August 2014 

Results of the Second 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 banks1and 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, 2013, SBLF participants reported the following on small business lending.

• SBLF participants have increased small business lending by an estimated 56,200 additional loans as of March 31, 

2014. As reported in the July 2014 SBLF Lending Growth Report, SBLF participants have increased their small 

business lending by $12.4 billion over a $33.1 billion baseline. Based on benchmarks from the lending survey, this 

$12.4 billion increase represents an estimated 56,200 additional loans to small businesses, an increase of 48

percent over last year.

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

Over half of all loans (51 percent) carried a term of more than two years. A majority of loans (58 percent) used an 

adjustable rate, with an average rate of 3.8 percent at the time of origination, down from 5.3 percent last year.

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

Companies in the service and retail 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 (34,800 and 24,500 loans, respectively), followed by the West (9,100 loans) 

and the Northeast (6,700 loans). In last year’s survey, participants reported that companies in the service and 

agriculture sectors received the largest estimated percentage of new loans.

• Over 90 percent of participants reported for the second 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 (57 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 (50 percent) and non-business lending (31 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-six percent of SBLF 

participants reported stronger loan demand, 55 percent reported no change, and nine percent reported weaker 

demand, vs. 46 percent stronger demand, 40 percent unchanged, and 14 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 (90 percent) reported that credit standards for approving small business lending remain 

basically unchanged, with six percent reporting eased standards and three percent reporting tightened standards, 

for a net change of three 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 (32 percent) 

reporting smaller, or narrower spreads. Significant majorities of participants reported that returns, collateral, and 

risks have been obstacles to increasing small business lending.

 

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

women, veteran, or minority communities and 49 percent of their outreach spending was allocated to activities 

targeting these groups. Among SBLF participants, 82 percent report that they are members or participate in 

community organizations and/or trade associations that target women, veteran, or minority communities and 57

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

minority communities. Of the $19 million that SBLF participants reported spending on small business lending 

outreach activities, 49 percent was allocated to outreach activities targeting women, veteran, and minority 

communities.

• Eighty-one percent of banks that reported that they are planning to redeem 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 Ninety

percent of CDLFs that plan to redeem expect to exit by the end of Q3 2019, the quarter in which the CDLF step up 

rate of nine percent begins.

• Of the 83 percent of participants who reported a factor that influenced their institution’s anticipated timing for 

exiting the SBLF program, 92 percent cited the step up rate as the reason for redeeming. Sixty-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. 
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 second annual survey. The survey was distributed to SBLF participants 

in January 2014 and covers small business lending activities during the period from July 1, 2012 to June 30, 2013. The 

survey included 17 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 299 institutions

participating in SBLF as of the survey administration, including 249 community banks and 50 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. This report includes information on the 299 institutions 

that completed the survey, including 249 community banks and 50 CDLFs. 

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, 2014, 39 institutions with aggregate 

investments of $589 million fully redeemed their SBLF securities and exited the program, and 19 institutions partially 

redeemed $138 million (or 47 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.4 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.

 

4

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

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 

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 2014 SBLF Lending Growth Report, SBLF participants increased their small business lending by 

$12.4 billion over a $33.1 billion baseline as of March 31, 2014. Based on the average loan size reported by participants, 

this $12.4 billion increase represents an estimated 56,200 additional loans to small businesses, with approximately 80 

percent of those loans made in amounts of $250,000 or less.5Small businesses in a wide array of industries have 

benefited from the increased lending by SBLF participants, with companies in the service and retail sectors 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 (34,800 and 24,500 loans,

respectively), followed by the West (9,100 loans) and the Northeast (6,700 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, 2013, participants reported that they approved and funded over 80 percent of the 

applications they considered for small business loans, including 75 percent of the applications for new lending 

commitments or increases in outstanding lending commitments and 93 percent of the applications for renewals or 

extensions.6 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, 2012 to June 30, 2013)

 

5

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

2013 by the average loan size the participant reported on its SBLF lending survey for the year ended June 30, 2013 and aggregating the resulting 

loan counts. The resulting aggregate is rounded to the nearest hundred loans.

6

Lending commitments include loans (or credit lines) that were closed over the past year, whether or not they were funded.

99,635

75,149 47,758 44,610

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

New or Increased Commitments Renewals or Extensions

Number of Loans

Axis Title

Applications 

Considered

Loans 

Made

Applications 

Considered

Loans 

Made

Loans Made as a Percentage of 

Applications Considered 75% 93%
6

Of the 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 owner-occupied commercial real estate (71 percent), 

followed by farmland (71 percent), agricultural production (58 percent), and commercial and industrial (56 percent)

loans. 

Approximately 71 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 and evidenced the 

highest percentage of loans made as a fraction of applications considered at 94 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, 2012 to June 30, 2013)

83,486

13,537

17,682

5,054

119,759

104,181

17,737 20,070

5,405

147,393

Commercial and

industrial

(n=295)

Owner-Occupied

Commercial Real

Estate

(n=270)

Agricultural

Production

(n=122)

Farmland

(n=138)

Overall Small

Business Lending

(n=299)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Axis Title

Number of Loans

Loan Applications

Considered

Loans Made

Loans Made as a 

Percentage of 

Applications

Considered 80% 76% 88% 94% 81% 
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 (29 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, 2012 to June 30, 2013)

52%

78% 78% 76%

70%

10%

19%

10% 13%

29% 11%

2%

9% 9%

15%

9%

1% 2% 2%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest

(n=83)

Northeast

(n=63)

South

(n=110)

West

(n=43)

Overall

(n=299)

% 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, 2013, participants reported extending approximately $30.3 billion in loans that qualified as 

small business lending. This lending includes approximately $18.3 billion (60 percent) in new or increased lending 

commitments and $12.0 billion (40 percent) in renewals or extensions. Across the four categories of small business 

lending, participants reported $18.7 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 $1.6 

billion in farmland loans (5 percent).

