STAFF REPORT
Dripping Springs-based Pioneer Bank has been approved to receive a $3 million investment in its preferred stock from the U.S. Department of the Treasury under the Small Business Lending Fund program.
The fund aims to encourage small business lending by providing capital to qualified community banks at favorable rates. The fund proceeds will provide the bank additional capital to support its growth.
“Having originated over $4 million of SBLF qualified loans since June 30, 2010, we are proud of our record of lending in the community. Our participation in this program will enable us to continue our commitment to support our small business borrowers,” Pioneer president and CEO Jeff Wilkinson said.
The bank, which says it has $112 million in assets, was in the first group of institutions approved for the program and anticipates that the transaction will close June 30.
