August 2015

Results of the Third Annual 

SBLF Lending Survey
1

OVERVIEW

Small businesses are a vital part of the American economy and their success is a critical component of the economic 

recovery. Established by the Small Business Jobs Act of 2010 (the Act), the Small Business Lending Fund (SBLF) is a 

dedicated fund designed to provide capital to qualified community banks1 and community development loan funds 

(CDLFs) in order to encourage small business lending. The purpose of the SBLF is to encourage Main Street banks and 

small businesses to work together, help create jobs, and promote economic growth in communities across the nation. 

This report provides information from participants on their small business lending, use of SBLF funding, loan demand, 

credit standards, obstacles to small business lending, and outreach to small businesses in their communities. For the 

year ended June 30, 2014, SBLF participants reported the following on small business lending.

• SBLF participants have increased small business lending by an estimated 76,311 additional loans as of March 31, 

2015. As reported in the July 2015 SBLF Lending Growth Report, SBLF participants have increased their small 

business lending by $15.4 billion over a $31.3 billion baseline. Based on benchmarks from the lending survey, this 

$15.4 billion increase represents an estimated 76,311 additional loans to small businesses, an increase of 36

percent over last year.

• Nearly 80 percent of small business loans made by SBLF participants were made in amounts of $250,000 or less.

Nearly half of all loans (49 percent) carried a term of more than two years. A majority of loans (60 percent) used 

an adjustable rate, with an average rate of 3.8 percent at the time of origination, the same as last year.

• Small businesses in a wide array of industries have benefited from the increased lending by SBLF participants. 

Companies in the service sectors received the largest estimated percentage of new loans. Every region2 of the 

country has benefited, with participants in the South and Midwest reporting the largest estimated increases in the 

number of small business loans (34,900 and 25,200 loans, respectively), followed by the West (9,700 loans) and 

the Northeast (6,600 loans). In last year’s survey, participants reported that companies in the service and retail

sectors received the largest estimated percentage of new loans.

• Over 90 percent of participants reported for the third year in a row that they were able to increase small 

business lending with SBLF funding. Participants also reported that SBLF funding supported other business 

lending (55 percent) and non-business lending (33 percent). These uses of SBLF funding were broadly consistent 

across geographic regions. In last year’s survey, participants reported that SBLF funding also supported other 

business lending (57 percent) and non-business lending (33 percent).

 1 In this report, the terms “banks” and “community banks” encompass banks, thrifts, and bank and thrift holding companies with consolidated 

assets of less than $10 billion. 

2 In this report, the Midwest region includes: IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, and WI. The Northeast region includes: CT, ME, MA, NH, 

NJ, NY, PA, VT. The South region includes: AL, AR, DE, DC, FL, GA, KY, LA, MD, MS, NC, OK, SC, TN, TX, VA, and WV. The West region includes: AZ, 

CA, CO, ID, MT, NM, NV, OR, UT, WA, and WY.
2

• SBLF participants reported that demand for small business loans remains strong. Thirty-nine percent of SBLF 

participants reported stronger loan demand, 57 percent reported no change, and four percent reported weaker 

demand, vs. 36 percent stronger demand, 55 percent unchanged, and 9 percent weaker demand last year. 

Participants also reported a net increase in the number of inquiries from small business borrowers regarding the 

availability and terms of new lending.

• Participants reported that they have generally not changed credit underwriting standards, although some 

institutions have reduced the interest rate spread charged to borrowers, among other items. A significant 

majority of participants (91 percent) reported that credit standards for approving small business lending remain 

basically unchanged, with five percent reporting eased standards and four percent reporting tightened standards, 

for a net change of one percent overall eased credit standards. Participants also reported that some terms for 

loans that they are willing to approve have changed over the year, with the largest net percentage (31 percent) 

reporting smaller, or narrower spreads. A significant majority of participants reported that returns, collateral, and 

risks have been obstacles to increasing small business lending.

 

• Ninety-two percent of SBLF participants reported engaging in outreach or advertising activities targeting 

women, veteran, or minority communities and 32 percent of their outreach spending was allocated to activities 

targeting these groups. Among SBLF participants, 83 percent report that they are members of or participate in 

community organizations and/or trade associations that target women, veteran, or minority communities and 59

percent used paid advertisement or notices in print, radio, or electronic media to target women, veteran, or 

minority communities. Of the $15 million that SBLF participants reported spending on small business lending 

outreach activities, 32 percent was allocated to outreach activities targeting women, veteran, and minority 

communities.

• Eighty-one percent of banks that provided an anticipated redemption date expect to exit the program by the 

end of Q1 2016, the quarter in which the statutorily-required bank step up rate of nine percent begins.3 Ninetysix percent of CDLFs that provided an anticipated redemption date expect to exit by the end of Q3 2019, the 

quarter in which the CDLF step up rate of nine percent begins.4

• Ninety-seven percent of the participants who reported a factor that influenced their institution’s anticipated 

timing for exiting the SBLF program cited the step up rate as the reason for redeeming. Fifty-six percent of 

participants reported that they plan to replace the SBLF capital with retained earnings.

 3 Four banks have a step up rate in Q4 2015; the step up rate for S corporations and mutual institutions is 13.8 percent. The rate step-ups are 

required by the Small Business Jobs Act (“the Act,” P.L. 111-240), which established the SBLF. Specifically, Section 4103 (d)(5)(E) increases the 

dividend or interest rate for an SBLF bank to nine percent at the end of the four and one-half year period that begins on the date of the capital 

investment under the Program. Section 4013 (d)(5)(I) increases the interest rate for an SBLF CDLF to nine percent after an eight-year period. 4 Institutions were given the option of providing a response of N/A in this year’s survey if they did not wish to provide Treasury with an anticipated 

redemption date. 50 participants responded N/A to this question in the Third Annual SBLF Lending Survey.
3

BACKGROUND

The SBLF Lending Survey is an annual information collection required of all institutions participating in the program. 

Under Section 3.1(c)(ii)(D) of the Securities Purchase Agreement, institutions participating in the SBLF are required to 

complete an annual survey. This report is published by Treasury using aggregated survey responses. 

This report includes the results of the program’s third annual survey. The survey was distributed to SBLF participants in 

January 2015 and covers small business lending activities during the period from July 1, 2013 to June 30, 2014. The 

survey included 16 questions on topics including small business lending policies and practices, use of SBLF funding, 

outreach to small businesses, and repayment of SBLF funding. Responses were received from the 272 institutions 

participating in SBLF as of the survey administration, including 224 community banks and 48 CDLFs . Please see 

“Appendix A” for additional information regarding the methodology employed in this report.

Treasury invested over $4.0 billion in 332 institutions through the SBLF program. These amounts included investments 

of $3.9 billion in 281 community banks and $104 million in 51 CDLFs. Collectively, these institutions operate in over 

3,000 locations across 47 states and the District of Columbia.

The initial disbursement of SBLF funding occurred on June 21, 2011, with subsequent transactions completed thereafter 

until the program’s September 27, 2011 statutory funding deadline. As of June 30, 2015, 67 institutions with aggregate 

investments of $1.05 billion fully redeemed their SBLF securities and exited the program, and 33 institutions partially 

redeemed $340 million (or 53 percent of their SBLF securities) though continue to participate in the program.

The SBLF program encourages lending to small businesses by providing capital to community banks and CDLFs with less 

than $10 billion in assets.

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

interest rate incentive structure. The initial rate payable on SBLF capital is, at most, five percent, and the rate falls 

to one percent if a bank’s small business lending increases by 10 percent or more.5

 Banks that increase their 

lending by amounts less than 10 percent pay rates between two percent and four percent. If a bank’s lending 

does not increase in the first two years, however, the rate increases to seven percent. If a bank has not repaid the 

SBLF funding after four and a half years, the rate increases to nine percent.

• For CDLFs, the SBLF program is structured to encourage small business lending through access to low-cost capital 

at a two percent interest rate. These non-profit loan funds play a critical role in distressed communities across the 

country that lack access to mainstream financial services. CDLFs engage in activities including offering microloans 

to entrepreneurs, providing mezzanine debt to growing small businesses, and financing community facilities like 

charter schools and health clinics.

As established in the Act and described above, the SBLF program operates through an indirect mechanism to achieve 

policy outcomes. The additional lending capacity provided by SBLF capital – coupled with the program’s dividend or 

 5 The initial interest rate paid by S corporations and mutual institutions is, at most, 7.7 percent. If these institutions increase their small business 

lending by 10 percent or more, then the rate falls 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.
4

interest rate incentives in the case of community banks – encourages 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. For additional information regarding the 

methodology employed in this report, please see Appendix A.
5

SMALL BUSINESS LENDING BY PARTICIPANTS

As reported in the July 2015 SBLF Lending Growth Report, SBLF participants increased their small business lending by 

$15.4 billion over a $31.3 billion baseline as of March 31, 2015. Based on the average loan size reported by participants, 

this $15.4 billion increase represents an estimated 76,311 additional loans to small businesses, with approximately 80 

percent of those loans made in amounts of $250,000 or less.6 Small businesses in a wide array of industries have 

benefited from the increased lending by SBLF participants, with companies in the service sector receiving the largest 

estimated percentage of new loans. Every region of the country has benefited, with participants in the South and 

Midwest reporting the largest estimated increases in the number of small business loans (34,900 and 25,200 loans,

respectively), followed by the West (9,700 loans) and the Northeast (6,600 loans). The following section includes 

additional detail on small business lending by participants, including loan applications, number and dollar value of loans 

made, loan terms, and interest rates.

Small Business Loans Considered and Made by Participants

For the year ended June 30, 2014, participants reported that they approved and funded over 80 percent of the 

applications they considered for small business loans, including 79 percent of the applications for new lending 

commitments or increases in outstanding lending commitments and 95 percent of the applications for renewals or 

extensions.7

 The following graph shows the number of small business loan applications considered and loans made by 

participants.

