Cohen: Memphis Community Bank to Receive $34.9 Million to Help Create Jobs

Press Release

Congressman Steve Cohen (D-TN-9) today announced Independent Bank -- a Memphis-based community bank -- will receive $34.9 million from the U.S. Department of the Treasury through the Small Business Lending Fund (SBLF) to increase their lending to small businesses, expand their operations and create new jobs.

"Community banks play an important role in Memphis and across the country," said Congressman Cohen, who voted to support the Small Business Jobs Act that created the SBLF. "Local banks provide the funds that help small businesses grow, invest in new technologies and create jobs. These new federal funds will help jumpstart our local economy."

Independent Bank is one of 37 banks across the country that are receiving a total of $418 million as part of the next wave of funding provided through SBLF. The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses.

Including today's announcement, 80 community banks have now received more than $1 billion in SBLF funding. Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead.

Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.

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.

The SBLF is one part of the Obama Administration's comprehensive agenda to help small businesses access the capital they need to invest and hire. The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers.

The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire.

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