WASHINGTON — The Treasury Department and the Small Business Administration (SBA) are collaborating on a new initiative designed to make it easier for community banks to obtain capital and raise the funding limit for SBA loans.
Under the plan unveiled last week, banks with assets of less than $1 billion will be able to borrow capital from the government at a 3% dividend rate. To qualify, banks will need to submit a small-business lending plan showing how the money will expand their small-business lending.
