Tale of Two Loan Programs

“More than half of $4 billion in federal funds disbursed this year to spur small-business lending by community banks was used to repay bailout funds that the banks received under the government’s Troubled Asset Relief Program” This is so typical of corporate American Banks…. They are there when you don’t need them and not when you do.  As usual Washington helped corporate America, but still can’t seem to find its way to Main Street—anyone surprised?

Author:  Emily Maltby and Angus Loten

Source:  Wall Street Journal, October 12, 2011

More than half of $4 billion in federal funds disbursed this year to spur small-business lending by community banks was used to repay bailout funds that the banks received under the government’s Troubled Asset Relief Program.

The Small Business Lending Fund was meant to raise capital at smaller banks, which tend to lend more heavily to small businesses, in the hopes of jump-starting growth and employment. But instead of directly lending to small businesses, many of the banks used the money to rid themselves of higher-cost TARP debt and tougher restrictions.

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JRI Consulting, LLC