Solano bank gets millions for job growth
Posted: 09/29/2011 01:01:21 AM PDT
A Solano County bank was awarded more than $20 million in federal funds to help create local jobs, the U.S. Treasury announced Wednesday.
Dixon's First Northern Community Bancorp is among 16 California banks to share $103.1 million as part of the final wave of Small Business Lending Fund money meant to help create new jobs, Treasury officials said. The Dixon bank got its $22.8 million last week, a bank spokeswoman said.
"This is a good thing," bank spokeswoman Louise Walker said. "We'll be able to provide more opportunities to local small business."
Bank officials applied for the program four months ago and learned they were approved in July, Walker said.
"We're hoping to lend some $30 million to $40 million, but it really will depend on the demand for loans," she said. "You hope it creates or retains jobs."
Walker said she's unaware of other area banks being awarded any of these funds.
Messages left with the Treasury Department weren't returned Wednesday.
The Small Business Lending Fund was established as part of the Obama Administration's Small Business Jobs Act. Its aim is to encourage community banks to increase lending to small businesses, helping those companies expand their operations and create new jobs, Treasury officials said in a prepared statement.
Wednesday's 16 brings to 30 the number of California community banks sharing $274.5 million in this federal funding.
The program provides capital to community banks with less than $10 billion in assets at a dividend rate that falls as the bank increases its lending to small businesses, treasury officials said. This provides "a strong incentive for new lending to small businesses so they can expand and create jobs," they said.
Other Northern California banks awarded funds this round include Oakland's OBDC Small Business Finance ($219,000), Lafayette's California Bank of Commerce ($11.0 million) and San Francisco's Low Income Investment Fund ($7.5 million). Also on the list are San Jose's Opportunity Fund Northern California ($2.2 million) and the California Coastal Rural Development Corporation in Salinas ($870,000).
Contact staff writer Rachel Raskin-Zrihen at (707) 553-6824 or rzrihen@timesheraldonline.com.
Dixon's First Northern Community Bancorp is among 16 California banks to share $103.1 million as part of the final wave of Small Business Lending Fund money meant to help create new jobs, Treasury officials said. The Dixon bank got its $22.8 million last week, a bank spokeswoman said.
"This is a good thing," bank spokeswoman Louise Walker said. "We'll be able to provide more opportunities to local small business."
Bank officials applied for the program four months ago and learned they were approved in July, Walker said.
"We're hoping to lend some $30 million to $40 million, but it really will depend on the demand for loans," she said. "You hope it creates or retains jobs."
Walker said she's unaware of other area banks being awarded any of these funds.
Messages left with the Treasury Department weren't returned Wednesday.
The Small Business Lending Fund was established as part of the Obama Administration's Small Business Jobs Act. Its aim is to encourage community banks to increase lending to small businesses, helping those companies expand their operations and create new jobs, Treasury officials said in a prepared statement.
Wednesday's 16 brings to 30 the number of California community banks sharing $274.5 million in this federal funding.
The program provides capital to community banks with less than $10 billion in assets at a dividend rate that falls as the bank increases its lending to small businesses, treasury officials said. This provides "a strong incentive for new lending to small businesses so they can expand and create jobs," they said.
Other Northern California banks awarded funds this round include Oakland's OBDC Small Business Finance ($219,000), Lafayette's California Bank of Commerce ($11.0 million) and San Francisco's Low Income Investment Fund ($7.5 million). Also on the list are San Jose's Opportunity Fund Northern California ($2.2 million) and the California Coastal Rural Development Corporation in Salinas ($870,000).
Contact staff writer Rachel Raskin-Zrihen at (707) 553-6824 or rzrihen@timesheraldonline.com.
