Wednesday, July 20, 2011

17 Community Banks Across the Country Receive $214 Million to Help Small Businesses Access Capital, Create New Jobs

WASHINGTON – Today, the U.S. Department of the Treasury announced that 17 community banks across the country received a total of $214 million as part of the next wave of funding provided through the Small Business Lending Fund (SBLF). The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.          

Including today’s announcement, 23 community banks have now received a total of $337 million in SBLF funding. Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead.

“This funding will help break down barriers to credit for small businesses so they can invest, expand, and create new jobs,” said Treasurer of the United State Rosie Rios. “Continuing to unlock access to capital for Main Street entrepreneurs is vital to strengthening economic growth and job creation in local communities across our country.”

Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.

The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so they can expand and create jobs. For more details on the SBLF program, please visit, link and link.

The SBLF is one part of the Obama Administration’s comprehensive agenda to help small businesses access the capital they need to invest and hire. The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers.  A total of 54 states and territories applied to take part in the SSBCI and 16 states have already had their applications approved for $570 million in SSBCI funding. 

The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire. 

The 17 banks that received SBLF funding as part of today’s announcement include:
•Florida Traditions Bank (Dade City, Florida) – $8.8 million
•Verus Acquisition Group, Inc (Fort Collins, Colorado) – $9.7 million
•Founders Bancorp, (San Luis Obispo, California) – $4.2 million
•SouthCity Bank, (Vestavia Hills, Alabama) – $5.2 million
•Cache Valley Banking Company (Logan, Utah) – $11.7 million
•Security Business Bancorp (San Diego, California) – $8.9 million
•BOH Holdings, Inc. (Houston, Texas) – $23.9 million
•BancIndependent, Incorporated (Sheffield, Alabama) – $30.0 million
•First California Financial Group, Inc. (Westlake Village, California) – $25.0 million
•Centric Financial Corporation (Harrisburg, Pennsylvania) – $7.5 million
•Eagle Bancorp, Inc. (Bethesda, Maryland) – $56.6 million
•York Traditions Bank (York, Pennsylvania) – $5.1 million
•Insight Bank (Columbus, Ohio) – $4.3 million
•Freedom Bancshares, Inc. (Overland Park, Kansas) – $4.0 million
•Phoenix Bancorp, Inc. (Minersville, Pennsylvania) – $3.5 million
•Huron Valley State Bank (Milford, Michigan) – $2.6 million
•Monument Bank (Doylestown, Pennsylvania) – $3.0 million​

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