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.


GDOL To Host Recruitment For Express Staffing In LaFayette

The Georgia Department of Labor’s (GDOL) LaFayette Career Center will help Express Staffing recruit 100 automotive production employees to work for Nissin Brake in Rock Spring. The recruitment will be held on  Friday, May 5 , from  10 a.m. to 1 p.m.  at the career center located at 200 West Villanow St. in LaFayette. Due to U.S. Occupational Safety and ... (click for more)

Tennessee Unemployment Rates Fall In Most Counties

Tennessee’s county unemployment rates for March 2017 have decreased in 91 counties, increased in three, and remained the same in one, according to data released on Thursday by the Tennessee Department of Labor and Workforce Development (TDLWD). For the month of March, Davidson County has the state’s lowest major metropolitan rate at 3.4 percent, a decline from 3.6 percent of ... (click for more)

County School Teachers To Get 3% Raise Under Balanced County School Budget

Hamilton County Schools teachers are slated to get three percent pay increases under the balanced budget approved by the School Board on Thursday afternoon. That comes on top of a two percent hike last year. Lee McDade, assistant superintendent, said a large influx of cash came from the state, and Governor Bill Haslam outlined that it was to raise the pay level for teachers. ... (click for more)

Law Enforcement Shuts Down Convenience Store Near College Hill Courts As Public Nuisance

Law enforcement on Thursday took steps to shut down a convenience store near the College Hill Courts as a public nuisance. The action was taken after District Attorney Neal Pinkston filed a petition with Criminal Court Judge Tom Greenholtz about the Westside Shop. The store is operated by Salma Ambo, and the real property is owned by AAA Investment Properties LLC. The petition ... (click for more)

White Coat Syndrome And The Medical System - And Response (2)

Today I wish to share what I am feeling as a patient in our medical system. I am too old to put on airs at this point, and this is too pervasive of a problem for me to contain.   As I enter my AARP years, I am faced with so many medical encounters that evoke all kinds of uncomfortable feelings. I dread physician’s appointments riddled with government regulatory hypocrisy, ... (click for more)

Roy Exum: County Commissioners Not Getting Bang For Their School Bucks

The Hamilton County School Board passed a balanced budget to present to the County Commission at a Special Called Meeting on Thursday night. They also attached a prioritized list of $24.5 million in critical needs for the County Commission to consider that will never see the light of day. The long and short of it is easy to see -- the County Commissioners have had enough. It ... (click for more)