SHAHEEN ANNOUNCES $24 MILLION FOR NEW HAMPSHIRE SMALL BUSINESS LOANS
Small Business Jobs Act supports lending at Centrix Bank and TrustAugust 03, 2011
(Washington, D.C.) – New Hampshire will get $24.5 million to support small business lending, Senator Jeanne Shaheen (D-N.H.) announced today, now that a Bedford community bank has been granted participation in a program created by the Small Business Jobs Act.
The U.S. Department of the Treasury announced today that Centrix Bank & Trust of Bedford, N.H. is part of the next wave of funding provided through the Small Business Lending Fund (SBLF). That funding is expected to enable millions in loans to small businesses from Centrix.
“With our economy still fragile, these funds are more critical than ever,” Shaheen said. “Small businesses provide the cornerstone of our economy. I supported the creation of this fund in the Small Business Jobs Act to help these companies access the credit they need to grow and create jobs.”
“This program is a perfect fit for Centrix Bank,” said Joe Reilly, President and CEO of Centrix Bank. “Our mission is to provide small businesses in New Hampshire with the lending opportunities they need to grow. This new source of capital will help us continue to aggressively serve the small business community in New Hampshire.”
The SBLF, first announced by President Obama during a trip to Nashua, N.H., encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs. It was created as part of the Small Business Jobs Act, which was crafted in part by Shaheen and signed into law last year. The fund provides 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.
Centrix was one of 20 community banks with funding announced today. In total, 43 community banks have now received a total of $590 million in SBLF funding. Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead.
“Access to capital is critical to ensuring small businesses can invest, expand, and hire in their local communities,” said U.S. Treasury Deputy Secretary Neal S. Wolin. “These funds will help unlock credit for Main Street entrepreneurs to support private sector growth and job creation.”
The Small Business Jobs Act also created the State Small Business Credit Initiative (SSBCI), allocating $1.5 billion to new and existing state programs that will leverage $15 billion in new lending to small businesses and small manufacturers. Shaheen announced last month that New Hampshire will receive $13 million in SSBCI funding.
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