TAARP/Small Business Lending Fund Hoax

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The government recently began dispersing money from the Small Business Lending Fund.  This is a $30B fund. Eligible banks cannot be on the problem bank list.  The banks are effectively using the money to refinance, the TAARP bailout funds which they haven’t paid back.  The rate is also reduced from 5% to 1%.  Some banks are receiving additional funds to be used for small business lending.

Hold on, we are giving banks who can’t repay their bailout funds back, money to refinance these funds and possibly additional funds, at lower rates.

All this program is paying off one government program with another government program.

For example Central Bancorp, Sommerville MA was approved to receive $10MM from the Small Business Lending Fund, to pay off the $10MM in TAARP funds it didn’t pay back.  So this bank makes no effort to the TAARP money back and gets rewarded with a lower rate?   That’s a good deal for the tax payer.

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