Massachusetts banks have increased their small business lending by $121 million since receiving capital through the Small Business Lending Fund (SBLF).

 That’s according to a U.S. Department of the Treasury report on the SBLF — established as part of the Small Business Jobs Act – which encourages community banks to increase their lending to small businesses. Treasury invested more than $4 billion in 332 institutions, located in more 3,000 communities in 48 states, through the SBLF. Nationwide, institutions participating in the SBLF significantly increased small business lending in the last quarter of 2011 by $1.3 billion over the prior quarter — for a total of $4.8 billion over their baseline.

 "This report shows that the Small Business Lending Fund is having a powerful impact," Deputy Secretary of the Treasury Neal Wolin said in a news release.  "The program is helping spark new lending to local entrepreneurs looking to invest in their businesses and create new jobs."