At least seven community banks have taken the Treasury Department up on its offer to make bigger capital injections under the Troubled Asset Relief Program.

When Tarp was created in October, all banks were allowed to apply for an investment of up to 3% of their risk-weighted assets. Last month, the Treasury reopened the application process for banks with assets under $500 million, and said that this time they could apply for infusions of up to 5% of risk-weighted assets. The bigger investments would be funded by repayments from larger institutions that no longer want to participate in the program.

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