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

Wednesday, April 03, 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.


Larrimore Elected President Of Paty, Rymer, Ulin & Larramore, P.C.

Paty, Rymer & Ulin, P.C., announced the election of Randall D. Larramore to serve as the President of the corporation. The firm also announced that its name has been changed to Paty, Rymer, Ulin & Larramore, P.C.  Mr. Larramore received his Bachelor’s degree from the University of Chattanooga in 1989, and received a Masters in Public Administration ... (click for more)

CPR Cell Phone Repair Holds Grand Opening At Hixson Location

CPR Cell Phone Repair Hixson will hold a Grand Opening Ribbon Cutting on Tuesday, Aug. 5 at 5425 Hwy 153 Suite A-1. The Chattanooga Are Chamber of Commerce will coordinate this event  at 11 a.m. CPR Cell Phone Repair has been specialized in repairing, buying, selling, and trading cell phones, smart phones, computers, laptops, game consoles, cameras, mp3 players, ... (click for more)

City Council Presents Potential Ordinance To Address Noise Level Downtown

Members of the Chattanooga City Council presented a potential ordinance to address concerns about the noise level downtown. If passed, the ordinance will put limits on both dB(A) and dB(C) levels of sound. It was noted, "When we compare our dB level, it is clear that Chattanooga is lower than Nashville and Knoxville." However, this comparison only takes dB(A) levels into consideration. ... (click for more)

Man Shot On Ohls Avenue While Working In His Yard

A Chattanooga man was shot Tuesday evening, while working in his yard. At approximately 8:55 p.m., Chattanooga Police responded to 4217 Ohls Ave. for a shooting. Officers located 34-year-old Daniel Marlowe suffering from a single gunshot wound to his hip.  Mr. Marlowe stated to investigators that while he was working in his yard, three black males approached him and ... (click for more)

Senator Bob Corker: An Open Letter To Tennesseans

We are incredibly fortunate to live in a state in which companies worldwide are clamoring to establish a presence. Many attribute it to our pro-business culture, well-prepared workforce, low tax environment, right-to-work policies, and engaged citizenry.  That is why the announcement by Volkswagen to build its midsize sports utility vehicle and establish the South’s ... (click for more)

Roy Exum: Scottsboro’s Pat Trammell

I got a warm feeling Tuesday when it was announced Pat Trammell will be among those in the inaugural class of the Jackson County (Ala.) Sports Hall of Fame. When the august group is enshrined at Scottsboro’s Goose Pond Civic Center on Nov. 1, most folks won’t even know who Pat Trammell was but I knew all about him in my very first year as a fledgling sports writer back in 1967 and, ... (click for more)