FOR IMMEDIATE RELEASE
ICBA Supports Implementation of Treasury’s Small Business Lending Fund
Washington, D.C. (December 21, 2010)-The Independent Community Bankers of America (ICBA) today thanked the Treasury Department for releasing terms and application information to begin implementing the ICBA-advocated Small Business Lending Fund (SBLF). The SBLF, enacted under the Small Business Jobs Act, is a $30 billion fund for interested community banks with $10 billion or less in assets to help increase small-business lending.
"ICBA continues to support the Small Business Lending Fund and thanks the Treasury for releasing application information so the program can be implemented and allow interested Main Street community banks to increase their lending to small businesses-the economic engines that drive local economies," said Jim MacPhee, ICBA chairman and CEO of Kalamazoo County State Bank, Kalamazoo, Mich. "This fresh, bold new program is another tool interested community banks can use to further support the economic recovery and job creation in their communities."
Under the program, SBLF funds carry a base dividend rate of 5 percent. Participants that increase their small-business lending will be able to lower their dividend rate to as low as 1 percent during the first two-year period, and that rate will be locked in. Community banks with less than $1 billion in assets will be eligible for investments of up to 5 percent of risk-weighted assets, and banks with between $1 billion and $10 billion in assets will be eligible for up to 3 percent.