US allots $37.3m to boost lending
The federal government has provided an additional $37.3 million to five Massachusetts community banks in an effort to boost small-business lending.
The Treasury Department has provided $95.3 million overall to 12 banks in Massachusetts through the Small Business Lending Fund, a program designed to inject capital into healthy small- and mid-size banks so they will lend more to businesses.
The program has generated controversy. Critics say that many banks, including some in Massachusetts, are simply using the money to repay what they owe the government under the Troubled Asset Relief Program, not to boost small-business lending.
None of the just-announced recipients got TARP money.
The largest amount, $18.7 million, was earmarked for Hyde
The other recipients are Stoneham Bank ($13.8 million), Boston Community Loan Fund Inc. of Roxbury ($4.4 million), Common Capital Inc. of Holyoke ($200,000), and Capital Link Inc. in Boston ($198,000).