CIT Group, which emerged from its 38-day bankruptcy last week, announced it will commit $500 million to its small business lending program for government guaranteed loans.

Judge Allan Gropper of the U.S. Bankruptcy Court in Manhattan approved the company’s prepackaged plan last week. The loans will be targeted to middle-market companies — a segment of the economy that has seen a dramatic drop in lending amid the credit turmoil. CIT, a century-old lender to midmarket companies, emerged from bankruptcy, having shed $10.5 billion worth of debt.

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