$71M Federal Funding Goes To 8 Florida Community Banks For Small Businesses

The U.S. Treasury recently announced that it would provide federal funding to eight Florida community banks. The funding from the government is to be used by the banks to lend to small businesses in hopes that business owners can use the funds to expand and create jobs. The money, which totals $70.8 million, was given as part of the Small Business Lending Fund (SBLF). The SBLF is part of the Small Business Jobs Act, which was signed into law by President Obama, and aims to create jobs through lending to small businesses.

Of the eight Florida community banks chosen to receive the funding, nearly half of them are in the greater Tampa Bay region. These banks include Florida Business BancGroup, Inc. in Tampa, Platinum Bank in Brandon and Community Southern Bank in Lakeland.

“We go through a thorough review process through regulators when selecting which banks will receive funding,” says Matt Anderson of the U.S. Treasury Department. “We work to ensure that taxpayers' investment is going to help the institutions to pay dividends back to taxpayers. ”

It is estimated that small businesses employ approximately half of all Americans and create 60 percent of new jobs. The Obama administration's goal is help create jobs by providing funding to small businesses through the SBLF.

“The community banks have received the funding and can immediately put it to work,” Anderson says. “We believe that this funding is going to provide a powerful incentive for new lending, which is going to help expand and create new jobs. ”

Writer: Kimberly Patterson
Source: Matt Anderson, U.S. Department of Treasury