January 2020

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 Q3 2019, the total cumulative net impact on qualified small business lending over baseline reported by current and former SBLF 

participants is $19.1 billion.

• As of Q3 2019, the total cumulative net increase in qualified small business lending over baseline reported by current SBLF participants is 

$0.03 billion, which represents a decrease in lending of approximately $765.4 million quarter over quarter. 

• As of December 1, 2019, 321 institutions with aggregate investments of $3.93 billion have fully redeemed their SBLF Treasury investment 

and exited the program, and 4 institutions have partially redeemed $13.5 million (or 62 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, in bankruptcy and no longer operating, with unredeemed SBLF investments totaling $44.7 million, did not report QSBL to the 

SBLF program in the quarter.

2 As established in the Small Business Jobs Act of 2010 (Act), 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.

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 Q4 2017 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Current Particpants

Cumulative Net Increase in QSBL (Baseline - Q3 2011) 2 $3.5 $3.5 $3.8 $3.6 $1.7 $0.9 $0.6 $0.3 $0.3 $0.3 $0.05

Cumulative Net Increase in QSBL (Q3 2011 - Present) $1.2 $5.2 $8.7 $11.5 $7.1 $2.4 $1.5 $1.1 $1.0 $0.7 $0.22

Total Cumulative Net Increase in QSBL $4.7 $8.8 $12.5 $15.1 $8.8 $3.2 $2.1 $1.3 $1.3 $1.0 $0.3

Former Participants

Total Cumulative Net Increase in QSBL $0.0 $0.1 -$0.2 $0.7 $9.6 $15.6 $16.8 $17.7 $17.8 $18.0 $18.8

Current and Former Participants

Total Cumulative Net Increase in QSBL $4.7 $8.8 $12.4 $15.8 $18.4 $18.8 $18.9 $19.1 $19.1 $19.0 $19.1

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 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 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 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 9 institutions that continued to participate in the program as of September 30, 2019 and submitted quarterly 

supplemental reports for the quarter, including 6 community banks and 3 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.2 If 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 September 30, 2019, 

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 September 30, 2019 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 bank holding company, 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 bank holding company, 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. One CDLF institution, with an 

aggregate SBLF investment of $0.7 million, filed for bankruptcy protection. Note that the bank holding companies no longer are submitting 

QSRs but the CDLF has continued to submit QSRs. Thus the CDLF is included in the current participant lending growth numbers through Q3 

2019 but the bank holding companies are not.

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 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 

September 30, 2019 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 then

current 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. A similar pattern for CDLFs is noted in Q3 ’19

in anticipation of the Act’s step-up in CDLF interest rates in September 2019. 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. Two participants did not report 

QSBL growth to SBLF in the current period.

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

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

4

 Additionally, it 

shows quarter-over-quarter changes in the number of participants reporting lending in the five ranges of small business loan growth tha

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 As established in the Small Business Jobs Act of 2010 (Act), 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.

Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q1 2019 Q2 2019 Q3 2019

Cumulative Increase in Small Business Lending ($ in Billions) $4.7 $8.8 $12.5 $15.1 $8.8 $3.2 $2.1 $1.3 $1.3 $1.0 $0.3

Change in Small Business Lending (# of Participants)

Under 2.5% or Reduced 66 35 14 8 7 6 5 6 6 6 2

2.5 to 4.9% Increase 10 3 1 3 2 1 0 0 0 1 0

5.0 to 7.4% Increase 14 14 4 3 0 0 0 0 1 0 0

7.5 to 9.9% Increase 18 5 9 3 1 0 1 1 0 0 0

10.0% or Greater Increase 224 263 270 257 152 59 50 43 40 34 7

Participant Changes in Qualified Small Business Lending over Baseline
APPENDIX C: INSTITUTION-SPECIFIC REPORTING ON SMALL BUSINESS LENDING BY SBLF 

PARTICIPANTS

Institutions Participating in SBLF

Report on Information from 9/30/2019 Quarterly Supplemental Reports transmitted with January 2020 Report

Name City State Baseline Level Current Level Increase (Decrease) 

over Baseline

% Change over 

Baseline Resulting Rate

The Peoples Bank of Georgia (The Peoples Bank of TalbottonTalbotton GA Bank 390,000 5,943,000 16,653,000 10,710,000 180.21% 9.00%

Illinois State Bancorp, Inc. Chicago IL Bank 4,884,000 60,188,000 78,945,000 18,757,000 31.16% 9.00%

Enterprise Financial Services Group, Inc. Allison Park PA Bank 5,000,000 87,306,000 84,033,000 (3,273,000) -3.75% 9.00

Evolve Bancorp, Inc. Cordova TN Bank 1,099,000 19,101,000 194,989,000 175,888,000 920.83% 9.00%

LCA Bank Corporation Park City UT Bank 2,727,000 14,000 2,506,000 2,492,000 17800.00% 9.00%

Medallion Bank Salt Lake City UT Bank 26,303,000 233,231,000 233,431,000 200,000 0.09% 9.00%

Valley Economic Development Center, Inc. Van Nuys CA CDLF 661,000 11,450,000 31,411,000 19,961,000 174.33% 9.00%

BUILDING HOPE...A CHARTER SCHOOL FACILITIES FUND Washington DC CDLF 2,091,000 23,190,000 53,643,000 30,453,000 131.32% 9.00%

Community Ventures Corporation Lexington KY CDLF 1,045,000 3,451,000 15,843,000 12,392,000 359.08% 9.00%

Institution 

Bank or CDLF? SBLF Funding 

Outstanding

Qualified Small Business Lending as of 9/30/2019