No, we are not aware of any steps financial institutions are taking with respect to negotiating a lower dividend rate. Banks participating in the Small Business Lending Fund Program are required to pay dividends at a rate of 9% if they have not repaid any of the Treasury’s initial investment after 4.5 years since they received the funding. See the Treasury’s SBLF Fact Sheet and Section 4103(d)(5)(E) of Public Law 111-240 (the Small Business Jobs Act of 2010).
Our dividend rates under the Small Business Lending Fund are scheduled to increase to 9%. Are you aware of any steps taken by other financial institutions to negotiate a lower dividend rate?
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