Report: Small Business Lending Fund aiding midstate business loans
The federal program that advances low-cost capital to community banks and nonprofit lenders has boosted small-business loans in the midstate by nearly $100 million, according to the U.S. Treasury.
Nationwide, the Small Business Lending Fund has helped increase small-business lending by $8.9 billion since 2009, compared with baseline levels, the Treasury said in its quarterly report on the program, released Wednesday. Participating banks have made more than 38,000 new loans, the agency said.
The five institutions increased lending by between 11.6 percent and 63.2 percent, and 28.1 percent overall, according to Treasury data. In all, they made $98.1 million in additional small-business loans, the Treasury said.
Nationwide, business lending at banks participating in the lending fund is up by 38 percent, compared with 8 percent for peer banks, the Treasury said.
The more institutions lend, the lower the finance costs they must pay the Treasury. The four banks' rate is 1 percent; Community First Fund is paying 2 percent.