Heritage Bankshares Inc. Message Board

While the SBLF was intended to incentivize bank small-business lending, 24 former TARP banks have not increased their lending, and the remaining former TARP banks have increased lending by $1.13 for each SBLF dollar they received, the report said.

"By comparison, banks that did not participate in TARP but received SBLF funding have increased small-business lending by more than three times that amount--$3.45 for each $1 in SBLF funds," SIGTARP added.

Of the $30 billion in taxpayer-funded SBLF money, banks didn't even make use of most of it. But many of the banks that did participate in SBLF used that bailout money to pay off another bailout," Ryan Donovan, CUNA senior vice president of legislative affairs, noted Friday.

Market Cap of 29.5 M, owes the Treasury 7.8M (TARP II)

Until the $7.8M is paid back, HBKS will continue to pay interest......meanwhile, common shareholders will have to understand that the Treasury (preferred shares) comes first with any sort of liquidation.

"...such as caps on executive compensation..".............Hmmmmmmmmmmmmm

Treasury Site lists all the banks involved in this program by state. Oh look, there's HBKS! Someday this will all have to be paid back, $7.8M......Glad MNRK doesn't have this albatross hanging around their neck!!!!

REPAYMENT

After receiving capital, can my institution exit the Small Business Lending Fund at any time?

Yes. Subject to the approval of your regulator, your institution can exit the Small Business Lending Fund at any time simply by repaying the funding provided along with any accrued dividends. There is no prepayment penalty.

If your institution wishes to repay its SBLF funding in partial payments, each partial payment must be at least 25% of the original funding amount.

4/9/13 - For many banks, the Small Business Lending Fund was nothing more than a way to get out of the Troubled Asset Relief Program.

That's the conclusion of the federal government's special inspector general for the TARP program, Christy Romero, who analyzed how community banks used SBLF capital.

The program was created by Congress to increase lending to small businesses by providing banks with cheap capital.

But $2.7 billion out of SBLF's $4 billion in capital went to 137 banks that were TARP recipients. These banks used $2.1 billion of their SBLF capital to pay back their TARP debts, so they could escape the program's stigma and restrictions, such as caps on executive compensation

Can't believe the spread is growing so quickly.

Not good.....And not impressed.

Vikram Pandit, the former CEO of Citigroup Inc., earned total compensation of a $1 in 2010 after the financial crisis fueled losses in the previous two years...........

**down 35% since DEC/2004

Charts don't lie.