Number of Small Business Loan Applications Considered and Loans Made

(From July 1, 2013 to June 30, 2014)

 6 The number of additional small business loans is calculated by dividing each participant’s change in small business lending as of December 31, 

2014 by the average loan size the participant reported on its SBLF lending survey for the year ended June 30, 2014 and aggregating the resulting 

loan counts. The resulting aggregate is rounded to the nearest hundred loans. 7 Lending commitments include loans (or credit lines) that were closed over the past year, whether or not they were funded.

97,094

76,311

50,407 47,905

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Applications

Considered

Loans

Made

Applications

Considered

Loans

Made

Number of Loans

 New or Increased Commitments Renewals or Extensions

Loans Made as a Percentage of 

 Applications Considered 79% 95%
6

Of the total number of loans made, approximately 60 percent were for loans that represent new or increased 

commitments by participants. These results were similar across the four categories of small business lending, with the 

largest percentage of new loans or increased funding commitments coming from agricultural production (69 percent), 

followed by farmland (61 percent), owner-occupied commercial real estate (61 percent), and commercial and industrial 

(60 percent). 

Approximately 70 percent of all small business loan applications considered and 70 percent of small business loans made 

were for commercial and industrial purposes. Loans supporting farmland and agricultural production evidenced the 

highest percentage of loans made as a fraction of applications considered at 92 percent and 88 percent, respectively. 

The following graph shows the total number of small business loan applications considered and made across the four 

categories of small business lending.

Number of Small Business Loan Applications Considered and Loans Made by Loan Type

(From July 1, 2013 to June 30, 2014)

103,397

17,186 21,485

5,433

147,501

86,790

13,599 18,806

5,021

124,216

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Commercial And

Industrial

(n=269)

Owner-Occupied

Commercial Real

Estate

(n=249)

Agricultural

Production

(n=115)

Farmland

(n=138)

Overall Small

Business Lending

(n=271)

Number of Loans

Loan

Application

Considered

Loans Made

Loans Made as a 

Percentage of 

 Applications 

 Considered 

84% 79% 88% 92% 84%
7

Small Business Loans by Loan Type and Regional Geography

Participants reported that the largest percentage of small business loans they made by number were commercial and 

industrial loans (70 percent), followed by agricultural production (15 percent), owner-occupied commercial real estate 

(11 percent), and farmland (four percent). The percentages were similar across regional geography, although 

institutions in the Midwest made a relatively smaller percentage of commercial and industrial loans (52 percent) and a 

relatively larger percentage of loans supporting agricultural production and farmland (31 percent and nine percent, 

respectively). The following graph shows the percentage of small business loans made across the four categories of 

small business lending by regional geography.

Percentage of Small Business Loans Made by Loan Type and Regional Geography

(From July 1, 2013 to June 30, 2014)

52%

79% 78% 78%

70%

9%

18%

11% 12%

31% 11%

2%

9% 9%

15%

9%

2% 2% 2%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest

(n=76)

Northeast

(n=57)

South

(n=98)

West

(n=40)

Overall

(n=271)

% of Total Number of Loans Made

Farmland

Agricultural Production

Owner-Occupied

Commercial Real Estate

Commercial And

Industrial
8

Dollar Value of Small Business Loans Made by Participants

For the year ended June 30, 2014, participants reported extending approximately $30.2 billion in loans that qualified as 

small business lending. This lending includes approximately $17.6 billion (58 percent) in new or increased lending 

commitments and $12.6 billion (42 percent) in renewals or extensions. Across the four categories of small business 

lending, participants reported $18.5 billion in commercial and industrial loans (61 percent), $7.2 billion in owneroccupied commercial real estate loans (24 percent), $2.9 billion in agricultural production loans (10 percent), and $1.5

billion in farmland loans (5 percent).

Participants also reported that owner-occupied commercial real estate loans had the largest average dollar value at 

approximately $527,000, followed by farmland loans at $306,000, commercial and industrial loans at $214,000, and 

agricultural production loans at $156,000. The following graph shows the dollar value of small business loans made by 

participants across the four categories of small business lending.

Small Business Lending by Loan Type

(From July 1, 2013 to June 30, 2014)

$8.5

$2.3 $1.3 $0.5

$12.6

$10.1

$4.8

$1.7 $1.0

$17.6

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

Commercial &

Industrial

(n=269)

Owner-Occupied

Commercial Real

Estate

(n=249)

Agricultural

Production

(n=114)

Farmland

(n=134)

Total

(n=271)

Dollar Value of Loans Made

($ in Billions)

New or

Increased

Commitments

Renewals or

Extentions

$18.5

$7.2

$2.9

$1.5

$30.2

Average Loan Size

 

 

$214,000 $527,000 $156,000 $306,000 $243,000
9

New or Increased Small Business Lending by Industry

As noted, participants reported that they have made $17.6 billion in new or increased small business loan commitments. 

The following graph shows the percentage of the dollar value of loans made across industries by regional geography.

Percentage of New Small Business Lending Across Industries by Regional Geography

(From July 1, 2013 to June 30, 2014)

The participants that noted “other” categories of small businesses indicated in their qualitative descriptions that these 

included real estate, recreation, mining, energy, healthcare, finance and education, among others.

Service

Service

Service

Service Service

Wholesale Trade

Wholesale Trade

Wholesale Trade

Wholesale Trade

Wholesale Trade

Agricultural

Agricultural

Agricultural Agricultural Agricultural

Construction

Construction

Construction Construction Construction

Manufacturing

Manufacturing

Manufacturing

Manufacturing

Manufacturing

Retail Trade

Retail Trade

Retail Trade

Retail Trade

Retail Trade

Transportation

Transportation

Transportation

Transportation

Transportation

Communication

Communication

Communication

Communication

Communication

Other

Other

Other

Other Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest Northeast South West Overall

Percentage of Dollar Value of Loans Made 

(n=76) (n=57) (n=97) (n=41) (n=271)
10

Percentage of Total Dollar Value and Category of Loans Secured by Collateral 

For the year ended June 30, 2014, participants reported extending approximately $30.2 billion in loans that qualified as 

small business lending. This lending includes approximately 92% of the total dollar value of those loans (or credit lines) 

that qualify as small business lending and that were approved and funded by the institution that were secured by 

collateral. For those loans (or credit lines) that were made by SBLF institutions that were secured by collateral, 

participants estimated that those loans were primarily secured by the following categories of collateral: business-owned 

non-real estate (50 percent), business-owned real estate (45 percent), and personal collateral (12 percent).8

Percentage of Total Dollar Value of Funded Loans (or Credit Lines) Secured by Collateral and the Categories of 

Collateral Used to Secure those Loans (or Credit Lines)

(From July 1, 2013 to June 30, 2014)

 8 The sum of the percentages were allowed to exceed 100 percent, since some loans were secured by more than one type of collateral.

Unsecured

8%

Business Owned 

Real Estate

45%

Business 

Owned Non 

Real Estate

50% Personal Collateral

12%

Other

2%

Secured by 

Collateral

92%

% of Loans Secured 

by Collateral

% of Total 

Secured Loans
11

Small Business Loans Made by Loan Size

For the year ended June 30, 2014, participants reported that approximately 79 percent of the 124,216 loans they made 

were for dollar values of $250,000 or less, representing approximately $5.6 billion in small business lending. Similarly, 

approximately 94 percent of the loans were for $1 million or less, representing $15.3 billion in small business lending. 

The following graph shows the relationship between the percentage of the number and dollar value of small business 

loans by size across the four categories of small business lending.

Percentage of Small Business Loans Made by Loan Size and Loan Type

(From July 1, 2013 to June 30, 2014)

9% 3%

14%

6% 8%

10%

10%

15%

14% 11%

31%

34%

36%

39%

32%

50% 54%

35%

41%

49%

69%

27%

69%

42%

63%

13%

26%

15%

25%

16%

13%

33%

13%

26%

15%

5%

14%

3% 8% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

 Commercial and

 Industrial

 (n=269)

 Owner-Occupied

 Commercial Real Estate

 (n=249)

 Agricultural

 Production

 (n=114)

 Farmland

 (n=134)

 Overall Small

 Business Lending

 (n=271)

% of Loans

$1,000,001 to

$10,000,000

$250,001 to

$1,000,000

$100,001 to

$250,000

Less than

$100,000

Dollar 

Value

Dollar 

Value

Dollar 

Value

Dollar 

Value

Dollar 

Value

Average 

Loan Size

Number Number Number Number Number

$214,000 $527,000 $156,000 $306,000 $243,000
12

By regional geography, participants reported the largest average dollar value of small business loans in the West 

($432,000), followed by the Northeast ($275,000) and the Midwest and South ($213,000 and $207,000, respectively). 

The significantly larger average in the West reflects a higher dollar value associated with owner-occupied commercial 

real estate loans with an average dollar value of $805,536 compared to $515,155 in the South, $495,203 in the 

Northeast, and $414,871 in the Midwest. The following graph shows the average dollar value of each of the four 

categories of small business loans by regional geography.

Average Dollar Value of Small Business Loans by Loan Type and Regional Geography

(From July 1, 2013 to June 30, 2014)

$305,631 

$343,224 

$344,182 

$223,043 

$290,937 

$155,631 

$386,953 

$140,412 

$95,466 

$136,592 

$526,895 

$805,536 

$515,155 

$495,203 

$414,871 

$213,678 

$382,236 

$167,970 

$229,318 

$208,816 

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000

Dollar Value of Average Loan 

Commercial And

Industrial

Owner-Occupied

Commercial Real Estate

Agricultural Production

Farmland

Average Loan 

Size

 

$243,000

$432,000

$207,000

$275,000

$213,000 Midwest

(n=76)

Northeast

(n=57)

South

(n=98)

West

(n=40)

Overall

(n=271)
13

Length of Term for Small Business Loans

For the year ended June 30, 2014, participants reported that 49 percent of the small business loans they made were for 

a term of more than two years, 28 percent were for one to two years, and 22 percent were for less than one year. These 

varied significantly among loan type, with a larger percentage of secured loans (owner-occupied commercial real estate 

and farmland) evidencing longer terms. The following graph shows the percentage of the dollar value of small business 

loans by length of term across the four categories of small business lending.

