Three more community banks have been approved for loans from the Treasury Department's $30 billion Small Business Lending Fund.
Eagle Bancorp Inc. in Bethesda, Md., said last week that it has received a $56.6 million investment from Treasury and that it will use about $23.2 million of that to repay the remaining balance on a loan it received from the Troubled Asset Relief Program.
On Monday, Security Business Bancorp in San Diego said it has received $8.9 million from Treasury and BNC Financial Group Inc. in New Canaan, Conn., said it has won preliminary approval for an $11 million loan. Both also intend to use a portion of the proceeds to repay their Tarp balances.
Congress established the fund last year to help encourage community banks to increase their lending to small businesses. Treasury has so far committed $225 million from the fund to at least 10 community banks. It has received applications from more than 800 banks, and under the law it has until Sept. 27 to distribute funds.