Rep. Mike Thompson Announces $4.3 Million for West Sacramento Community Bank
September 28, 2011
The Rural Community Assistance Corporation Receives Funding to Help Local Small Businesses Access Capital, Create Jobs
Congressman Mike Thompson (CA-1) today announced that The Rural Community Assistance Corporation (RCAC) in West Sacramento was awarded $4.3 million through the Small Business Lending Fund (SBLF). The SBLF, which was established as part the Small Business Jobs Act of 2010 that Rep. Thompson supported, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.
“Small businesses are the engines that drive our economy,” said Rep. Thompson. “As I talk with small businesses across Northern California communities, they tell me getting access to credit is their number one challenge. Because of these funds, the Rural Community Assistance Corporation will have more capital to help our area's small businesses get the credit they need to grow, hire workers and fuel our economy.”
Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.
The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses - providing a concrete incentive for new lending to small businesses.
“Recently the RCAC Board of Directors made a decision to begin using our loan fund for small business lending to help create new employment opportunities in rural America,” said Stan Keasling, CEO of the RCAC. “This $4.3 million low interest investment in our loan fund will jump start that program and provides needed resources for businesses in our region.”
“Creating jobs is my number one priority,” continued Thompson. “By opening credit it is easier for small business to get loans, pay bills, make investments and hire workers - and that means more jobs.”
Congressman Mike Thompson is proud to represent California's 1st Congressional District, which includes the Counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa, and Yolo. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and sits on the bipartisan, bicameral Congressional Wine Caucus.
“Small businesses are the engines that drive our economy,” said Rep. Thompson. “As I talk with small businesses across Northern California communities, they tell me getting access to credit is their number one challenge. Because of these funds, the Rural Community Assistance Corporation will have more capital to help our area's small businesses get the credit they need to grow, hire workers and fuel our economy.”
Small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital.
The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses - providing a concrete incentive for new lending to small businesses.
“Recently the RCAC Board of Directors made a decision to begin using our loan fund for small business lending to help create new employment opportunities in rural America,” said Stan Keasling, CEO of the RCAC. “This $4.3 million low interest investment in our loan fund will jump start that program and provides needed resources for businesses in our region.”
“Creating jobs is my number one priority,” continued Thompson. “By opening credit it is easier for small business to get loans, pay bills, make investments and hire workers - and that means more jobs.”
Congressman Mike Thompson is proud to represent California's 1st Congressional District, which includes the Counties of Del Norte, Humboldt, Lake, Mendocino, Sonoma, Napa, and Yolo. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and sits on the bipartisan, bicameral Congressional Wine Caucus.
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Issues:Jobs & Economy