Percentage of Small Business Loans Made by Length of Term and Loan Type

(From July 1, 2013 to June 30, 2014)

26%

8%

40%

12%

22%

34%

9%

43%

18%

28%

21%

19%

9%

24%

19%

19%

64%

7%

46%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=269)

Owner-Occupied

Commercial Real

Estate

(n=249)

Agricultural

Production

(n=114)

Farmland

(n=134)

Overall Small

Business Lending

(n=271)

Percentage of Dollar Value of Loans Made

More than five years

More than two years,

but less than five

years

One-to-two years

Less than one year
14

Weighted Average Interest Rates for Small Business Loans

For the year ended June 30, 2014, participants reported that 60 percent of their small business lending had an 

adjustable interest rate at the time of origination, with 40 percent using a fixed rate. The weighted average interest 

rate9 for adjustable rate loans was approximately 3.8 percent, while the weighted average fixed rate was 4.8 percent. 

These results were similar across the four categories of small business lending, with commercial and industrial lending 

reporting slightly higher interest rates and agricultural production and farmland lending reporting slightly lower rates. 

The following graph shows the weighted average interest rates for small business loans across the four categories of 

small business lending.

Weighted Average Interest Rates for Small Business Loans by Loan Type

(From July 1, 2013 to June 30, 2014)

 9 To calculate the weighted average rates on overall small business lending, Treasury calculated the average rate in each category and weighted the 

results by the dollar amount of lending in each category. 

5.8%

4.9%

2.1% 2.2%

4.8%

4.2%

3.7%

1.7%

2.0%

3.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Commercial &

Industrial

(n=269)

Owner-Occupied

Commercial Real

Estate

(n=134)

Agricultural

Production

(n=249)

Farmland

(n=114)

Overall Small

Business Lending

(n=271)

Weighted Average Interest Rate

Fixed Rate

Adjustable Rate

(rate at time of

origination)

40%

Percentage of Dollar 

Value of Loans with a 

Fixed Rate

 

 

32% 55% 44% 65%
15

PARTICIPANT USE OF SBLF FUNDING

For the year ended June 30, 2014, a significant majority of participants (almost 92 percent) reported that they were able 

to increase small business lending (or reduce it by less than otherwise would have occurred) with SBLF funding. In 

addition, 55 percent of participants reported that they were able to increase other business lending and 34 percent 

reported they were able to increase non-business lending (or, in each case, reduce it by less than otherwise would have 

occurred) with SBLF funding.10 The following graph shows the percentage of participants that reported action(s) that 

they were able to take that may not have been taken without SBLF funding.

Actions Taken by SBLF Participants

(From July 1, 2013 to June 30, 2014)

 10 The question noted that cash associated with SBLF funding may not be readily distinguishable from other cash sources and that institutions may 

need to estimate how the SBLF funding was deployed or how many dollars were allocated to each use.

2.6%

1.1%

2.9%

1.8%

1.1%

4.4%

4.0%

11.8%

29.4%

33.5%

55.1%

91.5%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Other

Increase charge-offs

Make other investments

Pay dividends or redeem

outstanding equity or debt

Increase reserves for nonperforming assets

Purchase another financial

institution or assets

Increase securities purchased

Reduce borrowings

Held as non-leveraged increase

in total capital

Increase other non business

lending (or reduce by less)

Increase other business lending

(or reduce by less)

Increase small business lending

(or reduce by less)

SBLF Participants (% of 272 )

Increase small business 

lending (or reduce by less)

Increase other business 

lending (or reduce by less)

Increase other non-business 

lending (or reduce by less)

Held as non-leveraged 

increase in total capital

Reduce borrowings

Increase securities purchased

Purchase another financial 

institution or assets

Increase reserves for nonperforming assets

Pay dividents or redeem 

outstanding equity or debt

Make other investments

Increase charge-offs

Other
16

Net Percentage Increase of Lending Relative to Expectations Since SBLF Investment 

For the year ended June 30, 2014, more than a quarter of participants (27 percent) reported that they were able to 

increase small business lending by more than they expected with SBLF funding since the time of investment. In addition, 

66 percent of participants reported that their institution increased business lending by about the same amount as it 

expected over this period, and seven percent reported an increase in their small business lending by less than expected. 

The following graph shows the percentage of participants’ responses relative to their expectations at the time they 

received the SBLF investment.

Actions Taken by Participants’ Percentage Change in Qualified Small Business Lending

(From July 1, 2013 to June 30, 2014)

27% 23% 19% 12% 27%

7%

7%

6%

4%

7%

66%

70%

76%

84%

66%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=270)

Owner-Occupied

Commercial Real

Estate

(n=254)

Agricultural

Production

(n=143)

Farmland

(n=162)

Overall Small

Business Lending

(n=272)

SBLF Participants (% of applicable respondents)

About the Same

Less than Expected

Greater than

Expected

Net Percentage

Greater than 

Expected 

 

20% 16% 13% 9% 21%
17

DEMAND FOR SMALL BUSINESS LENDING

For the year ended June 30, 2014, participants reported net stronger demand for small business lending, with 39

percent reporting stronger demand compared to four percent reporting weaker demand (net 34 percent reporting 

stronger demand).11 The results are similar across the four categories of small business lending, with the largest net 

percentages of participants reporting stronger demand for commercial and industrial loans (net 37 percent) and owneroccupied commercial real estate loans (net 29 percent). Participants also reported net stronger demand for agricultural 

production and farmland loans (net 14 percent and net eight percent, respectively). The following graph shows the 

percentage of participants that reported changes in demand for small business lending by loan type.

Changes in Demand for Small Business Lending by Loan Type12

(From July 1, 2013 to June 30, 2014)

Across regional geography, the largest net percentage of participants reporting stronger demand was in the West (net 

41 percent), followed by the South (net 39 percent), the Midwest (net 34 percent), and the Northeast (net 21 percent). 

 11 For questions that ask about loan demand in this report, reported net percentages equal the percentage of participants that reported stronger 

demand (“substantially stronger” or “moderately stronger”) minus the percentage of participants that reported weaker demand (“substantially 

weaker” or “moderately weaker”).

12 In responding to the survey, participants reported on changes in loan demand for each of the four small business loan types and, separately, for 

overall small business lending. In some cases, participants reported that demand for overall small business lending was “moderately stronger,” but 

did not attribute the stronger demand to one of the four loan types.

0% 1% 1% 4% 5% 3% 6% 1% 4% 0%

54%

60%

77% 79%

57%

39%

33%

17% 14%

37%

2% 2% 2% 1% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=270)

Owner-Occupied

Commercial Real

Estate

(n=254)

Agricultural

Production

(n=145)

Farmland

(n=163)

Overall Small

Business Lending

(n=272)

SBLF Participants (% of applicable 

respondents)

Substantially Stronger

Moderately Stronger

About the Same

Moderately Weaker

Substantially Weaker

Net Percentage

Stronger (Weaker) 

 

37% 29% 14% 8% 34%
18

Reasons for Changes in Small Business Loan Demand

Of the 105 participants (39 percent) that reported stronger demand for small business lending, the most commonly 

cited reasons were that the borrowers (i) increased their investment in plant or equipment, (ii) shifted their borrowing 

from a less attractive source, and (iii) increased their accounts receivable financing. The 12 participants (four percent)

that reported weaker demand for small business lending most commonly cited reasons were that borrowers (i) shifted 

their borrowing to a more attractive source, (ii) decreased investment in plant or equipment, and (iii) customer accounts 

receivable financing needs decreased. The following graph shows the percentages of participants that reported certain 

reasons for change in small business loan demand, with positive figures indicating the responses of institutions that 

reported stronger demand and negative figures showing the responses of institutions that reported weaker demand.

Percentage of Participants Reporting Reasons for Change in Small Business Loan Demand13

(From July 1, 2013 to June 30, 2014)

 13 The percentages sum vertically to greater than 100 percent because participants could choose multiple answers. The percentages sum 

horizontally to less than 100 percent because no single answer was selected by all participants.

-2%

-1%

-3%

-3%

-4%

-8%

-4%

4%

8%

14%

31%

31%

34%

43%

-20% -10% 0% 10% 20% 30% 40% 50%

Reason For

Stronger Demand

Reason For

Weaker Demand

SBLF Participants (% of 272)

Investment in plant or 

equipment increased 

(decreased)

Customer borrowing shifted to 

(away from) your institution 

from (to) other sources 

Customer accounts receivable 

financing needs increased 

(decreased)

Customer inventory financing 

needs increased (decreased)

Customer internally generated 

funds decreased (increased)

Customer merger or acquisition 

financing needs increased 

(decreased)

Other
19

Changes in the Number of Inquiries from Potential Small Business Borrowers

For the year ended June 30, 2014, participants reported a net increase in the number of inquiries from small business 

borrowers regarding the availability and terms of new lending, with 39 percent reporting an increase in inquiries and 

nine percent reporting a decrease (net 34 percent reporting an increase in inquiries). These results were similar across 

geographic regions, with the largest net percentage of participants in the West reporting increases in inquiries (net 41

percent), followed by the Midwest (net 34 percent), the South (net 39 percent), and the Northeast (net 21 percent). The 

following graph shows the percentage of participants reporting changes in the number of inquiries they received from 

small business borrowers by regional geography. 

