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.


Northwest Georgia’s Unemployment Rate Rises To 7.7 Percent In June

The Georgia Department of Labor announced today that the unemployment rate in the Northwest Georgia region increased to 7.7 percent in June, up four-tenths of a percentage point from 7.3 percent in May. The rate was 8.9 percent in June a year ago. The rate increased because of seasonal factors, such as the summer job loss among non-contract school workers and a rise in the labor ... (click for more)

Metro Dalton’s Unemployment Rate Rises To 9.3 Percent In June

The Georgia Department of Labor announced that Metro Dalton’s unemployment rate increased to 9.3 percent in June, up five-tenths of a percentage point from 8.8 percent in May. The rate was 11.1 percent in June a year ago. The rate increased because of seasonal factors, such as the summer job loss among non-contract school workers and an increase in the labor force as graduates ... (click for more)

EPB Files With FCC To Expand TV, Phone, Internet Offerings Outside Electric Service Area

 EPB announced Thursday that it has filed a petition to the FCC "in an effort to respond to neighboring communities’ requests for access to the company’s gigabit enabled high-speed Internet service." Officials said, "EPB offers high-speed Internet access, video programming and voice services using a fiber optic communications network that allows the company to deliver these ... (click for more)

Black Creek Developers Say They "Followed The Rules" On $9 Million TIF: To Continue Project

The developers of the Black Creek project at Aetna Mountain said Thursday they "complied precisely by the rules when we applied for and received approval of the TIF district." Doug Stein said the group plans to continue on with the project, which he said earlier would include the creation of a small town on a huge undeveloped tract on the mountain above Black Creek (formerly ... (click for more)

Pickle Ball? - And Response

Collegedale has done some wonderful things for its residents.  The Greenway is a perfect example of money well spent on helping to give her residents the opportunity to improve their lives, at least from a health standpoint. Having taught at Wolftever Creek for a decade plus, I was fortunate to have opportunity to take my classes on walks from time to time.  It provided ... (click for more)

Roy Exum: The NCAA’s “Division IV”

Jonathan Jensen and Brian Turner are two very smart guys. Not long ago the two sports researchers at Ohio State authored a story that appeared in the Journal of Quantitative Analysis in Sports that focused on the most successful college football teams in the country and, earlier this week, a writer named Ben Cohen broke it down in understandable terms for a fascinating Wall Street ... (click for more)