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

approximately $530,000, followed by farmland loans at $310,000, commercial and industrial loans at $220,000, and 

agricultural production loans at $160,000. 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, 2012 to June 30, 2013)

$8.2

$2.1

$1.2 $0.5

$12.0

$10.4

$5.1

$1.6 $1.1

$18.3

$0

$5

$10

$15

$20

$25

$30

$35

Commercial &

Industrial

(n=295)

Owner-Occupied

Commercial Real

Estate

(n=269)

Agricultural

Production

(n=121)

Farmland

(n=137)

Overall Small

Business Lending

(n=299)

Dollar Value of Loans Made 

($ in billions)

New or Increased

Commitments

Renewals or Extensions

 $18.7

 $30.3

 

$1.6

 

$2.9

 $7.2

Average Loan Size $220,000 $530,000 $160,000 $310,000 $250,000
9

New or Increased Small Business Lending by Industry

As noted, participants reported that they have made $18.3 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, 2012 to June 30, 2013)

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

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

Service 

Service Service 

Service Service 

Retail

Retail Retail

Retail Retail

Agricultural Agricultural 

Agricultural Agricultural Agricultural 

Construction 

Construction 

Construction 

Construction Construction 

Manufacturing 

Manufacturing 

Manufacturing 

Manufacturing Manufacturing 

Wholesale Trade

Wholesale Trade

Wholesale Trade

Wholesale Trade

Wholesale 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

(n=83)

Northeast

(n=63)

South

(n=109)

West

(n=43)

Overall

(n=298)

Percentage of Dollar Value of Loans Made
10

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

For the year ended June 30, 2013, participants reported extending approximately $30.3 billion in loans that qualified as 

small business lending. This lending includes approximately 93% 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 (10 percent).7

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, 2012 to June 30, 2013)

 

7

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

Unsecured

7%

Other

2%

Personal Collateral

10% Business-Owned 

Real Estate

45%

Business-Owned 

Non-Real Estate

50%

Secured by 

Collateral

93%

% of Total Secured Loans

% of Loans Secured by 

Collateral
11

Small Business Loans Made by Loan Size

For the year ended June 30, 2013, participants reported that approximately 78 percent of the 119,759 loans they made 

were for dollar values of $250,000 or less, representing approximately $5.3 billion in small business lending. Similarly, 

approximately 94 percent of the loans were for dollar values of $1 million or less, representing $14.7 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, 2012 to June 30, 2013)

69%

26%

67%

43%

63%

13%

25%

16%

24%

15%

13%

34%

14%

25%

16%

5%

15%

3%

8% 6%

8% 3%

14%

6% 7%

10%

8%

15%

13% 10%

29%

33%

38%

37%

31%

53% 56%

34%

44%

51%

Commercial &

Industrial

(n=295)

Owner-Occupied

Commercial Real

Estate

(n=269)

Agricultural

Production

(n=121)

Farmland

(n=137)

Overall Small

Business Lending

(n=299)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Axis Title

% of Loans

Chart Title

$1,000,001 to

$10,000,000

$250,001 to

$1,000,000

$100,001 to

$250,000

Less than $100,000

Number Dollar 

Value Number Number Number Number Dollar 

Value

Dollar 

Value

Dollar 

Value

Dollar 

Value

Average

Loan Size $220,000 $530,000 $160,000 $310,000 $250,000
12

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

($390,000), followed by the Northeast ($280,000) and the South and Midwest ($230,000 and $220,000, respectively). 

The significantly larger average in the West reflects a concentration of owner-occupied commercial real estate loans 

with an average dollar value of $640,103 compared to $565,377 in the South, $505,832 in the Northeast, and $442,296

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, 2012 to June 30, 2013)

313,032 

458,981 

371,079 

255,154 

281,448 

161,303 

368,745 

124,807 

102,169 

152,080 

534,419 

640,103 

565,377 

505,832 

442,296 

223,489 

351,721 

195,086 

226,862 

206,225 

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000

Dollar Value of Average Loan

Commercial and

Industrial

Owner-Occupied

Commercial Real Estate

Agricultural Production

Farmland

Midwest

(n=83)

Northeast

(n=63)

South

(n=110)

West

(n=43)

Overall 

(n=299)

Average Loan 

Size

$220,000

$250,000

$390,000

$230,000

$280,000
13

Length of Term for Small Business Loans

For the year ended June 30, 2013, participants reported that 51 percent of the small business loans they made were for 

a term of more than two years, 29 percent were for one to two years, and 20 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, 2012 to June 30, 2013)

23%

6%

41%

12%

20%

36%

9%

42%

18%

29%

22%

21%

10%

25%

21%

19%

63%

7%

46%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=295)

OwnerOccupied

Commercial

Real Estate

(n=269)

Agricultural

Production

(n=121)

Farmland

(n=137)

Overall Small

Business

Lending

(n=299)

Percentage of Dollar Value of Loans Made 

Chart Title

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, 2013, participants reported that 58 percent of their small business lending had an 

adjustable interest rate at the time of origination, with 42 percent using a fixed rate. The weighted average interest 

rate8for adjustable rate loans was approximately 3.8 percent, while the weighted average fixed rate was 5.0 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, 2012 to June 30, 2013)

 

8

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%

4.8%

4.2%

2.1%

5.0%

4.2%

3.8%

1.6%

1.9%

3.8%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Commercial &

Industrial

(n=295)

Owner-Occupied

Commercial Real

Estate

(n=269)

Agricultural

Production

(n=121)

Farmland

(n=137)

Overall Small

Business Lending

(n=299)

Weighted Average Interest Rate

Fixed Rate

Adjustable Rate

(rate at time of

origination)

Percentage of Dollar 

Value of Loans with a 

Fixed Rate 33% 59% 45% 66% 42%
15

PARTICIPANT USE OF SBLF FUNDING

For the year ended June 30, 2013, 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, 57 percent of participants reported that they were able to increase other business lending and 33 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.9 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, 2012 to June 30, 2013)

 

9

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.

