Alabama community banks participating in the federal government’s Small Business Lending Fund have increased their lending by $872.9 million over baseline levels, including a $62.1 million increase in the third quarter, according to the U.S. Department of the Treasury.
The SBLF, established as part of the Small Business Jobs Act that President Obama signed into law in 2010, is a dedicated fund designed to provide capital to community banks and community development loan funds 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 small business lending. The program encourages community banks and small businesses to work together to help those companies expand their operations and create new jobs.
“The Obama Administration’s Small Business Lending Fund is supporting Alabama community banks as they work with local small businesses to fuel our economic recovery,” said Treasury Under Secretary for Domestic Finance Mary J. Miller. “Today’s report shows that the SBLF continues to create more opportunities for American entrepreneurs to turn their good ideas into successful, growing businesses.”
Here’s a look at the amounts of qualified small business lending that the five participating banks in Alabama have made as of Sept. 30:
• ServisFirst Bancshares – $1.4 billion, which was 113.6 percent, or $749.4 million, over its baseline
• Southern States Bancshares – $73.2 million, which was 36.5 percent, or $19.6 million, over its baseline
• First Partners Bank – $52.4 million, which was 34.1 percent, or $13.3 million, over its baseline
• Southern National Corp. – $191.7 million, which was 23.4 percent, or $36.3 million, over its baseline
• BancIndependent – $296.2 million, which was 22.5 percent, or $54.4 million, over its baseline
Nationwide, participants receiving capital through SBLF boosted their small business lending by $11.2 billion over baseline levels since the program was started and by $819 million over the prior quarter. The reported aggregate lending increase represents an estimated 51,700 additional loans to small businesses, the Treasury said.
- Antrenise Cole | Reporter- Birmingham Business Journal
- Jan 7, 2014, 1:33pm CST