Report: Federal Program Eases Path to Cash for Small Business Owners

The Small Business Lending Fund subsidizes loans to community banks. Obama administration officials claim it has made borrowing easier for business owners.

The U.S. Department of the Treasury has released a report showing that California institutions receiving capital through the Small Business Lending Fund (SBLF) continue to increase their small business lending.

“Community banks participating in the Obama Administration’s Small Business Lending Fund have consistently increased small business lending over the past two years,” said Deputy Secretary of the Treasury Neal Wolin. “With the help of lending supported by SBLF, these small businesses continue to grow and create jobs in their neighborhoods.”

The SBLF was established as part of the Small Business Jobs Act that President Obama signed into law in 2010. It encourages community banks to increase their lending to small businesses. Treasury invested more than $4.0 billion in 332 institutions through the SBLF.

For a full nationwide list of lenders, click here

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 an incentive for new lending to small businesses so that these firms can expand and create jobs, Treasury says.   

To view the report please click here.

Are you in small business? Have you tried to get financing? How has that worked for you? 

Gregory Brittain January 20, 2013 at 08:06 PM
Senator Barack H. Obama, March 2006: “The fact that we are here today to debate raising America 's debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, ‘the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.” In 2006, Senator Obama voted NO on raising the debt ceiling. In 2007 and 2008, he did not vote on raising the debt ceiling. http://hotair.com/greenroom/archives/2011/07/15/flashback-2006-senator-obama-voted-no-on-raising-the-debt-ceiling/
Gregory Brittain January 20, 2013 at 08:07 PM
In 2008, Obama said the George Bush adding $4 Trillion in debt in 8 years was “irresponsible” and “unpatriotic.” http://www.youtube.com/watch?v=ydZTHPkOnvE Obama has added more debt in less than 4 years.
Gregory Brittain January 20, 2013 at 08:13 PM
Debt Clock http://www.usadebtclock.com/ The only way to stop burdening future generations with huge debt is for the Federal government to live within its means. The only way to make the Federal government live within its means is for We The People to insist on it and elect and reelect people with a record of fiscal responsibility. It means saying "NO" to a lot people, programs, constituents, interest groups and large contributors. When the Federal government is borrowing and printing 40 cents of every dollar it spends it means saying "I AM SORRY BUT WE CANNOT AFFORD THAT" to a lot things that might sound good, and if there was unlimited money, might be worthwhile.
El Jibaro de Lytle Creek January 20, 2013 at 10:37 PM
Greg How much in Dollars of usgov funding is spent in total drone activity whatever the pennies spent place into defund mode.? Take defund mode funds and place into spending cut Voila win win win Shall we discuss or talk plausible denialbility of causal effect of current "think" and why this may not be best approach. and when return to dollar cost is reduced, and blah blah. Question: Is Debt Ceiling just another shell game, If govt can use NDAA & Patriot as pleases, and the inclination point, toward more human rights violations under qualified immunity enforcement; then the current microfication of GlobalCorporate economics, can continue their ever encroaching control, How wonderful it can be to become a 'Borg' type lifestyle. Not sustainable. Use your human capital toward improvement not impingement! El Jibaro De Lytle Creek
Jeffrey Sabatini January 20, 2013 at 11:42 PM
If anyone thinks President Obama has eased the path to SBA loans for small businesses, try to apply for one. Unless you and your business have spotless credit and vast amounts of real estate for collateral, don't even bother. That and many small businesses don't need or want loans starting at one million dollars. If Obama really wants to help small business, rather than having to pay a packager $5K or more to cross all the regulatory T's and dot the administrative I's to apply for... Obama could command the SBA to crate a simple one page application for low interest loans of $10K to $500K for equipment and high interest debt consolidations. But that perhaps makes too much sense. That and the fact the majority of small business owners are by nature "conservatives". Another very positive change the President could have addressed is credit card reform. Many small business have canceled their high interest company credit cards to pay down debt. In retaliation, many credit card companies as the debt is reduced lower the canceled card's limit to $500 over the remaining balance. This unfairly reflects as a negative credit to debt ratio on credit reports that can harm ratings for years to follow. And seeing how the credit card companies and banks spend billions on DC lobbyists, any real small business "SBA stimulus" is likely far from becoming a reality.


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