joshua, that after the nation had crossed the River Jordan, Joshua would receive a divine commandment to choose 12 men from among the people and tell them to take 12 stones from the middle of the river.  Each man placed a stone on their shoulder which represented one of the tribes of Israel, and served as a memorial ... (click for more)

Roy Exum: My Garden In August 2015

Those in the know tell me the month of August is National Peach Month, so as I take a stroll through garden, I am paying particular attention to the poppy and the gladiolus because they are the “birth flowers" of this month. But as we dole out our months Orchids and Onions, let’s substitute a peach and a pit, that hard seed you find when you bite into a peach. A PEACH to the ... (click for more)