Business

June 20, 2013

Most Kansas banks increase loans in Treasury program

The Treasury Department on Thursday released the results of its first Small Business Lending Fund Lending Survey, touting that more than 90 percent of the banks participating in the program reported stronger small business lending.

The Treasury Department on Thursday released the results of its first Small Business Lending Fund Lending Survey, touting that more than 90 percent of the banks participating in the program reported stronger small business lending.

Treasury’s survey said that the South and Midwest saw the largest growth in small business loans – estimated increases of 20,200 and 8,700, respectively – followed by the Northeast with a 5,500-loan increase and the West with an increase of 3,600 loans.

According to data included with Thursday’s survey results, most, but not all, Kansas banks participating in the program – including one in Wichita – have increased their small business lending by double-digit percentages.

The data showed that six of eight Kansas banks increased their small business lending between the start of the program in July 2011 and the end of the fourth quarter of 2012. Those banks are: State Bank of Bern, 13.6 percent; CBW Bank in Weir, 35.8 percent; Equity Bank in Wichita, 10.2 percent; Freedom Bank in Overland Park, 29.8 percent; Farmers Bank of Osborne, 76.6 percent; and United Bank & Trust in Marysville, 33 percent.

Two Kansas banks, however, saw a decline in their small business lending over that period: Brotherhood Bank & Trust in Kansas City, with a 43 percent decline in small business loans; and Farmers State Bank in Holton, with a 2.6 percent decline.

The report defines small business lending as loans up to $10 million to firms with $50 million or less in revenue.

The program provided extra capital to participating banks. For instance, Equity received $16.4 million in extra capital through its SBLF participation. The program was part of the Small Business Jobs Act signed into law in 2010.

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