Congress created the Small Business Lending Fund in September of 2010, with $30 billion to offer community banks for use in boosting small business lending. The American Bankers Association has sent a letter to the director of the Small Business Lending Fund with concerns over rejected applications. The program ends this month.
Deputy Assistant Secretary, Don Graves, announced on the Treasury Notes blog that $2.4 billion in funding had been distributed to 191 banks under this program.
The letter from the American Bankers Association was expressing concern regarding the number of banks who applied to the fund last year who are just now receiving rejection notices. They claim the rejections do not offer any details as to why the applications are being refused; and request that through the remaining days of the program that the Small Business Lending Fund provides more details for how the rejected banks can address concerns leading to the rejections; and ultimately be approved for funding.
Last month, The Independent Community Bankers of America, sent a letter to the Treasury Department with a request to roll out the approved funds faster.
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