U.S. Treasury Department To Give Funds To Banks
The U.S. Treasury Department has decided to allocate funds to six community banks. The banks will get funds worth $123 million and this will be for lending to small businesses.
The department also faced flak for not doing this sooner as this plan was thought of and approved by the Congress in December 2010. The funds were supposed to be given because small businesses were having problems recuperating after the recession ended.
These funds are for small/community banks which have under $10 billion assets and they would pay interest of 1%-5%. According to Timothy Geithner, Treasury Secretary, "We will be careful with the taxpayers' money." He also said that they had received 869 applications from banks for funds.
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