La Jolla-based Silvergate Capital Corp. has received $12.4 million in funding through the Small Business Lending Fund (SBLF), U.S. Treasury officials announced Wednesday.
The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.
“These funds will provide critical support to Main Street community banks so they can expand their lending to small businesses,” Deputy Secretary of the Treasury Neal S. Wolin said in a press release. “This program helps entrepreneurs in communities across the country access the capital they need to grow their operations, invest in new equipment, and hire additional workers.”
In all a total of $39.7 milliion in funding was announced in this latest round of funds given to California banks. Since the program began, eight banks in the state have received $97.1 milion.
The funds are provided to community banks that hold under $10 billion in assets, with the dividend rate a community bank pays on SBLF funding reduced as that bank increases its lending to small businesses.