April 2018

Report on SBLF Participants’ 

Small Business Lending Growth

Submitted to Congress pursuant to Section 4106(3) of

the Small Business Jobs Act of 2010
QUALIFIED SMALL BUSINESS LOAN GROWTH BY ALL PARTICIPANTS, CURRENT AND HISTORICAL

HIGHLIGHTS 

 As of Q4 2017, the total cumulative net impact on qualified small business lending over baseline reported by current and former SBLF 

participants is $18.9 billion.

 As of Q4 2017, the total cumulative net increase in qualified small business lending over baseline reported by current SBLF participants is 

$2.1 billion, which represents an increase in lending of approximately $85 million quarter over quarter. 

 As of March 1, 2018, 274 institutions with aggregate investments of $3.73 billion have fully redeemed their SBLF Treasury investment and 

exited the program, and 5 institutions have partially redeemed $28 million (or 66 percent of their SBLF securities) while continuing to 

participate in the program.

1 Figures reflect lending conducted by redeemed participants over the course of their participation and held constant at the levels reported in the final period of their reporting 

to SBLF. When the SBLF program does not receive an updated QSBL report from an institution that has not redeemed its SBLF investment, the institution will be considered a 

former participant for the purposes of reporting lending growth. The institution’s lending growth will be held constant and carried forward as of the final period of their QSBL 

reporting to the SBLF program. Two institutions, with unredeemed SBLF investments totaling $44.7 million, did not report QSBL to the SBLF program in Q4 2017.

2 As established in the Small Business Jobs Act of 2010, the baseline for measuring the change in small business lending is the average of the amounts reported for each of the 

four calendar quarters ended June 30, 2010. In previous Lending Growth Reports, the methodology used to calculate QSBL resulted in overstated cumulative net increases in

QSBL from Q3 2011 to present and understated cumulative net increases in QSBL from baseline to Q3 2011. The table above reflects the updated methodology. Total aggregate 

reported lending does not change.

3 Due to rounding, numbers presented in this document may not add up precisely to the totals provided

Please see Appendix A for additional information regarding background and the methodology used in this report.

Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Current Particpants

Cumulative Net Increase in QSBL (Baseline - Q3 2011) 2$3.5 $3.5 $3.8 $3.6 $1.7 $0.9 $0.7 $0.6 $0.6 $0.6

Cumulative Net Increase in QSBL (Q3 2011 - Present) $1.2 $5.2 $8.7 $11.5 $7.1 $2.4 $1.8 $1.6 $1.4 $1.5

Total Cumulative Net Increase in QSBL $4.7 $8.8 $12.5 $15.1 $8.8 $3.2 $2.4 $2.3 $2.0 $2.1

Former Participants

Total Cumulative Net Increase in QSBL $0.0 $0.1 -$0.2 $0.7 $9.6 $15.6 $16.3 $16.4 $16.8 $16.8

Current and Former Participants

Total Cumulative Net Increase in QSBL $4.7 $8.8 $12.4 $15.8 $18.4 $18.8 $18.8 $18.7 $18.9 $18.9

Breakout of Qualified Small Business Lending (QSBL) Growth at SBLF Participants, Current and Former1 ($ Billions)3
APPENDIX A: BACKGROUND AND REPORT METHODOLOGY

BACKGROUND

This report is submitted to Congress pursuant to Section 4106(3) of the Small Business Jobs Act of 2010 (Act), which 

directs the Secretary of the Treasury to provide a quarterly written report on how institutions participating in the 

SBLF program have used the funds they received under the Small Business Lending Fund (SBLF) program. 

Treasury invested more than $4.0 billion in 332 institutions through the SBLF program. These amounts include 

investments of $3.9 billion in 281 community banks and $104 million in 51 Community Development Loan Funds 

(CDLFs). Collectively, these institutions operate in more than 3,000 locations across 47 states and the District of 

Columbia. This report includes information on the 56 institutions that continued to participate in the program as of 

December 31, 2017 and submitted quarterly supplemental reports for the quarter, including 10 community banks 

and 46 CDLFs.

1

The SBLF program was designed using an incentive mechanism to encourage participant lending to small businesses. 

• For community banks, the SBLF program was structured to encourage small business lending through a 

dividend or interest rate incentive structure. The initial rate payable on SBLF capital was, at most, 5 percent, 

and the rate fell to 1 percent if a bank’s small business lending increased by 10 percent or more.2If a bank had

not repaid the SBLF funding after four and a half years, the rate increased to 9 percent.