4.3%

2.0%

2.7%

3.3%

4.0%

6.7%

7.0%

12.4%

28.8%

33.1%

56.5%

91.6%

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

SBLF Participants (% of 299)

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 dividends 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, 2013, more than a quarter of participants (26 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, 65 percent of participants reported that their institution increased business lending by about the same amount 

as it expected over this period, and nine 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, 2012 to June 30, 2013)

22% 23%

12% 10%

26%

11% 9%

8%

7%

9%

67% 68%

79% 82%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=296)

Owner-Occupied

Commercial Real

Estate

(n=277)

Agricultural

Production

(n=155)

Farmland

(n=175)

Overall Small

Business Lending

(n=299)

SBLF Participants (% of applicable respondents)

About the Same

Less than Expected

Greater than

Expected

Net Percentage 

Greater than 

Expected 11% 13% 4% 3% 17%
17

DEMAND FOR SMALL BUSINESS LENDING

For the year ended June 30, 2013, participants reported net stronger demand for small business lending, with 36

percent reporting stronger demand compared to nine percent reporting weaker demand (net 27 percent reporting 

stronger demand).10 The results are similar across the four categories of small business lending, with the largest net 

percentages of participants reporting stronger demand for owner-occupied commercial real estate loans (net 29

percent) and commercial and industrial loans (net 24 percent). Participants also reported net stronger demand for 

agricultural production and farmland loans (net nine percent and net 13 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 Type11

(From July 1, 2012 to June 30, 2013)

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

37 percent), followed by the Midwest (net 28 percent), the South (net 26 percent), and the Northeast (net 22 percent). 

 

10 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”).

11 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.

1% 1% 1% 1% 1% 11% 7% 8% 7% 8%

53% 56%

72% 71%

55%

35% 34%

17% 20%

35%

1% 2% 1% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=295)

Owner-Occupied

Commercial Real

Estate

(n=277)

Agricultural

Production

(n=156)

Farmland

(n=175)

Overall Small

Business Lending

(n=299)

SBLF Participants (% of applicable respondents)

Substantially

Stronger

Moderately

Stronger

About the

Same

Moderately

Weaker

Substantially

Weaker

Net Percentage 

Stronger (Weaker) 24% 29% 9% 13% 27%
18

Reasons for Changes in Small Business Loan Demand

Of the 108 participants (36 percent) that reported stronger demand for small business lending, the most commonly 

cited reasons were that the borrower (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 26 participants (nine percent)

that reported weaker demand for small business lending most commonly cited (i) decreased investment in plant or 

equipment, (ii) shifted their borrowing to a more attractive source, and (iii) customer internally generated funds 

increased. 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 Demand12

(From July 1, 2012 to June 30, 2013)

 

12 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.

-4%

-1%

-7%

-6%

-5%

-8%

-8%

4%

8%

11%

24%

28%

36%

40%

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

SBLF Participants (% of 299)

Reason for

Stronger Demand

Reason for

Weaker Demand

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, 2013, participants reported a net increase in the number of inquiries from small business 

borrowers regarding the availability and terms of new lending, with 36 percent reporting an increase in inquiries and 

nine percent reporting a decrease (net 27 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 37

percent), followed by the Midwest (net 28 percent), the South (net 26 percent), and the Northeast (net 22 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, 2012 to June 30, 2013)

0% 0% 2% 0% 1% 12% 8% 6% 5% 8%

48% 62% 57%

53%

55%

39%

27% 35%

40%

35%

1% 3% 0% 2% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest

(n=83)

Northeast

(n=63)

South

(n=110)

West

(n=43)

Overall

(n=299)

SBLF Participants (% of applicable respondents)

Substantially

Stronger

Moderately

Stronger

About the Same

Moderately

Weaker

Substantially

Weaker

Net Percentage 

Stronger 

(Weaker) 28% 22% 26% 37% 27%
20

CREDIT STANDARDS FOR SMALL BUSINESS LENDING

For the year ended June 30, 2013, a significant majority of SBLF participants (90 percent) reported credit standards for 

approving small business lending remain basically unchanged, with six percent reporting eased standards and three

percent reporting tightened standards, or a net three percent reporting eased standards.13 The results are similar across 

the four categories of small business lending, with more than 90 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 Type14

(From July 1, 2012 to June 30, 2013)

 

13 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”).

14 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.

0% 0% 0% 0% 0% 4% 3% 2% 5% 3%

91% 91% 95% 92% 90%

4% 6% 3% 3% 6%

1% 0% 0% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commercial &

Industrial

(n=295)

Owner-Occupied

Commercial Real

Estate

(n=277)

Agricultural

Production

(n=158)

Farmland

(n=177)

Overall Small

Business Lending

(n=299)

SBLF Participants (% of applicable respondents)

Eased

Considerably

Eased

Somewhat

Remained

Basically

Unchanged

Tightened

Somewhat

Tightened

Considerably

Net Percentage 

Eased 

(Tightened) (0.3%) 2.9% 1.3% (1.1%) 2.3%
21

By regional geography, significant majorities of participants in each region reported that credit standards remained 

basically unchanged, with participants in the West reporting a net seven percent eased and participants in the South and 

Midwest reporting net changes of less than five percent eased; participants in the Northeast reported net changes of 

less than five percent tightened.

Changes in Credit Standards for Small Business Lending by Regional Geography

(From July 1, 2012 to June 30, 2013)

Reasons for Changes in Credit Standards

Of the 136 participants (46 percent) that reported eased standards for small business lending, the most commonly cited 

reasons for the change were (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 70

participants (23 percent) that reported tightened standards for small business lending most commonly cited (i) reduced 

tolerance for risk, (ii) less favorable or more uncertain economic outlook, and (iii) increased concerns about the effects 

of legislative changes, supervisory actions, or changes in accounting standards. 

0% 0% 0.9% 0% 0.3%

1.2% 6.3% 3.6% 2.3% 3.3%

96.4% 90.5%

86.4% 88.4% 90.3%

2.4% 3.2%

8.2% 9.3% 5.7%

0% 0% 0.9% 0% 0.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Midwest

(n=83)

Northeast

(n=63)

South

(n=110)

West

(n=43)

Overall

(n=299)

SBLF Participants (% of applicable respondents)

Eased

Considerably

Eased

Somewhat

Remained

Basically

Unchanged

Tightened

Somewhat

Tightened

Considerably

Net Percentage 

Eased (Tightened) 1.2% (3.2%) 4.5% 7.0% 2.3%
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 (32 percent) reporting smaller, or narrower spreads. More often than not, participants also reported

eased terms related to loan size and maturity and tightened terms related to more loan covenants, larger spreads, 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 Loans15

(From July 1, 2012 to June 30, 2013)

 

15 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.

