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Federal Program Eases Path to Cash for Small Business Owners

The Small Business Lending Fund subsidizes loans to community banks. Obama administration officials say it has made borrowing easier for business owners.

The U.S. Department of the Treasury has released a report showing that California institutions receiving capital through the Small Business Lending Fund (SBLF) continue to increase their small business lending.

“Community banks participating in the Obama Administration’s Small Business Lending Fund have consistently increased small business lending over the past two years,” said Deputy Secretary of the Treasury Neal Wolin. “With the help of lending supported by SBLF, these small businesses continue to grow and create jobs in their neighborhoods.”

The SBLF was established as part of the Small Business Jobs Act that President Obama signed into law in 2010. It encourages community banks to increase their lending to small businesses. Treasury invested more than $4.0 billion in 332 institutions through the SBLF.

Here are some banks in the region that are participating:

City Institution Citrus Heights Bank of Commerce Holdings, 916-772-0131 Davis First Northern Bank, 434 Second St. Dixon First Northern Bank, 195 N. First St. Gold River Central Valley Community Bank, 2339 Gold Meadow Way, Suite 100 Roseville First Northern Bank, 2150 Douglas Blvd., Ste. 260 Sacramento First Northern Bank, 700 J St. West Sacramento First Northern Bank, 1300 Harbor Blvd. West Sacramento Rural Community Assistance Corporation, 3120 Freeboard Dr.

For a full nationwide list of lenders, click here

SBLF encourages lending to small businesses by providing capital to community banks and CDLFs with less than $10 billion in assets.  The dividend or interest rate a community bank pays on SBLF funding is reduced as the bank increases its lending to small businesses – providing an incentive for new lending to small businesses so that these firms can expand and create jobs, Treasury says.   

To view the report please click here.

Are you in small business? Have you tried to get financing? How has it worked? 

Reginald Bronner January 22, 2013 at 04:56 PM
These programs and others like them have been available from both the federal and state governments. However, our local state representatives haven't bothered to bring them to our attention due to ideological or knowledge shortfalls where they can do the most good. Placer County can do better than this.
Tina Wong January 22, 2013 at 06:23 PM
I want the government to do something about these unmotivated mall owners like the ones in Rosemont. They are unwilling to promote and lease their spaces and are a large part of the decline in the neighborhood. Whatever tax benefit they may be getting from this it should be stopped.
Roberto January 22, 2013 at 07:11 PM
If this works I'll be very surprised. Similar programs have failed due to stalling and a lack of cooperation from the banks. The banks have been 'encouraged' by the SBLF to increase their small business loans. 'Encouragement' doesn't work well with banks that want to hang on to their money and not risk it by extending loans to small businesses. It always sounds good when they announce it, but why should this time be different?
M.Legison January 22, 2013 at 07:25 PM
The SBA has become very political under Obama. They are picking partner direct lenders who support the administration, and banks who have cooperated with the federal programs. It's shameful, but that's what this administration does.
Roberto January 23, 2013 at 01:07 PM
There's not a whole lot this administration does that surprises me anymore. High ethics, morals and 'doing the right thing' doesn't seem part of the game plan. It's a shame that we're stuck with the same politicians and attitudes for four more years.

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