In fourth quarter, Small Business Loans increased in Kansas and Missouri by $132.9 million. Banks have started to participate in Small Business Lending Fund offered by U.S. Department of Treasury.
SBLF gives out capital to banks with a downward interest rate yield as more loans are made to small business owners. Lending by participating banks need to increase in first two years or else the interest rate starts to rise again.
Having received encouragement from SBLF, small business lending increased to $66.8 million by Missouri banks and $66.1 million by Kansas banks. Overall, $4 billion went out as fund from the treasury to 332 institutions in the entire country. The institutions are spread out in 48 states and located in over 3,000 communities. Nationwide, small business lending topped $1.3 billion.
The SBLF has a very powerful impact on Business Lending. It has opened new funding opportunities for local entrepreneurs who want to invest funds in their enterprise and create new jobs. The Small Business Sector is very crucial for the US economy as it employs almost half of all Americans and is responsible for 60 percent of net job creation.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com