Blackhawk Bancorp has received preliminary approval to participate in the US Treasury’s voluntary capital purchase programme (CPP) which was created under the Emergency Economic Stabilisation Act of 2008.
Blackhawk is preliminarily approved to receive $10 million of capital from the U.S. Treasury in the form of preferred stock.
The purpose of the capital purchase programme is to allow the U.S. Treasury to make capital investments in healthy financial institutions to promote confidence and stabilisation in the economy. This increases Blackhawk’s capacity to lend money and make investments in the communities it serves. By making this programme available to community banks, the U.S. Treasury is ensuring that its economic recovery programmes reach main street businesses and communities.
Rick Bastian, president and CEO of Blackhawk Bancorp, said: This investment gives Blackhawk a tremendous additional resource to continue meeting the borrowing needs of businesses and individuals which help support and promote economic stability in the communities we serve. We believe that being the first community bank in our market area to be preliminarily approved for the capital is a reflection of the U.S. Treasury’s confidence in Blackhawk and the community can be assured that we will invest the capital in loans to local businesses, homeowners and individuals.
