OCC Bulletin 2010-45| December 21, 2010

Small Business Lending: Small Business Lending Fund Program and Underwriting Standards


Chief Executive Officers and Lending Officers of All National Banks, Department and Division Heads, and All Examining Personnel

The guidance attached to this bulletin continues to apply to federal savings associations.

Purpose and Background

The Small Business Lending Fund (SBLF) program was created pursuant to the Small Business Jobs Act of 2010 (act), which directs the Secretary of the U.S. Department of the Treasury to make capital investments in eligible financial institutions to address the continuing effects of the financial crisis on small businesses and to increase those businesses access to credit. The act authorizes the U.S. Department of the Treasury (Treasury) to purchase up to $30 billion in preferred stock and other financial instruments from financial institutions to increase the availability of credit for small businesses. Participation in this program is generally limited to insured depository institutions and bank holding companies with $10 billion or less in total consolidated assets.

Application Process

National banks that are interested in applying for funds under this program should review the application and program requirements available at Treasury's Website at http://www.treasury.gov/SBLF. Under the act, an applicant must prepare and provide a small business lending plan in support of its application to participate in the program. Treasury established guidelines on what each lending plan should address. The act stipulates that the lending plan be treated as confidential supervisory information but that it will be shared with Treasury, subject to an information-sharing agreement with the regulator.

National banks should submit their applications to Treasury at SBLFApps@do.treas.gov. A copy of the application and the institution's small business lending plan should be sent to the OCC via secure email using the attached instructions.

Underwriting Standards for Loans Made Under the SBLF Program

In support of this act, the federal banking agencies are required to issue guidance regarding prudent underwriting standards for small business loans that participating institutions make with SBLF funds. The interagency standards for SBLF loans are attached.

Additional Information

For further information, contact Credit & Market Risk (202) 649-6670.


Timothy W. Long
Senior Deputy Comptroller for Bank Supervision Policy
and Chief National Bank Examiner

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