Small Banks Used Federal Aid To Exit TARP, Report Says

Law360, New York (April 10, 2013, 2:33 PM EDT) -- Some community banks used more than $2 billion from a highly touted but ultimately disappointing federal program aimed at boosting small-business lending to instead pay off federal bailout loans, according to a watchdog report released Tuesday.

Congress created the $30 billion Small Business Lending Fund in 2010 as a way to get banks with $10 billion in assets or less to boost lending to local businesses that were having trouble accessing loans after the financial crisis. But the program only ended up doling out around $4...
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