Changes in the Number of Inquiries from Small Business Borrowers by Regional Geography

(From July 1, 2013 to June 30, 2014)

0% 0% 0% 2%

0% 3% 9% 4%

0%

4%

61%

61%

53% 54% 57%

37% 30%

42%

34%

37%

0% 0% 1%

10%

2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest

(n=76)

Northeast

(n=57)

South

(n=98)

West

(n=41)

Overall

(n=272)

SBLF partipants (% of applicable respondents)

Substantially

Stronger

Moderately

Stronger

About The Same

Moderately

Weaker

Substantially

Weaker

Net Percentage

Stronger

(Weaker) 

 

34% 21% 39% 41% 34%
20

CREDIT STANDARDS FOR SMALL BUSINESS LENDING

For the year ended June 30, 2014, a significant majority of SBLF participants (91 percent) reported credit standards for 

approving small business loan applications remain basically unchanged, with four percent reporting eased standards and 

four percent reporting tightened standards, or a net one percent reporting eased standards.14 The results are similar 

across the four categories of small business lending, with 91 percent of participants reporting unchanged credit 

standards for each loan type. The following graph shows the percentage of participants that reported changes in credit 

standards for small business lending by loan type.

Changes in Credit Standards for Small Business Lending by Loan Type15

(From July 1, 2013 to June 30, 2014)

 14 For questions that ask about credit standards in this report, reported net percentages equal the percentage of participants that reported having 

eased credit standards or terms (“eased considerably” or “eased somewhat”) minus the percentage of participants that reported having tightened 

credit standards or terms (“tightened considerably” or “tightened somewhat”). Note that percentages do not add to 100% due to rounding. 15 In responding to the survey, participants reported on changes in credit standards for each of the four small business loan types and, separately, 

for overall small business lending. In some cases, participants reported that credit standards for overall small business lending had “eased 

somewhat,” but did not attribute the eased standards to one of the four loan types.

1% 0% 0% 0% 0% 4% 2% 5% 6% 4%

91% 94% 92% 91% 91%

3% 4% 3% 3% 4%

0% 0% 0% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=270)

Owner-Occupied

Commercial Real

Estate

(n=254)

Agricultural

Production

(n=145)

Farmland

(n=163)

Overall

(n=272)

SBLF Particpants (% of applicable respondents)

Eased Considerably

Eased Somewhat

Remained Basically

Unchanged

Tightened

Somewhat

Tightened

Considerably

Net Percentage

Eased 

(Tightened)

 

(1.5%) 1.6% (2.1%) (2.5%) 0.7%
21

By regional geography, a significant majority of participants in each region reported that credit standards for approving 

small business loan applications remained basically unchanged, with participants in the Midwest reporting a net three

percent eased and participants in the South and Northeast reporting net changes of less than one percent eased; 

participants in the West reported net changes of less than three percent tightened.

Changes in Credit Standards for Small Business Lending by Regional Geography

(From July 1, 2013 to June 30, 2014)

Reasons for Changes in Credit Standards

Nearly half of SBLF participants (48 percent) reported that standards for approving small business loan terms or 

applications eased during the time period covered by the Lending Survey, with the most commonly cited reasons for the 

change being (i) more aggressive competition from other financial institutions, (ii) more favorable or less uncertain 

economic outlook, and (iii) an improvement in the participant’s current or expected capital position. The 75 participants

(28 percent) that reported tightened standards for approving small business loan applications or loan terms most 

commonly cited (i) reduced tolerance for risk, (ii) increased concerns about the effects of legislative changes, supervisory 

actions, or changes in accounting standards, and (iii) less favorable or more uncertain economic outlook. 

0% 0% 1% 0% 0%

3% 4% 4% 5% 4%

92% 93% 89% 93% 91%

5% 4% 5% 2% 4%

0% 0% 1% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest

(n=76)

Northeast

(n=57)

South

(n=98)

West

(n=41)

Overall

(n=272)

SBLF Participants(% of applicable respondents)

Eased

Considerably

Eased Somewhat

Remained

Basically

Unchanged

Tightened

Somewhat

Tightened

Considerably

Net Percentage

Eased

(Tightened)

 

2.6% 0.0% 1.0% (2.4%) 0.7%
22

Changes in Certain Terms for Small Business Loans

Participants reported that some terms for loans that they are willing to approve have changed over the year, with the 

largest percentage (31 percent) reporting smaller, or narrower spreads. More often than not, participants also reported

eased terms related to loan maturity and lower credit line costs and tightened terms related to more collateralization 

requirements, more loan covenants, and higher premiums. The following graph shows the percentage of participants

that reported eased and tightened standards related to certain terms of small business loans, with positive figures 

indicating the responses of institutions that reported eased credit standards and negative figures showing the responses 

of institutions that reported tightened credit standards.

Percentage of Participants Reporting Change in Certain Terms for Small Business Loans16

(From July 1, 2013 to June 30, 2014)

 16 The percentages sum vertically to greater than 100 percent because participants could choose multiple answers. The percentages sum 

horizontally to less than 100 percent because no single answer was selected by all participants.

-7%

-7%

-8%

-7%

-4%

-2%

-1%

-6%

1%

4%

3%

10%

11%

18%

10%

31%

-20% -10% 0% 10% 20% 30% 40%

Eased Credit

Standards

Tightened Credit

Standards

Smaller (larger) spreads of loan rates 

over institution’s cost of funds

Increased (decreased) maximum 

maturity of loans or credit lines

Increased (decreased) maximum size of 

loans or credit lines

Lower (higher) costs of credit lines

Lesser (greater) use of interest rate 

floors

Fewer (more) collateralization 

requirements

Lower (higher) premiums charged on 

riskier loans

Fewer (more) loan covenants

SBLF Participants (% of 272 )
23

OBSTACLES TO SMALL BUSINESS LENDING

For the year ended June 30, 2014, a significant majority of participants reported that returns, collateral, and risks have 

been obstacles to increasing small business lending. In total, 85 percent of participants reported that collateral is an 

obstacle to small business lending in that some small businesses lack the collateral or assets that would be required as 

security for loans. Similarly, 80 percent of the participants reported that businesses’ economic returns are an obstacle 

to small business lending in that some small businesses cannot generate high enough returns to attract risk investors or 

have insufficiently high levels of profitability, liquidity, or financial stability, among other factors. In addition,

approximately 80 percent reported that some small businesses lack satisfactory business plans or are risky for other 

reasons. The following graph shows the significance of returns, collateral, and risks as obstacles to increasing small 

business lending as reported by participants.

Obstacles to Increasing Small Business Lending

(From July 1, 2013 to June 30, 2014)

17

Twenty-four participants cited “other” obstacles to small business lending with nearly half noting poor credit history or 

lack of equity. Other less commonly mentioned obstacles included increased competition from other lending 

institutions, lack of demand and lack of business experience.

 17 The percentages above are based on the number of participants that provided a response about the given obstacle. All are a 

percentage of 272 except for ‘Other’ which is a percentage of 57. 

26%

18%

26%

17%

18%

62%

54%

68%

56%

20%

20%

15%

0% 20% 40% 60% 80% 100%

Other

Businesses Lack

Satisfactory Business Plan

Or Are Risky

Businesses Cannot

Generate High Enough

Returns

Businesses Lack Collateral

for Security

SBLF Participants (% of 272)

Very

Significant

Somewhat

Significant

Not

Significant

Businesses lack 

collateral for security

Businesses cannot

generate high 

enough returns

Businesses lack 

satisfactory business 

plans or are risky

Other
24

OUTREACH TO SMALL BUSINESSES

For the year ended June 30, 2014, 92 percent of participants reported engaging in outreach or advertising activities 

targeting women, veteran, or minority communities. In total, 83 percent of SBLF participants reported that they are 

members of, or participate in, community organizations and/or trade associations that target women, veteran, or 

minority communities; 59 percent reported using paid advertisement or notices in print, radio, or electronic media to 

target women, veteran, or minority communities; and, 52 percent indicated that they distributed marketing materials

targeting women, veteran, or minority communities. The following graph shows the percentage of participants that 

reported engaging in certain outreach and advertising activities targeting women, veteran, or minority communities.

Outreach and Advertising Activities Targeting Women, Veteran, or Minority Communities

(From July 1, 2013 to June 30, 2014)

The 54 participants (20 percent) that indicated “other” outreach activities most commonly cited (i) conference and 

event sponsorships, (ii) hosting of, or participation in, workshops and receptions, and (iii) direct outreach and social 

media.

8%

20%

38%

38%

52%

59%

83%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0

0

0

0

0

0

Membership in community 0

organizations or trade 

associations

Paid adverstisement

Distributing marketing 

materials

Outreach to media outlets, 

press, or reporters

Hiring or training staff to 

conduct outreach

Other

No activities

SBLF Participants (% of 272)
25

In aggregate, participants reported expenditures of $15.4 million associated with small business-related outreach 

activities. Ninety-two percent of SBLF participants reported engaging in outreach or advertising activities targeting 

women, veteran, or minority communities. In total, these participants allocated approximately $5.0 million (32 percent) 

to activities targeting those groups. 

Dollar Value of Outreach Activities Targeting Women, Veteran, or Minority Communities

(From July 1, 2013 to June 30, 2014)

Members Of 

Minority 

Communities 

Women 

Veterans Other Small 

Business Related 

($ in millions)

$10.4

$2.0

$2.0

$1.0
26

REPAYMENT OF SBLF FUNDING

For the year ended June 30, 2014, SBLF participants reported the estimated calendar quarter and year in which they 

anticipated fully redeeming Treasury’s investment and exiting the SBLF program.18 In total, 222 SBLF participants (82

percent) reported an anticipated date for redeeming Treasury’s investment; 160 out of 198 banks who responded (81

percent) reported that they are planning to redeem in full by the end of Q1 2016. After Q1 2016, 38 of those banks (19 

percent) will remain in the program. Twenty-three out of 24 CDLFs who reported (96 percent) plan to redeem in full by 

the end of Q3 2019; after Q3 2019, only 1 of those CDLFs (4 percent) will remain in the program. The following graph 

shows the number of participants and associated lending amounts based on reported estimated SBLF program exit. 

