SBA and America’s Banks Continue to Increase Small Business Lending
by Jeanne Hulit, Former Acting SBA Administrator
- Created: September 20, 2013, 10:27 am
- Updated: September 20, 2013, 10:27 am
Two years ago, Vice President Biden and former U.S. Small Business Administration (SBA) Administrator Karen Mills announced that 13 of the nation’s largest banks had committed to collectively increase lending for small businesses by $20 billion over the course of a three-year commitment.
And today, I’m pleased to announce that these 13 banks have already increased their total lending by roughly $17 billion in the past two years, putting them on track to meet their goal by the end of 2014. The continued success of this commitment is an important example of the vital role played by both the public and private sectors in supporting America’s 28 million small business owners and entrepreneurs.
Small businesses are the engine of our economy, creating two out of every three net new private sector jobs and employing more than half of our nation’s workforce. When President Obama first took office, America was facing the worst economic environment since the Great Depression, but SBA worked closely with our lending partners to give small business owners across the country the access and opportunity they needed to weather the crisis and help get our economy back on track.
After a career in commercial banking before joining SBA and, as the head of SBA’s Office of Capital Access, I’ve seen first-hand the critical role played by private-public partnerships to get capital into the hands of the entrepreneurs and small business owners who drive our economic growth. And this increase in lending continues to have a meaningful impact on small businesses and communities across the country.
Under the Obama Administration, SBA has stepped up to support more than $105 billion in lending to over 185,000 small businesses, including two record years of supporting more than $30 billion dollars in loans in FY 2011 and FY 2012, respectively. We’ve streamlined and simplified SBA loan programs to create more access and opportunity for both banks and borrowers. And, in addition to this commitment, we’ve also brought 1,000 community banks back to SBA lending for the first time since 2007.
We believe that entrepreneurs and small business owners are one of our nation’s greatest strengths. And now, more than ever, SBA and our lending partners are committed to getting capital into the hands of the entrepreneurs, innovators and small business owners that are poised to grow our economy and create good, middle class jobs in their communities.
The banks participating in the commitment are: Wells Fargo, Key Corp, Regions Financial Corporation, Huntington Bancshares Incorporated, M&T Bank Corporation, JP Morgan Chase & Company, Citizens Financial Group, Inc., Citigroup, Bank of America Merrill Lynch, TD Bank, US Bank, PNC Bank NA., Sun Trust Banks, Inc.
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