Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

First Dollars Trickle from $30B Small Business Lending Fund

Posted by: John Tozzi on July 7, 2011

The U.S. Treasury has made its first investments in community banks through a program intended to encourage them to lend to small businesses. Six community banks received a total of $123 million under the program, the Treasury announced today.

This is the first money from the Small Business Lending Fund that President Obama outlined 18 months ago in his 2010 State of the Union address. Congress passed the law creating the fund last September. The Treasury had originally expected to get the money out the door in the first quarter of this year.

Banks with less than $10 billion in assets could apply for capital in the form of preferred stock. The interest rate that banks pay Treasury for the funds begins at 5 percent but can decline to as little as 1 percent if banks increase their small business lending sufficiently.

A total of 925 institutions have applied for $11.8 billion from the fund, Treasury spokeswoman Colleen Murray said in an email today. About one-third of those are seeking to use the money to replace earlier government money acquired through the Troubled Asset Relief Program, the bank bailout created in 2008 after Lehman Brothers’ bankruptcy.

Of the six lenders funded through the program today, only one, the Community Trust Financial Corporation in Ruston, La., was refinancing TARP money. It received $48 million. Details of the transactions are available in this PDF.

For more, listen to Bloomberg Businessweek’s Roben Farzad discuss the program with WNYC’s Brian Lehrer yesterday.

Post a comment



What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

BW Mall - Sponsored Links

Buy a link now!