June 2013 (Updated 11/1/2013)

Results of the First 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, 2012, SBLF participants reported the following on small business lending.

• SBLF participants have increased small business lending by an estimated 38,000 additional loans as of

December 31, 2012.  As reported in the April 2013 SBLF Use of Funds Report, SBLF participants have increased

their small business lending by $8.9 billion over a $36.9 billion baseline.  Based on benchmarks from the lending

survey, this $8.9 billion increase represents an estimated 38,000 additional loans to small businesses.

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

Nearly half of loans (48 percent) carried a term of more than two years.  A majority of loans (61 percent) used an

adjustable rate, with an average rate of 5.3 percent at the time of origination.

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

Companies in the service and agriculture 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 (20,200 and 8,700 loans, respectively), followed by the Northeast

(5,500 loans) and the West (3,600 loans).   

• Over 90 percent of participants reported that they were able to increase small business lending (or reduce it by

less than otherwise would have occurred) with SBLF funding.  Participants also reported that SBLF funding

supported other business lending (50 percent) and non‐business lending (31 percent).  These uses of SBLF funding

were broadly consistent across geographic regions.

   

• SBLF participants reported that demand for small business loans is strengthening.  Participants reported

stronger demand overall for small business lending, with 46 percent reporting stronger demand compared to 14

percent reporting weaker demand.  Participants also reported a net increase in the number of inquiries from small

business borrowers regarding the availability and terms of new lending, with 54 percent reporting an increase in

inquiries and 12 percent reporting a decrease.

                                                            

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, and PA.  The South region includes: AL, AK, 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, NV, UT, WA, and WY.
2

• 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 (81 percent) reported that credit standards for approving small business lending remain

basically unchanged, with 12 percent reporting eased standards and 8 percent reporting tightened 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 (42 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‐one percent of SBLF participants reported engaging in outreach or advertising activities targeting

women, veteran, or minority communities and 44 percent of their outreach spending was allocated to activities

targeting these groups.  Among SBLF participants, 76 percent report that they are members or participate in

community organizations and/or trade associations that target women, veteran, or minority communities and 53

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

minority communities.  Of the $16 million that SBLF participants reported spending on small business lending

outreach activities, over 44 percent was allocated to outreach activities targeting women, veteran, and minority

communities.

   

   
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 first annual survey.  The survey was distributed to SBLF participants in

August 2012 and covers small business lending activities during the period from July 1, 2011 (or the start of the first

reporting period after the initial disbursement of SBLF funding) to June 30, 2012.  The survey included 14 questions on

topics including small business lending policies and practices, use of SBLF funding, and outreach to small businesses.  

Responses were received from the 327 institutions participating in SBLF as of the survey administration, including 276

community banks and 51 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 include 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 327 institutions that

completed the survey, including 276 community banks and 51 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 May 31, 2013, 15 institutions with aggregate

investments of $162.3 million have fully redeemed their SBLF securities and exited the program, and 13 institutions have

partially redeemed $129.6 million (or 34 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, 5 percent, and the rate falls to

1 percent if a bank’s small business lending increases by 10 percent or more.3

  Banks that increase their lending by

amounts less than 10 percent pay rates between 2 percent and 4 percent.  If a bank’s lending does not increase in

the first two years, however, the rate increases to 7 percent.  If a bank has not repaid the SBLF funding after four

and a half years, the rate increases to 9 percent.

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

at a 2 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.

                                                            

3 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 April 2013 SBLF Use of Funds Report, SBLF participants have increased their small business lending by

$8.9 billion over a $36.9 billion baseline as of December 31, 2012.  Based on the average loan size reported by

participants, this $8.9 billion increase represents an estimated 38,000 additional loans to small businesses, with

approximately 80 percent of those loans made in amounts of $250,000 or less.4

  Small businesses in a wide array of

industries have benefited from the increased lending by SBLF participants, with companies in the service and agriculture

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

(20,200 and 8,700 loans, respectively), followed by the Northeast (5,500 loans) and the West (3,600 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, 2012, participants reported that they made over 80 percent of the applications they

considered for small business loans, including 76 percent of the applications for new lending commitments or increases

in outstanding lending commitments and 93 percent of the applications for renewals or extensions.5

  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, 2011 to June 30, 2012)

                                                            

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

2012 by the average loan size the participant reported on its SBLF lending survey for the year ended June 30, 2012 and aggregating the resulting

loan counts.  The resulting aggregate is rounded to the nearest hundred loans. 5 Lending commitments include loans (or credit lines) that were closed over the past year, whether or not they were funded.
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 loans that were new or increased commitments for agricultural production  (70 percent), followed by owner‐occupied

commercial real estate (62 percent), farmland (61 percent), and commercial and industrial (58 percent).   

