Feds pad loan power of 5 banks

Feds pad loan power of 5 banks

September 15th, 2011 by Staff Report in Business Around the Region

Five additional Tennessee community banks will receive $52.3 million in the next wave of funding through the Small Business Lending Fund.

The U.S. Department of Treasury said Wednesday that, in the region, Southern Heritage Bank of Cleveland will receive $5.1 million; CapitalMark Bank & Trust in Chattanooga will get $18.2 million and Sequatchie Valley Bancshares, Inc. in Dunlap will get $5 million in Treasury department investments in the banks to leverage more small-business loans.

As the banks provide more small-business loans, dividends paid by the banks on the government money declines.