SBLF Participants and Lending Dollar Value Remaining in Program Based on Estimated Redemption Quarter

(From July 1, 2013 to June 30, 2014)

19

 

 18 For SBLF bank participants, the step up rate occurs in Q1 2016; for SBLF CDLF participants, the step up rate occurs in Q3 2019. 19 Institutions were given the option of providing a response of N/A in this year’s survey if they did not wish to provide Treasury with 

an anticipated redemption date. 50 participants responded N/A to this question in the Third Annual Lending Survey. This chart does 

not include data for those 50 participants.

0

50

100

150

200

250

0

500

1000

1500

2000

2500

3000

Number of Remaining Institutions

Total Remaining Balance ($ in millions)

Total Remaining Balance Number of Remaining Banks Number of Remaining CDLFs

Step-up rate in effect for Banks Step-up rate in effect for CDLFs
27

The 222 participants (71 percent) that reported an anticipated date of redemption from the SBLF Program most 

commonly cited (i) dividend or interest rate rises to nine percent after the initial period (97 percent), (ii) current 

dividend or interest rate is unattractive (five percent), and (iii) other, as the factors that most influence their anticipated 

timing for exiting the SBLF program.

Leading Factor(s) for Institutions Exiting the SBLF Program

(From July 1, 2013 to June 30, 2014)

The eight percent of participants that indicated “other” most commonly cited (i) ability to raise capital, (ii) merger with 

another bank, and (iii) favorable economic conditions.

97%

5%

1%

8%

0% 20% 40% 60% 80% 100%

Dividend_or_Interest_Rate_Rises

Current_Divident_or_Interest_Ra

te_Unattractive

Lack_Of_Opportunities_to_Deplo

y_Capital

Other

Dividend or interest rate 

rises to 9 or 13.8 percent 

after the initial period

Current dividend or interest 

rate is unattractive

Lack of opportunities to 

deploy capital

Other

SBLF Participants (% of 222)
28

The 222 participants (71 percent) that reported an anticipated date of redemption from the SBLF Program most 

commonly plan to replace the invested SBLF capital with (i) retained earnings (56 percent), or (ii) other means (42 

percent). Twenty-six percent of respondents do not plan on replacing the SBLF capital as they presently hold surplus 

capital, and 28 percent plan to replace the SBLF capital through an equity offering.

How Program Participants Plan to Replace SBLF Capital

(From July 1, 2013 to June 30, 2014)

The 42 percent of participants that indicated “other” most commonly cited (i) combination of debt and equity, (ii) 

borrowing at the holding company level, and (iii) bank stock.

56%

28%

26%

42%

0% 10% 20% 30% 40% 50% 60%

Plan_To_Replace_Capital_With_Retai

ned_Earnings

Plan_To_Replace_Capital_Through_E

quity_Offering

Will_Not_Need_To_Repace_As_We_

Presently_Hold_Surplus_Capital

Other

Plan to replace capital with 

retained earnings

Plan to replace capital 

through an equity offering

Will not need to replace SBLF 

capital as we presently hold 

surplus capital

Other

SBLF Participants (% of 222)
29

APPENDIX A: SURVEY METHODOLOGY

The SBLF Lending Survey is an annual information collection required of all institutions participating in the SBLF program. 

The survey document was distributed to participants in February 2015 and covers lending from July 1, 2013 to June 30, 

2014. Treasury asked that participants complete the survey by March 6, 2015. Responses were received from 272

participating institutions, including 224 community banks and 48 CDLFs. Institutions submitting incomplete responses 

received e-mails and phone calls from Treasury as reminders to complete the survey.

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”)

• 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, 2014 and the baseline amount. Participants report their baseline and changes in small business lending 

by submitting quarterly supplemental reports to Treasury. The most recent supplemental report includes lending 

information as of December 31, 2014.

Survey Design and Review

Treasury developed and designed the survey in 2012. A notice soliciting public comments was published in the Federal 

Register in April 2012 and one comment was received. The Third Annual Lending Survey was a revised and slightly 

modified version of the second, the content of which is addressed below.

The Third Annual Lending Survey included 16 questions on topics including small business lending policies and practices, 

the use of SBLF funding, outreach to small businesses, and repayment of SBLF Funding. The following includes 

additional information on the survey questions.

• Questions 1-5. The language used in these questions is based on similar questions in the Federal Reserve’s July 

2013 Senior Loan Officer Opinion Survey (SLOOS), which is administered quarterly. Questions 1-3 request 

information from participants on changes in their credit standards for loans and credit lines that qualify as small 

business lending relative to longer-term norms. Questions 4-5 request information regarding changes in demand 

for loans and credit lines that qualify as small business lending relative to longer-term norms. 

• Question 6. This question requests information from participants regarding possible obstacles to increasing small

business lending over the year.
30

• Question 7. This question contains several parts and requests information from participants regarding the 

number, dollar value, length of term, and interest rates of loans or credit lines that the participant made over the 

year. The information is collected across each of the four categories of small business lending.

• Question 8. This question requests information from participants regarding the percentage of the total dollar 

value of new loan commitments or increases in outstanding loan commitments that qualify as small business 

lending that the participant has extended to small business borrowers in each of eight industries, as defined by 

the North American Industry Classification System (NAICS).

• Question 9. This question requests information from participants regarding the percentage of the total dollar 

value of approved and funded loans that qualify as small business lending that were secured by collateral and 

those that were not. The question also requests information from participants on the category type of collateral 

used to secure those loans. 

• Question 10. This question requests information from participants regarding their use of SBLF funding. The 

survey notes that the cash associated with the SBLF funding may not be readily distinguishable from other cash 

sources and that participants may need to estimate how the SBLF funding was deployed or how many SBLF dollars 

were allocated to each use. 

• Question 11. This question requests information from participants regarding their increase or decrease in small 

business lending at the time it received the SBLF investment versus expectations; the survey solicited this 

information across four industry categories and for overall small business lending.

• Questions 12-13. These questions request information on outreach activities that participants engaged in over 

the year with respect to activities targeting women, veterans, and members of minority communities, as well as 

small business lending outreach more broadly. 

• Questions 14-16. These questions request information from participants regarding , their anticipated partial and 

full redemption quarter and year, the factors that most influence their anticipated exit timing, and the 

participants’ plans to replace the SBLF capital. Banks were given the option of not providing (“N/A”) a response in 

this year’s survey if they did not wish to provide Treasury with an anticipated redemption date. 

Review of Individual Survey Responses

Treasury validated certain elements of each survey response to assess completeness and reasonableness. This review 

included assessing whether the participant had answered each question on the survey and whether the information 

provided by the participant was internally consistent in certain respects.

The validation process was conditional in certain instances based on the participant’s response to a preceding question. 

For example, if a participant reported that its credit standards had “eased considerably,” Treasury confirmed that the 

participant also answered the related question about the reason for the eased standards. Similarly, if a participant

selected “other” as an obstacle to small business lending, Treasury confirmed that the participant described one or more

obstacles in a written response. 
31

Treasury also completed a series of arithmetic validations for certain survey responses. For example, if a participant

reported that it had made $50 million in small business loans over the year, Treasury confirmed that the sum of the total 

dollar value of small business loans made in each of the four categories of small business lending was also $50 million. 

Similarly, if a participant reported that it considered 100 small business loan applications, Treasury confirmed that the

reported total number of small business loans made was 100 or less.

In addition, Treasury compared the volume of lending reported on each survey with the lending balances reported by 

the participant on its quarterly supplemental reports. In some cases, it was clear that participants had not reported 

dollar values in thousands; as appropriate, these dollar values were divided by 1,000 prior to aggregation.

Review of Aggregate Survey Results

Following the receipt of completed surveys from program participants, Treasury aggregated the responses and reviewed 

certain aggregate results for reasonableness. For example, Treasury compared the aggregate results of Questions 1-5 to 

the results from similar questions related to credit standards and loan demand for commercial and industrial loans in 

the Federal Reserve’s July 2014 SLOOS. Treasury found that the results of this survey were broadly consistent with the 

SLOOS survey results. For example, a significant majority of SLOOS participants reported that credit standards remain 

basically unchanged and a net percentage reported stronger loan demand.

The aggregate results of Question 6 were compared to similar information on obstacles to small business lending 

reported in the Federal Reserve Bank of New York’s Small Business Borrowers Poll (SBBP). 

Treasury similarly assessed the reasonableness of aggregate results for Questions 7 and 8. In reviewing the aggregate 

responses to Question 7, Treasury performed a roll-forward analysis of reported small business loan stocks to assess the 

reasonableness of the reported new and renewal lending commitments over the year ended June 30, 2014. As of June 

30, 2014, participants reported approximately $46.5 billion in small business lending, representing a $300 million 

decrease over the $46.8 billion reported as of June 30, 2013. Treasury found that the aggregate lending activity 

reported by participants over the year ended June 30, 2014 was broadly consistent with the results indicated by the rollforward analysis.

The results of Question 8 were compared to information on small business lending by business category reported in the 

U.S. Census Bureau’s Survey of Business Owners (SBO). In both cases, the results were broadly consistent.

The results of Question 9 were compared to collateral information from the Federal Reserve Bank of Cleveland and the

results were broadly consistent.

In reviewing the aggregate responses to Questions 10-13, we compared the responses to the 2013 Lending Survey 

responses and were very satisfied with the assumption of reasonableness for the consistency of the responses.

Questions 14-16 were new to the Lending Survey and will be used as a benchmark for comparison to subsequent 

surveys.