Approximately 70 percent of all small business loan applications considered and 71 percent of small business loans made

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

highest percentage of loans made as a fraction of applications considered at 90 percent and 86 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, 2011 to June 30, 2012)

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 (14 percent), owner‐occupied commercial real estate

(11 percent), and farmland (5 percent).  The percentages were similar across regional geography, although institutions in

the Midwest made a relatively smaller percentage of commercial and industrial loans (55 percent) and a relatively larger

  
7

percentage of loans supporting agricultural production and farmland (26 percent and 9 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, 2011 to June 30, 2012)

Dollar Value of Small Business Loans Made by Participants

For the year ended June 30, 2012, participants reported extending approximately $31.2 billion in loans that qualified as

small business lending.  This lending includes approximately $17.7 billion (57 percent) in new or increased lending

commitments and $13.5 billion (43 percent) in renewals or extensions.  Across the four categories of small business

lending, participants reported $19.3 billion in commercial and industrial loans (62 percent), $7.6 billion in owner‐

occupied commercial real estate loans (24 percent), $2.8 billion in agricultural production loans (9 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 $510,000, followed by farmland loans at $260,000, commercial and industrial loans at $200,000, and

agricultural production loans at $150,000.  The following graph shows the dollar value of small business loans made by

participants across the four categories of small business lending.
8

Small Business Lending by Loan Type

(From July 1, 2011 to June 30, 2012)

New or Increased Small Business Lending by Industry

As noted, participants reported that they have made $17.7 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.

   
9

Percentage of New Small Business Lending Across Industries by Regional Geography

(From July 1, 2011 to June 30, 2012)

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.

Small Business Loans Made by Loan Size

For the year ended June 30, 2012, participants reported that approximately 80 percent of the 134,000 loans they made

were for dollar values of $250,000 or less, representing approximately $6.1 billion in small business lending.  Similarly,

approximately 95 percent of the loans were for dollar values of $1 million or less, representing $16.2 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.  

   
10

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

(From July 1, 2011 to June 30, 2012)

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

($410,000), followed by the Northeast ($260,000) and the South and Midwest (both at $200,000).  The significantly

larger average in the West reflects a concentration of owner‐occupied commercial real estate loans with an average

dollar value of $735,000 compared to $518,000 in the South, $442,000 in the Northeast, and $417,000 in the Midwest.  

The following graph shows the average dollar value of each of the four categories of small business loans by regional

geography.

   
11

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

(From July 1, 2011 to June 30, 2012)

Length of Term for Small Business Loans

For the year ended June 30, 2012, participants reported that 48 percent of the small business loans they made were for

a term of more than two years, 31 percent were for one to two years, and 21 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.

   
12

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

(From July 1, 2011 to June 30, 2012)

Weighted Average Interest Rates for Small Business Loans

For the year ended June 30, 2012, participants reported that 61 percent of their small business lending had an

adjustable interest rate at the time of origination, with 39 percent using a fixed rate.  The weighted average interest

rate6 for adjustable rate loans was approximately 5.3 percent, while the weighted average fixed rate was 5.8 percent.  

These results were similar across the four categories of small business lending, with agricultural production lending

reporting slightly higher interest rates and owner‐occupied commercial real estate 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.

   

                                                            

6 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.   
13

Weighted Average Interest Rates for Small Business Loans by Loan Type

(From July 1, 2011 to June 30, 2012)

   
14

PARTICIPANT USE OF SBLF FUNDING

For the year ended June 30, 2012, a significant majority of participants (91 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, 50 percent of participants reported that they were able to increase business lending and 31 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.7

  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, 2011 to June 30, 2012)

                                                            

7 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.
15

Institutions reported similar results across geographic regions and size.  Of those SBLF participants that had increased

small business lending as of December 31, 2012, 94 percent noted that they may not have been able to take that action

without the SBLF funding.  Among the minority of SBLF participants (32 institutions) that had not increased their small

business lending as of December 31, 2012, 78 percent reported that SBLF funding enabled them to reduce small

business lending by less than would otherwise have occurred.  The following graph shows the percentage of participants

by increase in small business lending reporting action(s) that they were able to take that may not have been taken

without SBLF funding.

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

(From July 1, 2011 to June 30, 2012)

   
16

DEMAND FOR SMALL BUSINESS LENDING

For the year ended June 30, 2012, participants reported net stronger demand for small business lending, with 46

percent reporting stronger demand compared to 14 percent reporting weaker demand (net 32 percent reporting

stronger demand).8

  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 31

percent) and commercial and industrial loans (net 25 percent).  Participants also reported net stronger demand for

agricultural production and farmland loans (net 12 percent and net 11 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 Type9

(From July 1, 2011 to June 30, 2012)

                                                            

8 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”). 9 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.
17

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

39 percent), followed by the Northeast (net 37 percent), the South (net 33 percent), and the Midwest (net 27 percent).   

