Wisconsin banks that have received capital from the federal Small Business Lending Fund have increased small business lending by $109.2 million over their baselines, according to the U.S. Department of the Treasury.
In Milwaukee, the Wisconsin Women’s Business Initiative Corp. increased lending by $2.7 million over its $4.5 million baseline.
The SBLF was created as part of the 2010 Small Business Jobs Act to encourage community banks to lend more to small businesses, which in turn create jobs.
The Treasury has distributed $4 billion to 332 institutions nationwide, mainly to community banks with less than $10 billion in assets. Those institutions have increased small business lending by $6.7 billion over the baseline.
Banks receiving funding have an incentive to lend more to small businesses because their SBLF dividend rate decreases in response.
“(This) report is further indication that the Administration’s Small Business Lending Fund is continuing to help create an environment in which entrepreneurial small businesses can succeed and excel,” said Neal Wolin, deputy secretary of the Treasury. “Banks in the SBLF program continue to show large increases in the lending available for small businesses to grow, create jobs, and support families in communities across the country.”