-10%

-7%

-6%

-7%

-3%

-1%

-4%

-8%

2%

3%

4%

7%

13%

14%

14%

32%

-20% -10% 0% 10% 20% 30% 40% SBLF Participants (% of 299)

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
23

OBSTACLES TO SMALL BUSINESS LENDING

For the year ended June 30, 2013, significant majorities of participants reported that returns, collateral, and risks have 

been obstacles to increasing small business lending. In total, 82 percent of 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. Similarly, 80 percent of the 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. In addition,

approximately 76 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, 2012 to June 30, 2013)

Of the 34 percent of participants that cited “other” obstacles to small business lending, 22 participants gave more 

detailed responses for “other”. Nearly half noted a lack of demand for new loans or a poor credit history. Other less 

commonly mentioned obstacles included increased competition from other lending institutions and regulatory 

uncertainty.

16%

15%

27%

17%

18%

61%

55%

63%

66%

24%

18%

20%

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

SBLF Participants (% of 299)

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, 2013, 94 percent of participants reported engaging in outreach or advertising activities 

targeting women, veteran, or minority communities. In total, 82 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; 57 percent reported using paid advertisement or notices in print, radio, or electronic media to 

target women, veteran, or minority communities; and, 48 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, 2012 to June 30, 2013)

The 74 participants (25 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.

6%

25%

32%

41%

48%

57%

82%

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

SBLF Participants (% of 299)

Membership in community 

organizations or trade 

associations

Paid advertisement

Distributing marketing 

materials

Outreach to media outlets, 

press, or reporters

Hiring or training staff to 

conduct outreach

Other

No activities
25

In aggregate, participants reported expenditures of $19.0 million associated with small business-related outreach 

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

women, veteran, or minority communities, and of this amount, $9.2 million (49 percent) was allocated to activities 

targeting those groups. 

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

(From July 1, 2012 to June 30, 2013)

$4.2 

$3.8 

$1.2 

$9.8 

Other Small 

Business 

Related

Veterans

Women

Members of 

Minority 

Communities

($ in millions)
26

REPAYMENT OF SBLF FUNDING

For the year ended June 30, 2013, SBLF participants reported the estimated calendar quarter and year in which they 

anticipated fully redeeming Treasury’s investment and exiting the SBLF program.16 In total, 247 SBLF participants (83 

percent) reported that they are planning to redeem Treasury’s investment; 168 out of 208 banks who responded (81 

percent) reported that they are planning to redeem in full by the end of Q1 2016. After Q1 2016, 40 of those banks (19 

percent) will remain in the program. Thirty-five out of 39 CDLFs who reported (90 percent) plan to redeem in full by the 

end of Q3 2019; after Q3 2019, only four of those CDLFs (10 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, 2012 to June 30, 2013)

 

16 For SBLF bank participants, the step up rate occurs in Q1 2016; for SBLF CDLF participants, the step up rate occurs in Q3 2019.

0

50

100

150

200

250

0

500

1,000

1,500

2,000

2,500

3,000

Number of Remaining Institutions

Total Remaining Balance ($ in millions)

Total Remaining Balance Number of Remaining CDLFs Number of Remaining Banks
27

The 247 participants (83 percent) that anticipate exiting the SBLF Program most commonly cited (i) dividend or interest 

rate rises to nine percent after the initial period (92 percent), (ii) current dividend or interest rate is unattractive (eight

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, 2012 to June 30, 2013)

The eight percent of participants that indicated “other” most commonly cited (i) merger with another bank, (ii) surplus 

capital, and (iii) favorable economic conditions.

8%

5%

8%

92%

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

SBLF Participants (% of 247)

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
28

The 247 participants (83 percent) that anticipate exiting the SBLF Program most commonly plan to replace the invested 

SBLF capital with (i) retained earnings (66 percent), or (ii) through an equity offering (32 percent). Twenty-five percent 

of respondents do not plan on replacing the SBLF capital as they presently hold surplus capital.

How Program Participants Plan to Replace SBLF Capital

(From July 1, 2012 to June 30, 2013)

The 26 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.

26%

25%

32%

66%

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

SBLF Participants (% of 247)

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
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 January 2014 and covers lending from July 1, 2012 to June 30,

2013. Treasury asked that participants complete the survey by February 10, 2014. Responses were received from 299

participating institutions, including 249 community banks and 50 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, 2013 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, 2013.

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 Second Annual Lending Survey was a revised and slightly 

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

The practice of conducting any survey may introduce errors, such as difficulties interpreting a particular question, which 

can introduce idiosyncratic variability into the survey results. Treasury sought to reduce such variability by reviewing the 

survey with four participants in advance of publication. The purpose of this review was to confirm that each question 

was clearly stated and that institutions could answer questions using generally available business information. Staff 

within Treasury also reviewed a draft of the survey prior to its publication. In response to comments received through 

these reviews, Treasury made certain revisions to the content and format of the survey as appropriate. In addition, 

Treasury received inquiries from participants requesting clarification of certain portions of Question 7. In response, 

Treasury sent an email with additional guidance on this question to all survey participants.

The survey included 17 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.
30

• 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.

• 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 expecations; 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 14-17. These questions request information from participants regarding any of their previous partial 

redemptions, their anticipated full redemption SBLF program exit 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. 
31

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. 