Reasons for Changes in Small Business Loan Demand

Of the 152 participants (46 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 44 participants (13 percent)

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

equipment, (ii) decreased inventory financing needs, and (iii) decreased accounts receivable financing needs.  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 Demand10

(From July 1, 2011 to June 30, 2012)

                                                            

10 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.
18

Changes in the Number of Inquiries from Potential Small Business Borrowers

For the year ended June 30, 2012, participants reported a net increase in the number of inquiries from small business

borrowers regarding the availability and terms of new lending, with 54 percent reporting an increase in inquiries and 12

percent reporting a decrease (net 42 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 51

percent), followed by the South (net 47 percent), the Northeast (net 42 percent), and the Midwest (net 30 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, 2011 to June 30, 2012)

   
19

CREDIT STANDARDS FOR SMALL BUSINESS LENDING

For the year ended June 30, 2012, a significant majority of SBLF participants (81 percent) reported credit standards for

approving small business lending remain basically unchanged, with 12 percent reporting eased standards and 8 percent

reporting tightened standards, or a net 4 percent reporting eased standards.11  The results are similar across the four

categories of small business lending, with more than 80 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 Type12  

(From July 1, 2011 to June 30, 2012)

                                                            

11 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”). 12 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.
20

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

basically unchanged, with participants in the South reporting a net 8 percent eased and participants in the Midwest,

Northeast, and West reporting net changes of less than 3 percent eased or tightened.

  

Reasons for Changes in Credit Standards

Of the 37 participants (12 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 26

participants (8 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.   

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 (51 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 loan covenants and collateralization.  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.
21

Percentage of Participants Reporting Change in Certain Terms for Small Business Loans13

(From July 1, 2011 to June 30, 2012)

                                                            

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.
22

OBSTACLES TO SMALL BUSINESS LENDING

For the year ended June 30, 2012, significant majorities of participants reported that returns, collateral, and risks have

been obstacles to increasing small business lending.  In total, 71 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, 69 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 60 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, 2011 to June 30, 2012)

Of the 52 participants (16 percent) that cited “other” obstacles to small business lending, nearly half noted a lack of

demand for new loans or a poor economic outlook.  Other less commonly mentioned obstacles included increased

competition from other lending institutions and regulatory uncertainty.

   
23

OUTREACH TO SMALL BUSINESSES

For the year ended June 30, 2012, 91 percent of participants reported engaging in outreach or advertising activities

targeting women, veteran, or minority communities.  In total, 76 percent of SBLF participants reported that they are

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

communities; 53 percent reported using paid advertisement or notices in print, radio, or electronic media to target

women, veteran, or minority communities; and, 46 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, 2011 to June 30, 2012)

The 106 participants (32 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) using social media.

   
24

In aggregate, participants reported expenditures of $16.0 million associated with small business‐related outreach

activities.  Of this amount, $7.1 million (44 percent) was allocated to activities targeting women, veteran, or minority

communities.

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

(From July 1, 2011 to June 30, 2012)

   
25

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 August 2012 and covers lending from July 1, 2011 to June 30,

2012.  Treasury asked that participants complete the survey by October 4, 2012.  Responses were received from 327

participating institutions, including 276 community banks and 51 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, 2012 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, 2012.

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 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 9.  In response,

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

The survey included 14 questions on topics including small business lending policies and practices, the use of SBLF

funding, and outreach to small businesses.  The following includes additional information on the survey questions.

   
26

• Questions 1‐6.  The language used in these questions is based on similar questions in the Federal Reserve’s July

2012 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 4‐6 request information regarding changes in demand

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

• Question 7.  This question requests information from participants regarding possible obstacles to increasing small

business lending over the year.

• 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 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 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 that participants provide an updated estimate of the dollar amount of the

increase in small business lending that they originally projected achieving two years following Treasury’s

investment.  Participants provided initial estimates on small business lending plans that were generally submitted

to their federal and state banking regulators at the same time as their application to Treasury for SBLF funding.

• Questions 12‐14.  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.   

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.   
27

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 1‐6 to

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

the Federal Reserve’s July 2012 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.

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

Question 7 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).  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.

In reviewing the aggregate responses to Question 9, 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, 2012.  As of June 30, 2012, participants reported approximately $42.1 billion in small business lending,

representing a $4.3 billion increase over the $37.8 billion reported as of June 30, 2011.  Treasury found that the

aggregate lending activity reported by participants over the year ended June 30, 2012 was broadly consistent with the

results indicated by the roll‐forward analysis.

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.”

