The BizFilings blog covering business tips and trends.
Small Business Lending Fund Passes Through Congress
Published on Dec 22, 2010
Read 'Small Business Lending Fund Passes Through Congress' at 'Time to Start Up,' the small business blog by BizFilings.
Entrepreneurs forming a company may take comfort in a recently passed piece of Congressional legislation that will provide greater small business lending incentives to community banks.
The newly formed Small Business Lending Fund will provide $30 billion in small business lending funds to community banks with less than $10 billion in assets.
"Increasing access to capital is the key ingredient our small businesses need to start investing, growing and hiring again," Washington Senator and Democrat Maria Cantwell said. "I commend the Treasury Department for moving quickly to set up the Lending Fund to get job-producing lending capital flowing to the local banks and businesses who know how to put America back to work."
The SBLF, which is part of the Small Business Jobs and Credit Act passed in September, is largely in response to the lack of available credit that has stricken many small businesses since the recession began.
As small businesses employ nearly 50 percent of the U.S. private workforce, the sector is seen as vital in job creation and, ultimately, a full-scale economic recovery.