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 2013 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, 2013. As of June 

30, 2013, participants reported approximately $41.9 billion in small business lending, representing a $200 million 

decrease over the $42.1 billion reported as of June 30, 2012. Treasury found that the aggregate lending activity 

reported by participants over the year ended June 30, 2013 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.
32

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 aggregrate responses to Questions 10-13, we compared the responses to the 2012 Lending Survey 

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

Questions 14-17 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.”
33

APPENDIX B: SURVEY RESULTS

The information in this appendix is a summary of the results from the SBLF Lending Survey. S
34 Not applicable

# # % # % # % # % # %

Commercial and industrial 

loans (n=295) 4 1 0% 13 4% 268 91% 11 4% 2 1%

Midwest 2 0 0% 2 2% 76 94% 3 4% 0 0%

Northeast 1 0 0% 4 6% 56 90% 2 3% 0 0%

South 0 1 1% 4 4% 99 90% 4 4% 2 2%

West 1 0 0% 3 7% 37 88% 2 5% 0 0%

Owner-occupied nonfarm, 

nonresidential real estate 

(n=277)

22 0 0% 9 3% 251 91% 16 6% 1 0%

Midwest 5 0 0% 1 1% 75 96% 2 3% 0 0%

Northeast 6 0 0% 3 5% 53 93% 1 2% 0 0%

South 6 0 0% 4 4% 89 86% 10 10% 1 1%

West 5 0 0% 1 3% 34 89% 3 8% 0 0%

Loans to finance 

agricultural production and 

other loans to farmers 

(n=158)

141 0 0% 3 2% 150 95% 5 3% 0 0%

Midwest 29 0 0% 1 2% 53 98% 0 0% 0 0%

Northeast 42 0 0% 1 5% 19 90% 1 5% 0 0%

South 47 0 0% 1 2% 58 92% 4 6% 0 0%

West 23 0 0% 0 0% 20 100% 0 0% 0 0%

Loans secured by farmland 

(n=177) 122 0 0% 8 5% 163 92% 6 3% 0 0%

Midwest 20 0 0% 7 11% 56 89% 0 0% 0 0%

Northeast 42 0 0% 1 5% 20 95% 0 0% 0 0%

South 39 0 0% 0 0% 65 92% 6 8% 0 0%

West 21 0 0% 0 0% 22 100% 0 0% 0 0%

Overall small business 

lending (n=299) 0 1 0% 10 3% 270 90% 17 6% 1 0%

Midwest 0 0 0% 1 1% 80 96% 2 2% 0 0%

Northeast 0 0 0% 4 6% 57 90% 2 3% 0 0%

South 0 1 1% 4 4% 95 86% 9 8% 1 1%

West 0 0 0% 1 2% 38 88% 4 9% 0 0%

Question 1) Over the year ended June 30, 2013, 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?

Eased somewhat Eased considerably

Tightened 

considerably

Tightened 

somewhat

Remained basically 

unchanged
35

# % # % # % # % # %

Maximum size of loans (or credit lines) 0 0% 3 1% 255 85% 36 12% 5 2%

Maximum maturity of loans (or credit lines) 0 0% 11 4% 247 83% 41 14% 0 0%

Costs of loans (or credit lines) 0 0% 10 3% 250 84% 38 13% 1 0%

Spreads of rates over your institution’s cost of 

funds (wider spreads=tightened, narrower 

spreads=eased)

0 0% 23 8% 179 60% 93 31% 4 1%

Premiums charged on riskier loans (or credit lines) 0 0% 21 7% 270 90% 8 3% 0 0%

Covenants 0 0% 31 10% 262 88% 5 2% 1 0%

Collateralization requirements 0 0% 18 6% 269 90% 12 4% 0 0%

Use of interest rate floors (more use=tightened, 

less use=eased) 6 2% 16 5% 256 86% 18 6% 3 1%

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, 2013?

Eased considerably

Tightened 

considerably

Tightened 

somewhat

Remained basically 

unchanged Eased somewhat
36

# % # % # %

Deterioration in your institution’s current or expected 

capital position

75 86% 10 11% 2 2%

Less favorable or more uncertain economic outlook 41 47% 40 46% 6 7%

Worsening of industry-specific problems (please specify 

industries in space below) 65 75% 16 18% 6 7%

Less aggressive competition from other financial 

institutions

75 86% 12 14% 0 0%

Reduced tolerance for risk 39 45% 37 43% 11 13%

Decreased liquidity in the secondary market for these 

loans (or credit lines) 81 93% 5 6% 1 1%

Deterioration in your institution’s current or expected 

liquidity position

75 86% 11 13% 1 1%

Increased concerns about the effects of legislative 

changes, supervisory actions, or changes in accounting 

44 51% 34 39% 9 10%

# % # % # %

Improvement in your institution's current or expected 

capital position

84 60% 44 31% 13 9%

More favorable or less uncertain economic outlook 63 45% 72 51% 6 4%

Improvement in industry-specific problems (please specify 

industries in space below) 126 90% 11 8% 3 2%

More aggressive competition from other financial 

institutions

25 18% 77 55% 39 28%

Increased tolerance for risk 111 79% 25 18% 5 4%

Increased liquidity in the secondary market for these 

loans (or credit lines) 129 91% 11 8% 1 1%

Improvement in your institution's current or expected 

liquidity position

95 67% 41 29% 5 4%

Reduced concerns about the effects of legislative 

changes, supervisory actions, or changes in accounting 

129 91% 8 6% 4 3%

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, 2013, how important have been the 

following possible reasons for the change?

Not important Somewhat 

important

Very important

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?

Not important Somewhat 

important

Very important
37 Not applicable

# # % # % # % # % # %

Commercial and industrial loans 

(n=295) 4 3 1% 102 35% 156 53% 31 11% 3 1%

Midwest 2 0 0% 30 37% 40 49% 11 14% 0 0%

Northeast 1 1 2% 15 24% 38 61% 8 13% 0 0%

South 0 0 0% 40 36% 59 54% 9 8% 2 2%

West 1 2 5% 17 40% 19 45% 3 7% 1 2%

Owner-occupied nonfarm, 

nonresidential real estate (n=277) 22 5 2% 95 34% 156 56% 19 7% 2 1%

Midwest 5 1 1% 28 36% 42 54% 7 9% 0 0%

Northeast 6 2 4% 17 30% 35 61% 3 5% 0 0%

South 6 1 1% 34 33% 59 57% 8 8% 2 2%

West 5 1 3% 16 42% 20 53% 1 3% 0 0%

Loans to finance agricultural 

production and other loans to 

farmers (n=156)

