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.


Salons By JC Has Grand Opening At Northgate

Salons by JC - Northgate celebrated its grand opening with a ribbon cutting, tours, refreshments and discounts.  The new location is at 255 Northgate Mall, beside the back entrance to the mall. The event was coordinated by the Chattanooga Area Chamber of Commerce in conjunction with Salons by JC.   Salons by JC - Northgate leases fully equipped private suites to ... (click for more)

Local Vapor Store Expands; Creates Premium Chattanooga-Inspired EJuices

After opening on June 12, the locally-owned Chattanooga Vapor Company has continued to thrive at its North Shore locations off of Frazier Avenue and in Soddy Daisy, at the corner of Dayton and Thrasher Pike. No matter where one falls within the company’s three-step process, they ensure each individual’s needs are met. Its focus on helping people quit smoking and using tobaccos is ... (click for more)

Grote Hall At UTC Campus Closed Due To Sinkhole

A sinkhole has prompted UTC officials to close off access to Grote Hall. Grote Hall employees have been told they do not need to report to work on Monday. Classes that are held in Grote Hall are called off for Monday. All other classes and campus activities are on for Monday. (click for more)

Bradley County Police Investigating Shooting; Victim Dies

The Bradley County Sheriff’s Office is investigating a shooting that occurred in the area of Georgetown Road. The sheriff's office said Sunday night that the victim had died. The victim's name has not yet been released.  A BCSO officer was waved down at the intersection of 25 th Street and Peerless Road by the driver of a vehicle who told the officer a gunshot victim ... (click for more)

Don't Be Quick To Discard Common Core

Let's not be too quick to discard Common Core. A recent article in the Tennessean on  Sunday detailed Common Core successes the Kingsport, Tennessee school system.  I encourage you to read it.  The article also noted that Tennessee was recently ranked as one of the fastest improving states in education after implementing portions of the Common Core curriculum ... (click for more)

Roy Exum: UVa --Time For Change

The University of Virginia is, by any measure, one of the finest universities in the world. I have long admired it, whether covering dozens of sports events, cavorting with countless friends, or benefitting repeatedly from the surgical skills of the late world-class humanitarian Frank McCue. But today there is a terrible pall over “Mr. Jefferson’s university” – no, make that a ... (click for more)