Centrix Bank in Bedford, N.H., intends to tap the government's billion Small Business Lending Fund to increase its commercial lending and repay what it borrowed from the Treasury Department's Troubled Asset Relief Program.
The $693 million-asset bank said Monday that it s set to receive to receive $24.5 million from $30 billion fund created last year to encourage community banks to increase their lending to small businesses. Centrix said that $7.5 million would go toward retiring its TARP debt while the rest would be used to support loan growth.
Treasury has so far committed roughly $150 million from the Small Business Lending Fund to seven community banks. As of June 22, Treasury had received 869 applications for approximately $11.6 billion in funds. Under the law, it has until Sept. 27 to distribute funds.