Rounding

Throughout this report, due to rounding, percentages of a whole may not sum to exactly 100 percent. Also due to 

rounding, the results presented in the written report may differ slightly from the results shown in “Appendix B.”
32

APPENDIX B: SURVEY RESULTS

The information in this appendix is a summary of the results from the SBLF Lending Survey. S
33

Question 1) Over the year ended June 30, 2014, how have your institution’s credit standards for approving 

applications for loans (or credit lines) that qualify as small business lending - other than those used to finance 

mergers and acquisitions – changed?

N/A

# # % # % # % # % # %

Commercial and 

industrial loans 2 2 1% 12 4% 246 91% 9 3% 1 0%

Midwest 0 0 0% 3 4% 71 93% 2 3% 0 0%

Northeast 1 1 2% 1 2% 51 91% 3 5% 0 0%

South 0 1 1% 6 6% 86 88% 4 4% 1 1%

West 1 0 0% 2 5% 38 95% 0 0% 0 0%

Owner-occupied 

nonfarm, 

nonresidential real 

estate 18 0 0% 6 2% 238 94% 9 4% 1 0%

Midwest 5 0 0% 2 3% 68 96% 1 1% 0 0%

Northeast 4 0 0% 1 2% 49 92% 3 6% 0 0%

South 3 0 0% 2 2% 88 93% 4 4% 1 1%

West 6 0 0% 1 3% 33 94% 1 3% 0 0%

Loans to finance 

agricultural 

production and 

other loans to 

farmers 127 0 0% 7 5% 134 92% 4 3% 0 0%

Midwest 26 0 0% 6 12% 43 86% 1 2% 0 0%

Northeast 38 0 0% 0 0% 19 100% 0 0% 0 0%

South 40 0 0% 1 2% 54 93% 3 5% 0 0%

West 23 0 0% 0 0% 18 100% 0 0% 0 0%

Loans secured by 

farmland 109 0 0% 9 6% 149 91% 5 3% 0 0%

Midwest 19 0 0% 8 14% 48 84% 1 2% 0 0%

Northeast 32 0 0% 0 0% 25 100% 0 0% 0 0%

South 34 0 0% 1 2% 59 92% 4 6% 0 0%

West 24 0 0% 0 0% 17 100% 0 0% 0 0%

Overall small 

business lending 0 1 0% 10 4% 248 91% 12 4% 1 0%

Midwest 0 0 0% 2 3% 70 92% 4 5% 0 0%

Northeast 0 0 0% 2 4% 53 93% 2 4% 0 0%

South 0 1 1% 4 4% 87 89% 5 5% 1 1%

West 0 0 0% 2 5% 38 93% 1 2% 0 0%

Eased 

Considerably

Tightened 

considerably

Tightened 

somewhat

Remained 

unchanged Eased somewhat
34

Question 2) For applications for loans (or credit lines) that qualify as small business lending – other than those used to 

finance mergers and acquisitions – that your institution currently is willing to approve, how have the terms of those 

loans changed over the year ended June 30, 2014?

# % # % # % # % # %

Maximum size of loans (or credit 

lines) 1 0% 4 1% 217 80% 47 17% 3 1%

Maximum maturity of loans (or credit 

lines) 0 0% 4 1% 240 88% 28 10% 0 0%

Costs of loans (or credit lines) 0 0% 11 4% 232 85% 29 11% 0 0%

Spreads of rates over your institution’s 

cost of funds (wider 

spreads=tightened, narrower 

spreads=eased) 0 0% 16 6% 172 63% 83 31% 1 0%

Premiums charged on riskier loans (or 

credit lines) 0 0% 19 7% 242 89% 11 4% 0 0%

Covenants 1 0% 18 7% 250 92% 3 1% 0 0%

Collateralization requirements 0 0% 22 8% 241 89% 9 3% 0 0%

Use of interest rate floors (more 

use=tightened, less use=eased) 1 0% 19 7% 225 83% 25 9% 2 1%

Tightened Tightened Remained Eased somewhat Eased 
35

Question 3) If your institution has tightened or eased its credit standards or terms for approving and funding loans (or 

credit lines) that qualify as small business lending over the year ended June 30, 2014, how important have been the 

following possible reasons for the change?

A) If your institution’s answer to any part of question (1) or question (2) is “tightened considerably” or “tightened 

somewhat,” how important have been the following possible reasons for the change?

B) If your institution’s answer to any part of question (1) or question (2) is “eased considerably” or “eased somewhat,” how 

important have been the following possible reasons for the change?

# % # % # %

Deterioration in your institution’s current or expected 

capital position 65 87% 9 12% 1 1%

Less favorable or more uncertain economic outlook 41 55% 26 35% 8 11%

Worsening of industry-specific problems (please specify 

industries in space below) 53 71% 12 16% 10 13%

Less aggressive competition from other financial 

institutions 66 88% 7 9% 2 3%

Reduced tolerance for risk 33 44% 35 47% 7 9%

Decreased liquidity in the secondary market for these 

loans (or credit lines) 72 96% 3 4% 0 0%

Deterioration in your institution’s current or expected 

liquidity position 63 84% 11 15% 1 1%

Increased concerns about the effects of legislative 

changes, supervisory actions, or changes in accounting 

standards 39 52% 28 37% 8 11%

Not important Somewhat Very important

# % # % # %

Improvement in your institution's current or expected 

capital position 83 64% 39 30% 8 6%

More favorable or less uncertain economic outlook 61 47% 60 47% 8 6%

Improvement in industry-specific problems (please specify 

industries in space below) 113 88% 14 11% 2 2%

More aggressive competition from other financial 

institutions 21 16% 62 48% 46 36%

Increased tolerance for risk 97 75% 29 22% 3 2%

Increased liquidity in the secondary market for these 

loans (or credit lines) 118 91% 11 9% 0 0%

Improvement in your institution's current or expected 

liquidity position 90 70% 36 28% 3 2%

Reduced concerns about the effects of legislative 

changes, supervisory actions, or changes in accounting 

standards 117 91% 10 8% 2 2%

Not important Somewhat Very important
36

Question 4) How has demand for loans (or credit lines) that qualify as small business lending changed over the year 

ended June 30, 2014? (Please consider inquiries and applications for new, renewal, increases in outstanding, or 

extensions of outstanding loans or credit lines.)

Not 

applicable

# # % # % # % # % # %

Commercial and industrial 

loans 2 6 2% 106 39% 147 54% 11 4% 0 0%

Midwest 0 0 0% 30 39% 44 58% 2 3% 0 0%

Northeast 1 0 0% 19 34% 32 57% 5 9% 0 0%

South 0 2 2% 42 43% 51 52% 3 3% 0 0%

West 1 4 10% 15 38% 20 50% 1 3% 0 0%

Owner-occupied nonfarm, 

nonresidential real estate 18 4 2% 83 33% 153 60% 12 5% 2 1%

Midwest 5 0 0% 23 32% 45 63% 3 4% 0 0%

Northeast 4 0 0% 16 30% 31 58% 5 9% 1 2%

South 3 1 1% 34 36% 57 60% 3 3% 0 0%

West 6 3 9% 10 29% 20 57% 1 3% 1 3%

Loans to finance agricultural 

production and other loans 

to farmers 127 3 2% 24 17% 112 77% 5 3% 1 1%

Midwest 26 2 4% 13 26% 32 64% 3 6% 0 0%

Northeast 38 0 0% 2 11% 16 84% 0 0% 1 5%

South 40 0 0% 7 12% 50 86% 1 2% 0 0%

West 23 1 6% 2 11% 14 78% 1 6% 0 0%

Loans secured by farmland 109 1 1% 23 14% 128 79% 10 6% 1 1%

Midwest 19 1 2% 11 19% 39 68% 6 11% 0 0%

Northeast 32 0 0% 1 4% 23 92% 0 0% 1 4%

South 34 0 0% 10 16% 51 80% 3 5% 0 0%

West 24 0 0% 1 6% 15 88% 1 6% 0 0%

Overall small business 

lending 0 5 2% 100 37% 155 57% 11 4% 1 0%

Midwest 0 0 0% 28 37% 46 61% 2 3% 0 0%

Northeast 0 0 0% 17 30% 35 61% 5 9% 0 0%

South 0 1 1% 41 42% 52 53% 4 4% 0 0%

West 0 4 10% 14 34% 22 54% 0 0% 1 2%

Substantially 

stronger

Moderately 

stronger

About the same Moderately 

weaker

Substantially 

weaker
37

Question 5) If demand for loans (or credit lines) that qualify as small business lending has strengthened or weakened 

over the year ended June 30, 2014, how important have been the following possible reasons for the change?

A) If your institution’s answer to any part of question (4) is “substantially stronger” or “moderately stronger,” how 

important have been the following possible reasons for the change?

 

B) If your institution’s answer to any part of question (4) is “substantially weaker” or “moderately weaker,” how important 

have been the following possible reasons for the change?

# % # % # %

Customer inventory financing needs increased 62 43% 77 53% 6 4%

Customer accounts receivable financing needs increased 62 43% 78 54% 5 3%

Customer investment in plant or equipment increased 27 19% 106 73% 12 8%

Customer internally generated funds decreased 108 74% 32 22% 5 3%

Customer merger or acquisition financing needs increased 123 85% 22 15% 0 0%

Customer borrowing shifted to your institution from other bank or 

nonbank sources because these other sources became less 

attractive 53 37% 83 57% 9 6%

Other 35 78% 4 9% 6 13%

Not important Somewhat Very important

# % # % # %

Customer inventory financing needs decreased 34 81% 8 19% 0 0%

Customer accounts receivable financing needs decreased 31 74% 11 26% 0 0%

Customer investment in plant or equipment decreased 31 74% 8 19% 3 7%

Customer internally generated funds increased 33 79% 8 19% 1 2%

Customer merger or acquisition financing needs decreased 39 93% 2 5% 1 2%

Customer borrowing shifted from your institution to other bank or 

nonbank credit sources because these other sources became more 

attractive 21 50% 10 24% 11 26%

Other 16 76% 2 10% 3 14%

Not important Somewhat Very important
38

Question 6) For applications for loans (or credit lines) that qualify as small business lending and that your institution 

did not approve over the year ended June 30, 2014, how significant were the following possible obstacles?

