New York banks have increased small business lending by $243.2 million since receiving capital through the federal government’s Small Business Lending Fund (SBLF), according to a U.S. Department of the Treasury report.
The SBLF was created under the Small Business Jobs Act of 2010. The $30 billion fund provides capital to community banks that hold under $10 billion in assets.
The fund started disbursing money in June of last year. It has sent more than $4 billion to 332 institutions in 48 states.
“This report shows that the Small Business Lending Fund is having a powerful impact,” said Deputy Secretary of the Treasury Neal Wolin. “The program is helping spark new lending to local entrepreneurs looking to invest in their businesses and create new jobs.”
Nationally, institutions receiving money from the SBLF have increased small business lending by $4.8 billion, according to the Department of the Treasury. In the last quarter of 2011, they increased small business lending by $1.3 billion over the previous quarter.
Contact Seltzer at rseltzer@cnybj.com