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Sept. 28 (Bloomberg) -- A $30 billion Obama administration program to stimulate small-business lending closed yesterday having distributed more than $4 billion, the U.S. Treasury Department said today.
Treasury officials have blamed the low performance of the Small Business Lending Fund on 40 percent of the applicants not meeting minimum requirements. The Treasury said in a statement today that more than $4 billion in capital went to 332 community banks nationwide, adding that the final round of funding has been made.
“This $4 billion investment, which will help propel lending by main street banks in many multiples of that amount is good for our economy and good for America’s small businesses,” Treasury Deputy Secretary Neal Wolin said in the statement.
Fund officials approved lending for community banks with less than $10 billion in assets. The banks are to receive capital financing with incentives to increase loans to small companies as a way to stimulate growth.
The program came to a statutorily mandated end yesterday. President Barack Obama last year praised the program as a key effort to help the economic recovery.
In total, 933 institutions applied for $11.8 billion in SBLF funding.
--Editors: Gail DeGeorge, Kevin Costelloe
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