Founders Bancorp, parent company of Founders Community Bank in San Luis Obispo, has received $4.2 million from the U.S. Treasury Department as part of the next wave of funding provided through the Small Business Lending Fund, Rep. Lois Capps, D-Santa Barbara, announced.
Capps praised the Treasury Department for expediting the funding and said in a news release that it would help Founders Bancorp increase lending to small businesses, “helping those companies expand and create new jobs.”
The Small Business Lending Fund was established last year.
Thomas J. Sherman, president and CEO of Founders Bancorp, said the capital would allow his organization to “further supplement our small business lending activities within San Luis Obispo County, primarily in commercial loans and owner-occupied real estate loans.”
Small businesses, according to a statement from Capps’ office, are central to growth and job creation. They employ roughly one-half of all Americans and account for about 60 percent of gross job creation, according to Capps’ office.
However, the statement added, small business owners “faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.”
The Small Business Loan Fund helps small businesses meet this challenge, according to Capps’ office, by providing capital to community banks that hold less than $10 billion in assets.