Opening The Money Spout

Local bankers say they’ve seen signs, or at least a glimmer, that small business owners will clamor for an influx of capital in the next two years. And community banks, the primary source of funding for small businesses, want to be ready.

Helping them achieve that desire is a $30 billion U.S. Treasury fund intended for local business owners who might be re-energized by the economic recovery and are seeking to expand.

The Small Business Lending Fund, approved by Congress and President Obama in 2010 as part of the Small Business Jobs Act, designates all-important Tier 1 capital—the core measure of a bank’s financial strength—to qualified community banks with less than $10 billion in assets.

“It’s going to help in terms of increasing our ability to lend, which is what it’s geared for,” says Brian Eagleston, CFO and executive vice president of FineMark National Bank & Trust, which has locations in Fort Myers, Bonita Springs and Naples.

Access to inexpensive capital is key for community banks to be able to compete against other banks when small businesses loan demand starts to ramp up in the region. The Small Business Lending Fund offers incentives to banks that are in good shape and want to tap into the big pool of capital.

“As a community bank, we’ve got a responsibility to make credit available to local businesses to help them grow and expand,” says David L. Barbur, senior vice president and city executive for Florida Shores Bank in Fort Myers. “The Small Business Lending Fund provides a low-cost access to capital.”