U.S. Treasury Department gave bank nearly $38 million to issue loans to area small businesses
First NBC Bank in New Orleans says it's getting many phone inquiries after the announcement last week that it has been given nearly $38 million from the U.S. Treasury Department to issue loans to area small businesses.
A bank official says that employees at the bank are taking information from small businesses looking for financing and getting back to them as quickly as possible to help them through the application process. "Some people are upset with us when we don't get to them in an hour," the official said. The bank's main number is 504.566.8000.
The award came under the 2010 federal Small Business Jobs Act, which established a $30 billion fund to encourage community banks to make loans to small businesses. The U.S. Treasury provides the cash by purchasing preferred stock or equivalents in each bank, with the investment expected to be used for small business loans. The more small business loans issued, the better the eventual repayment terms for the bank.
Bruce Alpert can be reached at balpert@timespicayune.com or 202.450.1406. Jonathan Tilove can be reached at jtilove@timespicayune.com or 202.450.1406.