143 2 1% 27 17% 112 72% 13 8% 2 1%

Midwest 29 2 4% 14 26% 33 61% 5 9% 0 0%

Northeast 44 0 0% 4 21% 14 74% 1 5% 0 0%

South 47 0 0% 7 11% 50 79% 4 6% 2 3%

West 23 0 0% 2 10% 15 75% 3 15% 0 0%

Loans secured by farmland (n=175) 124 2 1% 35 20% 124 71% 13 7% 1 1%

Midwest 20 2 3% 16 25% 40 63% 5 8% 0 0%

Northeast 44 0 0% 3 16% 15 79% 1 5% 0 0%

South 39 0 0% 13 18% 52 73% 5 7% 1 1%

West 21 0 0% 3 14% 17 77% 2 9% 0 0%

Overall small business lending 

(n=299) 0 4 1% 104 35% 165 55% 24 8% 2 1%

Midwest 0 1 1% 32 39% 40 48% 10 12% 0 0%

Northeast 0 2 3% 17 27% 39 62% 5 8% 0 0%

South 0 0 0% 38 35% 63 57% 7 6% 2 2%

West 0 1 2% 17 40% 23 53% 2 5% 0 0%

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

ended June 30, 2013? (Please consider inquiries and applications for new, renewal, increases in outstanding, or 

extensions of outstanding loans or credit lines.)

Substantially 

stronger

Moderately 

stronger

About the same Substantially 

weaker

Moderately 

weaker
38

# % # % # %

Customer inventory financing needs increased 79 52% 68 45% 5 3%

Customer accounts receivable financing needs increased 68 45% 75 49% 9 6%

Customer investment in plant or equipment increased 31 20% 108 71% 13 9%

Customer internally generated funds decreased 118 78% 27 18% 7 5%

Customer merger or acquisition financing needs increased 127 84% 22 14% 3 2%

Customer borrowing shifted to your institution from other bank 

or nonbank sources because these other sources became less 

attractive

44 29% 88 58% 20 13%

Other 30 71% 5 12% 7 17%

# % # % # %

Customer inventory financing needs decreased 39 68% 17 30% 1 2%

Customer accounts receivable financing needs decreased 42 74% 14 25% 1 2%

Customer investment in plant or equipment decreased 32 56% 19 33% 6 11%

Customer internally generated funds increased 35 61% 18 32% 4 7%

Customer merger or acquisition financing needs decreased 55 96% 1 2% 1 2%

Customer borrowing shifted from your institution to other bank 

or nonbank credit sources because these other sources became 

more attractive

32 56% 20 35% 5 9%

Other 16 57% 1 4% 11 39%

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, 2013, how important have been the following possible reasons for the change?

Not important Somewhat 

important

Very important

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 

Not important Somewhat 

important

Very important
39

# % # % # %

Collateral – applicants lacked the assets required for 

use as security 59 20% 189 63% 51 17%

Returns – applicants did not generate high enough 

returns to attract risk investors or had insufficiently 

high levels of profitability, liquidity, or stability

53 18% 165 55% 80 27%

Risks – applicants lacked satisfactory business plans 

or were risky for other reasons 73 24% 181 61% 45 15%

Other 41 66% 11 18% 10 16%

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, 2013, how significant were the following possible obstacles?

Not significant Somewhat significant Very significant
40

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

68,859 12,922 14,264 3,590 99,635

Renewals or extensions of 

outstanding credit

35,322 4,815 5,806 1,815 47,758

All commitments 104,181 17,737 20,070 5,405 147,393

Total number of loans made

New or increases in 

outstanding credit 50,570 9,155 12,141 3,283 75,149

Renewals or extensions of 

outstanding credit 32,916 4,382 5,541 1,771 44,610

All commitments 83,486 13,537 17,682 5,054 119,759

Percentage of loans made

All commitments 80% 76% 88% 94% 81%

Midwest Northeast South West Total 

Total number of loan 

applications

New or increases in 

outstanding credit

29,990 9,283 46,836 13,526 99,635

Renewals or extensions of 

outstanding credit

14,128 2,931 22,616 8,083 47,758

All commitments 44,118 12,214 69,452 21,609 147,393

Total number of loans made

New or increases in 

outstanding credit

24,536 6,731 34,805 9,077 75,149

Renewals or extensions of 

outstanding credit

13,011 2,758 21,870 6,971 44,610

All commitments 37,547 9,489 56,675 16,048 119,759

Percentage of loans made

All commitments 85% 78% 82% 74% 81%

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, 2013 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, 2012 to June 30, 2013. 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).
41

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 10,421,144 5,140,751 1,643,764 1,116,994 18,322,653

Renewals or extensions of outstanding 8,237,073 2,093,675 1,208,388 465,068 12,004,204

All commitments 18,658,217 7,234,426 2,852,151 1,582,062 30,326,857

Percentage of total dollar value of loans 

made

New or increases in outstanding credit 56% 71% 58% 71% 60%

Renewals or extensions of outstanding 44% 29% 42% 29% 40%

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

Average dollar value of loans made

All commitments 223,489 534,419 161,303 313,032 253,232

Midwest Northeast South West Total

Total dollar value of loans made (in 

thousands)

New or increases in outstanding credit 5,278,337 1,767,013 8,274,816 3,002,487 18,322,653

Renewals or extensions of outstanding 3,028,407 869,595 4,817,693 3,288,509 12,004,204

