Treasury Makes the Case for Its Small Business Lending Fund (Again)

U.S. Department of the Treasury building, in Washington Photograph by Raymond Boyd/Getty Images

In 2010, President Obama announced a plan to funnel money repaid by bailed-out Wall Street banks to community lenders in hopes of encouraging small business lending. The Treasury says the program, known as the Small Business Lending Fund (SBLF), was responsible for $8.9 billion in loans through the end of 2012. Special Inspector General for the Troubled Asset Relief Program Christy Romero and others have said (pdf) that the program did more to prop up struggling community banks than it did to help small businesses.

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