Learn more about Financial Institutions at Schiff Hardin.

For more information, contact one of the following attorneys:

Darren C. Baker
Lorraine M. Buerger
J. Mark Fisher
Matthew Galo
David S. McCarthy
Gary L. Mowder
Harold S. Nathan
Peter L. Rossiter
John M. Schietinger
Robert P. Sieland
Jon C. Vigano
Jason L. Zgliniec
Christopher J. Zinski

Schiff Hardin Offices

One Atlantic Center,
Suite 2300
1201 West Peachtree NW
Atlanta, GA 30309

225 Franklin Street,
Suite 2600
Boston, MA 02110

233 S Wacker Drive
Suite 6600
Chicago, IL 60606

One Westminster Place
Suite 200
Lake Forest, IL 60045

900 Third Avenue
New York, NY 10022

One Market
Spear Street Tower
32nd Floor
San Francisco, CA 94105

1666 K Street, NW
Suite 300
Washington, DC 20006

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The U.S. Department of Treasury ("Treasury") recently announced that it is extending the Small Business Lending Fund ("SBLF") application deadline for C corporations to May 16, 2011. Through the SBLF, Treasury intends to increase financial institution profitability while also stimulating local economic growth by providing eligible banks with Tier 1 capital, with dividend rates that decrease as small business lending increases. Additionally, SBLF provides opportunities for community banks to refinance outstanding Capital Purchase Program investments under the Troubled Asset Relief Program ("TARP") and Community Development Capital Initiative securities.

Despite extending the application deadline, Treasury continues to encourage early application, even by banks that are not certain they will participate in the SBLF. Approved banks are not required to participate and banks may withdraw applications at any time without penalty. The application process includes submitting an application to Treasury and a small business lending plan to the institution's primary regulator.

Recently proposed legislation could alter eligibility requirements and benefits offered by the SBLF. A Senate bill introduced on March 30, 2011, aims to increase the transparency and accountability of the SBLF. If enacted, the Greater Accountability in the Small Business Fund Act of 2011 would create a 10 year repayment requirement, a 15 year sunset provision, and a 2007 benchmark for assessing small business lending. Additionally, banks would no longer be able to strengthen their capital position by counting SBLF funds as Tier 1 capital and would not be able to use SBLF funds to refinance debt under TARP.

Treasury is continuing to develop terms for mutual institutions, Subchapter S corporations, and community development loan funds interested in participating in the SBLF and has not yet set an application deadline for these institutions.

More information is available here or at Treasury's SBLF Resource Center, available at www.treasury.gov/resource-center/sb-programs/Pages/Small-Business-Lending-Fund.aspx.

ABOUT SCHIFF HARDIN LLP

Schiff Hardin LLP provides services to banks, savings associations and other types of financial institutions nationwide and internationally. In addition to our traditional strengths in restructuring, recapitalizations, mergers and acquisitions, securities and financings, bank regulatory compliance, and trust department counseling, we have a particular and increasing focus on corporate governance and fiduciary litigation. Our Finance Group also supports our financial institutions clients in all aspects of their credit and lending businesses, and our Securities and Futures Regulation Group assists them in their securities, investment management and commodities-related businesses. We represent some of the largest banking organizations in the United States and overseas, and many community banks and thrifts. For more information, contact us.