Small Business Lending Fund Update

The U.S. Department of the Treasury (Treasury) is expected to soon release the criteria small banks must meet in order to participate in the $30 billion Small Business Lending Fund (SBLF) created by the NSBA-supported Small Business Jobs and Credit Act.

Meanwhile, Sens. Mary L. Landrieu (D-La..), chair of the U.S. Senate Committee on Small Business and Entrepreneurship, and George LeMieux (R-Fla.) recently sent a letter to Treasury Secretary Timothy Geithner, urging swift implementation of the SBLF and the State Small Business Credit Initiative, which was created by the same legislation.

NSBA echoes this call for immediate implementation. The SBLF has been on the drawing board for long enough. It is high time that it be deployed. America’s small businesses still are struggling through a destructive credit crunch and the realization of the SBLF stands to help the situation.

According to an internal poll conducted by the Independent Community Bankers of America (ICBA), nearly a quarter (24 percent) of their 5,000 community-banks members planned to utilize the SBLF. This means 1200 community banks stand poised to increase their small-business lending.

NSBA joins Landrieu and LeMeiux in urging Treasury to expedite the realization of the SBLF and State Small Business Credit Initiative.

Source: NSBA, December 7, 2010

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