Lending fund designed to help small businesses

| 1/20/2011

Many small-business truckers are anxious to find out whether their community banks will be participating in a program designed to spur lending to small businesses.

The $30 billion fund, known as the Small Business Lending Fund, was enacted into law as part of the Small Business Jobs Act of 2010.

Colleen Murray, spokeswoman for the U.S. Treasury department, told Land Line on Thursday, Jan. 20, that she isn?t sure exactly how many applications the department has received so far, but that there has been ?a lot of positive feedback from community banks.?

She said the application process is ongoing and that ?funding will be awarded on a rolling basis.?

Murray added that the Treasury department expects ?strong participation in the program.? The deadline for community banks to apply for SBLF funding is March 31.

According to the U.S. Treasury?s website, it will provide qualifying community banks with capital by ?purchasing Tier-1-qualifying preferred stock or equivalents in each bank.? The price a bank pays for SBLF funding ?will be reduced as the bank?s small business lending increases.?

?We?re also conducting extensive outreach to banks and associations to make sure interested banks know where to find information about the fund and how to apply,? Murray said.