CCB Bankshares in South Hill, Va., has raised $3.5 million in a private placement of debt and will use some of the money to exit the Small Business Lending Fund.

The parent company of the $174 million-asset Citizens Community Bank sold subordinated notes that will mature in February 2026, it said in a news release Friday.

CCB plans to use the net proceeds to redeem its remaining $1 million in preferred stock issued to the U.S. Treasury as part of the SBLF program, as well as for general corporate purposes. The SBLF transaction requires regulatory approval.

The subordinated notes bear interest at a fixed rate of 7.00%. They are noncallable for five years and will qualify as Tier 2 regulatory capital, the release said.

CCB acted as its own placement agent for the private offering. LeClairRyan served as legal counsel.

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