   
28

APPENDIX B: SURVEY RESULTS

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

# #%#%#%#%#%

Commercial and industrial

loans (n=322) 5 2 1% 21 7% 275 85% 23 7% 1 0%

Midwest 0 2 2% 7 8% 71 80% 8 9% 1 1%

Northeast 3 0 0% 4 6% 59 92% 1 2% 0 0%

South 2 0 0% 6 5% 99 84% 13 11% 0 0%

West 0 0 0% 4 8% 46 90% 1 2% 0 0%

Owner‐occupied nonfarm,

nonresidential real estate

(n=310)

17 1 0% 23 7% 251 81% 33 11% 2 1%

Midwest 4 1 1% 9 11% 67 79% 8 9% 0 0%

Northeast 6 0 0% 5 8% 52 85% 4 7% 0 0%

South 4 0 0% 6 5% 91 78% 17 15% 2 2%

West 3 0 0% 3 6% 41 85% 4 8% 0 0%

Loans to finance agricultural

production and other loans

to farmers (n=197)

130 1 1% 13 7% 176 89% 6 3% 1 1%

Midwest 25 1 2% 5 8% 55 86% 3 5% 0 0%

Northeast 37 0 0% 2 7% 27 90% 0 0% 1 3%

South 45 0 0% 5 7% 67 89% 3 4% 0 0%

West 23 0 0% 1 4% 27 96% 0 0% 0 0%

Loans secured by farmland

(n=205) 122 0 0% 17 8% 178 87% 9 4% 1 0%

Midwest 22 0 0% 7 10% 55 82% 5 7% 0 0%

Northeast 38 0 0% 2 7% 27 93% 0 0% 0 0%

South 39 0 0% 6 7% 70 86% 4 5% 1 1%

West 23 0 0% 2 7% 26 93% 0 0% 0 0%

Overall small business

lending (n=327) 0 2 1% 24 7% 264 81% 35 11% 2 1%

Midwest 0 2 2% 7 8% 68 76% 11 12% 1 1%

Northeast 0 0 0% 6 9% 55 82% 6 9% 0 0%

South 0 0 0% 7 6% 97 81% 15 13% 1 1%

West 0 0 0% 4 8% 44 86% 3 6% 0 0%

Question 1) Over the past year, 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

29
#%#%#%#%#%

Maximum size of credit lines 0 0% 23 7% 239 73% 59 18% 6 2%

Maximum maturity of loans or credit lines 0 0% 12 4% 259 79% 55 17% 1 0%

Cost of credit lines 2 1% 24 7% 261 80% 31 10% 8 2%

Spreads of loan rates over institution’s cost of funds

(wider spreads=tightened, narrower spreads=eased) 2 1% 28 9% 130 40% 153 47% 14 4%

Premiums charged on riskier loans 0 0% 37 11% 273 83% 17 5% 0 0%

Loan covenants 1 0% 50 15% 271 83% 5 2% 0 0%

Collateralization requirements 2 1% 39 12% 273 83% 13 4% 0 0%

Use of interest rate floors (more use=tightened, less

use=eased) 8 2% 44 13% 225 69% 47 14% 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 past year?

Eased considerably Tightened

considerably

Tightened

somewhat

Remained basically

unchanged Eased somewhat

30
#%#%#%

Deterioration in your institution’s current or expected

capital position 15 58% 11 42% 0 0%

Less favorable or more uncertain economic outlook 5 19% 14 54% 7 27%

Worsening of industry‐specific problems 14 54% 9 35% 3 12%

Less aggressive competition from other financial institutions 20 77% 6 23% 0 0%

Reduced tolerance for risk 4 15% 15 58% 7 27%

Decreased liquidity in the secondary market for these loans 23 88% 3 12% 0 0%

Deterioration in your institution’s current or expected

liquidity position 20 77% 5 19% 1 4%

Increased concerns about the effects of legislative changes,

supervisory actions, or changes in accounting standards 8 31% 10 38% 8 31%

#%#%#%

Improvement in your institution’s current or expected

capital position 15 41% 18 49% 4 11%

More favorable or less uncertain economic outlook 8 22% 24 65% 5 14%

Improvement in industry‐specific problems 24 65% 12 32% 1 3%

More aggressive competition from other financial

institutions 4 11% 25 68% 8 22%

Increased tolerance for risk 16 43% 19 51% 2 5%

Increased liquidity in the secondary market for these loans 31 84% 6 16% 0 0%

Improvement in your institution’s current or expected

liquidity position 19 51% 14 38% 4 11%

Reduced concerns about the effects of legislative changes,

supervisory actions, or changes in accounting standards 26 70% 9 24% 2 5%

Question 3) If your institution has tightened or eased its credit standards or terms for loans or credit lines that qualify as

small business lending over the past year, how important have been the following possible reasons for the change?

Not important Somewhat

important Very important

A) If your institution’s answer to question (1)(e) is “tightened considerably” or “tightened somewhat,” how important have been the following

possible reasons for the change?

B) If your institution’s answer to question 1(e) is “eased considerably” or “eased somewhat,” how important have been the following possible

reasons for the change?

