The U.S. Department of the Treasury released a report this week showing that North Carolina banks have increased their small business lending by $124.4 million since receiving capital through Small Business Lending Fund (SBLF).
The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses to help them grow and create new jobs.
“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.”
Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.
The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets.
The State Small Business Credit Initiative, which is also a key part of the Small Business Jobs Act, has allocated $1.4 billion to small business programs in 54 states, territories, and municipalities to help spur additional lending to small businesses and manufacturers.
Last week, Obama also signed the Jumpstart Our Business Startups (JOBS) Act into law, which will allow Main Street small businesses and high-growth enterprises to raise capital from investors more efficiently, helping small and young firms across the country to grow and hire faster.