The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses

Following the financial crisis, total outstanding loans to businesses by commercial banks dropped off substantially.

DOWNLOAD NOW »

Author: Federal Reserve Federal Reserve Board

Publisher: CreateSpace

ISBN: 1511918772

Category:

Page: 24

View: 879

Following the financial crisis, total outstanding loans to businesses by commercial banks dropped off substantially. Large loans outstanding began to rebound by the third quarter of 2010 and essentially returned to their previous growth trajectory while small loans outstanding continued to decline. Furthermore, much of the drop in small business loans outstanding was evident at community banks. To address this perceived lack of supply of credit to small businesses, the Small Business Lending Fund (SBLF) was created as part of the 2010 Small Business Jobs Act. The fund was intended to provide community banks with low-cost funding that they could then lend to their small business customers. As of December 31, 2013, the U.S. Department of the Treasury reports that SBLF participants had increased their small business lending by $12.5 billion over their baseline numbers. The current paper uses Call Report data from community banks and thrift institutions to look at the impact of receiving funds from SBLF on their small business lending. The analysis controls for economic and demographic conditions, market structure and competition. Simple regression estimates indicate that participants in the SBLF program increased their small business lending by about 10 percent more than their non-participating counterparts, in line with numbers reported by Treasury. However, estimates that control for the ongoing growth path in small business lending indicate no statistically significant impact of SBLF participation on small business lending.

The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses

Following the financial crisis, total outstanding loans to businesses by commercial banks dropped off substantially.

DOWNLOAD NOW »

Author: Federal Reserve Federal Reserve Board

Publisher: Createspace Independent Publishing Platform

ISBN: 1522746609

Category:

Page: 24

View: 854

Following the financial crisis, total outstanding loans to businesses by commercial banks dropped off substantially. Large loans outstanding began to rebound by the third quarter of 2010 and essentially returned to their previous growth trajectory while small loans outstanding continued to decline. Furthermore, much of the drop in small business loans outstanding was evident at community banks. To address this perceived lack of supply of credit to small businesses, the Small Business Lending Fund (SBLF) was created as part of the 2010 Small Business Jobs Act. The fund was intended to provide community banks with low-cost funding that they could then lend to their small business customers. As of December 31, 2013, the U.S. Department of the Treasury reports that SBLF participants had increased their small business lending by $12.5 billion over their baseline numbers. The current paper uses Call Report data from community banks and thrift institutions to look at the impact of receiving funds from SBLF on their small business lending. The analysis controls for economic and demographic conditions, market structure and competition. Simple regression estimates indicate that participants in the SBLF program increased their small business lending by about 10 percent more than their non-participating counterparts, in line with numbers reported by Treasury. However, estimates that control for the ongoing growth path in small business lending indicate no statistically significant impact of SBLF participation on small business lending.

Small Business Lending Fund

GAO analyzed the most recent available performance and financial information on SBLF participants; reviewed government and private sector surveys on small business credit conditions; and interviewed officials from Treasury and ...

DOWNLOAD NOW »

Author: U.s. Government Accountability Office

Publisher: Createspace Independent Publishing Platform

ISBN: 197418109X

Category:

Page: 46

View: 331

" The Small Business Jobs Act of 2010 aimed to stimulate job growth by, among other things, establishing the SBLF program within Treasury. SBLF was authorized to make up to $30 billion in capital investments to encourage banks and community development loan funds with assets of less than $10 billion to increase their small business lending. The act generally defined "small business lending" as loans not more than $10 million originally. Under the act, GAO is mandated to conduct an audit of SBLF annually. GAO's first and second reports were on the program's implementation and performance reporting and made recommendations on management oversight, program evaluation, and performance reporting. This third report examines (1) the growth in qualified small business lending and reasons for variations in the growth at SBLF banks and (2) actions Treasury has taken to evaluate participant lending patterns. GAO analyzed the most recent available performance and financial information on SBLF participants; reviewed government and private sector surveys on small business credit conditions; and interviewed officials from Treasury and representatives from SBLF participants. "

Small Business Lending Fund

The Small Business Jobs Act of 2010 aimed to stimulate job growth by establishing the Small Business Lending Fund program (SBLF) within the U.S. Department of the Treasury (Treasury), among other activities.