Not important Somewhat

important Very important

31
Not applicable

# #%#%#%#%#%

Commercial and industrial loans

(n=323) 4 14 4% 121 37% 136 42% 46 14% 6 2%

Midwest 0 2 2% 31 35% 38 43% 17 19% 1 1%

Northeast 3 4 6% 27 42% 25 39% 7 11% 1 2%

South 1 5 4% 44 37% 51 43% 15 13% 4 3%

West 0 3 6% 19 37% 22 43% 7 14% 0 0%

Owner‐occupied nonfarm,

nonresidential real estate (n=306) 21 5 2% 131 43% 128 42% 40 13% 2 1%

Midwest 6 0 0% 35 42% 34 41% 14 17% 0 0%

Northeast 5 3 5% 25 40% 27 44% 7 11% 0 0%

South 5 1 1% 48 42% 47 41% 17 15% 2 2%

West 5 1 2% 23 50% 20 43% 2 4% 0 0%

Loans to finance agricultural

production and other loans to farmers

(n=180)

147 6 3% 39 22% 111 62% 22 12% 2 1%

Midwest 26 3 5% 16 25% 35 56% 8 13% 1 2%

Northeast 44 1 4% 3 13% 17 74% 2 9% 0 0%

South 47 0 0% 17 23% 48 66% 8 11% 0 0%

West 30 2 10% 3 14% 11 52% 4 19% 1 5%

Loans secured by farmland (n=185) 142 6 3% 37 20% 120 65% 19 10% 3 2%

Midwest 23 5 8% 16 24% 39 59% 6 9% 0 0%

Northeast 44 0 0% 2 9% 19 83% 1 4% 1 4%

South 45 0 0% 17 23% 47 63% 10 13% 1 1%

West 30 1 5% 2 10% 15 71% 2 10% 1 5%

Overall small business lending

(n=327) 0 7 2% 145 44% 131 40% 39 12% 5 2%

Midwest 0 1 1% 39 44% 33 37% 15 17% 1 1%

Northeast 0 3 4% 29 43% 28 42% 7 10% 0 0%

South 0 1 1% 53 44% 51 43% 12 10% 3 3%

West 0 2 4% 24 47% 19 37% 5 10% 1 2%

Question 4) How has demand for loans that qualify as small business lending changed over the past year?  (Please consider only

funds actually disbursed as opposed to requests for new or increased lines of credit.)  

Substantially

stronger

Moderately

stronger

About the same Substantially

weaker

Moderately

weaker

32
#%#%#%

Customer inventory financing needs increased 71 47% 78 51% 3 2%

Customer accounts receivable financing needs increased 47 31% 99 65% 6 4%

Customer investment in plant or equipment increased 21 14% 115 76% 16 11%

Customer internally generated funds decreased 98 64% 45 30% 9 6%

Customer merger or acquisition financing needs increased 115 76% 35 23% 2 1%

Customer borrowing shifted to your institution from other bank or

nonbank sources because these other sources became less

attractive

30 20% 84 55% 38 25%

#%#%#%

Customer inventory financing needs decreased 14 32% 24 55% 6 14%

Customer accounts receivable financing needs decreased 14 32% 22 50% 8 18%

Customer investment in plant or equipment decreased 7 16% 20 45% 17 39%

Customer internally generated funds increased 20 45% 16 36% 8 18%

Customer merger or acquisition financing needs decreased 30 68% 12 27% 2 5%

Customer borrowing shifted from your institution to other bank or

nonbank sources because these other sources became more

attractive

16 36% 19 43% 9 20%

Question 5) If demand for loans that qualify as small business lending has strengthened or weakened over the past year,

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

Not important Somewhat important Very important

A) If your institution’s answer to question (4)(e) is “substantially stronger” or “moderately stronger,” how important have been the following possible

reasons for the change?

B) If your institution’s answer to question (4)(e) is “substantially weaker” or “moderately weaker,” how important have been the following possible reasons

for the change?

Not important Somewhat important Very important

33
Overall Midwest Northeast South West

#####

The number of inquiries has increased substantially 13 6 1 2 4

The number of inquiries has increased moderately 163 35 35 67 26

The number of inquiries has stayed about the same 112 34 23 38 17

The number of inquiries has decreased moderately 34 14 7 9 4

The number of inquiries has decreased substantially 5 0 1 4 0

Overall Midwest Northeast South West

%%%%%

The number of inquiries has increased substantially 4% 7% 1% 2% 8%

The number of inquiries has increased moderately 50% 39% 52% 56% 51%

The number of inquiries has stayed about the same 34% 38% 34% 32% 33%

The number of inquiries has decreased moderately 10% 16% 10% 8% 8%

The number of inquiries has decreased substantially 2% 0% 1% 3% 0%

Question 6) At your institution, how has the number of inquiries from potential small business borrowers regarding the availability

and terms of new credit lines or increases in existing lines that qualify as small business lending changed over the past year?