• For CDLFs, the SBLF program was structured to encourage small business lending through access to low‐cost 

capital at a 2 percent interest rate. At the eight year anniversary, CDLFs have the option to extend the maturity 

of the investment for two years at a 9 percent interest rate. 

The additional lending capacity provided by SBLF capital – coupled with the program’s dividend or interest rate 

incentives in the case of community banks – encouraged institutions to increase small business lending. 

Because of the program’s structure, increases in small business lending cannot be directly linked to the use of SBLF 

funds. However, the program’s impact can be observed indirectly.

REPORT METHODOLOGY

This report provides information on changes in small business lending by SBLF participants as of December 31, 2017, 

relative to baseline levels. For each institution analyzed for this report, changes in lending are measured as the dollar 

value or percentage change, as noted, in lending between December 31, 2017 and the baseline period, unless 

otherwise specified. 

 

1

For accounting purposes, an SBLF investment remains outstanding and payable until it has been written-off. One institution, with an 

aggregate SBLF investment of $37.9 million, remains in bankruptcy, after its bank subsidiary was closed by its state regulator and placed into 

FDIC receivership. One institution, with an aggregate SBLF investment of $6.7 million, discontinued operations after its sole bank subsidiary was 

seized and sold in auction following a default on a loan secured by the stock of the subsidiary.

2 The initial interest rate paid by S corporations and mutual institutions was, at most, 7.7 percent. If these institutions increased their small 

business lending by 10 percent or more, then the rate fell to as low as 1.5 percent. These interest rates equate to after‐tax effective rates 

(assuming a 35% tax rate) equivalent to the dividend rate paid by C corporation participants.
Measurement of Small Business Lending

The Act defines “small business lending” as business loans that are (i) $10 million or less in amount to businesses with 

$50 million or less in revenue and (ii) included in one of the following categories:

• Commercial and industrial loans

• Owner-occupied nonfarm, nonresidential real estate loans (“owner-occupied commercial real estate (CRE)”)

• Loans to finance agricultural production and other loans to farmers (“agricultural production”)

• Loans secured by farmland (“farmland”)

The SBLF program terms provide for additional adjustments to the calculation of small business lending relating to 

net charge-offs and portions of loans guaranteed by the U.S. government or for which risk has been assumed by third 

parties, as well as mergers and acquisitions and purchases of loans.

Changes in small business lending are calculated as the difference between the level of loans outstanding as of 

December 31, 2017 and the baseline amount. Treasury publishes updated information quarterly in its Report on 

SBLF Participants’ Small Business Lending Growth (previously titled the SBLF Use of Funds Report). This report 

includes restatements of prior period institution-specific information in the report appendices. These resubmissions 

may yield minor differences in reporting, with each report including the most recent available data for the thencurrent period as well as all prior periods. Because the most recent information available for all periods is included in 

each quarterly report, Treasury does not generally revise prior period reports to reflect these resubmissions. 

Beginning in late 2015, SBLF experienced a significant increase in redemptions by bank participants, likely in 

anticipation of the Act’s step-up in interest or dividend rates in Q1 2016. Redemptions of Treasury’s investments 

under the SBLF program continue to be the single largest driver of changes in total qualified small business lending. 

As institutions redeem from the SBLF program, their respective increases or decreases in lending over baseline are 

removed from total qualified small business loan growth calculations going forward. 

When a SBLF participant exits the program3, the associated changes to qualified small business lending are removed 

from the total qualified small business growth for current participants in the quarter of redemption, as well as all

future reporting periods. When presenting changes in qualified small business lending by current and former

participants, small business lending balances by institutions that have redeemed are held constant and carried 

forward at the level reported in the final quarter prior to redemption. In certain instances where SBLF is unable to 

acquire updated QSBL reporting from a participating institution, the institution’s lending growth will be held constant 

and carried forward as of the final period of their reporting to the SBLF program. As of Q4 2017, two participants had 

ceased to report QSBL growth to SBLF.

 

3

Through redemption, bankruptcy, insolvency, asset seizure, or closure by its regulator.
APPENDIX B: CHANGES IN LENDING SINCE INITIAL SBLF INVESTMENTS

The table on this page includes the aggregate increases in qualified small business lending by participants since the initial SBLF investments.

4

 

Additionally, it shows quarter-over-quarter changes in the number of participants reporting lending in the five ranges of small business loan 

growth that correspond to various dividend or interest rates payable on SBLF securities. Please see Appendix C for institution-specific reporting 

of small business lending by SBLF participants.