DOWNLOAD NOW »

Author: U.s. Government Accountability Office

Publisher: Createspace Independent Publishing Platform

ISBN: 1974438503

Category:

Page: 54

View: 326

The Small Business Jobs Act of 2010 aimed to stimulate job growth by establishing the Small Business Lending Fund program (SBLF) within the U.S. Department of the Treasury (Treasury), among other activities. The SBLF program was designed to encourage community banks and community development loan funds with assets of less than $10 billion to increase their lending to small businesses.The act also requires GAO to audit SBLF annually. This initial report examines (1) Treasurys procedures for evaluating applications for SBLF funds, (2) characteristics of institutions that applied for and received funds from SBLF and factors that influenced banks decision to participate, and (3) Treasurys plans to monitor participants and measure SBLFs progress in increasing small business lending. GAO reviewed documents on Treasurys procedures and controls; analyzed data on applicants; compared SBLF banks with a peer group of nonparticipating banks; surveyed a representative sample of banks (for a weighted response rate of 66 percent); and interviewed Treasury, federal banking regulators, and representatives from industry associations.

Small Business Lending Fund

Treasury launched the SBLF program on December 20, 2010, and by the program's September 27, 2011, funding deadline had disbursed $4.03 billion to 332 financial institutions. The 332 institutions included 281 community banks and 51 CDLFs.

DOWNLOAD NOW »

Author: Office of Office of the Inspector Department of the Treasury

Publisher: CreateSpace

ISBN: 150526359X

Category:

Page: 44

View: 499

Enacted into law on September 27, 2010, the SBLF is a dedicated fund designed to encourage lending to small businesses by providing capital to qualified community banks3 and Community Development Loan Funds (CDLF). Treasury launched the SBLF program on December 20, 2010, and by the program's September 27, 2011, funding deadline had disbursed $4.03 billion to 332 financial institutions. The 332 institutions included 281 community banks and 51 CDLFs.

Small Business Lending Fund

The Small Business Jobs Act of 2010 (the Act) created SBLF as a dedicated fund to encourage lending to small businesses by providing capital to qualified community banks4 and Community Development Loan Funds (CDLF).

DOWNLOAD NOW »

Author: Office of Office of the Inspector Department of the Treasury

Publisher: Createspace Independent Publishing Platform

ISBN: 1505264553

Category:

Page: 36

View: 396

The Small Business Jobs Act of 2010 (the Act) created SBLF as a dedicated fund to encourage lending to small businesses by providing capital to qualified community banks4 and Community Development Loan Funds (CDLF). Treasury launched the SBLF program in December 2010 and by the program's September 27, 2011, funding deadline had disbursed $4.03 billion. The funds were invested in 332 financial institutions, including 281 community banks and 51 CDLFs. Of the 281 community banks, 137 used SBLF funds to refinance securities purchased under TARP's Capital Purchase Program.

Small Business Lending Fund

SMALL BUSINESS LENDING FUND: Treasury Should Ensure Evaluation Includes Methods to Isolate Program Impact

DOWNLOAD NOW »

Author: United States Government Accountability Office

Publisher: Createspace Independent Publishing Platform

ISBN: 1983719447

Category:

Page: 46

View: 326

SMALL BUSINESS LENDING FUND: Treasury Should Ensure Evaluation Includes Methods to Isolate Program Impact

The Small Business Lending Fund

This book examines the Small Business Lending Fund, with a focus on the supply and demand for small business loans. Congressional interest in small businesses reflects, in part, concerns about economic growth and unemployment.

DOWNLOAD NOW »

Author: Joshua A. Bell

Publisher: Nova Science Publishers

ISBN: 1622572122

Category: Political Science

Page: 138

View: 858

This book examines the Small Business Lending Fund, with a focus on the supply and demand for small business loans. Congressional interest in small businesses reflects, in part, concerns about economic growth and unemployment. Small businesses, defined as having fewer than 500 employees, have played an important role in net employment growth during previous economic recoveries. However, recent data show that net employment growth at small businesses is not increasing at the same rate as in previous economic recoveries. Some have argued that current economic conditions make it imperative that the federal government provide additional resources to assist small businesses in acquiring capital necessary to start, continue, or expand operations and create jobs. Others worry about the long-term adverse economic effects of spending programs that increase the federal deficit.

Small Business Lending Fund

On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010, establishing the SBLF.

