HBKS - TARP Shuffle......to the Small Business Loan Fund Program!!!!
The 2012 10-K really tells it like it is......Bottom line, in AUG/2011 HBKS simultaneously paid-off the remaining TARP balance ($7.4M) buy participating in the Small Business Loan Fund Program and issuing 7,800 shares of preferred stock (worth 7.8M) to the Treasury.........WOW, didn't know that until now.
4/9/13 - For many banks, the Small Business Lending Fund was nothing more than a way to get out of the Troubled Asset Relief Program.
That's the conclusion of the federal government's special inspector general for the TARP program, Christy Romero, who analyzed how community banks used SBLF capital.
The program was created by Congress to increase lending to small businesses by providing banks with cheap capital.
But $2.7 billion out of SBLF's $4 billion in capital went to 137 banks that were TARP recipients. These banks used $2.1 billion of their SBLF capital to pay back their TARP debts, so they could escape the program's stigma and restrictions, such as caps on executive compensation
After receiving capital, can my institution exit the Small Business Lending Fund at any time?
Yes. Subject to the approval of your regulator, your institution can exit the Small Business Lending Fund at any time simply by repaying the funding provided along with any accrued dividends. There is no prepayment penalty.
If your institution wishes to repay its SBLF funding in partial payments, each partial payment must be at least 25% of the original funding amount.