NEBRASKA BANKS RECEIVE SBLF LOANS TO HELP SMALL BUSINESSES CREATE JOBS

Nelson supported Small Business Lending Fund in vote exactly one year ago today
September 16, 2011 – Today, Nebraska’s Senator Ben Nelson applauded three community banks in Nebraska that have been awarded federal loans to give small businesses more access to capital so they can grow and create jobs.
“This is a direct investment in Nebraska’s small businesses and job creation – especially in our rural communities,” Senator Nelson said. “These community banks will take a relatively small investment from the federal government and leverage it into much more capital that they will lend to small businesses, which will create jobs and help get the American economy back on track.”
The seed money for these small business loans is coming from the Small Business Lending Fund. The SBLF provides capital to financially sound community banks with less than $10 billion in assets. The dividend rate each community bank pays on the SBLF investment is determined by how much the bank is lending to small businesses; the more credit the banks offer to small businesses, the lower the rate the banks pay to the federal government.
The Small Business Lending Fund was established as part of the Small Business Jobs Act of 2010, which became law at the end of last September.
Nelson was an early supporter of the Small Business Jobs Act. It passed in the Senate on a bipartisan vote of 61 to 38 one year ago today, September 16, 2010.
“America’s economic recovery will be driven by Main Street businesses across our country. The Small Business Lending Fund is an excellent example of how the federal government is partnering with private banks to create jobs at private companies,” Nelson said. “Plus, because the federal government is providing loans that the banks will pay back, the SBLF will create revenue. It was a wise investment.”
The non-partisan Congressional Budget Office estimated that the SBLF program will raise $1.1 billion over 10 years from the dividends paid by the banks. Additionally, the jobs that are created will produce tax revenue for federal, state and local governments.
The first three banks in Nebraska to receive funding from SBLF are First State Bank, based in Lincoln; Adams Bank & Trust, based in Ogallala; and Banner County Bank, based in Harrisburg.
“Banner County Bank can and will leverage the initial investment into millions of dollars of new loans that will help our local agricultural producers – farmers, ranchers, and feeders – succeed at what they do. The investment will also help Banner County Bank continue to grow, as we serve new and existing agricultural producers in Western and Southern Nebraska,” explained Banner County Bank Senior Vice President Stephen Stull.
The Nebraska Enterprise Fund, a non-profit organization working to connect small businesses and economic development programs to available resources, has applied for the next round of funding from the SBLF.
“Our role is to fill the gaps for small Nebraska businesses that, for one reason or another, cannot get the capital they need from private banks. We have seen a lot of demand for these small business loans,” said Nebraska Enterprise Fund Executive Director Rose Jaspersen. “Receiving resources from the SBLF would allow us to serve more small businesses that are having a hard time getting a loan. Nebraska businesses need these resources if they are to prosper and grow.”
In a letter supporting the Small Business Jobs Act last year, U.S. Chamber of Commerce Executive Vice President Bruce Josten wrote to senators: “To get the economy back on track and generating jobs, America needs a strong and vibrant small business community. To that end, H.R. 5297 contains many provisions that would allow entrepreneurs to have more access to capital.
“Additionally, the bill contains important tax code changes that would encourage investment, promote fairness, and allow small business owners to retain existing cash flow from operations in order to start, grow, and expand their enterprises.”