34
#%#%#%

Collateral – small businesses lack the assets required for

use as security 100 31% 188 57% 39 12%

Returns – small businesses cannot generate high enough

returns to attract risk investors or have insufficiently high

levels of profitability, liquidity, stability, or other financial

performance metric

96 29% 172 53% 59 18%

Risks – small businesses lack satisfactory business plans or

are risky for other reasons 129 39% 168 51% 30 9%

Other 275 84% 28 9% 24 7%

Not significant Somewhat significant Very significant

Question 7) How significant have the following possible obstacles been in increasing your institution’s small business lending over

the past year?

35
Overall Midwest Northeast South West

Average Average Average Average Average

Manufacturing 10% 11% 9% 9% 10%

Construction 10% 8% 11% 10% 11%

Transportation 5% 4% 5% 4% 6%

Communication 1% 2% 1% 2% 1%

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

Retail 14% 11% 14% 15% 16%

Service 31% 26% 33% 34% 31%

Agricultural 11% 22% 2% 9% 7%

Other 13% 10% 19% 12% 11%

Total 100% 100% 100% 100% 100%

Question 8) Over the past year, estimate the percentage of the total dollar value of new loan commitments or increases

in outstanding loan commitments that qualify as small business lending that your institution has extended to borrowers

in each of the following categories of businesses (the sum of the percentages should total 100 percent)?

36
9)A & 9)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 commitments or

increases in outstanding

commitments

72,525 14,074 15,443 4,158 106,200

Renewals or extensions of

outstanding commitments 42,863 6,626 5,806 2,452 57,747

All commitments 115,388 20,700 21,249 6,610 163,947

Total number of loans made

New commitments or

increases in outstanding

commitments

54,356 9,368 13,092 3,680 80,496

Renewals or extensions of

outstanding commitments 40,165 5,630 5,688 2,374 53,857

All commitments 94,521 14,998 18,780 6,054 134,353

Percentage of loans made

All commitments 82% 72% 88% 92% 82%

Midwest Northeast South West Total

Total number of loan applications

New commitments or

increases in outstanding

commitments

35,027 10,043 46,136 14,994 106,200

Renewals or extensions of

outstanding commitments 16,060 3,766 28,598 9,323 57,747

All commitments 51,087 13,809 74,734 24,317 163,947

Total number of loans made

New commitments or

increases in outstanding

commitments

28,810 7,159 35,188 9,339 80,496

Renewals or extensions of

outstanding commitments 15,335 3,339 27,086 8,097 53,857

All commitments 44,145 10,498 62,274 17,436 134,353

Percentage of loans made

All commitments 86% 76% 83% 72% 82%

Question 9) Please provide the information requested in the following chart for loans or credit lines that qualify as small

business lending you’re your institution considered or made over the past year.

37
9)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

New commitments or increases in 9,977,536 5,071,358 1,674,664 1,006,320 17,729,878

Renewals or extensions of outstanding 9,294,597 2,531,085 1,080,769 566,774 13,473,225

All commitments 19,272,133 7,602,444 2,755,433 1,573,094 31,203,103

Percentage of total dollar value of loans

New commitments or increases in 52% 67% 61% 64% 57%

Renewals or extensions of outstanding 48% 33% 39% 36% 43%

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

Average dollar value of loans made

All commitments 203,893 506,897 146,722 259,844 232,247

Midwest Northeast South West Total

Total dollar value of loans made (in

New commitments or increases in 5,302,239 1,709,950 7,533,102 3,184,587 17,729,878

Renewals or extensions of outstanding 3,534,259 1,016,731 5,043,244 3,878,990 13,473,225

All commitments 8,836,499 2,726,682 12,576,346 7,063,577 31,203,103

Percentage of total dollar value of loans

New commitments or increases in 60% 63% 60% 45% 57%

Renewals or extensions of outstanding 40% 37% 40% 55% 43%

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

Average dollar value of loans made

All commitments 200,170 259,733 201,952 405,115 232,247

Question 9) Please provide the information requested in the following chart for loans or credit lines that qualify as small

business lending you’re your institution considered or made over the past year.

