Community banks have received an additional $214 million in funds from the U.S. government to help provide small businesses with more capital.
The U.S. treasury announced plans to provide 17 community banks across the country with funds through the Small Business Lending Fund, established under President Barack Obama through the Small Business Funds and Jobs Act of 2010. A total of $337 million has been extended to community banks since the fund was established, and additional funding announcements are expected to be funded in the coming weeks.
“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 in a statement. “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.”
Eagle Bancorp of Bethesda, Md. received the most funds at $56.6 million. Click here to view a full list of the banks that will receive funds through the SBLF.
Funding For Community Banks Picks Up Steam in 2011:
The SBLF isn’t the only government fund that’s provided community banks with funding. The Community Development Financial Institutions Fund, another U.S. Treasury-established fund, also announced plans this week to provide community banks with more than $142 million in funds through the fiscal year 2011. At the time the agency said the funding was the largest single round of funding extended to such financial institutions in its history.
JP Morgan Chase also announced plans to invest $100 million to U.S-based community banks in increments of between $2 million to $5 million this past January.
The SBLF fund is worth $30 billion was established to provide funds to community banks with assets of $10 billion and less.