MainStreet Bank has announced that it will not participate in the U.S. Treasury Department’s troubled asset relief programme’s capital purchase programme (CPP).
MainStreet Bank received preliminary approval for up to $4.5m in capital from the U.S. Treasury.
Jeff Dick, chairman, CEO and president of MainStreet Bank, said: After careful consideration, MainStreet Bank’s board of directors elected not to participate in the programme.
We greatly appreciate the federal government’s recognition of our financial strength in approving our participation in the capital purchase programme. However, as a strong and well-capitalised community bank, we determined that we have the means to continue our growth strategy and successful lending programmes without Treasury Department assistance.
The capital purchase programmeis created by the U.S. Treasury is a voluntary programme in which selected, healthy financial institutions are encouraged to participate. Approved use of the funds includes providing credit to qualified borrowers, either as companies or individuals, among other things. Such participation is intended to support the economic development of the community and thereby restore the health of the local and national economy.
The CPP is available to bank holding companies, financial holding companies, insured depository institutions and savings and loan holding companies which engage solely or predominately in activities that are permissible for financial holding companies under relevant law.
