Wednesday, August 3, 2011

Twenty Community Banks across the Country Receive $253 Million to Help Small Businesses Access Capital, Create New Jobs

WASHINGTON – Today, the U.S. Department of the Treasury announced that 20 community banks across the country received a total of $253 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, 43 community banks have now received a total of $590 million in SBLF funding. Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead.

“Access to capital is critical to ensuring small businesses can invest, expand, and hire in their local communities,” said Deputy Secretary Neal S. Wolin. “These funds will help unlock credit for Main Street entrepreneurs to support private sector growth and job creation.” 

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 21 states have already had their applications approved for $686 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 20 banks that received SBLF funding as part of today’s announcement include:
•Liberty Bancshares, Inc (Jonesboro, Arkansas) -- $52.5 million
•Redwood Capital Bancorp (Eureka, California) -- $7.3 million
•Pacific Coast Bankers’ Bancshares (San Francisco, California) -- $12.0 million
•Broward Financial Holdings, Inc (Fort Lauderdale, Florida) -- $3.1 million
•Farmers State Bankshares, Inc. (Holton, Kansas) -- $700,000
•Progressive Bancorp, Inc. (Monroe, Louisiana) -- $12.0 million
•Birmingham Bloomfield Bancshares, Inc. (Birmingham, Michigan) -- $4.6 million
•Southern Missouri Bancorp, Inc. (Poplar Bluff, Missouri) -- $20.0 million
•Adbanc Inc. (Ogallala, Nebraska) -- $21.9 million
•Banner County Bank Corporation (Harrisburg, Nebraska) -- $2.4 million
•Centrix Bank & Trust (Bedford, New Hampshire) -- $24.5 million
•Hopewell Valley Community Bank (Pennington, New Jersey) -- $11.0 million
•Catskill Hudson Bancorp, Inc. (Rock Hill, New York) -- $9.7 million
•Greater Rochester Bancorp, Inc. (Rochester, New York) -- $7.0 million
•Regent Capital Corporation (Nowata, Oklahoma) -- $3.4 million
•Team Capital Bank (Bethlehem, Pennsylvania) -- $22.4 million
•Medallion Bank (Salt Lake City, Utah) -- $26.3 million
•Citizens Community Bank (South Hill, Virginia) -- $4.0 million
•First Bank of Charleston (Charleston, West Virginia) -- $3.3 million
•Financial Security Corporation (Basin, Wyoming) -- $5.0 million

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