All commitments 8,306,744 2,636,608 13,092,509 6,290,996 30,326,857

Percentage of total dollar value of loans 

made

New or increases in outstanding credit 64% 67% 63% 48% 60%

Renewals or extensions of outstanding 36% 33% 37% 52% 40%

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

Average dollar value of loans made

All commitments 221,236 277,859 231,010 392,011 253,232
42

7)D & 7)E

Total number and percent of loans 

made by size # % # % # % # % # %

$100,000 or less 57,496 69% 3,567 26% 11,887 67% 2,193 43% 75,143 63%

More than $100,000 up to 

$250,000 11,031 13% 3,329 25% 2,885 16% 1,214 24% 18,459 15%

More than $250,000 up to 

$1,000,000 10,694 13% 4,608 34% 2,402 14% 1,267 25% 18,971 16%

More than $1,000,000 up to 

$10,000,000 4,265 5% 2,031 15% 508 3% 380 8% 7,184 6%

Total 83,486 100% 13,535 100% 17,682 100% 5,054 100% 119,757 100%

Total dollar value (in thousands) and 

percent of loans made by size

$100,000 or less 1,577,475 8% 202,573 3% 385,505 14% 94,246 6% 2,259,799 7%

More than $100,000 up to 

$250,000 1,810,549 10% 591,687 8% 435,443 15% 206,792 13% 3,044,470 10%

More than $250,000 up to 

$1,000,000 5,397,339 29% 2,386,737 33% 1,070,354 38% 586,376 37% 9,440,807 31%

More than $1,000,000 up to 

$10,000,000 9,872,856 53% 4,053,429 56% 960,854 34% 694,648 44% 15,581,787 51%

Total 18,658,219 100% 7,234,425 100% 2,852,156 100% 1,582,062 100% 30,326,862 100%

 Total number and percent of loans 

made by size

# % # % # % # % # %

$100,000 or less 22,688 60% 5,430 57% 39,542 70% 7,483 47% 75,143 63%

More than $100,000 up to 

$250,000 6,934 18% 1,806 19% 6,772 12% 2,947 18% 18,459 15%

More than $250,000 up to 

$1,000,000 6,078 16% 1,674 18% 7,387 13% 3,832 24% 18,971 16%

More than $1,000,000 up to 

$10,000,000 1,847 5% 579 6% 2974 5% 1784 11% 7,184 6%

Total 37,547 100% 9,489 100% 56,675 100% 16,046 100% 119,757 100%

Total dollar value (in thousands) and 

percent of loans made by size

$100,000 or less 779,748 9% 225,816 9% 962,680 7% 291,555 5% 2,259,799 7%

More than $100,000 up to 

$250,000 1,060,661 13% 323,230 12% 1,154,665 9% 505,914 8% 3,044,470 10%

More than $250,000 up to 

$1,000,000 2,783,301 34% 856,100 32% 3,760,139 29% 2,041,267 32% 9,440,807 31%

More than $1,000,000 up to 

$10,000,000 3,683,036 44% 1,231,467 47% 7,215,027 55% 3,452,258 55% 15,581,787 51%

Total 8,306,745 100% 2,636,613 100% 13,092,510 100% 6,290,994 100% 30,326,862 100%

Commercial and industrial 

loans

Total

Owner-occupied nonfarm, 

nonresidential real estate 

loans 

Loans to finance 

agricultural production 

and other loans to farmers 

Loans secured by farmland Total

Midwest Northeast South West
43 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 4,264,935 468,768 1,173,607 182,955 6,090,265

One to two years 6,682,246 683,074 1,207,848 285,192 8,858,360

More than two years, but less 

than five years

4,112,279 1,492,699 273,826 388,973 6,267,777

More than five years 3,598,755 4,589,887 196,872 724,942 9,110,456

Total 18,658,215 7,234,428 2,852,153 1,582,062 30,326,858

Percentage of total dollar value 

of loans made by length of term

Less than one year 23% 6% 41% 12% 20%

One to two years 36% 9% 42% 18% 29%

More than two years, but less 

than five years

22% 21% 10% 25% 21%

More than five years 19% 63% 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 1,874,989 413,351 2,165,365 1,636,560 6,090,265

One to two years 2,687,283 498,157 3,944,364 1,728,557 8,858,360

More than two years, but less 

than five years

1,777,073 444,254 2,991,678 1,054,772 6,267,777

More than five years 1,967,393 1,280,850 3,991,100 1,871,113 9,110,456

Total 8,306,738 2,636,611 13,092,507 6,291,002 30,326,858

Percentage of total dollar value 

of loans made by length of term

Less than one year 23% 16% 17% 26% 20%

One to two years 32% 19% 30% 27% 29%

More than two years, but less 

than five years

21% 17% 23% 17% 21%

More than five years 24% 49% 30% 30% 30%

Total 100% 100% 100% 100% 100%

7)F
44

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 6,184,311 4,284,420 1,284,904 1,046,575 12,800,209

Adjustable Rate (at time of 

origination) 12,473,907 2,950,005 1,567,254 535,484 17,526,650

Total 18,658,218 7,234,424 2,852,157 1,582,059 30,326,858

Percentage of total dollar value of loans 

made by type of interest rate

Fixed 33% 59% 45% 66% 42%

Adjustable Rate (at time of 

origination) 67% 41% 55% 34% 58%

Total 100% 100% 100% 100% 100%

Interest rate of loans made by type 

(weighted average)

Fixed 5.83% 4.75% 4.19% 2.11% 5.00%

Adjustable Rate (at time of 

origination) 4.18% 3.81% 1.63% 1.85% 3.82%

Total 4.73% 4.37% 2.79% 2.02% 4.32%

Midwest Northeast South West Total

Total dollar value of loans made by type 

of interest rate (in thousands)

Fixed 4,607,454 1,055,686 5,301,178 1,835,890 12,800,209

Adjustable Rate (at time of 

origination) 3,699,294 1,580,927 7,791,319 4,455,110 17,526,650

Total 8,306,748 2,636,613 13,092,497 6,291,000 30,326,858

Percentage of total dollar value of loans 

made by type of interest rate

Fixed 55% 40% 40% 29% 42%

Adjustable Rate (at time of 

origination) 45% 60% 60% 71% 58%

Total 100% 100% 100% 100% 100%

Interest rate of loans made by type 

(weighted average)

Fixed 4.28% 6.21% 5.26% 4.88% 5.00%

Adjustable Rate (at time of 

origination) 3.69% 3.64% 3.99% 4.22% 3.82%

Total 4.02% 4.67% 4.50% 4.41% 4.32%
45

Overall Midwest Northeast South West

Average Average Average Average Average

Manufacturing 9% 12% 8% 7% 10%

Construction 10% 9% 9% 11% 10%

Transportation 5% 5% 4% 5% 5%

Communication 1% 1% 1% 1% 1%

Wholesale trade 6% 6% 5% 5% 11%

Retail 14% 10% 15% 14% 17%

Service 33% 29% 34% 35% 33%

Agricultural 11% 22% 3% 8% 7%

Other 12% 7% 22% 12% 8%

Total 100% 100% 100% 100% 100%

Question 8) Over the year ended June 30, 2013, 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.
46

