Small Business Lending Fund

Program Summary

Dollars in Thousands

 FY 2012 FY 2013 FY 2014 FY 2012 to FY 2014

 Actual Estimated Estimated $ Change % Change

Obligations

Small Business Lending Fund Program 

Account 22,831 24,707 20,469 (2,362) -10.35%

Total Obligations $22,831 $24,707 $20,469 ($2,362) -10.35%

Budget Authority 

Small Business Lending Fund Program 

Account 22,831 24,707 20,469 (2,362) -10.35%

Total Budget Authority $22,831 $24,707 $20,469 ($2,362) -10.35%

Outlays

Small Business Lending Fund Program 

Account 23,000 24,000 20,000 (3,000) -13.04%

Total Outlays $23,000 $24,000 $20,000 ($3,000) -13.04%

*Amounts may differ from those printed in the FY 2014 President’s Budget Appendix due to rounding.

Summary and Explanation of Programs

The Small Business Jobs Act of 2010 (P. L. 

No. 111-240) (the “Act”) established the Small 

Business Lending Fund (“SBLF”). The SBLF

is a dedicated fund designed to provide capital 

to qualified community banks (including 

banks, thrifts, and bank and thrift holding 

companies) and community development loan 

funds (CDLFs) with consolidated assets of less 

than $10 billion 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. 

SBLF supports the Treasury strategic goal, 

“repair and reform the financial system and 

support the recovery of the housing market.” 

In total, the SBLF invested $4.03 billion in

332 community banks and CDLFs.

As of September 30, 2012, SBLF participants 

have increased their small business lending by 

$7.4 billion over a $36.5 billion baseline, and 

by $740 million over the prior quarter. 

Increases in small business lending are 

widespread across SBLF participants, with 89 

percent of participants having increased their 

small business lending over baseline levels. 

Over three-quarters of SBLF participants (78 

percent) have increased small business lending 

by 10 percent or more. Over the same period, 

banks participating in SBLF have increased 

business loans outstanding by a median of 32.2 

percent over baseline levels, versus a 5.7 

percent median increase for a representative 

peer group of non-SBLF banks and a 2.1 

percent median increase for a broader 

comparison group non-SBLF banks. As of 

December 31, 2012, all participants have made 

all expected interest and dividend payments 

for a total of $82 million in payments received. 

For FY 2013 and forward, the SBLF program 

office plans to continue its focus on 

investment management, dividend and interest 

operations, compliance and oversight, and 

outreach and reporting.

Investment Management: SBLF plans to 

continue to monitor the SBLF investment 

portfolio and make recommendations to senior 
Treasury officials on decisions related to 

investment performance and activities.

Operations: SBLF plans to continue to 

manage the program’s data and information in 

connection with participant reporting, dividend 

and interest payments, and capital repayments. 

Compliance and Controls: SBLF plans to 

continue to execute a compliance program to

monitor participant conformance with program 

terms, including lending data, certification 

requirements, and other requirements provided 

for by the SBLF Securities Purchase 

Agreement. SBLF also plans to continue 

executing internal control procedures for 

processes across SBLF program office 

functions.

Reporting and Outreach: SBLF plans to 

continue its outreach and reporting efforts. 

These activities include reporting to Congress 

on the program’s transactions, costs, and the 

participants’ use of funds, correspondence, and

publishing the results of the program’s first 

annual lending survey and issuing the second 

annual survey.

SBLF FY 2014 Budget Highlights 

Small Business Lending Fund FTE Amount

FY 2012 Actual 27 $22,381 

FY 2013 Estimated Budget 28 $24,707 

Changes to Base:

Maintaining Current Levels 

(MCLs): - $444 

Pay-Raise - $29 

Non-Pay - $415 

Subtotal Changes to Base - $444 

Total FY 2014 Base 28 $25,151 

Program Changes:

Program Decreases: -3 ($4,682)

Staff/Contract Update -3 ($4,682)

Total FY 2014 Request 25 $20,469 

FY 2014 Budget Adjustments

Maintaining Current Levels (MCLs)

Pay-Raise +$29,000 / +0 FTE

The President's Budget proposes a one percent 

pay-raise for federal employees in 2014.

Non-Pay +$415,000 / +0 FTE

Funds are requested for inflation adjustments 

in non-labor expenses such as GSA rent 

adjustments, postage, supplies and equipment.

Program Decreases

Staff/Contract Update -$4,682,000 / -3 FTE

Reductions in contract support and other 

adjustments.

Legislative Proposals

SBLF has no legislative proposals in the FY 

2014 budget.

Description of Performance

The Small Business Jobs Act of 2010 includes 

specific reporting requirements for SBLF. The 

legislation requires the quarterly reporting of 

funds used by participating banks, a semiannual report on administrative costs and a 

report on the program’s impact on small 

business lending among women-, minority-, 

and veteran-owned businesses. 

In accordance with these statutory 

requirements, Treasury has published 34 

transaction and program reports, including a 

detailed study of the impact of the SBLF 

program on women-, minority-, and veteranowned businesses, as well as five quarterly 

“Use of Funds” reports. In addition, Treasury 

plans to expand program reporting with 

respect to how SBLF funds were used with an 

annual lending survey completed by all 

program participants. 

The SBLF program completed the review and, 

if applicable, funding of all eligible program 

applicants by the September 27, 2011 statutory 

deadline. 
The SBLF program office developed a set of 

asset management performance measures to 

continually monitor the impact of the Fund’s 

investments and the efficiency of its 

operations. The measures address two aspects 

of program performance:

1. Efficiency Measures (to assess the 

administrative aspects of the program)

a. Monitoring of investment portfolio 

condition

b. Review of compliance and 

supplemental report submissions by 

participants

c. Publication of reports as required by 

statute

In FY 2012, the SBLF program office has (a) 

produced, on a quarterly basis, portfolio 

monitoring reports that include institutionspecific credit scores, dashboards, and watch 

lists; (b) maintained a record of compliance 

submissions and implemented an analytical 

process for identifying errors in supplemental 

report submissions; and (c) published all 

reports required by the Small Business Jobs 

Act of 2010. 

2. Outcome Measures (to assess the impact of 

the program on small business lending)

a. Increase in small business lending by 

participating institutions

b. Increase in business lending by 

participating banks versus comparable 

institutions

c. Receipt of expected interest and 

dividend payments by participating 

institutions