More Banks Receiving Money For Small Business Loans From SBA
Written by Ken Gaebler
More community banks across the nation are receiving federal funding to help stimulate small business lending. The government hopes the additional capital will boost job creation in the small business sector.
The federal government has been equipping small community banks with less than $10 billion in assets with capital to encourage lending to small businesses. This initiative aims to alleviate some of the financial burdens small business owners are experiencing in the uncertain economic climate in hopes the resources will be reinvested back into the business in the form of job creation.
The Ouachita Independent Bank of Monroe, in Louisiana recently secured $17.9 million from the Small Business Lending Fund, becoming the first bank in the state to receive money from the program, the News Star reported. Senator Mary Landrieu, Democrat from Louisiana, said the lending fund is giving small businesses a vital lifeline that should help boost the economy.
"We believe OIB is a small business and we identify quite well with companies who are wanting to expand and prosper," OIB CEO Clyde White told the news source.
Pennsylvania recently announced its third community bank to receive funding from the program is Franklin Security Bank, which received $7 million to help local small businesses expand and create jobs. According to The Times Tribune, combined with the other two community banks that have received capital from the fund, Pennsylvania has obtained $32.1 million to support small business lending in the state.
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