WASHINGTON – A Wildwood business has received millions in federal funds aimed at increasing jobs with small business loans.

The U.S. Department of the Treasury announced that Crest Savings Bancorp, Inc. of Wildwood has received $2.5 million through the Small Business Lending Fund (SBLF).

The SBLF, which was established as part of the Small Business Jobs Act that President Obama signed into law, encourages community banks to increase their lending to small businesses, helping those companies expand their operations and create new jobs.

“These funds will provide a powerful incentive for community banks to expand their lending to small businesses, spurring new investment and job creation” said Neal S. Wolin, the deputy secretary of the Treasury. “Breaking down barriers to credit will provide critical support to Main Street entrepreneurs looking to invest in their local communities, grow their businesses, and put more Americans back to work.”

To date, New Jersey community banks have received a total of $25.5 million in SBLF funding. Crest Savings Bancorp, Inc. is the third New Jersey community bank to receive SBLF funding. Previously, Hopewell Valley Community Bank (Pennington) received $11.0 million in SBLF funding and Community Partners Bancorp (Middletown) received $12 million in SBLF funding. Additional SBLF funding announcements will be made on a rolling basis in the weeks ahead.

According to officials at Treasury, small businesses play a critical role in the U.S. economy and are central to growth and job creation. Small businesses employ roughly half of all Americans and account for about 60 percent of gross job creation. But small business owners faced disproportionate challenges in the aftermath of the recession and credit crisis, including difficulty accessing capital, according to a federal statement.

The SBLF helps small businesses meet this challenge by providing capital to community banks that hold under $10 billion in assets, according to officials. The dividend rate a community bank pays on SBLF funding is reduced as that bank increases its lending to small businesses – providing a strong incentive for new lending to small businesses so they can expand and create jobs.

The SBLF is one part of the Obama Administration’s comprehensive agenda to help small businesses access the capital they need to invest and hire. The State Small Business Credit Initiative (SSBCI), which is also a key part of the Small Business Jobs Act, allocates $1.5 billion to new and existing state programs that will leverage private financing to spur $15 billion in new lending to small businesses and small manufacturers.

The Obama Administration has also supported 17 direct tax breaks that provide tax relief of more than $50 billion for small businesses. These tax breaks were designed to support job creation and retention, entrepreneurship, investment, and growth. The Administration has also worked with Congress to extend and expand existing Small Business Administration loan programs that helped put more than $42 billion in the hands of small businesses and deliver other important benefits to help small businesses expand and hire.