 

4

In this analysis, the period of the SBLF investment is defined as Q3 2011 and is measured as the change in lending between September 30, 2011 and the most recent reporting 

period. The first four of Treasury’s investments in SBLF participants were made in the quarter ended June 30, 2011, with all subsequent investments made in the quarter ended 

September 30, 2011. 

Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Cumulative Increase in Small Business Lending ($ in Billions) $1.2 $5.2 $8.7 $11.5 $7.1 $2.4 $1.8 $1.6 $1.4 $1.5

Change in Small Business Lending (# of Participants)

Under 2.5% or Reduced 156 65 31 16 10 6 9 7 5 6

2.5 to 4.9% Increase 46 17 9 6 5 2 0 0 0 0

5.0 to 7.4% Increase 45 17 8 6 3 0 1 1 1 1

7.5 to 9.9% Increase 27 20 12 4 3 2 0 1 1 0

10.0% or Greater Increase 58 201 238 242 141 56 51 50 49 49

Participant Changes in Qualified Small Business Lending Since Initial SBLF Investments (Q3 2011)
APPENDIX C: INSTITUTION-SPECIFIC REPORTING ON SMALL BUSINESS LENDING BY SBLF 

PARTICIPANTS
Institutions Participating in SBLF

Report on Information from 12/31/2017 Quarterly Supplemental Reports transmitted with April 2018 Report

Name City State Baseline Level Current Level Increase (Decrease)

over Baseline

The Peoples Bank of Talbotton Talbotton GA Bank 890,000 5,943,000 14,553,000 8,610,000 

Illinois State Bancorp, Inc. Chicago IL Bank 6,684,000 60,188,000 78,339,000 18,151,000 

MidSouth Bancorp, Inc. LaFayette LA Bank 32,000,000 403,028,000 530,908,000 127,880,000 

Origin Bancorp (Community Trust Financial Corporation) Ruston LA Bank 48,260,000 387,778,000 920,240,000 532,462,000 

Alma Bank Astoria NY Bank 3,000,000 91,798,000 260,729,000 168,931,000 Enterprise Financial Services Group, Inc. Allison Park PA Bank 5,000,000 87,306,000 85,425,000                         

(1,881,000) 

Evolve Bancorp, Inc. Cordova TN Bank 3,099,000 19,101,000 192,537,000 173,436,000 

Joaquin Bankshares Inc. Huntington TX Bank 1,000,000 40,722,000 50,916,000 10,194,000 

LCA Bank Corporation Park City UT Bank 2,727,000 14,000 3,983,000 3,969,000 

Medallion Bank Salt Lake City UT Bank 26,303,000 233,231,000 286,828,000 53,597,000 

Main Street Launch (OBDC Small Business Finance) Oakland CA CDLF 219,000 2,473,000 10,159,000 7,686,000 

California Coastal Rural Development Corporation Salinas CA CDLF 870,000 9,545,000 11,409,000 1,864,000 

Low Income Investment Fund San Francisco CA CDLF 7,490,000 26,595,000 156,582,000 129,987,000 

Opportunity Fund Community Development San Jose CA CDLF 2,236,000 5,935,000 71,466,000 65,531,000 Valley Economic Development Center, Inc. Van Nuys CA CDLF 661,000 11,450,000 39,283,000 27,833,000 

Rural Community Assistance Corporation West Sacramento CA CDLF 4,300,000 6,104,000 10,544,000 4,440,000 

Colorado Enterprise Fund, Inc. Denver CO CDLF 463,000 5,721,000 23,193,000 17,472,000 

Capital for Change, Inc. (Greater New Haven Community Loan Fund) New Haven CT CDLF 525,000 4,796,000 11,608,000 6,812,000 

Partners for the Common Good, Inc. Washington DC CDLF 1,009,000 4,888,000 6,008,000 1,120,000 

BUILDING HOPE...A CHARTER SCHOOL FACILITIES FUND Washington DC CDLF 2,091,000 23,190,000 40,660,000 17,470,000 

Access to Capital for Entrepreneurs, Inc. (Appalachian Community EnterCleveland GA CDLF 188,000 2,773,000 20,895,000 18,122,000 

IFF Chicago IL CDLF 8,294,000 108,261,000 231,897,000 123,636,000 

Federation of Appalachian Housing Enterprises, Inc. Berea KY CDLF 2,063,000 4,137,000 2,804,000                         

(1,333,000) 

Community Ventures Corporation Lexington KY CDLF 1,045,000 3,451,000 16,558,000 13,107,000 Community Health Center Capital Fund, Inc. (Capital Link, Inc.) Boston MA CDLF 198,000 1,420,000 7,342,000 5,922,000 