Overall Midwest Northeast South West

Average Average Average Average Average

Secured by Collateral 93% 96% 94% 91% 92%

Unsecured by Collateral 7% 4% 6% 9% 8%

Total 100% 100% 100% 100% 100%

Overall Midwest Northeast South West

Average Average Average Average Average

Secured by business-owned 

real estate collateral

45% 39% 55% 46% 40%

Secured by business-owned 

non-real estate collateral

50% 53% 44% 47% 59%

Secured by personal collateral 10% 11% 9% 9% 11%

Other 2% 1% 2% 2% 2%

Question 9) Over the year ended June 30, 2013, 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.

For those loans (or credit lines) made by your institution over year ended June 30, 2013 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.
47

Overall Midwest Northeast South West

# # # # #

Increase small business lending or reduce it by less 

than otherwise would have occurred

274 77 59 102 36

Increase other business lending or reduce it by less 

than otherwise would have occurred

169 52 40 58 19

Increase other non-business lending or reduce it by 

less than otherwise would have occurred

99 29 19 40 11

Increase securities purchased (e.g., ABS, MBS) 21 8 3 6 4

Make other investments 8 3 0 2 3

Increase reserves for non-performing assets 12 7 2 2 1

Reduce borrowings 37 11 6 13 7

Increase charge-offs 6 3 0 1 2

Purchase another financial institution or purchase 

assets from another financial institution

20 14 0 4 2

Held as non-leveraged increase in total capital 86 33 12 29 12

Pay dividends or redeem outstanding equity or debt 10 3 3 3 1

Other 13 2 5 4 2

Overall Midwest Northeast South West

% % % % %

Increase small business lending or reduce it by less 

than otherwise would have occurred

92% 93% 94% 93% 84%

Increase other business lending or reduce it by less 

than otherwise would have occurred

57% 63% 63% 53% 44%

Increase other non-business lending or reduce it by 

less than otherwise would have occurred

33% 35% 30% 36% 26%

Increase securities purchased (e.g., ABS, MBS) 7% 10% 5% 5% 9%

Make other investments 3% 4% 0% 2% 7%

Increase reserves for non-performing assets 4% 8% 3% 2% 2%

Reduce borrowings 12% 13% 10% 12% 16%

Increase charge-offs 2% 4% 0% 1% 5%

Purchase another financial institution or purchase 

assets from another financial institution

7% 17% 0% 4% 5%

Held as non-leveraged increase in total capital 29% 40% 19% 26% 28%

Pay dividends or redeem outstanding equity or debt 3% 4% 5% 3% 2%

Other 4% 2% 8% 4% 5%

Question 10) Over the year ended June 30, 2013, 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.
48

# % # % # % # %

Commercial and industrial 3 1% 66 22% 32 11% 198 66%

Owner-occupied nonfarm, nonresidential real estate 22 7% 63 21% 26 9% 188 63%

Agricultural production 144 48% 19 6% 13 4% 123 41%

Secured by farmland 124 41% 18 6% 13 4% 144 48%

Overall small business lending 0 0% 78 26% 28 9% 193 65%

Question 11) As of June 30, 2013, 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?

Not Applicable Greater than expected Less than expected About the same
49

# %

Paid advertisement or notices in print, 

radio, TV, or electronic media 

communications 

171 57%

Outreach to media outlets, press, or 

reporters 

122 41%

Membership or participation in community 

organizations and/or trade associations 244 82%

Distributing marketing materials targeted 

to these groups

143 48%

Hiring or training staff to conduct outreach 

to these groups

96 32%

Other 74 25%

No activities 17 6%

Question 12) Over the year ended June 30, 2013, 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?

Total number of institutions 

conducting outreach
50

Total expenditures

All small businesses $18,958,605 

Small businesses owned by 

members of minority communities $4,235,094 

Small businesses owned by women $3,820,773 

Small businesses owned by 

veterans

$1,158,623 

Question 13) Please estimate your institution’s total expenditures over the year ended June 30, 2013 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.
51

# % # % # % # % # %

2014 0 0% 9 4% 1 0% 3 1% 13 5%

2015 2 1% 4 2% 13 5% 40 16% 59 24%

2016 98 40% 23 9% 6 2% 3 1% 130 53%

2017 2 1% 0 0% 0 0% 1 0% 3 1%

2018 2 1% 1 0% 3 1% 1 0% 7 3%

2019 1 0% 2 1% 27 11% 1 0% 31 13%

2020 0 0% 0 0% 0 0% 1 0% 1 0%

2021 0 0% 0 0% 1 0% 2 1% 3 1%

Total

Question 15) Please estimate the calendar quarter and year in which your institution anticipates fully 

redeeming Treasury’s investment and exiting the SBLF program. If your institution does not anticipate 

redeeming Treasury’s investment, please indicate this and leave blank questions (16) and (17).

Question 14) If your institution has completed a partial redemption to date, please describe the reasons for 

doing so below.

Q1 Q2 Q3 Q4
52

# %

Dividend or interest rate rises to 9 percent after the 

initial period (or 13.8 percent for S corps and 

mutuals)

228 92%

Current dividend or interest rate is unattractive 19 8%

Lack of opportunities to deploy capital 13 5%

Other 20 8%

Number of Institutions

Question 16) What factor(s) most influence your institution’s anticipated timing for exiting the SBLF 

program? Please select all responses in the following chart that apply to your institution.
53

# %

Plan to replace capital through an equity 

offering 79 32%

Plan to replace capital with retained earnings 162 66%

Will not need to replace SBLF capital as we 

presently hold surplus capital 61 25%

Other 65 26%

Number of Institutions

Question 17) When your institution exits the SBLF program, how does it plan to replace 

the SBLF capital?