# % # % # %

Collateral – applicants lacked the assets 

required for use as security 40 15% 186 68% 46 17%

Returns – applicants did not generate high 

enough returns to attract risk investors or had 

insufficiently high levels of profitability, liquidity, 

or stability 55 20% 146 54% 71 26%

Risks – applicants lacked satisfactory business 

plans or were risky for other reasons 55 20% 169 62% 48 18%

Other 32 56% 10 18% 15 26%

Not significant Somewhat significant Very significant
39

Question 7) This question asks for information on loans (or credit lines) that your institution considered or approved 

and funded over the year ended June 30, 2014 and that qualify as small business lending. The information requested 

is from your institution’s lending data on the volume of loans (or credit lines) it considered or approved and funded 

from July 1, 2013 to June 30, 2014. Like other questions on this survey, the information requested in this question is 

not reported on your institution’s call reports and cannot be calculated from information reported on those call 

reports. The definition of small business lending is included on the first page of this survey. Among other things, this 

definition excludes any government guaranteed portion of loans (or credit lines).

7)A & 7)B

Commercial and 

industrial loans

Owner-occupied 

nonfarm, 

nonresidential real 

estate loans

Loans to finance 

agricultural 

production and 

other loans to 

farmers

Loans secured by 

farmland Total 

Total number of loan applications

New or increases in outstanding 

credit 66,696 11,663 15,260 3,475 97,094

Renewals or extensions of 

outstanding credit 36,701 5,523 6,225 1,958 50,407

All commitments 103,397 17,186 21,485 5,433 147,501

Total number of loans made

New or increases in outstanding 

credit 52,064 8,277 12,884 3,086 76,311

Renewals or extensions of 

outstanding credit 34,726 5,322 5,922 1,935 47,905

All commitments 86,790 13,599 18,806 5,021 124,216

Percentage of loans made

All commitments 84% 79% 88% 92% 84%

Midwest Northeast South West Total 

Total number of loan applications

New or increases in outstanding 

credit 29,902 8,498 44,942 13,752 97,094

Renewals or extensions of 

outstanding credit 14,486 2,834 25,592 7,495 50,407

All commitments 44,388 11,332 70,534 21,247 147,501

Total number of loans made

New or increases in outstanding 

credit 25,163 6,550 34,854 9,744 76,311

Renewals or extensions of 

outstanding credit 13,773 2,729 25,060 6,343 47,905

All commitments 38,936 9,279 59,914 16,087 124,216

Percentage of loans made

All commitments 88% 82% 85% 76% 84%
40

7)C

Commercial and 

industrial loans

Owner-occupied 

nonfarm, 

nonresidential real 

estate loans

Loans to finance 

agricultural production 

and other loans to 

farmers

Loans secured by 

farmland Total

Total dollar value of loans 

made (in thousands)

New or increases in 

outstanding credit $10,078,551 $4,837,450 $1,666,275 $1,008,419 $17,590,695

Renewals or extensions 

of outstanding credit $8,466,543 $2,327,801 $1,260,513 $526,155 $12,581,012

All commitments $18,545,094 $7,165,251 $2,926,788 $1,534,574 $30,171,707

Percentage of total dollar 

value of loans made

New or increases in 

outstanding credit 54% 68% 57% 66% 58%

Renewals or extensions 

of outstanding credit 46% 32% 43% 34% 42%

All commitments 100% 100% 100% 100% 100%

Average dollar value of 

loans made

All commitments $213,678 $526,895 $155,631 $305,631 $242,897

Midwest Northeast South West Total

Total dollar value of loans 

made (in thousands)

New or increases in 

outstanding credit 4,890,107 1,665,351 7,293,416 3,741,820 17,590,695

Renewals or extensions 

of outstanding credit 3,384,445 882,369 5,109,961 3,204,237 12,581,012

All commitments 8,274,552 2,547,720 12,403,377 6,946,057 30,171,707

Percentage of total dollar 

value of loans made

New or increases in 

outstanding credit 59% 65% 59% 54% 58%

Renewals or extensions 

of outstanding credit 41% 35% 41% 46% 42%

All commitments 100% 100% 100% 100% 100%

Average dollar value of 

loans made

All commitments $212,517 $274,568 $207,020 $431,781 $242,897
41

7)D & 7)E

Total number and percent of 

loans made by size

# % # % # % # % # %

$100,000 or less 60,079 69% 3,619 27% 12,918 69% 2,091 42% 78,707 63%

More than $100,000 up to 

$250,000 11,623 13% 3,568 26% 2,914 15% 1,251 25% 19,356 16%

More than $250,000 up to 

$1,000,000 11,013 13% 4,502 33% 2,387 13% 1,300 26% 19,202 15%

More than $1,000,000 up 

to $10,000,000 4,076 5% 1,910 14% 587 3% 379 8% 6,952 6%

Total 86,791 100% 13,599 100% 18,806 100% 5,021 100% 124,217 100%

Total dollar value (in 

thousands) and percent of 

loans made by size

$100,000 or less $1,648,342 9% $191,060 3% $399,327 14% $98,392 6% $2,337,120 8%

More than $100,000 up to 

$250,000 $1,908,274 10% $687,133 10% $446,398 15% $209,955 14% $3,251,759 11%

More than $250,000 up to 

$1,000,000 $5,679,879 31% $2,401,180 34% $1,061,432 36% $596,671 39% $9,739,162 32%

More than $1,000,000 up 

to $10,000,000 $9,308,595 50% $3,885,870 54% $1,019,623 35% $629,555 41% $14,843,643 49%

Total $18,545,089 100% $7,165,243 100% $2,926,779 100% $1,534,574 100% $30,171,685 100%

 Total number and percent 

of loans made by size

# % # % # % # % # %

$100,000 or less 23,900 61% 5,440 59% 42,142 70% 7,225 45% 78,707 63%

More than $100,000 up to 

$250,000 6,934 18% 1,742 19% 7,639 13% 3,041 19% 19,356 16%

More than $250,000 up to 

$1,000,000 6,081 16% 1,577 17% 7,467 12% 4,077 25% 19,202 15%

More than $1,000,000 up 

to $10,000,000 2,021 5% 520 6% 2,667 4% 1,744 11% 6,952 6%

Total 38,936 100% 9,279 100% 59,915 100% 16,087 100% 124,217 100%

Total dollar value (in 

thousands) and percent of 

loans made by size

$100,000 or less 805,769 10% 226,167 9% 1,032,097 8% 273,088 4% 2,337,120 8%

More than $100,000 up to 

$250,000 1,049,216 13% 303,054 12% 1,379,295 11% 520,195 7% 3,251,759 11%

More than $250,000 up to 

$1,000,000 2,720,869 33% 829,106 33% 3,852,293 31% 2,336,894 34% 9,739,162 32%

More than $1,000,000 up 

to $10,000,000 3,698,681 45% 1,189,396 47% 6,139,692 50% 3,815,875 55% 14,843,643 49%

Total 8,274,534 100% 2,547,722 100% 12,403,376 100% 6,946,052 100% 30,171,685 100%

Midwest Northeast South West Total

Commercial and 

industrial loans

Owner-occupied 

nonfarm, 

nonresidential real 

estate loans 

Loans to finance 

agricultural 

production and other 

loans to farmers 

Loans secured by 

farmland Total
42

Commercial and 

industrial loans

Owner-occupied 

nonfarm, 

nonresidential 

real estate loans

Loans to finance 

agricultural 

production and 

other loans to 

farmers 

Loans secured by 

farmland Total

Total dollar value of loans 

made by length of term (in 

thousands)

Less than one year $4,882,481 $538,639 $1,182,532 $182,831 $6,786,483

One to two years $6,355,218 $662,047 $1,265,278 $274,621 $8,557,164

More than two years, but 

less than five years $3,803,952 $1,366,327 $267,298 $369,650 $5,807,226

More than five years $3,503,438 $4,598,234 $211,680 $707,470 $9,020,822

Total $18,545,090 $7,165,246 $2,926,787 $1,534,572 $30,171,695

Percentage of total dollar 

value of loans made by 

length of term

Less than one year 26% 8% 40% 12% 22%

One to two years 34% 9% 43% 18% 28%

More than two years, but 

less than five years 21% 19% 9% 24% 19%

More than five years 19% 64% 7% 46% 30%

Total 100% 100% 100% 100% 100%

Midwest Northeast South West Total

Total dollar value of loans 

made by length of term (in 

thousands)

Less than one year $1,835,381 $462,753 $2,656,225 $1,832,124 $6,786,483

One to two years $2,659,775 $596,521 $3,598,031 $1,702,836 $8,557,164

More than two years, but 

less than five years $1,794,582 $321,080 $2,573,171 $1,118,393 $5,807,226

More than five years $1,984,808 $1,167,372 $3,575,944 $2,292,699 $9,020,822

Total $8,274,545 $2,547,726 $12,403,371 $6,946,052 $30,171,695

Percentage of total dollar 

value of loans made by 

length of term

Less than one year 22% 18% 21% 26% 22%

One to two years 32% 23% 29% 25% 28%

More than two years, but 

less than five years 22% 13% 21% 16% 19%

More than five years 24% 46% 29% 33% 30%

Total 100% 100% 100% 100% 100%

7)F
43

7)G & 7)H

Commercial and 

industrial loans

Owner-occupied 

nonfarm, 

nonresidential real 

estate loans

Loans to finance 

agricultural 

production and 

other loans to 

farmers 

Loans secured by 

farmland Total

Total dollar value of loans made 

by type of interest rate (in 

thousands)

