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Financial Institution Letter

Underwriting Standards for Small Business Loans Originated Under the Small Business Lending Fund Program

Summary: The Small Business Lending Fund (SBLF) Program was created pursuant to the Small Business Jobs Act of 2010 and directs the federal banking agencies to issue guidance regarding prudent underwriting standards for small business loans made with SBLF funds by SBLF participating institutions. The guidance is attached.

Highlights:
  • The U.S. Department of the Treasury ("Treasury") is administering the SBLF Program. The Small Business Jobs Act of 2010 requires the federal banking agencies to issue small business loan underwriting guidelines for program participants.
  • Boards of directors of institutions participating in the SBLF Program should ensure that small business lending policies are consistent with the attached guidance and safe and sound lending practices.
  • If an SBLF loan involves a Small Business Administration (SBA) guaranty, the institution should adhere to the SBA's requirements.
  • State nonmember institutions applying to Treasury to participate in the SBLF Program should submit their small business lending plan to the appropriate FDIC regional office or through FDICconnect.

Distribution:
FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:
Chief Executive Officer
Chief Lending Officer
Small Business Loan Officers

Contact:
Senior Examination Specialist Bill Baxter, (202) 898-8514, or wbaxter@fdic.gov

Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2010/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).


Additional Related Topics:

  • Part 323 of the FDIC Rules and Regulations
  • Part 364 of the FDIC Rules and Regulations
  • Part 365 of the FDIC Rules and Regulations
  • Interagency Statement on Meeting the Credit Needs of Creditworthy Small Business Borrowers, issued on February 12, 2010.
FIL-90-2010
Attachment(s)

Last Updated: December 23, 2010