DOWNLOAD NOW »

Author: Office of Office of the Inspector Deparment of the Treasury t

Publisher: CreateSpace

ISBN: 1505265169

Category:

Page: 42

View: 265

On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010, establishing the SBLF. SBLF is a fund created to provide capital to community banks with incentives to stimulate small business lending and, as a result, promote job creation and economic growth within communities. In addition to statutory eligibility requirements, participation in the SBLF program was restricted to financially viable institutions that were adequately capitalized and not expected to become under-capitalized, and not expected to be placed into conservatorship or receivership.

Small Business Lending Fund

As of April 18, 2011, Treasury had received 626 applications from these institutions requesting approximately $9.2 billion. Approximately 43 percent of the applications were from Troubled Asset Relief Program (TARP) banks.

DOWNLOAD NOW »

Author: Office of Office of the Inspector Department of the Treasury

Publisher: CreateSpace

ISBN: 1505252318

Category:

Page: 38

View: 292

Treasury launched the SBLF program on December 20, 2010, but has not issued the program terms for all applicants. Currently, only insured depository institutions, bank holding companies, and savings and loan holding companies may apply for funding under the program. As of April 18, 2011, Treasury had received 626 applications from these institutions requesting approximately $9.2 billion. Approximately 43 percent of the applications were from Troubled Asset Relief Program (TARP) banks. Treasury officials estimate program terms will be released for S corporations, mutual institutions, and Community Development Loan Funds (CDLF) in May. Although it is too early to tell how many institutions will ultimately apply to the SBLF program, Treasury expects that less than two-thirds of the $30 billion will be requested.

Providing for Further Consideration of the Bill H R 5297 to Create the Small Business Lending Fund Program to Direct the Secretary of the Treasury to Make Capital Investments in Eligible Institutions in Order to Increase the Availability of Credit for Small Businesses and for Other Purposes

DOWNLOAD NOW »

Author: United States. Congress. House. Committee on Rules

Publisher:

ISBN: UOM:39015089025939

Category: Small business

Page: 4

View: 444

Small Business Lending Fund

Small Business Lending Fund: Additional Actions Needed to Improve Transparency and Accountability

DOWNLOAD NOW »

Author: United States Government Accountability Office

Publisher: Createspace Independent Publishing Platform

ISBN: 198362165X

Category:

Page: 54

View: 503

Small Business Lending Fund: Additional Actions Needed to Improve Transparency and Accountability

The Small Business Lending Fund

Congressional interest in small business access to capital has increased in recent years because of concerns that small businesses might be prevented from accessing sufficient capital to enable them to assist in the economic recovery.

DOWNLOAD NOW »

Author: Congressional Research Service

Publisher: Createspace Independent Publishing Platform

ISBN: 150291543X

Category: Business & Economics

Page: 38

View: 813

Congressional interest in small business access to capital has increased in recent years because of concerns that small businesses might be prevented from accessing sufficient capital to enable them to assist in the economic recovery. Some, including President Obama, have argued that the federal government should provide additional resources to assist small businesses in acquiring capital necessary to start, continue, or expand operations and create jobs. Others worry about the long-term adverse economic effects of spending programs that increase the federal deficit. They advocate business tax reduction, reform of financial credit market regulation, and federal fiscal restraint as the best means to assist small businesses and create jobs. This report focuses on the SBLF. It opens with a discussion of the supply and demand for small business loans. The SBLF's advocates argued that the SBLF was needed to enhance the supply of small business loans. The report then examines other arguments that were presented both for and against the program. Advocates argued that the SBLF would increase lending to small businesses and, in turn, create jobs. Opponents argued that the SBLF could lose money, lacked sufficient oversight provisions, did not require lenders to increase their lending to small businesses, could serve as a vehicle for TARP recipients to effectively refinance their TARP loans on more favorable terms with little or any resulting benefit for small businesses, and could encourage a failing lender to make even riskier loans to avoid higher dividend payments.

Broken Promises

Broken promises : the Small Business Lending Fund's backdoor bank bailout : hearing before the Committee on Oversight and Government Reform, House of Representatives, One Hundred Thirteenth Congress, first session, April 24, 2013.

DOWNLOAD NOW »

Author: United States. Congress

Publisher: Createspace Independent Publishing Platform

ISBN: 198162385X

Category:

Page: 188

View: 296

Broken promises : the Small Business Lending Fund's backdoor bank bailout : hearing before the Committee on Oversight and Government Reform, House of Representatives, One Hundred Thirteenth Congress, first session, April 24, 2013.