38
9)D & 9)E

Total number and percent of loans

made by size

# % # % # % # % # %

$100,000 or less 66,329 70% 4,130 28% 13,373 71% 2,938 49% 86,770 65%

More than $100,000 up to $250,000 12,399 13% 3,696 25% 2,796 15% 1,594 26% 20,485 15%

More than $250,000 up to

$1,000,000 11,575 12% 5,154 34% 2,194 12% 1,212 20% 20,135 15%

More than $1,000,000 up to

$10,000,000 4,218 4% 2,018 13% 417 2% 310 5% 6,963 5%

Total 94,521 100% 14,998 100% 18,780 100% 6,054 100% 134,353 100%

Total dollar value (in thousands) and

percent of loans made by size

$100,000 or less 1,813,756 9% 205,307 3% 398,127 14% 138,130 9% 2,555,320 8%

More than $100,000 up to $250,000 2,159,919 11% 645,991 8% 450,910 16% 264,335 17% 3,521,154 11%

More than $250,000 up to

$1,000,000 5,853,952 30% 2,661,543 35% 1,064,603 39% 587,982 37% 10,168,080 33%

More than $1,000,000 up to

$10,000,000 9,444,505 49% 4,089,605 54% 841,796 31% 582,645 37% 14,958,552 48%

Total 19,272,132 100% 7,602,446 100% 2,755,436 100% 1,573,092 100% 31,203,106 100%

Total number and percent of loans

made by size

# % # % # % # % # %

$100,000 or less 29,306 66% 6,043 58% 43,909 71% 7,512 43% 86,770 65%

More than $100,000 up to $250,000 7,095 16% 2,039 19% 7,888 13% 3,463 20% 20,485 15%

More than $250,000 up to

$1,000,000 5,981 14% 1,841 18% 7,727 12% 4,586 26% 20,135 15%

More than $1,000,000 up to

$10,000,000 1,763 4% 575 5% 2750 4% 1875 11% 6,963 5%

Total 44,145 100% 10,498 100% 62,274 100% 17,436 100% 134,353 100%

Total dollar value (in thousands) and

percent of loans made by size

$100,000 or less 989,571 11% 237,270 9% 1,026,634 8% 301,844 4% 2,555,320 8%

More than $100,000 up to $250,000 1,186,099 13% 355,979 13% 1,369,206 11% 609,870 9% 3,521,154 11%

More than $250,000 up to

$1,000,000 2,930,428 33% 932,373 34% 3,903,459 31% 2,401,820 34% 10,168,080 33%

More than $1,000,000 up to

$10,000,000 3,730,400 42% 1,201,058 44% 6,277,049 50% 3,750,044 53% 14,958,552 48%

Total 8,836,498 100% 2,726,681 100% 12,576,349 100% 7,063,579 100% 31,203,106 100%

Question 9) Please provide the information requested in the following chart for loans or credit lines

that qualify as small business lending you’re your institution considered or made over the past year.

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

39
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 4,780,083 605,850 1,024,460 197,061 6,607,454

One to two years 7,366,286 726,626 1,246,359 401,523 9,740,794

More than two years 7,125,768 6,269,964 484,619 974,509 14,854,860

Total 19,272,138 7,602,440 2,755,438 1,573,093 31,203,109

Percentage of total dollar value of

loans made by length of term

Less than one year 25% 8% 37% 13% 21%

One to two years 38% 10% 45% 26% 31%

More than two years 37% 82% 18% 62% 48%

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 1,959,128 446,220 2,723,921 1,478,185 6,607,454

One to two years 2,884,979 745,776 3,785,893 2,324,145 9,740,794

More than two years 3,992,391 1,534,686 6,066,531 3,261,253 14,854,860

Total 8,836,499 2,726,682 12,576,345 7,063,583 31,203,109

Percentage of total dollar value of

loans made by length of term

Less than one year 22% 16% 22% 21% 21%

One to two years 33% 27% 30% 33% 31%

More than two years 45% 56% 48% 46% 48%

Total 100% 100% 100% 100% 100%

Question 9) Please provide the information requested in the following chart for loans or credit lines that qualify as small

business lending you’re your institution considered or made over the past year.

9)F

40
9)G & 9)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 5,750,951 4,429,818 1,108,733 987,676 12,277,179

Adjustable Rate (at time of origination) 13,521,188 3,172,626 1,646,701 585,418 18,925,934

Total 19,272,139 7,602,445 2,755,435 1,573,094 31,203,113

Percentage of total dollar value of loans

made by type of interest rate

Fixed 30% 58% 40% 63% 39%

Adjustable Rate (at time of origination) 70% 42% 60% 37% 61%

Total 100% 100% 100% 100% 100%

Interest rate of loans made by type

(weighted average)

Fixed 5.95% 5.65% 5.95% 5.80% 5.83%

Adjustable Rate (at time of origination) 5.29% 5.25% 5.39% 5.30% 5.29%

Total 5.49% 5.48% 5.61% 5.62% 5.50%

Midwest Northeast South West Total

Total dollar value of loans made by type

of interest rate (in thousands)

Fixed 4,403,587 1,014,244 5,036,437 1,822,911 12,277,179

Adjustable Rate (at time of origination) 4,432,914 1,712,438 7,539,914 5,240,669 18,925,934

Total 8,836,501 2,726,682 12,576,351 7,063,580 31,203,113

Percentage of total dollar value of loans

made by type of interest rate

Fixed 50% 37% 40% 26% 39%

Adjustable Rate (at time of origination) 50% 63% 60% 74% 61%

Total 100% 100% 100% 100% 100%

Interest rate of loans made by type

(weighted average)

Fixed 5.68% 5.72% 5.92% 5.96% 5.83%

Adjustable Rate (at time of origination) 5.22% 5.00% 5.35% 5.65% 5.29%

Total 5.45% 5.27% 5.58% 5.73% 5.50%

Question 9) Please provide the information requested in the following chart for loans or credit lines that qualify as small business

lending you’re your institution considered or made over the past year.

