Monument Bank of Bethesda received $11.4 million through the federal government’s Small Business Lending Fund, the U.S. Treasury Department announced.
The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified community banks at favorable rates.
The government channels the money to banks by purchasing preferred shares of stock.
The dividend rate that a bank pays on SBLF funding is reduced as the bank increases its lending to small businesses.
Monument, which has two branches in Bethesda and Silver Spring, is the second Maryland bank to receive SBLF funding. Eagle Bancorp of Bethesda received $56.6 million in July.