Boston Community Loan Fund, Inc. Roxbury MA CDLF 4,410,000 11,378,000 36,545,000 25,167,000 Enterprise Community Loan Fund, Inc. Columbia MD CDLF 8,817,000 8,849,000 49,761,000 40,912,000 

Coastal Enterprises, Inc. Brunswick ME CDLF 2,316,000 18,380,000 50,662,000 32,282,000 

Nonprofits Assistance Fund Minneapolis MN CDLF 686,000 6,979,000 15,799,000 8,820,000 

Community Reinvestment Fund, Inc. Minneapolis MN CDLF 5,100,000 43,655,000 40,033,000                         

(3,622,000) 

Mountain BizCapital, Inc. Asheville NC CDLF 197,000 2,190,000 7,723,000 5,533,000 

Nebraska Enterprise Fund Oakland NE CDLF 197,000 1,454,000 8,968,000 7,514,000 

Leviticus 25:23 Alternative Fund, Inc. Elmsford NY CDLF 750,000 2,218,000 2,420,000 202,000 

TruFund Financial Services (Seedco Financial Services, Inc.) New York NY CDLF 2,500,000 33,651,000 20,183,000                      

(13,468,000) 

Primary Care Development Corporation New York NY CDLF 4,000,000 33,280,000 12,811,000                      

(20,469,000) 

Economic and Community Development Institute, Inc. Columbus OH CDLF 203,000 2,728,000 16,984,000 14,256,000 Citizen Potawatomi Community Development Corporation Shawnee OK CDLF 490,000 6,505,000 25,999,000 19,494,000 

The Progress Fund Greensburg PA CDLF 1,052,000 12,109,000 22,063,000 9,954,000 

Community First Fund Lancaster PA CDLF 862,000 11,002,000 26,080,000 15,078,000 The Reinvestment Fund, Inc. Philadelphia PA CDLF 11,708,000 113,268,000 215,505,000 102,237,000 

Northside Community Development Fund Pittsburgh PA CDLF 250,000 2,190,000 2,915,000 725,000 

Bridgeway Capital, Inc. Pittsburgh PA CDLF 1,820,000 18,674,000 48,236,000 29,562,000 

Institution

Bank or CDLF? SBLF Funding Outstanding Qualified Small Business Lending as 
Institutions Participating in SBLF

Report on Information from 12/31/2017 Quarterly Supplemental Reports transmitted with April 2018 Report

Name City State Baseline Level Current Level Increase (Decrease)

over Baseline

Institution

Bank or CDLF? SBLF Funding Outstanding Qualified Small Business Lending as 

Charleston Citywide Local Development Corporation Charleston SC CDLF 1,000,000 1,799,000 4,099,000 2,300,000 

South Carolina Community Loan Fund (Lowcountry Housing Trust, IncorNorth Charleston SC CDLF 392,000 96,000 5,322,000 5,226,000 

Rural Electric Economic Development, Inc. Madison SD CDLF 1,230,000 11,116,000 16,741,000 5,625,000 

South Eastern Development Foundation Sioux Falls SD CDLF 240,000 2,486,000 8,010,000 5,524,000 

Northeast South Dakota Economic Corporation Sisseton SD CDLF 325,000 11,758,000 15,512,000 3,754,000 

CEN‐TEX Certified Development Corporation Austin TX CDLF 489,000 3,435,000 4,931,000 1,496,000 

PeopleFund Austin TX CDLF 500,000 9,900,000 14,875,000 4,975,000 

ECDC Enterprise Development Group Arlington VA CDLF 320,000 1,402,000 3,991,000 2,589,000 

Capital Impact Partners (NCB Capital Impact) Arlington VA CDLF 8,218,000 95,578,000 237,700,000 142,122,000 

Vermont Community Loan Fund, Inc. Montpelier VT CDLF 1,247,000 12,787,000 17,859,000 5,072,000 

Craft3 (ShoreBank Enterprise Group, Pacific) Ilwaco WA CDLF 1,867,000 24,108,000 99,721,000 75,613,000 

Impact Seven, Incorporated Almena WI CDLF 4,000,000 13,344,000 24,528,000 11,184,000 

Forward Community Investments, Inc. Madison WI CDLF 470,000 3,964,000 10,101,000 6,137,000 

Wisconsin Women's Business Initiative Corporation Milwaukee WI CDLF 391,000 4,562,000 16,624,000 12,062,000