Fixed $5,981,328 $3,935,641 $1,289,419 $990,977 $12,197,365

Adjustable Rate (at time of 

origination) $12,563,763 $3,229,611 $1,637,371 $543,598 $17,974,343

Total $18,545,091 $7,165,253 $2,926,790 $1,534,574 $30,171,708

Percentage of total dollar value of 

loans made by type of interest 

rate

Fixed 32% 55% 44% 65% 40%

Adjustable Rate (at time of 

origination) 68% 45% 56% 35% 60%

Total 100% 100% 100% 100% 100%

Interest rate of loans made by 

type (weighted average)

Fixed 5.76% 4.92% 2.07% 2.22% 4.81%

Adjustable Rate (at time of 

origination) 4.23% 3.68% 1.73% 2.00% 3.84%

Total 4.73% 4.36% 1.88% 2.14% 4.23%

Midwest Northeast South West Total

Total dollar value of loans made 

by type of interest rate (in 

thousands)

Fixed $4,449,475 $994,900 $5,277,148 $1,475,842 $12,197,365

Adjustable Rate (at time of 

origination) $3,825,078 $1,552,827 $7,126,229 $5,470,210 $17,974,343

Total $8,274,553 $2,547,726 $12,403,377 $6,946,052 $30,171,708

Percentage of total dollar value of 

loans made by type of interest 

rate

Fixed 54% 39% 43% 21% 40%

Adjustable Rate (at time of 

origination) 46% 61% 57% 79% 60%

Total 100% 100% 100% 100% 100%

Interest rate of loans made by 

type (weighted average)

Fixed 4.29% 6.29% 5.04% 4.97% 4.86%

Adjustable Rate (at time of 

origination) 3.76% 3.83% 3.90% 4.18% 3.95%

Total 4.04% 4.79% 4.39% 4.35% 4.32%
44

Question 8) Over the year ended June 30, 2014, estimate the percentage of the total dollar value of loans (or credit 

lines) that qualify as small business lending that your institution has approved and funded in each of the following 

categories of businesses, as defined by the North American Industry Classification System (NAICS). Please include 

owner-occupied nonfarm, nonresidential real estate loans (or credit lines) that qualify as small business lending in the 

industry category in which the occupant participates. The sum of the percentages should total 100 percent.

Overall Midwest Northeast South West

Average Average Average Average Average

Manufacturing 9% 11% 8% 7% 10%

Construction 11% 8% 11% 11% 13%

Transportation 4% 4% 5% 4% 5%

Communication 1% 1% 1% 1% 1%

Wholesale trade 7% 7% 6% 6% 9%

Retail 10% 9% 13% 10% 10%

Service 30% 21% 28% 35% 31%

Agricultural 13% 29% 3% 8% 8%

Other 15% 9% 25% 18% 12%

Total 100% 100% 100% 100% 100%
45

Question 9) Over the year ended June 30, 2014, estimate the percentages of the total dollar value of loans (or credit 

lines) that qualify as small business lending and that your institution has approved and funded that are secured by 

collateral and those that are not. The sum of the percentages should total 100 percent.

B) For those loans (or credit lines) made by your institution over year ended June 30, 2014 that are secured by 

collateral, estimate the percentages of those loans in each of the following categories. For loans (or credit lines) that 

are secured by more than one type of collateral, please include these in all categories that apply. The sum of the 

percentages may exceed 100 percent.

Overall Midwest Northeast South West

Average Average Average Average Average

Secured by Collateral 92% 96% 93% 90% 89%

Unsecured by Collateral 8% 4% 7% 10% 11%

Total 100% 100% 100% 100% 100%

Overall Midwest Northeast South West

Average Average Average Average Average

Secured by business-owned 

real estate collateral 45% 41% 57% 43% 42%

Secured by business-owned 

non-real estate collateral 50% 55% 43% 49% 55%

Secured by personal collateral 12% 12% 14% 10% 10%

Other 2% 3% 2% 2% 1%
46

Question 10) Over the year ended June 30, 2014, what action(s) was your institution able to take that your institution 

may not have taken without the SBLF funding? Please select all responses in the following chart that apply to your 

institution. In the space below the chart, elaborate on each action(s) as appropriate.

Overall Midwest Northeast South West

# # # # #

Increase small business lending or reduce it by less than 

otherwise would have occurred 249 72 52 88 37

Increase other business lending or reduce it by less than 

otherwise would have occurred 150 48 35 49 18

Increase other non-business lending or reduce it by less 

than otherwise would have occurred 91 25 19 36 11

Increase securities purchased (e.g., ABS, MBS) 11 5 2 3 1

Make other investments 8 3 0 4 1

Increase reserves for non-performing assets 3 2 0 1 0

Reduce borrowings 32 11 6 9 6

Increase charge-offs 3 2 0 1 0

Purchase another financial institution or purchase assets 

from another financial institution 12 7 0 3 2

Held as non-leveraged increase in total capital 80 30 10 29 11

Pay dividends or redeem outstanding equity or debt 5 3 1 0 1

Other 7 1 3 1 2

Overall Midwest Northeast South West

% % % % %

Increase small business lending or reduce it by less than 

otherwise would have occurred 92% 95% 91% 90% 90%

Increase other business lending or reduce it by less than 

otherwise would have occurred 55% 63% 61% 50% 44%

Increase other non-business lending or reduce it by less 

than otherwise would have occurred 33% 33% 33% 37% 27%

Increase securities purchased (e.g., ABS, MBS) 4% 7% 4% 3% 2%

Make other investments 3% 4% 0% 4% 2%

Increase reserves for non-performing assets 1% 3% 0% 1% 0%

Reduce borrowings 12% 14% 11% 9% 15%

Increase charge-offs 1% 3% 0% 1% 0%

Purchase another financial institution or purchase assets 

from another financial institution 4% 9% 0% 3% 5%

Held as non-leveraged increase in total capital 29% 39% 18% 30% 27%

Pay dividends or redeem outstanding equity or debt 2% 4% 2% 0% 2%

Other 3% 1% 5% 1% 5%
47

Question 11) As of June 30, 2014, for each of the following categories of loans (or credit lines), has your institution 

increased its small business lending by greater than, less than, or about the same amount as it expected over this 

period at the time it received the SBLF investment?

# % # % # % # %

Commercial and industrial 2 1% 72 26% 19 7% 179 66%

Owner-occupied nonfarm, 

nonresidential real estate 18 7% 59 22% 18 7% 177 65%

Agricultural production 129 47% 27 10% 8 3% 108 40%

Secured by farmland 110 40% 20 7% 6 2% 136 50%

Overall small business 

lending 0 0% 74 27% 18 7% 180 66%

Not Applicable Greater than expected Less than expected About the same
48

Question 12) Over the year ended June 30, 2014, which of the following outreach and advertising activities designed 

to target small businesses owned by members of minority communities, women, and/or veterans has your institution 

engaged in? Please select all responses in the following chart that apply to your institution or select “(g)” for no 

activities.

# %

Paid advertisement or notices in print, radio, TV, or 

electronic media communications 160 59%

Outreach to media outlets, press, or reporters 102 38%

Membership or participation in community 

organizations and/or trade associations 226 83%

Distributing marketing materials targeted to these 

groups 142 52%

Hiring or training staff to conduct outreach to these 

groups 104 38%

Other 54 20%

No activities 21 8%
49

Question 13) Please estimate your institution’s total expenditures over the year ended June 30, 2014 associated with 

outreach and advertising activities to small businesses. Your estimate should include expenditures on activities 

designed to target small businesses owned by members of minority communities, women, and/or veterans. 

Separately, estimate the dollar value of your institution’s total expenditures that were designed to target small 

businesses owned by members of minority communities, women, and veterans, respectively. For activities designed 

to target more than one of these groups, divide the expenditures between the groups as appropriate.

Total 

expenditures

All small businesses $15,244,633

Small businesses owned by 

members of minority 

communities $1,960,103

Small businesses owned by 

women $1,954,028

Small businesses owned by 

veterans $958,346
50

Question 14) If your institution plans to redeem Treasury’s investment, provide an estimate of the calendar quarter, 

year, and percent of total outstanding Treasury investment for each of the expected redemptions. If your institution 

does not anticipate redeeming Treasury’s investment, please indicate this by selecting N/A below and leaving blank 

questions (15) and (16).

# % # % # % # % # %

2015 10 4% 12 4% 14 5% 41 15% 77 28%

2016 120 44% 17 6% 3 1% 5 2% 145 53%

2017 7 3% 2 1% 1 0% 3 1% 13 5%

2018 4 1% 1 0% 1 0% 4 1% 10 4%

2019 2 1% 3 1% 19 7% 2 1% 27 10%

2020 0 0% 0 0% 0 0% 0 0% 0 0%

2021 0 0% 0 0% 0 0% 0 0% 0 0%

Q1 Q2 Q3 Q4 Total
51

Question 15) What factor(s) most influence your institution’s anticipated timing for redeeming Treasury’s investment 

and exiting the SBLF program? If multiple reasons exist, please select each applicable option provided below and 

provide any reason not include in “Other”.

# %

Dividend or interest rate rises to 9 

percent after the initial period (or 13.8 

percent for S corps and mutuals) 215 97%

Current dividend or interest rate is 

unattractive 11 5%

Lack of opportunities to deploy capital 3 1%

Other 17 8%

Number of Institutions
52

Question 16) When your institution exits the SBLF program, how does it plan to replace the SBLF capital? If multiple 

reasons exist, please select each applicable option provided below and provide any reason not included in “Other”.

# %

Plan to replace capital through 

an equity offering 62 28%

Plan to replace capital with 

retained earnings 125 56%

Will not need to replace SBLF 

capital as we presently hold 

surplus capital 57 26%

Other 94 42%

Number of Institutions