Four Pennsylvania community banks will receive millions from the federal government. U.S. Treasury officials announced Wednesday that Downingtown’s DNB Financial Corporation will get $13 million, while $5 million will go to Philadelphia’s Valley Green Bank.
Jason Tepperman, the director of the Small Business Lending Fund, said the money will provide a powerful spark for economic growth and job creation.
“The Small Business Lending Fund helps small businesses meet this challenge by providing capital to community banks, which are an essential source of credit and lending for small business,” Tepperman said. “The dividend rate that a community bank pays on its SBLF funding is reduced as that bank increases its lending to small businesses.”
And that, Tepperman said, provides a strong incentive for new lending to small businesses so they can create jobs.
Additional SBLF funding announcements are expected in the weeks ahead.
The SBLF was established as part of the Small Business Jobs Act that President Barack Obama signed into law.