41
Overall Midwest Northeast South West

#####

Increase small business lending or reduce it by less than

otherwise would have occurred 299 82 64 111 42

Increase other business lending or reduce it by less than

otherwise would have occurred 165 45 37 60 23

Increase other non‐business lending or reduce it by less

than otherwise would have occurred 101 25 22 43 11

Increase securities purchased (e.g., ABS, MBS) 50 17 10 15 8

Make other investments 14 5 2 3 4

Increase reserves for non‐performing assets 8 3 1 3 1

Reduce borrowings 47 14 12 16 5

Increase charge‐offs 5 2 0 3 0

Purchase another financial institution or purchase

assets from another financial institution

23 11 0 11 1

Held as non‐leveraged increase in total capital 86 34 8 28 16

Pay dividends or redeem outstanding equity or debt 36 11 6 16 3

Other 14 3 2 4 5

Overall Midwest Northeast South West

%%%%%

Increase small business lending or reduce it by less than

otherwise would have occurred 91% 92% 96% 93% 82%

Increase other business lending or reduce it by less than

otherwise would have occurred 50% 51% 55% 50% 45%

Increase other non‐business lending or reduce it by less

than otherwise would have occurred 31% 28% 33% 36% 22%

Increase securities purchased (e.g., ABS, MBS) 15% 19% 15% 13% 16%

Make other investments 4% 6% 3% 3% 8%

Increase reserves for non‐performing assets 2% 3% 1% 3% 2%

Reduce borrowings 14% 16% 18% 13% 10%

Increase charge‐offs 2% 2% 0% 3% 0%

Purchase another financial institution or purchase

assets from another financial institution 7% 12% 0% 9% 2%

Held as non‐leveraged increase in total capital 26% 38% 12% 23% 31%

Pay dividends or redeem outstanding equity or debt 11% 12% 9% 13% 6%

Other 4% 3% 3% 3% 10%

Question 10) Over the past year, 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.)

42
$#$#$#$#$#

Original Lending

Plan Projection 8,993,562,113 316 2,204,319,772 87 1,200,249,741 65 4,168,132,250 117 1,420,860,350 47

Updated

Lending Survey

Projection

10,334,013,755 316 2,253,836,723 87 1,476,329,090 65 4,904,065,942 117 1,699,782,000 47

Increased 2,781,675,195 132 347,453,503 32 477,683,350 32 1,451,439,692 47 505,098,650 21

Decreases (1,441,223,553) 94 (297,936,552) 22 (201,604,001) 17 (715,506,000) 40 (226,177,000) 15

No Change 0 90 0 33 0 16 0 30 0 11

Question 11) Given your institution’s experience with the SBLF program to date, provide an updated estimate of the dollar amount

of the increase in small business lending that your institution projects achieving two years following Treasury’s investment.  (Your

institution provided its initial estimate on its small business lending plan that was submitted to your federal banking agency with its

application.)

Overall Midwest Northeast South West

43
#%#%#%#%

31 9% 41 13% 46 14% 104 32%

172 53% 150 46% 145 44% 93 28%

128 39% 120 37% 113 35% 78 24%

249 76% 223 68% 222 68% 135 41%

149 46% 124 38% 125 38% 71 22%

115 35% 102 31% 90 28% 54 17%

106 32% 90 28% 90 28% 67 20%

Question 12) Over the past year, how has your institution engaged in outreach and advertising designed to target the

following groups?

Hiring or training staff to conduct outreach to these

groups

Other

No activities

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

electronic media communications

Outreach to media outlets, press, or reporters

Membership or participation in community

organizations and/or trade associations

Distributing marketing materials targeted to these

groups

Total number of

institutions

conducting outreach

Members of minority

communities Women Veterans

44
Aggregate

Members of minority

communities $3,195,017

Women $2,886,271

Veterans $971,352

Other small business‐related $8,907,043

Total $15,959,682

Question 12) Over the past year, how has your institution engaged in outreach and advertising designed to

target the following groups?

Question 14) Please estimate the expenditures over the past year associated with the outreach and advertising

activities for the groups detailed in question 12, above.

45