Four Massachusetts community banks received a total of $18 million through the U.S. Department of the Treasury’s Small Business Lending Fund (SBLF) to increase lending and create jobs.
The SBLF, which was established as part of the Small Business Jobs Act that President Barack Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.
The Massachusetts community banks receiving funding include:
- Island Bancorp Inc. (Edgartown) — $4 million
- Mercantile Capital Corp. (Boston) — $7 million
- New England Bancorp Inc. (Hyannis) — $4 million
- Rockport National Bancorp Inc. (Rockport) — $3 million
"These funds will provide critical support to Main Street community banks so they can expand their lending to small businesses," said Deputy Secretary of the Treasury Neal S. Wolin. "This program helps entrepreneurs in communities across the country access the capital they need to grow their operations, invest in new equipment and hire additional workers."
The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so they can expand and create jobs.
