New Mexico Business Weekly
Small businesses could receive $30 billion from federal bank bailout funds, the U.S. Treasury Department said Wednesday.
While large banks have been eager to exit the Troubled Asset Relief Program, the Treasury is worried that many community banks never entered the program, not wanting to be subject to the conditions that came with the funds. As community banks are a key source of lending to small businesses, federal officials believe community banks' rejection of TARP is one of the factors keeping credit from flowing more freely.
From President Barack Obama on down, government officials have been gently stepping up pressure on banks to increase lending, saying that higher lending is needed to sustain the economic recovery.
No final decision on TARP money for small businesses has been reached, how many and which businesses might qualify, or how small businesses might apply for funds.
In New Mexico, Trinity Capital Corp. of Los Alamos — the parent company of Los Alamos National Bank — received a $36 million TARP investment in March, and Santa Fe-based Century Financial Services Corp. received a $10 million TARP investment in June.
While large banks have been eager to exit the Troubled Asset Relief Program, the Treasury is worried that many community banks never entered the program, not wanting to be subject to the conditions that came with the funds. As community banks are a key source of lending to small businesses, federal officials believe community banks' rejection of TARP is one of the factors keeping credit from flowing more freely.
From President Barack Obama on down, government officials have been gently stepping up pressure on banks to increase lending, saying that higher lending is needed to sustain the economic recovery.
No final decision on TARP money for small businesses has been reached, how many and which businesses might qualify, or how small businesses might apply for funds.
In New Mexico, Trinity Capital Corp. of Los Alamos — the parent company of Los Alamos National Bank — received a $36 million TARP investment in March, and Santa Fe-based Century Financial Services Corp. received a $10 million TARP investment in June.
