The U.S. Department of the Treasury this week announced that several Illinois banks would receive funding for small-business loans.

Eight additional Illinois community banks are to receive a total of $131.7 million as part of the final wave of funding provided through the Small Business Lending Fund, according to the Treasury. The fund was established as part of the Small Business Jobs Act of 2010, to encourage community banks to increase their lending to small businesses.

Bloomington-based Heartland Bancorp is slated to receive $25 million in funding. Heartland also has branches in Champaign and Urbana. Fisher National Bank has been allotted $1 million. In addition to Fisher, the bank has a branch in Mahomet.

The Small Business Lending Fund helps give small banks "the ability to participate in a program that would, one, help build their capital, and two, provide funds for small businesses," Fisher National Bank President Mike Estes said.

It's not a bailout, Estes said. Nor is it free money.

The more small-business loans made by the bank, the cheaper the dividend or interest rate for the bank, he said.

"We pay for this money. We do have to pay it back," Estes said.

The program will help community banks build their capital "and help us grow a little bit more," he said.

In addition to Heartland Bancorp of Bloomington and Fisher Bancorp of Fisher, the Illinois banks receiving the latest round of funding include the following: QCR Holdings of Moline ($40.1 million), United Community Bancorp of Chatham ($22.3 million), Illinois State Bancorp of Chicago ($13.4 million), Signature Bancorporation of Chicago ($12.5 million), People First Bancshares of Pana ($9.2 million) and IFF of Chicago ($8.3 million).

Overall, including Wednesday's announcement, 21 Illinois banks got a total of $305.3 million in SBLF funding, according to the Treasury.

"Billions of dollars in SBLF funds are now being put to use in communities all across the nation, spurring small-business growth and job creation," said Deputy Secretary of the Treasury Neal S. Wolin in a written release. "These investments, which will help propel lending by Main Street banks, are good for our economy and good for America's small businesses," he said.

Small businesses employ roughly one-half of all Americans and account for about 60 percent of gross job creation, according to the Treasury. However, small-business owners have faced challenges, such as obtaining capital, following the recession and credit crisis.

Small-business loans can be for a business such as a hardware store, but agriculture-related business are considered small businesses, too, Estes pointed out.

"This is not a guaranty on loans. We still have to underwrite them. ... We still have to be very diligent and make sure we're putting good loans on the books," he said.