4 banks from Pennsylvania shall get a fund of $50 million for lending easy loans to small businesses and firms. These 4 community banks, including one that is located in Pittsburgh, will receive special funds to promote small business lending.

While a fund of $5 million will be accorded to the Allison Park based Enterprise Financial Services Group Inc, the Clearfield based CBT Financial Corp inc shall get a fund of $ 10 million from the Small Business Lending Fund. Small Business Lending, the US Treasury Department, has also announced $10 million to Emclaire Financial Corp which is based in Emlenton while York’s Codorus Valley Bancorp Inc. shall be granted a fund of $25 million.

The decision to allot them funds for revival of small businesses can be attributed to the Small Business Jobs Act which has been directed towards financially aiding small business sector. The fund strengthens the community banks with financial resources so that they can give a boost to lending to small and medium firms.

The Treasury Department stated on Wednesday that approx $134 million have, hitherto, been allotted to a total of 13 Pennsylvanian community banks for the purpose of small business lending.

The small businesses are struggling to meet with the rising costs and the reports of increasing cases of insolvency and bankruptcy indicate the unstable status of this sector. The situation warrants that the small business owners be provided easy bank loans so that the sector can come out of this recession-hit economy unscathed.