Treasury injects $67M in MO small-business lenders

Springfield-based Great Southern Bancorp Inc. and Liberty Bancshares Inc. are among the 13 Missouri institutions receiving $66.8 million to lend to small businesses, the U.S. Treasury announced April 9.

Treasury officials said the new capital through the Small Business Lending Fund aims to encourage community banks to increase their lending to small businesses. The move is part of the Small Business Jobs Act, according to a Treasury news release.

Nationwide, the Treasury has invested $4 billion in 332 institutions participating in the fund, the release said.

According to the latest fund report issued to Congress this month, Great Southern Bancorp had $225 million in qualified small-business lending and Liberty Banshares had $261 million in qualified small-business lending, as of Dec. 31. In the last quarter of 2011, the report showed business lending of $339,463 at Great Southern Bancorp and business lending of $378,402 at Liberty.

On Aug. 18, Great Southern invested $58 million into preferred shares of the fund and Liberty Bancshares invested $23 million into preferred shares of the fund, according to a Treasury transaction report released April 9.

“The Small Business Lending Fund is having a powerful impact,” said Deputy Secretary of the Treasury Neal Wolin, in the release. “The program is helping spark new lending to local entrepreneurs looking to invest in their businesses and create new jobs.”

During the last quarter of 2011, fund participants nationwide increased small-business lending by $1.3 billion, compared to the prior quarter.

According to the release, community banks are defined as those with less than $10 billion in assets. Participating banks pay a dividend rate on the Treasury funds that is reduced as banks increase their small-business lending.